As the new cycle begins for shrimp farms in Sinaloa, Mexico, only around 60 percent of them are expected to commence operations. This uncertain start follows a challenging period last year, marked by low shrimp prices per kilo, leaving many producers struggling to regain financial stability.

Situation Overview

César Abraham Cuadras López, president of the State Aquaculture Health Committee of Sinaloa, revealed that the aftermath of the previous cycle has left a significant impact on the industry. The exact number of producers continuing their operations remains unclear, with some unable to recover financially to restart this year’s cycle.

In the previous cycle, approximately 90,518 hectares were planted, but projections for this season indicate a significant decrease to just over 50,000 hectares. This decline reflects the economic challenges faced by shrimp farmers, with bankruptcies plaguing the aquaculture sector.

Concerns and Challenges

The reluctance of many aquaculturists to engage in the upcoming cycle raises concerns about the sustainability of the industry. Financial burdens, overdue loans with suppliers, and a lack of self-financing have compounded since the beginning of 2022, making shrimp farming increasingly unaffordable for some.

Despite efforts to regulate imports through border closures, the industry faces continued challenges. While the closure of the western border between Mexico and Guatemala has curbed some imports, the Puerto Madero border in Chiapas remains open. This loophole allows shrimp from other countries to enter the market, perpetuating competition for local producers.

César Abraham Cuadras López emphasized the adaptability of importers, who seek alternative routes to circumvent restrictions. Despite one door being closed, importers find ways to maintain their supply chain, posing ongoing challenges for domestic producers.

Price Concerns

The closure of borders has provided some relief, but concerns persist regarding shrimp prices. As the Lent season approaches, the expected rise in prices has not materialized as anticipated. Shrimp sizes commonly consumed, such as 41-50, should command higher prices, but retail prices hover below expectations, currently around 135 pesos (USD 8) per kilo.