Peruvian shrimp industry in crisis, production may be halved by 2024

Published Aug 4, 2024

Tridge summary

Peruvian white shrimp farming, which accounts for 90% of the country's total production, is facing a crisis due to global market price declines and financial shortages. The industry, which is crucial for the Tumbes region's economy, is struggling with high production costs and a decrease in global demand, leading to many companies ceasing operations. The Situation Normal en Peru (SNA) agency is calling for government support, including repayable public funds and temporary economic incentives. The crisis has led to a decrease in production and exports, with the industry expecting to produce only 21,000 tons for the year. The decline in aquaculture farm production has also had a significant impact on the private sector and indirect employment.

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

Original content

White shrimp farming in Tumbes, Peru, accounts for 90% of the country's total production and is an important economic pillar of the region, contributing 98% of the region's exports. However, price declines in the global white shrimp market and public support financing The shortage has caused many companies to cease operations since 2023, and this situation has become increasingly serious in early 2024. SNA pointed out that white shrimp farming activities are considered a high-risk industry, so it is difficult to obtain state-guaranteed credit support. In addition, the increase in production costs and the decline in global demand have caused production costs to reach a new equilibrium point. The SNA stressed the need for innovative management protocols to optimize production costs and the need for working capital support, otherwise Peruvian white shrimp could be at risk of extinction. In contrast, other producing countries such as Central America, Ecuador, India, China and Thailand ...

Source: Foodmate