After two weeks of stability, a downward trend in Ecuadorian shrimp pricing has continued, several sources in the industry explained Undercurrent News.
"Ecuadorian shrimp is not much of a Christmas product, so we don't expect demand to grow in December nor in early January, which is the only way prices could go up," a small Ecuadorian shrimp producer, who spoke in condition of anonymity, told Undercurrent.
"On a different note, I disagree with what some of my colleagues are currently promoting. I don't believe the solution to drove prices up is to lower crop densities or stop producing, as I'm sure other producing countries would take advantage of it and get us out of the market."
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As of Nov. 30, average farmgate prices for head-on, shell-on (HOSO) Ecuadorian shrimp were $4.30/kg for 20/30 count shrimp; $3.30/kg for 30/40 count; $3.00/kg for 40/50; $2.80/kg for 50/60; $2.60/kg for 60/70; $2.40/kg for 70-80; $2.30 for 80-100; and $2.20/kg for 100/120 count.
Depending on sizes, this equates to a decrease of $0.10/kg to $0.40/kg for HOSO shrimp compared to the levels seen two weeks ago, as the chart below shows.
The source added that he sees a push to lower production costs to minimum levels as the only possible solution in the short-term.
"We should change our strategy, innovate, and seek greater efficiency and profitability. As long as we [producers] don't generate the changes we want to see, we will continue to obtain the same results," he said.
Further help needed
Undercurrent previously reported that the current situation is not set to get any better in the coming weeks as new lockdowns are looming around the world and shrimp usually reaches its lowest price level by the end of the year.
"That added to the current situation due to the pandemic, it is most likely that the sector will experience more critical and much more difficult moments than it did in previous years," a second small Ecuadorian shrimp producer also explained.
The forecast for the end of 2020 is that despite the sector's efforts to generate higher sales volume during the year, "this will not be reflected in the total turnover", another industry source previously said.
In addition, producers quoted on an Ecuadorian shrimp farmers' Facebook forum said there is not enough aid coming from government bodies and that their situation is increasingly worrying.
"Prices are out of control, and many of us are losing capital due to this," the commenter said.
A second commenter agreed, lamenting what he called a lack of government action.
"Despite being a sector that provides thousands of job opportunities and resources to the country, there is no aid to help us sustain the production amidst the great blow we are receiving," the commenter said.
December 01, 2020 at 10:54PM
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No improvement in Ecuadorian shrimp prices expected until January - Undercurrent News
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