According to Ecuador's National Chamber of Agriculture, this country exported 124,896 tons of shrimp in May 2024, worth 602 million USD. In the first 5 months of 2024, Ecuador exported 509,012 tons of shrimp, worth 2.5 billion USD, up 2% in volume but down 8% in value compared to the same period last year.

With 124,896 tons of shrimp exported in May 2024, bringing in 602 million USD, Ecuador continued to set an export record for this product after months of stagnation at the beginning of the year. Accordingly, export volume increased by 12% compared to April's record, and increased by 16% over the same period last year.

China continued to be the largest market for Ecuadorian shrimp in May, with 69,543 tons, worth 309 million USD. However, due to low market value, export value decreased by 12% and unit price decreased by 13% compared to the end of 2023.

In May this year, Ecuadorian shrimp exports to China increased slightly by 2% in volume. However, it is not enough to increase export volume in 5 months. In the first 5 months of this year, Ecuadorian shrimp exports to China decreased by 15% in volume and 27% in value with 270.7 thousand tons, worth 1.2 billion USD.

In the first months of this year, Ecuadorian shrimp exports to China declined due to China imposing an import suspension on 9 major Ecuadorian shrimp exporting companies due to the discovery of excessive sodium metabisulfite residue.

The ban has recently been lifted, along with the effective FTA between China and Ecuador, which is expected to be a driving force to help Ecuadorian shrimp exports to China in the second half of this year.

Exports to the US market increased sharply with 53% in volume and 41% in value, making the US the second destination for Ecuadorian shrimp. The total export volume to the US in May reached 23,681 tons, worth 135 million USD.

Exports to Europe also increased by 30% in volume and 18% in value, equivalent to 22,137 tons and 110 million USD. Strong growth markets include France (volume up 85%) and Taiwan (volume up 3,654%).

As of May this year, because exports to China slowed down, Ecuador boosted exports to the US and Europe. However, it is expected that with the US's preliminary anti-dumping tax imposed on Ecuadorian shrimp export companies, Ecuadorian shrimp exports to the US will slow down in the second half of this year.

In the first months of this year, in the context of facing a ban from China; Anti-subsidy investigation and anti-dumping tax from the US, shrimp export companies in this country also strive to diversify consumption markets by promoting shrimp exports to Taiwan and Japan. As a result, Ecuadorian shrimp exports to Taiwan and Japan in the first 5 months of this year recorded growth of 3 to 4 digits.

Despite increased export volumes, Ecuadorian shrimp producers are still struggling with low prices and high costs. This negatively impacts profit margins and the ability of farmers to maintain sustainable shrimp farming operations. However, this does not hinder output too much. Ecuador's whiteleg shrimp harvest is expected to increase to more than 1.4 million tons in 2024.

Although prices are low, some shrimp companies in Ecuador are still stepping up production. Among them, Industrial Pesquera Santa Priscila, the country's largest shrimp exporter, recently opened its seventh production factory with an annual capacity of 60,000 tons; and shrimp processing company Oceantreasure is planning to double its revenue in the Chinese market.

Ecuador is seeing tremendous growth in shrimp production. The country's shrimp production has increased significantly in recent years, making Ecuador the world's leading shrimp exporter. Applying a large-scale industrial shrimp farming model, using advanced technology and professional management. This helps reduce production costs and increase productivity, thereby creating a competitive price advantage. Diversifying export markets helps Ecuador minimize risks when one market faces difficulties.

Source: VASEP