RE-ORGANIZING THE SHRIMP SUPPLY CHAIN: AFTERMATH OF THE 1997 EUROPEAN UNION IMPORT BAN ON THE BANGLADESH SHRIMP

Abstract

The shrimp industry in Bangladesh experienced problems with international buyers resulting from serious deficiencies in infrastructure and hygiene standards in processing plants and other upstream activities and from inefficiencies in government and private quality control mechanisms. In 1997, the European Union imposed a ban on import fishery products from Bangladesh into the European Union. This resulted in losing market access to the European Union for a few months, streamlined regulations, strengthened the competent authority, improved monitoring and inspection systems, and upgrading processing plants and depots. The ban was lifted after 6 months subject to meeting inspection standards and other provisions. After upgrading production facilities, working conditions, and adopting a Hazard Analysis of Critical Control Point system, 59 processing plants received approval to export to the European Union. The shrimp supply chain has been substantially reorganized and production processes restructured to satisfy safety and quality standards imposed by developed countries. This paper examines the effect of the European Union ban on the shrimp export supply chain in Bangladesh.