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September 25, 2015

Ecuador

Shrimp Prices Are Rising Fast

 

Prices for Ecuadorian shrimp are rising fast on the back of strong global demand and low production.

 

Similar to India, prices in Ecuador have risen because of a drop in production and because of “the strong increase in demand within all markets, particularly in the USA and Europe,” a major exporter said.

 

Nonetheless, a USA buyer said demand in the USA market is still weak, although he agreed prices were up “for whole shrimp”.

 

Since cracking down on the shrimp coming into the country illegally through northern Vietnam, China has been more active in the market.

 

Meanwhile, “demand has awakened” in Europe, as buyers are getting ready for Christmas sales, a European buyer said.  Another source said stocks in Europe are low at the moment.  “Inventories are low because buyers did not buy before their summer holiday, as they were waiting for prices to settle down.  Now, on their return, they found firm prices and not much shrimp,” he said.

 

Three Ecuadorian exporters agreed prices have gone up by, at least $0.30 a pound in the last three weeks, especially for whole shrimp.  Whole shrimp, FOB Guayaquil were quoted by a major local exporter at $9.00–$9.10 a kilo for 30/40s, $7.70–$7.80 for 40/50s, $6.70–$6.80 for 50/60s and $6.30–$6.40 for 60/70s.

 

A major Ecuadorian exporter said volumes were down because producers are focusing on production of large sizes.  “With prices of small sizes there is no way to generate positive margins on farms...so producers are aiming at larger sizes,” the exporter said.

 

Another exporter said production is low because shrimp farmers lowered stocking densities to avoid diseases and to prepare for a strong El Nino.  A third exporter also said expectations of a strong El Nino were connected to lower stocking densities.

 

Source: Undercurrent News [eight free news reads every month].  Editor, Tom Seaman (undercurrent@undercurrentnews.com).  Ecuador Shrimp Prices ‘Rising Fast’ on Strong Demand Amid Low Volumes.  Alicia Villegas (alicia.villegas@undercurrentnews.com).  September 25, 2015.

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