Ecuador’s shrimp exports facing “serious contraction” as China stops buying

Ecuador’s shrimp sector is going through a “serious contraction” in production and exports as a result of the reduced demand and market crisis stemming from the COVID-19 pandemic, according to a statement from the National Aquaculture Association (CNA).

The short-term situation is “not at all encouraging,” it said.

The maturation of shrimp and production of new larvae has seen a “worrying drop,” with a profound price crisis not seen in over a decade. Additionally, shrimp farm pools have run dry – something not seen since before the pools themselves entered operations, the association announced in conjunction with the Production, Foreign Trade, Investment and Fisheries Minister Iván Ontaneda.

The dive in production can be seen in June exports, dropping to 127 million pounds, compared to the 159 million pounds exported in May. That number is expected to continue in freefall in July, reaching only 80 million pounds, the CNA said.

China is the main destination for Ecuadorian shrimp, accounting for 62 percent of the country’s exports. But sales to China fell 49 percent in June to 59 million pounds, compared to 116 million pounds just one month prior. For the month of July, “the offer to China is nearly non-existent, as 11 million pounds will be sold to that market,” Ontaneda said.

The rapid decline is a result of the coronavirus contagion scare in China, following the Chinese customs’ 10 July decision to suspend three Ecuadorian shrimp companies – Industrial Pesquera Santa Priscila, Empacreci, and Empacadora Del Pacifico – from exporting to the country. According to reports from Chinese health authorities, samples taken from one of the internal walls of a container transporting Ecuadorian shrimp tested positive for COVID-19, as well as on the outer surface of five boxes from these companies.

Since that time, new reports have been published in China of COVID-19 being found on Ecuadorian shrimp packaging – typically on the outside of boxes. None of the instances of the virus have been found on shrimp or inside packages.

Many of Ecuador’s shrimp producers expressed concern that while the ban may be limited to a handful of companies, Chinese consumers could stop buying the product altogether. In fact, some businesses reported Chinese customers refusing to accept merchandise brought in from the South American nation, even after safety checks.

Photo courtesy of Camara Nacional de Acuacultura

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