Abstract
This article analyzes the effects of health related regulations from the Western buyers on Bangladeshi shrimp
industry (e.g HACCAP) and ongoing national attempts to modernize the industry. To what extent can primary
sector producers in least developing countries move up the global commodity chain? In response, this article argues,
considering that the largest portion of the Bangladeshi shrimp chain is characterized by low-skilled labour,
disorganization, and informal structure which is operating in a weak political and regulatory environment, any
changes increase transaction costs and lower income effects. This leads to market diversions, price erosion,
manipulation and long-term momentum loss for actors in the value chain.