Ecuador's white shrimp industry faces dual blow from gang hijacking and climate change

Gang infiltration, fishing heartland out of control

In Ecuador's core coastal farming provinces—El Oro, Guayas, Manabí, and Esmeraldas—almost no shrimp farms have been spared. The National Chamber of Aquaculture of Ecuador (CNA) estimates that 95% of farms in El Oro are forced to pay protection fees, and at least 40% in other regions face the same threat.

Armed attacks, kidnappings, and ship hijackings have become commonplace. The Sinaloa drug cartel and the Jalisco New Generation Cartel from Mexico are colluding with local gangs, turning shrimp export corridors into drug smuggling channels. Industry insiders lament, "We are not just farming shrimp; we are bargaining for our lives with gangs."

Despite over a thousand patrols by military and police each month, the weak judicial system often results in criminals being released within days. The industry warns that without fundamental judicial reform, the so-called security investments will only be "treating the symptoms, not the root cause."

Climate exacerbates the plight, adding insult to injury

In addition to the threat of violence, Ecuador is also facing climate challenges. Coastal water temperatures are only 20-22°C, lower than normal, causing shrimp to grow slowly, molting to be delayed, and resulting in increased mortality rates. Small-scale farmers, facing rising security costs and climate pressures, are running out of cash, and many are forced to sell their farms.

The contraction of the supply side has driven up the premium for large-sized shrimp. The price of 20/30 white shrimp is already more than $1/kg higher than that of 30/40 shrimp, reflecting the market's scramble and anxiety for larger shrimp.

Global supply chain disruptions intensify

Ecuador accounts for about one-third of the global white shrimp exports, mainly to China, Europe, and the United States. Any fluctuation could trigger a global chain reaction. Recently, at the Shanghai Fisheries Expo, Ecuadorian exporters generally tried to raise prices: half IQF products increased by $0.10-0.20/kg, and salt-frozen 12 kg large packages of all sizes increased by $0.05/kg.

However, buyers' acceptance of price increases is limited, especially in China, where weak catering demand and a large influx of wild seafood have made importers more cautious.