Union standoff leads to "total shutdown"
Red shrimp fishermen are nearly desperate
The crisis originated from the long-standing standoff between Argentine shipowners and the National Maritime Union of Argentina (SOMU). As one of the largest fishing companies in South America, Conarpesa's president Fernando Alvarez bluntly stated: "Everything has stopped, it's purely a political struggle, and no one wants to compromise. For the union, this harvest season is already 'ruined,' and they simply don't care."
Despite multiple mediation meetings organized by the government, they have all been unsuccessful. The shipowners proposed a 22% salary cut based on the current market conditions to restart production, but the union refused to budge. It is reported that some fishermen have even received death threats and photos with bullets in opposition to the strike, making the atmosphere extremely tense.
"They could have earned $12,000 a month, but now some people have only received $500 for 10 months," Alvarez said, "The fishermen are so poor they can't even eat."
European stocks are tightening
L1 red shrimp surges to 9.5 euros/kg
The continuous halt in fishing has rapidly depleted international red shrimp stocks, especially in the European market, where red shrimp prices have surged significantly in just a few weeks.
In the Milan wholesale market in Italy, the price of L1 red shrimp has risen from 9.0 euros to 9.5 euros per kilogram, while some Spanish markets are approaching 9.0-9.5 euros per kilogram, an increase of nearly 2 euros compared to three months ago.
"L2 sizes are almost gone, and what is available is reserved for large customers," a buyer revealed. "In the current situation, prices may continue to rise."
In comparison, the price of farmed white shrimp (vannamei) in Ecuador remains around 6.5 euros per kilogram, becoming an "economic alternative option" for retailers. However, the industry generally agrees that the natural value and flavor of wild red shrimp cannot be fully replaced, and high-end customers are still continuously seeking wild shrimp resources.
Will the red shrimp market "rise from the ashes"?
Despite the possibility of this season being completely ruined, some exporters are beginning to view this "supply disruption" positively: "This could be an opportunity to rebuild the value system of Argentine red shrimp." In their view, the vicious cycle of "high quantity, low price" over the past years has weakened the brand influence of the product in the international market.
As old stocks are cleared, future prices are expected to be re-anchored to a "high value, low production" model, but this means the industry needs to make long-term strategic adjustments, including controlling fishing intensity and strengthening brand marketing.
This round of crisis for Argentine red shrimp is no longer just a labor dispute but has also exposed the systemic vulnerability of the global wild shrimp industry in the context of supply and demand tension, political instability, and uncontrollable resources.
As fishing boats continue to be idle, alternative products continue to rise in price, and European stocks are continuously being consumed, the red shrimp market may face a "structural revaluation": not all buyers can afford to wait for wild shrimp, but those who are willing to wait may end up paying more for "scarcity."