In the coastal city of Mazatlán, Mexico, the fishing sector has faced a significant decline over the past decade, reaching a critical point of vulnerability. The absence of adequate support and escalating production costs have pushed the industry to the edge of collapse, putting shrimp exports at serious risk, with a potential 50 percent decrease looming.

Sinaloa, a key player in the Mexican fishing landscape, witnesses an annual capture of an average of 85,000 tons of coastal shrimp and aquaculture farms, in addition to 27,000 tons from the high seas. These figures, compiled over the last five years by Conapesca, underline the substantial contribution of the region to the national shrimp production, valued at 7.6 billion pesos (448 million USD). Sinaloa stands as the primary crustacean producer in Mexico and is the country’s second-largest exporter to the United States, Canada, and Japan, with an annual export value of 103 million USD.

According to the Global Economic Intelligence Unit of the Ministry of Economy, the commercial value of shrimp exports from Mexico to the United States alone reaches a substantial 264 million USD.

Formerly a stronghold of the fishing industry, the Pacific Coast’s Union of Shipowners’ ex-president acknowledges the severity of the present situation, declaring it as the worst crisis in the history of fishing. The challenges faced by the industry are evident as only a fraction of the fleet, around 45 percent, participated in the first trip, and the numbers dwindled to less than 100 boats during the third trip.

Despite a reasonable production output, averaging 10-12 tons per ship, the economic strain persists, primarily due to the soaring cost of marine diesel. Compounded by the distressing drop in product prices, the fishing industry finds itself grappling with a combination of challenges.

The 2022-2023 harvest has seen a sharp decline in shrimp prices for national consumption, dropping from 140 pesos per kilo to 92 pesos. Meanwhile, in the international market, the crustacean, once valued at 300 pesos, now commands a price of 180 pesos per kilo. The dynamics of price determination are complex, governed by the principles of supply and demand, influenced by factors such as species origin, production region, product type, preparation, and presentation.

The fishing entrepreneur emphasizes the urgent need for the federal government’s intervention in the fishing sector, calling for increased budget allocations. The exorbitant fuel prices in Mexico have significantly impacted the industry, demanding around 1.5 million pesos (88 thousand USD) to embark on a 30-day fishing expedition. With current product prices, the profit margins are insufficient, leading to an increasing number of boats remaining docked at the Bonfil Park in Mazatlán, and the closure of processing plants due to a lack of product.