Image: Stockfile FIS

Shrimp exports from Ecuador are facing many challenges

VIET NAM
Friday, March 29, 2024, 01:00 (GMT + 9)

After growing quite well and achieving record export results in 2023, entering early 2024, Ecuador's shrimp export turnover decreased due to facing many obstacles. Exports to Asian markets, including China, decreased sharply due to transportation difficulties. Ecuador must increase exports to the US, so Ecuadorian shrimp exports to the US in January increased slightly.

In 2023, Ecuador's shrimp exports was grow well with an increase of 14% reaching 1.21 million tons. Of which, exports to the largest import market, China, reached 714,887 tons, worth 3.5 billion USD, up 21% in volume but down 2% in value. Ecuadorian shrimp exports to the second largest market, the US, reached 205,972 tons, worth 1.25 billion USD, an increase of 5% in volume but a decrease of 8% in value.

Source: Stockfile FIS

However, entering the first month of 2024, Ecuador's overall shrimp exports decreased, shrimp exports to China decreased sharply, and shrimp exports to the US increased slightly. In January 2024, Ecuadorian shrimp exports reached 89,211 tons, worth 431.6 million USD, down 6% in volume and 17% in value. Ecuador's average shrimp export price in January this year reached 4.84 USD/kg, down 11% over the same period last year.

In January this year, Ecuadorian shrimp exports to China (Ecuador's largest shrimp import market, accounting for 57% of the market share) decreased sharply. Ecuadorian shrimp exports to China reached 50,783 tons, worth 225 million USD, down 14% in volume and 27% in value compared to the same period in 2023.

Source: Stockfile FIS

Meanwhile, Ecuadorian shrimp exports to the US in January this year reached 16,675 tons, worth 100 million USD, an increase of 4% in volume but a decrease of 1% in value due to a sharp decrease in average export price.

Ecuadorian shrimp exports to the EU market (Ecuador's third largest shrimp import market, accounting for 17% of the market share) in January this year reached 15,269 tons, worth 74 million USD. Spain is the largest import market for Ecuadorian shrimp in the EU. In the EU, Ecuadorian shrimp exports to Spain and France recorded a decrease, but exports to Italy and the Netherlands grew well, contributing to compensating for the decline in export turnover to Spain and France.

Ecuadorian shrimp faced many difficulties at the beginning of this year

Source: Stockfile FIS -->

In the first months of this year, while "holding its breath" waiting for the US decision related to the anti-dumping tax and anti-subsidy tax lawsuit, Ecuador continued to review and tighten internal regulations on shrimp exports. right when China sent a warning letter about sodium metabisulfite residue found in some orders.

China also increased port inspection of Ecuadorian shrimp, especially regulations on labeling and sulfite residue. Shanghai, Qingdao and Zhanjiang also increased inspection of shrimp shipments. As of March 12, China Customs has not publicly announced any upcoming policy changes.

The facilities caught up in Chinese regulations are owned by shrimp industry giant Pesquera Santa Priscila. Some of the companies affected by this incident include Songa, Exportquilsa and Grupo Diosmar's Procamarones. These companies have submitted action plans and are waiting for China to review, confirm and lift the ban.

In addition, Ecuador in general and the shrimp industry in particular are facing an unstable security situation, greatly affecting the recovery and future of the industry.

Chinese shrimp prices increased

Farmed shrimp prices across China increased sharply again in the first week of March this year due to a shortage of domestic live shrimp and imported frozen shrimp supplies. On March 10, prices of different sizes of shrimp in the Pearl River Delta region of Guangdong province increased by 2-4 yuan (0.28-0.56 USD)/kg compared to the previous week. The price per kilogram of shrimp sized 80 has increased to 38 yuan/kg (USD 5.26). In Jiangsu and Shandong provinces, prices rose even higher.

This may be due to low seasonal harvest volumes, since late 2023 and early 2024, and reduced imports from Ecuador as Chinese Customs tightened inspections causing longer waiting times. China's shrimp demand is also forecast to increase as the Qingming Festival (April 4) and International Labor Day (May 1) holidays are approaching.

Source: Stockfile FIS

Red Sea tensions caused shipping costs to increase, China reduced shrimp imports from Ecuador in particular and the Americas and Europe in general and switched to importing goods from nearby markets like Vietnam.

In the first 2 months of this year, Vietnamese shrimp exports to China & HK reached more than 81 million USD, up 143% over the same period last year. In particular, lobster exports to China recorded strong growth.

Author: Kim Thu | Vasep (Translated from the original in Vietnamese)

editorial@seafood.media
www.seafood.media

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