In Bangladesh, the production of shrimp and prawn experienced an annual growth rate of 2.6% and 1.1% respectively over the past five years. Despite this growth , there has been a decline in exports, decreasing from 36,168 tons in 2017 to 30,571 tons in 2021 (DoF, 2021-22). As a result, the domestic market share has increased, accounting for 89% of the total shrimp and prawn production in 2021. The primary cause for the decline in exports is attributed to exporters failing to meet the safety and quality standards required by international export markets.
The purpose of this article is to disseminate insights regarding preferences concerning the quality of prawn in the local market of Bangladesh through the identification of implicit prices associated with various quality attributes across diverse consumer segments with differing socioeconomic profiles encompassing income, household size, profession, age, and residential location. The analysis of consumer segments’ outcomes is accompanied by a discussion on strategies that prawn farmers can employ to boost both sales volume and pricing through the customization of their production processes in accordance with the varied quality preferences of distinct consumer segments. The research is underpinned by 310 surveys conducted among potential prawn consumers at various retail outlets in Bangladesh, from which a semi-logarithmic hedonic pricing model is derived.
The findings suggest that the size exerts a notable impact on the pricing. A rise of 1% in prawn size correlates with a 5.5% increase in implicit price. Factors like a bright/greenish body and head color, lack of roe, see-through legs, freshness, distinct and luminous eye quality, and an intact appearance with no body damage significantly elevate the price. Conversely, features like unpleasant odor, unprocessed (whole), broken shells, and farming origins negatively affect the price. Implicit prices for each attribute differ across various demographic segments, encompassing income, age, household size, and occupation. Keeping these research outcomes in perspective, players in the prawn value chain could adjust their tactics to boost sales and profitability, while consumers can relish prawns that align with their preferred quality standards.