MPEDA AND SYSCO SIGNS AGREEMENT TO PROMOTE
INDIAN BLACK TIGER SHRIMPS
EXPORTS OF MARINE PRODUCTS REACHES Rs. 8608 RORE IN 2008-09
Date : 05 Oct 2009
Location : New Delhi
The Marine Products Export Development Authority (MPEDA) has signed an Agreement for Promotion of Indian Black Tiger Shrimp including the Co-Branding Agreement with SYSCO (USA). The Agreement was signed by Ms. Leena Nair, Chairperson, MPEDA and Mr. James Butch Vidrine, Vice President, SYSCO (USA) here today.
Earlier, SYSCO submitted a detailed proposal for promotion of Indian Black Tiger Shrimp through its network by branding it as MPEDA PORTICO shrimps. The proposal contains three phases of brand promotion. The total estimated expenditure for the entire promotion programme is US $ 2,308,450, of which 50% will be borne by SYSCO.
Speaking on the occasion, Ms. Nair informed that the export of marine products from India reached an all time high of Rs.8608 crore during the year 2008-09. During this period 602,835 MTs of seafood products were exported. There was an increase of 11.29% in terms of quantity and a 12.95% increase in rupee earning compared to the exports during the previous year. “This was a creditable achievement for the Indian Seafood Industry considering the great recession which has shaken even the strongest economies in the world. Right policies and interventions by Government of India / MPEDA and the pro-active role played by the industry helped in achieving the positive growth in exports for the fifth consecutive year in the most trying circumstances” Ms. Nair reiterated.
During the signing ceremony, Ms. Leena Nair said that once the Indian Black Tiger brand is established, export of other products will also get a major boost because of better brand image of seafood exported from India.
During 2008-09, Frozen Shrimp continued to be the major export item accounting for 44% of the total export earnings. Fish, the principal export item in quantity terms and the second largest export item in value, accounted for a share of about 40% in quantity and 20% in export earnings. Frozen fish recorded an export growth of about 8% in quantity, 32% in rupee value and 15% in dollar earnings. Frozen cuttlefish contributed 8% in quantity and about 9% in value terms to the export basket. Export of frozen squid grew very remarkably registering a growth of 67% in quantity, 55% in rupee terms and 41% in US dollar terms respectively. All other items also recorded a growth in exports during 2008-09.
While Shrimp constitutes about 44% of the total exports from India with a value of US$839 million yet it has been showing a downward trend over the last few years - from its all time high of US $ 394 million in 2002-03 it came down to US $ 152 million in 2008-09. Apart from declining production, the other major reason for this has been the lack of a brand image for the Indian Tiger Shrimp in the international market, especially in USA.
SYSCO is a Fortune 500 food service company and is North America's leading foodservice marketeer and distributor. They are the global leaders in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Having a record sale of $37.5 billion for fiscal year 2008. SYSCO continues to be the global leader in the foodservice industry. Today, SYSCO has sales and service relationships with approximately 400,000 customers. Operating from 170-plus locations throughout the contiguous United States and portions of Alaska, Hawaii, and Canada, SYSCO's product lines are as diverse as the 50,000 employees who support its daily operations. With their vast network all over USA the Corporation has a capacity to absorb almost 10,000 MT of Black Tiger Shrimps from India. Hence this tie up with SYSCO is expected to make a big difference to India’s export earnings.
In 2008-09, European Union (EU) remained the largest market for Indian seafood accounting for 151590 MT (25%) in quantity, Rs.2800 crore (32.5%) in rupee terms and US $ 623 million (33%) in US dollar terms. Share of European Market has come down from 35% to 32.6% in US dollar terms during the year. A very important feature of the export trend is the increase in exports to China. China got into the second place from the third position held in last year with a share of 15% in US dollar terms. Japan was relegated to third position with an overall export of 57271 MT having a value of US $ 278.61 million. Share of export to Japan has also gone down to 14.34% from 16% during the previous year. Exports to USA have fallen further to US $ 227.29 million (-10.18%) relegating it to fourth position. But exports to USA have shown slight increase in quantity and rupee value. Exports to South East Asia registered a remarkable growth with 39% increase in quantity, 52% increase in rupee terms and 33% increase in US $ term. The share of South East Asia has increased to 10% from 7.5% in US $ terms during the year. Exports to Middle East also registered growth with 5.5% increase in quantity, 20.8% increase in rupee value and 7.3% increase in US $ terms. Share of all other countries put together is 10.6%.