Guide Posts

How Is the Value Chain Formed?

Frozen Common Shrimp & Prawn
By Seujin Jang
Updated Aug 3, 2022
Roughly, shrimp is farmed at hatcheries and go through processing when harvested. Processed shrimp are packed and exported.

1. Hatcheries ⇒ 2. Shrimp farming ⇒ 3. Harvest ⇒ 4. (Processing) Reception and analysis of raw material ⇒ 5. Selection process (Start filtering) ⇒ 6. Classification ⇒ 7. Aggregated value ⇒ 8. Packaging ⇒ 9. Freezing ⇒ 10.Storage ⇒ 11. Export

There are two types of exporters:

1. Exporting companies that have processing facilities but do not own hatcheries nor farm.

2. Exporting companies have their own hatcheries and farms that can produce shrimp every week.

  • Those who own their hatcheries and farms can manage the ex-farm price and export price, but exporters with processing facilities have to source shrimp from farmers or exporters who own their farms - price takers.
  • Two types of shrimp processed in Ecuador: HOSO(Head on shell on) and HLSO(Headless, shell on), and HLSO, RPDTP, CPDTD are categorized as aggregated value shrimp.
  • As additional processing stage is applied to process HLSO shrimp, price per kilo for HLSO shrimp is 30% higher than HOSO.
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