Growth performance and competitiveness of finfish and frozen shrimp exports in Sri Lanka

Abstract

Frozen shrimp and finfish are important export products in Sri Lankan economy. Careful evaluation of growth trends and competitiveness of these products is important in further value chain development and sustainable economic profits. The present study examined the growth performance and export competitiveness of frozen shrimp and major finfish exports from Sri Lanka during 2000-2015. Analysis of finfish exports showed that bigeye tuna (Thunnus obesus) and yellowfin tuna (Thunnus albacares) were dominant export products. Compound growth rate analysis (CGR) of frozen shrimp indicated that there was a negative growth rate in terms of both export value (-9.3%) and export quantity (-9.07%) during 2000-2015. Fresh chilled fish, frozen fish and fish fillet and other meat have shown positive growth rates in export value (5.09, 10.24 and 70.10% respectively). However, considerable instability (11.07 and 11.74 in terms of value and quantity) was recorded in fish fillet and other meat. Export competitiveness index (XCl) for fresh/chilled fish, frozen fishand fish fillet showed positive competitiveness (XCl>1) during 2001-2015. Revealed comparative advantage (RCA) for finfish exports have shown strong competitiveness (RCA≥ 4) during 2000-2015. Frozen shrimp exports were weakly competitive (1<RCA≤2) during 2008-2015. Finfish exports have shown significant positive growth (p<0.05) in unit value realisation while frozen shrimp exports have shown non-significant (p>0.05) negative growth in unit value realisation. Expansion of export markets for Sri Lankan seafood products, value addition, compliance with international standards and diversification of shrimp exports are important further steps to sustain the competitive position of Sri Lankan fishery exports.

Compiling Variables of Development on Shrimp Export Competitiveness Index

“…The data used in calculating the CMS is data on trading volume, trade value, and trade unit value (price). This CMS model adopts the model initiated by H. Tyszynski and previously developed by JD Richardson [17].…”

The competitiveness of Indonesia’s frozen shrimp exports in international market

“…Indonesia's average RCA value for 15 years (2007-2021) of 9.02. In the international market indicated it [38].…”

“…Overall, the growth in the export value of Indian frozen shrimp in the world market is quite high reaching 21.4 per cent per annum. In 2021, India controlled a 33.2 percent share of the world's frozen shrimp with a value of US$ 6.1 billion [38].…”

Dynamic Relationships between Seafood Exports, Exchange Rate and Industrial Upgrading

“…The export performance of seafood-dependent economies, particularly in developing countries, is facing unprecedented shocks due to inadequate value addition, stringent safety standards and regulations and financial constraints to enhance competitive exports [1][2][3]. The continued ability to export competitive products required for improved export performance underpins the economic development of seafood-dependent economies.…”

“…However, most developing countries that export seafood cannot upgrade their export processing facilities [5], making market access difficult and the competitiveness of their products uncertain [6]. Due to the possibility of an increase in demand for processed seafood as a result of dietary changes, convenience, packaging and preservation methods and availability [7], inadequate value addition in the form of export processing may hinder export performance [2,8].…”