Shrimp markets in Ecuador and Europe have been experiencing a significant surge in prices in recent weeks, driven by a combination of lower supply and robust demand. Seasonal factors have further exacerbated the situation, creating upward pressure on cash prices for shrimp in both regions.

Price Increases Across Regions

According to Commodity Insights, the price for Ecuadorian shrimp has jumped from USD 4,800 per metric ton on September 2 to USD 5,400 per ton by mid-September. Similarly, European shrimp prices have risen from USD 5,100 to USD 5,450 per ton over the same period. Both assessments cover head-on, shell-on (HOSO) whiteleg shrimp with a size of 30-40 counts per kilogram, highlighting a consistent price uptick.

Despite these sharp rises, market sources believe further increases are possible, as a tightening supply meets sustained demand, particularly ahead of year-end celebrations when consumption traditionally rises.

Demand for Large Shrimp Grows

Larger shrimp varieties, particularly those with 20-30 counts per kilogram, have seen even steeper price hikes, recently trading at approximately USD 5.70 per kilogram in Guayaquil. Exporters point to limited availability across multiple origins, coupled with consistent demand, as key drivers for these price increases.

European demand for shrimp remains resilient, with southern Europe leading consumption. Ecuadorian and Venezuelan exporters have managed to increase their shipments to Europe, while Asian suppliers have seen a reduction in their share of EU imports. Consumers appear to be seeking a balance between competitive pricing and reliable supply.

Seasonal Factors Add Pressure

Adding to the global supply strain is India’s seasonal shrimp shortage. Whiteleg shrimp production in India has been affected by lower-than-usual temperatures, which have hampered growth rates and seed quality. Farmers have shifted focus to black tiger shrimp, further limiting the availability of whiteleg shrimp. Recent floods in Andhra Pradesh, one of India’s key shrimp-producing states, compounded these challenges, though panic selling among farmers has helped prevent prices from spiking further.

In Ecuador, colder-than-expected water temperatures have similarly slowed growth rates, while outbreaks of white spot syndrome have increased shrimp mortality rates. As a result, Ecuadorian industry insiders anticipate stable or potentially lower output for 2024, a contrast to the consecutive years of production growth previously seen.

Stagnant Exports, Rising Prices

Ecuador’s shrimp exports have been relatively stagnant in 2024. Data from the Ecuadorian Central Bank shows that export volumes grew by only 1.7% from January to June, the lowest growth rate in the past decade. Over the previous 10 years, the average annual growth rate had been a robust 24%.

However, while export volumes have plateaued, prices have risen. Ecuador’s average export price increased from USD 5.14 per kilogram in January 2024 to USD 5.99 per kilogram in June. Shrimp producers have benefited from the rising prices, with ex-farm shrimp fetching USD 3.90 per kilogram in Guayaquil in August, up from USD 3.50 earlier in the month.