Nicaragua has seen a dramatic decline in production since 2023, a trend that has persisted into 2024. According to the Central Bank of Nicaragua (BCN), shrimp production plummeted from 69.5 million pounds in 2022 to 42.1 million pounds in 2023—a 39.4% decrease. The forecast for 2024 is even bleaker, with an anticipated 39.9% drop from the previous year, projecting a closing production of just 25.3 million pounds.

Factors Contributing to the Decline

The reasons behind this decline are multifaceted, encompassing climatological challenges, tax policies, political instability, and global trade dynamics. These factors have collectively disrupted operations for shrimp farmers across the Pacific coast of Nicaragua, forcing many to seek alternative livelihoods.

Benjamín, a shrimp producer from Chinandega, shared his struggles, revealing a 75% reduction in cultivation areas due to skyrocketing operational costs. The cost of shrimp feed, for instance, has surged significantly, with prices for essential supplies like feed jumping from USD 38 to 60 per quintal. This increase has been exacerbated by logistical challenges, including the need to import feed from neighboring Honduras following regulatory issues with local suppliers.

Challenges with Shrimp Feed Supply

The situation worsened when Cargill, a major feed supplier, faced regulatory setbacks, further limiting local access to affordable shrimp feed. As a result, Nicaraguan shrimp farmers now grapple with higher import costs and dwindling profitability margins.

The repercussions extend beyond Nicaragua, echoing a broader global shrimp industry crisis affecting neighboring countries like Honduras and Guatemala.

Future Prospects and Adaptive Strategies

Looking ahead, the future remains uncertain for Nicaraguan shrimp farming. The ongoing challenges necessitate adaptive strategies, including diversification of income sources and exploration of alternative shrimp farming techniques resilient to climate and market fluctuations.