With production volumes increasing every year, the shrimp sector in Ecuador is very much alive. Over the next few years, the production volume is expected to increase to 700,000 tons, which would consolidate Ecuador's position as one of the top five global shrimp producers. ShrimpTails decided to dive deeper into the vibrant world of shrimp in Ecuador, and visited the country’s farms and factories last September. We wanted to know how Ecuador plans to realize its ambitious production targets – and got some answers.
Optimization, not intensification
While visiting Ecuador, ShrimpTails met with Skretting’s Ecuador General Manager Carlos Miranda, who was quick to tell us that even though Ecuador is increasing the productivity of its shrimp farms per hectare, this does not mean that Ecuadorian farmers will follow the Asian example of intensive farming. Similarly, proud Ecuadorian shrimp farmers state that the robust shrimp sector in their country still exists after 40 years, and the first pond that was dug 50 years ago is still being used today, because they have stayed true to themselves.
They believe the drivers of the robust sector to be the dedicated workforce with its extensive experience in shrimp farming, and their dedication to a high-quality product, and there is confidence that the current structure of the sector will support tomorrow’s growth. There is no intention among farmers to transition from the big ponds they use now (often of multiple hectares) to smaller ponds (of under .1 or .2 hectares), which are used for the Asian method of intensive shrimp production.
The question remains, however: Without changing the basic infrastructure of their farms too much, how will Ecuador realize its growth ambition? For Ecuadorians, the answer is easy; optimization instead of intensification. Optimization in Ecuador means “doing more with less”; more sustainable farming practices with higher outputs. A combination of improved genetics, increased use and implementation of nurseries, improved feeds, automated feeders and aeration in ponds can significantly increase the output of Ecuador’s farms.
A fully optimized farm could increase its stocking density to up to 30 pl/m2, which is almost double the current average of 16 pl/m2. Although this is a drastic increase, densities of Ecuadorian farms remain far below those of their Asian competitors which range from 60 to even 250 pl/m2. Optimized ponds on Ecuadorian farms can produce about 15 tons per hectare per year – double the average of the 8 tons they currently reach.
Although the transition in Ecuador has already started, currently only 10 percent (20,000 hectares) of all farms in Ecuador have optimized their ponds with aerators and a similar percentage of farmers have installed automated feeding machines.
The need to electrify
One of the major constraints to Ecuador’s drive to optimize its shrimp farms is that almost 99 percent of its farms are not connected to the electricity grid. As a result, farmers have to buy machinery that is powered by diesel and diesel aggregators that come with high costs in terms of fuel and maintenance.
The use of diesel is not only detrimental to the environment, it’s also not good for the farmers’ wallets. Especially because the Ecuadorian government has recently increased fuel prices. To solve this issue, the current government is expanding on the previous government’s investments in hydroelectric power plants, which did not entail investment in electrical distribution (substations and electrical power distribution lines). The current government, however, is willing to invest in this last part of the infrastructure, but it is also an opportunity for the private sector.
Patricio Salazar Benitez, CEO of GPS Group, a consulting firm in Ecuador for the aquaculture sector, has been working since 2016 to join forces with the government and the shrimp industry to get the job done. He told ShrimpTails that various ministries are willing to support the industry to make the necessary investments.
GPS Group is prepared to lead this public-private partnership focusing on electrifying Ecuador’s shrimp farming sector. In Patricio’s proposal, with an investment of USD 1.2 billion (EUR 1.05 billion), Ecuador could connect 100,000 hectares of shrimp farms to the electricity grid and also implement technology and electrical infrastructure inside farms; optimizing ponds with electrical aerators, automated feeding systems and electrical or automated pump systems.
This could increase Ecuador’s shrimp production with at least 30 percent and generate an additional USD 355 million (EUR 311 million) of annual export revenues. According to Patricio’s calculations, the investment would not only have an economic impact, but also an environmental and social one; increasing the productivity, operational efficiency and competitiveness of the Ecuadorian sector.
The electrification and implementation of technology in the shrimp farming sector would save the use of 87 million gallons of diesel annually; the equivalent of 877,000 tons of CO2 (which equals planting 330,000 trees). As such, this initiative nicely complements Ecuador’s Sustainable Shrimp Partnership.
Patricio’s GPS Group has set up the Aqua 2.0 project to achieve the goal of connecting 100,000 hectares of shrimp farms to the electricity grid by 2030. Several industry players, such as Santa Priscila, Naturisa, Produmar and Empagram among others, have already joined the initiative.
The pivotal role of feed companies
Multinational feed companies like Biomar, Cargill, Nicovita and Skretting play an important role in the optimization of Ecuador’s shrimp farms. Increased competition between these international players have compelled them to increase the quality of their feed and service. This is the only way for them to create loyalty among farmers and maintain or expand their market shares. For example, feed companies invest in specialized feeds adjusted to local farming conditions, or innovative digital solutions enabling farmers to optimize their farm management and feeding practices.
An example of a company investing in specialized feeds is Skretting, which developed a special feed for farmers that have recently started farming shrimp in the Taura region, a freshwater area close to Guayaquil. The feed provides the shrimp with the diet they need to flourish in this area. The company also wants to convince farmers to implement Skretting’s 360+ concept and the accompanying AquaSim app. Farmers make smart use of the competition between the feed companies, using more than one feed brand and having the support of different technical teams at their disposal.
Still a source for sustainable shrimp
When ShrimpTails started to dig into Ecuador’s drive to optimize its shrimp farms and increase its output, we wondered whether this optimization would conflict with the country’s image in the international shrimp market. Ecuador is well known internationally for the quality of shrimp it produces and the extensive character of its shrimp farming sector. Implementing more intensive farming methods brings about risks like increased use of medicine, more environmental impact due to water discharge and increased use of shrimp feed with associated risks related to overfishing and forced labour. Ecuador has to be disciplined to prevent these risks from affecting its brand in the international market.
After having seen the optimized farms, ShrimpTails is convinced that, although optimization generally equals intensification, intensification the Ecuadorian way has nothing to do with intensification the Asian way. That said, and keeping in mind the Sustainable Shrimp Initiative, ShrimpTails expects Ecuador to remain a source for high-quality and sustainable shrimp.
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Photo courtesy of Seafood Trade Intelligence Portal
