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Bangladesh Super Cyclone ‘SIDR’ 2007

Impact on the Frozen Food Business

Dilruba HaiderBrac UniversityDhaka, Bangladesh

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Damage and Loss Assessment

Casualty: around 4000 Districts affected: 30(worst hit: 13) People affected: 5.48 million People needing immediate relief: 2.56 million Roads (km): 89,000 Bridges and culverts: 1654 Embankment (km): 315 Ferries: 28 (out of 44) (13 restored) Electricity: 33kv line- 416 km, 11 kv line 287 km

= Property loss: Tk 8200 crore ($1180million)

(as of 23 November 2007)

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Damage and Loss

Standing crops (Hectare): Damaged 574,769 hectare

Houses:Damaged: 1,123,553

Cattle and Poultry:Perished: 352,363

Educational institutions:Damaged: 7,317

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Damage and Loss

Environment and Forest: US$ 5.6 Million Roads and Highways: US$2.6 million BWDB- embankments, sluice gates, riverbank

protection structure: US$27.0 million People’s livelihood: not estimatedTotal donor Commitment: $200 million

(GOB estimate as of 21 November 2007)

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Loss in Frozen Food or Shrimp Industry

Loss in Shrimp or Frozen food: US$3.7 million Country’s third largest foreign currency earning sector Hatcheries, ponds, factories all washed away:70% of

the shrimp industry are located in the SIDR affected Districts: Bagerhat, Sathkhira, Khulna (Black Tiger Shrimp: bagda), Barguna, Patuakhali, Pirojpur, Madaripur, Gopalganj (fresh water shrimp: Golda)

Bagda is cultivated on 130,000 hectares of land while Golda in 40,000 hectares (70% is fully or partially damaged)

Shrimp farmers get loans from the Exporters, all loans taken are washed away

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Predicament-

Frozen food industry earned $515 million in 2006/07; GOB had fixed this fiscal’s target $600 million

Shrimp industry has been facing loss due to drastic fall in prices and demands in international market in the first quarter of this fiscal

SIDR has been the severe blow to the ailing industry To recover the loss Bangladesh Frozen Food

Exporter’s Association is asking for ‘interest free bank loans’, and government support

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Predicament- The loss is going to take back the country years behind The total loss, once fully assessed would come to a

‘formidable figure’; and the estimated 7% GDP growth would be very hard to achieve

Government is already cutting back on the ADP Government alone can not recoup this loss Private sector has to come forward: financing institutions

(banks, exporters associations and the exporters) Insurance should play a vital role in recovering loss in

this industry CSR should come into play: Exporters should come in

aid of the farmers and assist in recovery of the industry

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That’s All