Ecuador’s shrimp sector is grappling with a crisis marked by soaring operating costs and a drastic decline in international prices, according to concerns raised by the National Chamber of Aquaculture (CNA). The industry has witnessed an alarming decrease in liquidity, with a USD 0.98 (EUR 0.90) reduction for each pound of shrimp produced, equating to a year-to-date economic impact surpassing USD 1 billion (EUR 917 million), as reported by the chamber.
Over the last 15 months, the export price for shrimp has experienced a significant drop of USD 0.70 (EUR 0.64) per pound, severely impacting the sector’s revenues. The primary factor contributing to this decline is lower consumption in major markets like China, posing challenges to the production chain and rendering the industry incapable of covering production costs. Remarkably, current prices are even lower than those witnessed during the pandemic in 2020, presenting an unprecedented challenge for the sector.
Ecuador has been a key shrimp supplier to China, its largest market, with 70 percent of China’s imported shrimp in 2022 originating from Ecuador. However, changes in China’s import policies, particularly related to zero-Covid restrictions, prompted Ecuador to shift focus to the U.S. and European markets. Despite this diversification strategy, Ecuador’s shrimp sector has not escaped the global oversupply of shrimp, leading to diminished demand and lower prices for producers.
The crisis highlights the vulnerability of Ecuador’s shrimp industry, emphasizing the need for strategic measures and support to navigate through the challenging market conditions
