Export Data Analysis and Market Outlook of Ecuadorian Shrimp

As one of the largest shrimp producers in the world, Ecuador's shrimp export occupies an important position in the global market.In May 2024, Ecuadorian shrimp export data again attracted attention, not only because of significant growth in export volume, but also due to changes in export market structure and price fluctuations.This paper will analyze the data in depth, assess the market outlook, explore potential risks, and make recommendations.

According to the statistics of the Ecuadorian Aquaculture Chamber of Commerce (CNA), the export volume of Ecuadorian shrimp reached 124,900 tons in May 2024, with a month-on-month growth of 12% and a year-on-year growth of 16%.The figures show that Ecuadorian shrimp exports have increased significantly since April, after a sluggish first quarter.

Despite the growth in export volumes, the average export price of Ecuadorian shrimp remains low.The average price in May led to a 12% year-on-year decline in exports and a 13% drop in unit prices.Specifically, the average price of shrimp exported from Ecuador to China was about $4.50/kg, down 17% year-on-year.This suggests that price competition remains fierce and the market remains weak.

China: China remains Ecuador's largest export market, but exports fell in volume and price to 69,543 tons worth US$309 million in May.

United States: The United States market performed well, with exports of 23,681 tons, up 53% year-on-year, and exports of USD 135 million, up 41% year-on-year.

Europe: Exports to the European market reached 22,137 tonnes, up 30% year-on-year, valued at $110 million, up 18% year-on-year.

Ecuador's shrimp exports have increased significantly since April, which does not mean that demand in the international market is gradually recovering.The fierce price war in China's market and the upside down of importers 'purchases and sales have led to a continued decline in the average price of Ecuadorian shrimp exports, reflecting oversupply and relatively weak consumer purchasing power in China's shrimp market.The increase in the US market is particularly prominent, but this is mainly due to the "double reverse" influence and early orders, there is a certain false prosperity.

The import volume of the United States and the European Union has increased significantly, while the volume and price of China in the first market have fallen. We may mistakenly think that Ecuadorian shrimp is actively seeking diversified export markets to spread risks.However, this is not the case. After the madness in 2023 in the Chinese market, the Doll Shrimp players who were beaten up by the market are still shivering. Low profits, high risks and long cycles force some importers to go out or wait and see with money. The fear of market uncertainty deepens the awe of Doll Shrimp players to the market. The gambling market will slowly move towards rationality. Therefore, the future market structure China will still be far ahead, and the market position of a brother will be hard to shake. But the pain will take time to repair, and market prices will largely remain depressed.

Intensified market competition: With the continuous improvement of domestic shrimp breeding technology and the increase of output year by year, local shrimps have formed a more direct competitive relationship with imported shrimps in the market.The listing of domestic shrimp has increased the market supply, which makes consumers have more choices when choosing shrimp products, thus intensifying the market competition.This kind of competition is not only reflected in the varieties and specifications, but also reflected in the price, quality and service, and other aspects.

Diversification of consumer choices: With the increasing attention of consumers to food safety and quality, the advantages of local shrimp in freshness and traceability gradually appear.Many consumers prefer fresh, safe and traceable local shrimp products to imported shrimp from afar.This shift in consumer preferences has further weakened the market position of imported shrimp.

Price change: domestic shrimp market intensified the price competition in the shrimp market.Due to the relatively low cost of transportation and storage of native shrimps, their market prices are often competitive.That puts pressure on the pricing of imported shrimp, which may need to lower prices to maintain market share, squeezing margins.

Supply chain adjustment: The listing of domestic shrimp also promotes the adjustment and optimization of supply chain.On the one hand, the rapid development of local shrimp breeding industry has driven the development of relevant industrial chains, such as feed, breeding equipment, processing and sales, etc., which have been improved and perfected to varying degrees.On the other hand, in order to cope with the market competition, the suppliers of imported shrimp have to adjust their supply chain strategies, including optimizing import channels, improving logistics efficiency and strengthening quality control.These adjustments not only help to enhance the market competitiveness of imported shrimp, but also help to promote the healthy development of the entire shrimp market.

The impact of the sulfur dioxide residue event selected by Dongfang is multifaceted. First, the customs sampling rate is increased, resulting in the slowdown of customs clearance and the increase of costs; secondly, consumers 'concerns about food safety are intensified, and the influence of e-commerce channels is far-reaching, requiring a certain period of repair buffer.

Many well-known brands in Ecuador are imitated by domestic shrimp. There is no obvious difference between them in terms of production technology, quality, packaging layout and other aspects. Consumers cannot identify them and there is no need to identify them, as long as the price is advantageous.The impact on Dole shrimp is very big. It will take a relatively long time for Dole shrimp to get out of the depressed price range and will continue to fluctuate sideways for some time to come.