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In the aquaculture sector of Honduras, a new controversy has emerged following statements made by the Secretary of Economic Development, Fredis Cerrato. Cerrato asserted that shrimp can be stored for up to two years without incurring losses for the industry, sparking debate among stakeholders.
Agreement on Frozen Preservation
Businessmen affiliated with the National Association of Aquaculturists of Honduras (Andah), represented by its president Juan Carlos Elvir, concur with the official statement to an extent. They agree that shrimp can indeed be preserved when frozen for a duration of two years.
Dolvin Lagos, manager of the Empacadora San Lorenzo (ESL), further supported this notion, stating that the optimal “shelf life of shrimp is 24 months, stored in a cold room with temperatures below 18 degrees Celsius.”
Diverging Opinions on Economic Implications
However, where the consensus ends is regarding the economic implications of such storage practices. Shrimp farmers contest Cerrato’s claim that there are no financial losses associated with storing shrimp for up to two years. According to Andah’s president, Juan Carlos Elvir, each month of storage incurs an average cost of 50 cents per pound. This expense encompasses various factors such as payroll and collateral, storage fees, fuel costs, and security measures.
Elvir emphasizes that the profit margin per pound of exported shrimp is one dollar if the product is promptly shipped. However, this margin can be eroded after just two months of storage.
Costs of Prolonged Freezing
Juan Carlos Javier, echoing Elvir’s sentiments, highlights the substantial production and storage costs incurred when shrimp is kept frozen for extended periods. Long-term freezing results in heightened operational and financial costs, with the latter ranging between 10% and 14%.
The ideal scenario, asserts Javier, is to process the shrimp and promptly transport it for exportation. He argues that storing shrimp for more than 60 days inevitably leads to losses for the industry.
Challenges in Storage Infrastructure
Víctor Wilson, general manager of Grupo Granjas Marinas (GGM), underscores the challenges inherent in storing shrimp, particularly within the context of Honduras’ infrastructure. With electricity rates at 25 cents per kilowatt-hour, maintaining frozen storage facilities proves to be a costly endeavor.
Wilson concurs with Javier, asserting that customers prefer shrimp with less than a year of storage. He emphasizes that the longer shrimp is stored, the greater the discount it receives, further impacting profitability.
Context of Legal Proceedings
Cerrato’s controversial statements come amidst a backdrop of legal proceedings regarding shrimp imports. Honduras, alongside Andah, recently participated in a hearing in the District Court of the State of Sinaloa to address concerns regarding shrimp imports from Central American countries.
On February 24, the court entertained a plea from Sinaloa aquaculturists to temporarily suspend shrimp imports from the region. This decision followed allegations that shrimp from Ecuador was being transshipped through Central American countries. However, Honduras refuted these claims, citing a lack of protocols and certifications for such commercial activities.