Aquaculture and Fisheries News => Aquaculture News => ข้อความที่เริ่มโดย: Nicaonline ที่ เมษายน 01, 2020, 09:23:12 AM

หัวข้อ: Ecuadorian shrimp prices collapse as China cuts orders
เริ่มหัวข้อโดย: Nicaonline ที่ เมษายน 01, 2020, 09:23:12 AM

By Mar?a Feij?o Feb. 18, 2020 18:29 GMT
Ecuador shrimp

China's sharp reduction in shrimp purchases due to the coronavirus outbreak is causing serious trouble for Ecuadorian farmers, sources told Undercurrent News.

The demand decline has produced a sharp price drop leaving some major Ecuadorian farmers vulnerable, an industry representative (source A) told Undercurrent.

Last week, Ecuadorian shrimp prices dropped between 15% and 23% depending on sizes, compared to the previous pre-coronavirus harvest.

In some cases, prices fell from $2.00 per pound at the end of November to less than $1.60/lb. The next harvest is scheduled for Feb. 22 when new prices will be available.

Some Ecuadorian shrimp packers such as Empacadora del Pac?fico (EDPACIF) don't have prices for whole shrimp exports to China and the US for March.

"The future of the Ecuadorian shrimp market is now more uncertain than ever. With such low prices, if China doesn?t reactivate the market soon it certainly will become a great catastrophe for Ecuador. And, sincerely, the situation is not likely to change in the short-term," source A said.

This uncertainty has prompted some packers to publish their own price lists, describing what they will pay farmers for their shrimp.

Empacadora del Pacifico's export manager Marcelo Velez said that March is expected to be "a tough month" for the firm. However, he also revealed to Undercurrent that the Chinese shrimp market was reactivated this past weekend and that some packers are now able to sell their products to the Asian country.

"It surely will take some time until the situation is back to normal. Although prices will still remain low until this happens, March might not be as hard as we thought it if the demand gradually increases as we saw it did last weekend," he said.

However, small producers and packers -- most of them independent of the Ecuadorian National Chamber of Aquaculture -- are seriously concerned about the situation.

"Although we are starting to see them now, we will begin to notice the coronavirus' real effects in the sector during the coming month, most likely, which is making price predictability very difficult," another source (source B) explained to Undercurrent.

"We [shrimp producers] are living very difficult moments in Ecuador. Just see how the prices have dropped." source B also said.

Six days ago, a packer offered to pay source B $1.85/lb for 30-gram shrimp, which the source refused.

"I said no and he [the producer] insulted me. I found out later that other buyers were paying a maximum of $1.75 for the same thing," he posted on a shrimp producers' Facebook group.

A shrimp farmer also said that some buyers were offering  $1.25/lb for 26g shrimp.

"Which is not even close to being enough. We are living very difficult moments now," the source said.

หัวข้อ: Re: Ecuadorian shrimp prices collapse as China cuts orders
เริ่มหัวข้อโดย: Nicaonline ที่ เมษายน 01, 2020, 09:24:20 AM
An Ecuadorian shrimp industry researcher echoed that sentiment.

Prices for Ecuadorian whole shrimp and tails per gram. Valid until Feb. 10, 2020.

"Many of them [small shrimp producers] are having losses or, at best, just covering production costs with their current sales. Others are being forced to rent or sell their facilities," the researcher said.

China is Ecuador's principal shrimp market and many packers have recently made large investments to modernise and improve the production in their ponds.

"The price downturn will cause these costs not to be covered. Moreover, the prices shown are just purchase prices and fishing and processing costs still must be added," source A explained to Undercurrent.

According to the news source El Productor, there are shrimp producers now selling their 21g shrimp for $1.60/lb, 20% less than what they received for sales of the same product at the end of November, with production costs per pound ranging between $1.65/lb and $1.70/lb.

At that time, other producers received $2.00/lb for medium-sized shrimp and $2.05/lb for the big ones. Due to the current situation, they are now selling them for around $1.55/lb and $1.75/lb respectively, down 23% and 15% in comparison.

Ecuadorian shrimp exporters have their cold-stores completely full and are now opening new markets and shipping to the US and Europe, sources said.

"Shrimp packers never lose. They have enough stock of shrimp and they are buying ours at such ridiculous prices, benefiting from the fact that we [producers] cannot keep the shrimp in our ponds for much longer," another Ecuadorian shrimp farmer told Undercurrent. "The government should start taking action to protect our rights and tackle this situation."

Some two-thirds of Ecuadorian shrimp production is exported to China. Ecuador's exports cover around 55% of China's total shrimp imports.

"The situation of shrimp exports to China being frozen is creating an oversupply in other countries such as the US," source B said. "I hope this situation doesn't last long because the greater the choice, the lower the price and the consequences are being paid mostly by the producers. Production costs are high and having low purchase prices hurts the entire chain."