In Mexico, the president of the Confederation of Aquaculture Associations of the State of Sinaloa (COADES), Carlos Urías Espinoza, has issued a concerning report on the current state of the shrimp market. The primary issue at hand is the critical low price that shrimp is experiencing, resulting in severe implications for the industry. This situation has been exacerbated by the ongoing problem of imports, leading to a halt in production.

Lingering Low Prices and Bankruptcies

Espinoza emphasized that the industry has been grappling with persistently low prices for over a year. This unfortunate trend has forced several companies, fishing cooperatives, and aquaculturists to face bankruptcy. The repercussions of this economic downturn have been deeply felt within the sector.

The difficulties arise from the continuous influx of imports, significantly impacting the market for the crustacean. The industry is pinning its hopes on a legal ruling they sought in October 2023. The fulfillment of this protective measure could potentially trigger a positive change in the market dynamics, leading to a rebound in shrimp prices. The industry is particularly hopeful that this rebound will coincide with the upcoming Easter season, a period of peak demand.

The Stakes for the Sector

Espinoza warned that the sector is currently on the brink of collapse due to the excessively low prices. The Mexican market, known for historically offering favorable returns for shrimp products, is struggling to maintain its viability. If the situation persists unchecked, it is estimated that up to 20 percent of the sector could be paralyzed this year.

In light of the challenges faced by the shrimp industry, there is a growing consideration for diversification. While tilapia has emerged as a potentially viable option with increased production observed, challenges such as the need for fresh water pose limitations. Additionally, the shift towards fish farming, involving species like snapper or croaker, is a prospect on the horizon. However, the industry currently lacks the necessary technological infrastructure to implement such a transition.