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Minnesota—Cargill VP Dan Burke Eyes
Shrimp Farming in Latin America

   

 

Shrimp production may see double-digit growth for the next few years in India, Ecuador, Indonesia and Thailand, Cargill VP and Group Director Dan Burke told attendees at the IntraFish Seafood Investor Forum (May 23, 2017, New York City, New York, USA).

 

In the last 35 years, farmed shrimp production went from nearly zero to 4 million metric tons annually, he said.  Black tiger shrimp (Penaeus monodon) was the main species from 1985 to about 2000, and then Pacific white shrimp (P. vannamei) took over.

 

Today China, Vietnam, Ecuador, Indonesia and Thailand produce roughly 70 percent of the total farmed shrimp globally.

 

The Asian shrimp model is highly fragmented with limited vertical integration, Burke said.  The Latin American industry, meanwhile, is more extensive and more vertically integrated.  About 50 percent of Latin American farms are larger than 100 hectares, but only harvest about two tons per hectare.  In contrast, most Asian farms are smaller than 1-2 hectares, but harvest more than nine tons per hectare.  Burke feels Latin American shrimp farms offer better investment opportunities.

 

In 2016, Ecuador led Latin American shrimp production with 57 percent of total output, followed by Mexico and Brazil with 17 and 8 percent, respectively.  The World Bank estimates Latin American farmed shrimp production will increase to 843,000 metric tons by 2030 with an annual growth rate projected at 1.5 percent per annum to 2030.  Its export market share is estimated to increase from 14 to 25 percent by 2030.

 

Cargill entered the Ecuadorian shrimp feed sector a few years ago, partnering with a local player—Naturisa.  The joint venture feed plant grew from 27,000 metric tons to more than 50,000 metric tons in the first year and this year, “we expect to be over 100,000 tons,” Burke said.

 

Information: Dan Burke, VP Group Director, Cargill, Inc., P.O. Box 9300, Minneapolis, Minnesota 55440-9300, USA (Phone 800-227-4455, Webpage https://www.cargill.com).

 

Source: IntraFish/Aquaculture.  Cargill Eyes Shrimp Farming in Latin America.  Kim Tran.  June 2, 2017.