W37: Shrimp Update

In W37 in the shrimp landscape, global price declines and sluggish export performance are expected to cause a 15 to 20% reduction in Indian shrimp production for the 2022/23 season. This situation arises as the Indian seafood sector gears up for accelerated growth following the passage of the Coastal Aquaculture Authority (Amendment) Bill in 2023 by both houses of Parliament. India, the second-largest producer of aquaculture shrimp globally, achieved an output of 900 thousand metric tons (mt) in 2022.

Vannamei shrimp wholesale prices in Samut Sakhon, Thailand, reached their lowest point in at least three years at USD 2.80 per kilogram (THB 101.25/kg) on Sep-23. This price represents a drop of 3% week-over-week (WoW), 10% month-over-month (MoM), and 28% year-over-year (YoY) and reflects the ongoing trend of subdued global shrimp prices. The oversupply in the market has contributed to this situation, as the expected global demand recovery following the pandemic turned out to be overestimated. Global imports saw a significant decline after the second half of 2022.

The shrimp ban in Sonora, Mexico, will be lifted starting September 18, resulting in increased income and employment opportunities for fishermen. Hence, Sonora anticipates a shrimp harvest exceeding 80 million tons produced in 2022, with a primary focus on exports to the United States (US).

Grupo Lamar, Venezuela's largest shrimp producer, plans to double its production to 100 thousand mt in 2023 and 200 thousand mt by 2026 by investing USD 15 million in a new processing plant. The company is currently in talks with investment firms to secure funding for the new plant, which is still under construction. On top of two separate plant upgrades the company is undertaking at two of its four plants, construction of the new facility is scheduled to begin in 2024 on the site of one of the producer's larger shrimp farms.

The Development Bank of Latin America and the Caribbean (CAF) and the Ecuadorian government provided a USD 200 million boost to the Ecuadorian shrimp industry. The funds will be utilized to link 55 thousand hectares (ha) of land used by the shrimp industry to the electricity grid. This development comes as a much-needed uplift for the industry, which is grappling with challenges such as low prices, discontinued government diesel subsidy in late 2022, and escalating expenses related to feed and security measures against organized crime. The production sites in the Esmeraldas, Manabí , Guayas, El Oro, and Santa Elena regions are expected to reap the benefits of this initiative.

By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.