Despite efforts to diversify its markets towards Europe and the United States, the Ecuadorian shrimp sector has been significantly impacted by reduced consumption in China and other internal issues. The economic slowdown in China, combined with the suspension of shrimp exports to several Ecuadorian companies, has led to a notable decline in industry revenues and sustainability.

Economic Slowdown and Export Issues

The economic slowdown in China has had a major impact on Ecuadorian shrimp exports. Additional challenges such as power outages and rising insecurity have worsened the situation. Together, these factors resulted in a 19% drop in shrimp exports from Ecuador during the first quarter of 2024.

For the past five years, China has been a primary market, with an average of 54% of Ecuadorian shrimp exports going there. However, the economic downturn has decreased Chinese consumer demand for seafood. In 2024, Chinese imports of seafood, both fresh and frozen, dropped to just 4%, a sharp decline from the previous growth rate of over 15%. Consequently, shrimp exports from Ecuador fell by as much as 57% in March.

Diversification Efforts and Export Suspensions

In response to these challenges, the Ecuadorian shrimp sector has been diversifying its product lines, focusing on value-added products and targeting new markets such as Europe and the United States. Despite these efforts, the suspension of exports to China due to technical issues with preservative levels has been a significant setback, lasting for three months.

The Ecuadorian shrimp sector has also been hit by a collapse in international shrimp prices. Although export volumes increased by 14% in 2023 compared to 2022, the revenue generated was USD 6.289 billion, which is USD 1 billion less than in 2022.

Price Fluctuations

The average price of exported shrimp has consistently declined. In 2023, the average price was USD 2.35 per pound, a 13% decrease from January’s USD 2.48 per pound, eventually falling to USD 2.15 per pound by December. Despite a 3.6% growth in 2024, prices remain below the averages of 2023 and 2022 (USD 2.84 per pound).

To counter these challenges, the Ecuadorian shrimp sector has intensified its focus on the European and American markets. This strategic shift has yielded some success, with Ecuador’s share of shrimp imports in the United States increasing from 25% in 2021 to 33% in 2023. The sector’s continued efforts to diversify and adapt are crucial to overcoming these difficult times.