Argentina: The state of shrimp markets and internal problems

Published 2022년 7월 11일

Tridge summary

The Argentine shrimp market is facing challenges due to economic issues such as high inflation, exchange rate gaps, and import restrictions, which are reducing profit margins and making the country more expensive for both domestic consumers and international buyers. The situation is further complicated by a potential recession in the northern hemisphere and increased production of the lower-cost vannamei shrimp in Ecuador, which is undercutting the price of Argentine wild and natural shrimp, especially in the main market, Spain. As a result, Argentine shrimp exporters are hoping for price stabilization and increased demand to prevent further value erosion, while some companies are diversifying to other species or stopping purchases from Argentine boats due to proposed price increases.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The shrimp market is basically divided into two products: whole shrimp, which is not working well, and tails for reprocessing, which is having a good time. Recession forecasts in the northern hemisphere could complicate things even more for some and reduce profitability for others; however, it is not what most worries fishery exporters. The dire domestic economic situation, with very high levels of inflation, an exchange rate gap that reduces profits and a clamp on imports that increases costs are its main problems. The exporters of the sector agree that this economic matrix is unfeasible and the confirmation of the continuity of the economic plan, formulated by the Minister of Economy, Silvina Batakis, deepens the uncertainty and uneasiness. “Inflation in the country with the exchange delay has been killing us, last year 30 points were lost and that has a great impact on the cost structure. This year, it devalued a bit but inflation is much faster; so I calculate we are going to ...

Source: Revistapuerto