Shrimp exports from Ecuador continued to slip in October 2024 as the country has faced domestic and international hurdles that have stymied growth.
“Just as we had anticipated, the complex situation of the international markets and the [domestic] energy crisis have impacted shrimp exports, which in October registered 190 million pounds – the lowest level in the last two years,” Ecuador National Chamber of Aquaculture (CNA) Executive President José Antonio Camposano said on X. “The remaining months [of 2024] will fall even more.”
Ecuador's October export totals were 12.3 percent lower than the 216 million pounds seen in October 2023. In respective value terms, exports fell 10.9 percent to USD 441 million (EUR 420 million) for the month, compared to USD 495 million (EUR 471 million) in the same month of 2023.
In international markets, aquaculture farmers have seen demand weaken as consumers, affected by inflation, have turned to cheaper alternatives for their protein.
The scenario has become even more complicated since November, when the U.S. International Trade Commission (ITC) voted to impose duties on frozen warmwater shrimp from countries including Ecuador after determining the U.S. industry is being negatively impacted by imports of the products.
The U.S. Department of Commerce’s final determinations hit Ecuador with a 3.78 percent countervailing duty for the shrimp industry overall, and targeted companies Santa Priscila with a 3.57 percent duty and Sociedad Nacional de Galapagos with a 4.41 percent duty. It did not levy any antidumping duties against the country.
Domestically, unexpected power outages battered Ecuador at the end of September, with blackouts lasting up to 12 hours a day. The CNA estimated at the time that each day the outages continued, economic losses to the nation’s shrimp sector could exceed USD 5 million (EUR 4.8 million).
All of these factors have affected production, with exports to two of Ecuador’s three primary destination markets falling in the month.
In October 2024, exports to the nation’s main market – China – fell 13.3 percent by value to USD 214 million (EUR 204 million), compared to the USD 247 million (EUR 235 million) registered in the same month of 2023. Exports by volume fell 12.5 percent to 100 million pounds from 114 million pounds.
Exports to the U.S. were down 19 percent by value to USD 85.8 million (EUR 81.7 million), compared to the USD 106 million (EUR 101 million) posted in October 2023. Shipments by volume fell 25.7 percent to 29.4 million pounds in October 2024, compared to 39.6 million pounds sent in the same month last year.
Europe was the only of Ecuador’s main markets to buck the trend.
In October this year, it received USD 110 million (EUR 105 million) worth of Ecuadorian shrimp, which was up 5.8 percent compared to USD 104 million (EUR 99 million) from one year ago. It inched up 1.8 percent by volume to 46.9 million pounds, compared to the 46.1 million pounds the bloc received in October 2023.
The three markets bought 93 percent of all of Ecuador’s shrimp exports during the month of October.
China continued to purchase the lion’s share of exports, but with a weighting of 52.8 percent of all exports, it remained relatively flat compared to the same month of 2023. The U.S. had a weighting of 15.5 percent, which was down compared to the 18.3 percent seen last year. Europe ticked up to 24.7 percent from 21.3 percent one year ago.
The average price for a pound of shrimp reached USD 2.32 (EUR 2.21) in October, a slight increase from USD 2.29 (EUR 2.18) registered in the same month of 2023. The 25-month high for Ecuadorian shrimp reached USD 2.82 (EUR 2.69), which the industry achieved in October 2022.
To aid the nation’s shrimp-farming industry, the country’s government announced that as of 1 January 2025, it would reduce the Capital Outflow Tax (ISD) for the purchase of raw materials essential for shrimp production.
Camposano questioned the announcement.
“The ISD increased for capital goods and raw materials that previously had a tax credit,” he said, warning that “the measure increases the cost of essential inputs for production and export that generate employment and foreign currency.”
Worsening the situation for producers, the country has also been facing unprecedented crime waves, which is also affecting the aquaculture sector. CNA recently sounded the alarm over security in the country, stating the aquaculture, fishing, and agricultural sectors in Ecuador suffered around 900 extortion attempts in just a 45-day span in July and August.
