Export performance of fish (Fresh or chilled) from Sri Lanka

Introduction

A major industry with a distinct culture, the fishing industry in Sri Lanka employs 2% of the nation's workforce (Ministry of Fisheries, Sri Lanka). It contributes to the country's GDP, food security, employment opportunities, and foreign exchange earnings. In 2022, the fisheries industry contributed 1.1% to the GDP at current market prices. In 2022, total annual fish production was 3,97,230 Mt of which the Marine sector contributed 2,80,610 Mt, and the Inland and Aquaculture sector contributed 1,16,620 Mt (Ministry of Fisheries, Sri Lanka). Sri Lankans obtain about 50% of their animal protein from fish, which is three times the global average, and the annual per capita fish consumption in 2019 was approximately 16.6 kg. Around 65 percent of the total quantity of fish needed for national consumption in 2022 came from local fish production (Ministry of Fisheries, Sri Lanka). Sri Lanka has a large number of fisheries harbors, anchorages, and landing sites for marine fishing along its 1,620 km coastline and in its 517,000 sq. km in the Indian Ocean. The primary product categories include Tuna, Swordfish, Prawns and Shrimps, Mud and Blue Swimming Crabs, Lobsters, Sea Cucumber, Barramundi fish, and other species. In 2022, annual export earnings from the fish sector were 97,243 million. Annual import expenditure in fish import was 21,664 million in 2022 (Ministry of Fisheries, Sri Lanka). Fisheries exports have increased tremendously after the complete lifting of the ban imposed on fisheries exports from Sri Lanka. Sri Lanka exports a variety of fish to the rest of the world in various forms such as live fish, fresh or chilled, frozen fish, fish fillets, dry, salted & smoked fish, etc. Sri Lanka is very popular in the world market for bluefin tuna and yellowfin tuna fish. In recognition of its reputation for manufacturing and exporting high-quality bluefin tuna while maintaining its natural freshness, Sri Lankan bluefin tuna is a popular ingredient in sushi. Similar to yellowfin tuna, bluefin tuna is likewise a nutritious powerhouse. Overall, Sri Lanka's fish are preferred by the world due to eco-friendly and non-harmful techniques and machinery of fish harvesting and processing endorsed by modern technology and traditional know-how, tropical island provides a favorable climate and excellent quality. The fish sector in Sri Lanka complies with the rules set forth by importing nations as well as HACCP, BRP, Friend of Sea, and other environmentally friendly standards for food security. In the dynamic global market, there is a great rivalry among significant competitor countries. This challenge to establish and maintain the country's fish in the international market effectively and efficiently forces it to make potential strategic marketing decisions. The study aims to analyze the fishery export market of Sri Lanka, assess market share and growth, and evaluate the export performance of the fishery sector, to gain insights into the key markets, identify growth opportunities, and inform strategic decision-making in the fishery industry. Figure 2. shows the trade balance of the fish, fresh or chilled excluding fish fillets and other fish meat of heading. The color of the bubble expresses the sign of the trade balance where blue expresses a positive trade balance, while yellow expresses a negative trade balance. The size of the bubble is proportional to the exported value of the countries for fresh or chilled fish. According to the trade balance, Norway is ranked first, followed by the United Kingdom, Canada, Chile, Greece, Faroe Island, Iceland, Australia, Croatia, Mexico, Myanmar, Ireland, Morocco, Indonesia, New Zealand, Ecuador, Yemen, Malta, Armenia, Iran, Sri Lanka, and India.

The following Table 1 shows the export value of fresh or chilled fish and their percentage of the total fresh or chilled fish exports to the importing countries in 2021. Sri Lanka's primary importer of fresh or chilled fish is France, which accounted for 28.26% followed by Israel (17.70%), the United States of America (15.95%), Italy (8.68%), Canada (6.63%), Germany (6.59%) and Belgium (4.79%).

Materials and Methods

The study utilized secondary data, collected from various sources, including annual reports of the Central Bank of Sri Lanka, export performance reports of the Export Development Board, and TRADEMAP. The data were tabulated and presented as graphs to identify market share and growth. The two parameters relative market share and market growth rate were used to classify the export market. These formulas were used to calculate the rate of market growth.

G = P1-P0/P0

Where P1 is the value of fish exported in a particular year (Year 1) in million US dollars and, P0 is the value of fish exported in the previous year (Year 0) in million US dollars. G is a percentage that shows the market growth rate between particular years. The average rate of market growth for two years, AG can be measured as follows.

The following formula was used to determine the relative market share of a specific destination.

Where MS is the relative market share, VD is the value of fish exported to a given destination at a given period, and VL is the value of exported fish by the market leader in the same period.

Results and Discussion

Market Growth Rate

Even though the export market share is high, it does not necessarily have a positive growth rate. Figure 2 depicts the average growth rate of the market share of significant importers of fresh or chilled fish over the last three years from 2019-2021. Countries such as Denmark, Poland, Portugal, Belgium, Maldives, France, Australia, Germany, Ukraine, Switzerland, Israel, Italy, United Kingdom showed a positive growth rate. On the other hand, exports to Saudi www.extensionjournal.com Arabia, Jordan, China, Thailand, Eswatini, Singapore, the United States of America, Japan, Netherlands, Canada, Hong Kong, the Russian Federation, Spain, the United Arab Emirates, Qatar, and New Zealand displayed a negative growth rate. The average growth rate of the market share of fresh or chilled fish against its importing countries

Relative Market Share

In general, exports of fresh or chilled fish from Sri Lanka account for 0.2% of world exports of fresh or chilled fish. Sri Lanka's ranking in world exports is 39 for fresh or chilled fish (2021). It has been identified that France, Israel, the United States of America, and Italy are the key markets for fresh or chilled fish (Table 2). Relative market share is very low for the countries, namely Portugal, UAE, and Netherlands.

Conclusions

According to the recorded data by TRADEMAP, the major importers of Sri Lanka's fish (fresh or chilled) are France, Israel, the United States of America, Italy, Canada, Germany, and Belgium. France was the leading importer in 2021; approximately 28% of the fish exports went to France. Over the last three years, from 2019-21 the growth rate of market share increased in increasing rates for Denmark, Poland, Portugal, Belgium, Maldives, France, Australia, Germany, Ukraine, Switzerland, Israel, Italy, United Kingdom. It has been identified that France, Israel, the United States of America, and Italy occupied a high relative market share for fresh or chilled fish in 2021. To ensure a competitive advantage in the world market, Sri Lanka should emphasize reducing post-harvest loss and improving quality standards. To improve the quality and marketability of its fish exports, a country should foster engagement with regional and global events. Policymakers should focus on fishery policies aligned with export market dynamics. These actions can improve branding, expand markets, and increase Sri Lanka's fish export competitiveness internationally.

Acknowledgement

AcknowledgementThe authors are grateful for the support of the Sabaragamuwa University of Sri Lanka, Belihuloya 70140, Sri Lanka, and the Centre for Agricultural Market Intelligence, NAHEP-CAAST, Anand, for providing technical and financial assistance.

References

1. Export Performance -Total Fish and Fisheries Products -2014 -2024 / October. Retrieved from https://www.srilankabusiness.com/sea-food/seafoodexport-performance.html
2. Prasannath V. Export Performance of Coconut Sector of Sri Lanka. South Asian Journal of Social Studies and Economics. 2020;6(3):35-43.
3. Saima F. Export competitiveness of India and UAE in Horticulture sector with respect to Balassa Index. Just Agriculture. 2021;1(10): 2582-8223.
4. Shahzeb SM, Khushwaha H, Masood T. India's Export Potential and Competitiveness with UAE: An Exploratory Study. Saudi Journal of Economics and Finance. 2021;13(1):2523-6563.
5. Sharma SC, Sharma A. Indian processed food export potential in the European Union and the World. International Journal of Creative Research Thoughts 2022;10(9):2320-2882.
6. Sri Lankan Fishery Sector Scenario (2021-22). Retrieved from https://www.srilankabusiness.com/seafood/overview.html
7. Total Fisheries Production in Sri Lanka in 2022. Retrieved from https://www.fisheries.gov.lk/web/index.php?option=co m_content&view=article&id=64&Itemid=174&lang=e n#exports-imports
8. Value of exported fresh or chilled fish (excluding fish fillets and other fish meal of heading) by destination (2021). https://www.trademap.org/tradestat/Country_SelProduc tCountry_TS.aspx?nvpm=1%7c144%7c%7c%7c%7c03 02%7c%7c%7c4%7c1%7c1%7c2%7c2%7c1%7c2%7c 1%7c1%7c1