According to a statement issued by the Ecuadorian Aquaculture Chamber (CNA), the Ecuadorian white shrimp market is currently facing a serious crisis, with prices falling to very low levels, even lower than those during the 2020 COVID-19 pandemic.
CNA stated that it is deeply concerned about this unprecedented problem. The decline in national prices is mainly due to the decline in consumption in China and other markets, which has seriously affected the entire production chain, and it is now difficult to cover production costs. Ecuadorian shrimp prices have fallen by $0.70/lb over the past 15 months, severely impacting industry revenue levels.
Not only that, shrimp production is also facing challenges in terms of competitiveness due to increasing operating costs such as fuel, labour, unsafety factors and raw materials etc. In the past year alone, shrimp farming costs have increased by $0.28/lb, with around 30,000 jobs at risk.
Taking into account rising costs and falling prices, each pound of shrimp produced in Ecuador reduces liquidity by $0.98, impacting cash flow to date by more than $1 billion.
"During these challenging times, the value chain will continue to work together, determined to find new solutions to secure the future of Ecuador's shrimp production, a vital pillar and job creator for our country," the CNA said.
Ecuadorian white shrimp prices have been falling since March. The data for the 25th week (June 19-25) is as follows: 20/30 HOSO (with heads and shells) quoted at $4.10/kg, 30/40 at $3.50/kg, 40/50 at $3.20/kg, 50/60 only offer $2.90/kg, 60/70 only offer $2.75/kg, 70/80 only offer $2.40/kg, 80/100 only offer $2.30/kg, 100/120 only offer $1.80/kg, 120/140 only offer $1.60/kg.
Based on this calculation, compared with the same period last year, the large-size drop is in the range of $0.10/kg-$0.40/kg, and the drop is in the range of $0.10/kg-$0.60/kg compared with the early stage of the epidemic in 2020.