Business Report :
Japan Delica Co, an importer and processor of seafood, will launch a new business in Bangladesh in October for processing Japanese scallops and selling them in Europe, the United States and other countries, The Japan News reported on Monday.
The company has been operating a crab processing plant in Bangladesh since 2018 and has acquired a new seafood processing plant in Cox’s Bazar, in the country’s southeast. The plant will begin operations in October with 500 employees.
According to the report, the company will shell up to 1,000 tonnes of scallops per month and about 200 tonnes of scallop meat will be exported to Europe, the United States, Hong Kong, Taiwan and Singapore.
Japan Delica, located in Nishinomiya, Hyogo Prefecture and a subsidiary of Japan Food Service Co in the same city, aims to achieve annual sales of 8 billion Japanese yen (equivalent to Tk 660 crore) in three years.
The move comes amidst a Chinese ban on the import of Japanese marine products following the release of treated water from the Fukushima No.1 nuclear power plant.
The company has been operating a crab processing plant in Bangladesh since 2018 and has acquired a new seafood processing plant in Cox’s Bazar
This is the first time that a company will try to export Japanese scallops, including those from Hokkaido and Aomori Prefecture, to Bangladesh and process them locally.
Scallops had been mostly exported to China still in their shells and were shucked and consumed locally or were exported to the US.
The Japanese government is supporting the establishment of new processing plants for Japanese scallops in Vietnam and Mexico to diversify export destinations and replace China.
Currently, nearly 350 Japanese companies are operating in Bangladesh, with more than $380 million in combined investment.
Of them, 85 percent want Bangladesh and Japan to sign an economic partnership agreement (EPA) to accelerate trade and investment between the two countries.
Bangladesh exports mainly fish and crustaceans, leather footwear and leather goods, and readymade garments to Japan. The shipments were worth $1.9 billion in fiscal year 2022-23.
Among the Asian nations, Japan is the first export destination where Bangladesh’s earnings crossed the $1-billion mark in fiscal year 2015-16.
The rise in exports to the Japanese market, where consumers have long tended to prefer quality consumption, is a testament to the improving standards of goods made in Bangladesh.