China is the main market for Ecuadorian shrimp. Due to the sulfite labeling issue, Chinese customs have recently increased their inspections on Ecuadorian white shrimp, resulting in the rejection of some containers.
In the United States, most Ecuadorian shrimp sellers face a new preliminary anti-subsidy duty of 7.55% and the possibility of anti-dumping duties of up to 118% from the American Shrimp Processors Association (ASPA).
An Ecuadorian shrimp farmer who wished to remain anonymous explained: "The decline in shrimp consumption in China and geopolitical tensions such as the Russia-Ukraine war have affected the global economy, resulting in a reduction in demand for non-essential products such as shrimp." "The current situation is complicated and there is little prospect of improvement in the short term."
Although it is relatively affordable in Ecuador compared to other products, shrimp is still a high-end product internationally.
"In the United States and the European Union, shrimp prices range from $8 to $10 per pound, depending on size, which are our two main destination markets, but consumption of Ecuadorian shrimp has declined." Oswin, general manager of COOPRACAME, Ecuador Crespo said in a recent interview with a local radio station. "However, production remains stable, and the addition of new countries, including Venezuela, has led to overproduction, which is not good for prices."
According to UCN data, as of week 14 (April 1-7), the average farm-gate price of Ecuadorian shrimp HOSO mainly remained around $4 per kilogram, including $4 per kilogram for 20/30 shrimp, $3.50 per kilogram for 30/40, $3.25 per kilogram for 40/50, $3.05 per kilogram for 50/60, and $2.70 per kilogram for 60/70.
From a monthly perspective, the price level in April 2024 is at a historical low, although it has increased compared to the end of 2023 and is about 40% lower than the peak of the market in 2021. Although close to the price level of India, another major shrimp producing country, Ecuadorian shrimp prices are still the lowest in the world, with 50/60 and 60/70 prices respectively. $3.05 per kg and $2.70 per kg.
In week 15, shrimp prices in Vietnam and Indonesia were about $4.29 and nearly $4 per kg, respectively, ranking second and third in the world after China.
In addition, farm-gate prices of 60-piece shrimp in Thailand and Andhra Pradesh, India, fell to $3.62 per kg and $3.12 per kg, ranking fourth and fifth in the world.
In the Chinese market, according to Chinese customs data, the average price of shrimp imported from Ecuador fell to a historic low of $4.36 per kg in the first two months of this year.
Imports of Ecuadorian shrimp fell significantly in the first two months of the year, partly due to China's strengthened port inspections of Ecuadorian shrimp, especially regulations on labeling and sulfite residues.
The General Administration of Customs of China announced on March 27 that a total of 43 batches of Ecuadorian shrimp were rejected in January and February during the sulfite scandal. Of the 43 rejected containers, 34 were due to the use of food additives.
