Ecuadorian White Shrimp Exports in China Market Drop sharply, but Prices are Surprisingly Stable

According to the latest data, from January to July 2024, the total export volume of Ecuador's three major white shrimp export enterprises-EXPALSA, PCC and TOTAL SEAFOOD to China dropped to 46,900 tons, a decrease of 7300 tons or 13.4% compared with the same period in 2023.  It is particularly noteworthy that the export volume of EXPALSA, a large traditional exporter, has dropped sharply by 45.9%, from 37,900 tons to 20,500 tons.  This significant change directly reflects the strengthening of Chinese customs supervision over imported food and the challenges faced by Ecuadorian white shrimp enterprises in coping with this change. 

Faced with strict scrutiny from Chinese customs, many large companies have had to seek partnerships with smaller factories to bypass some of the regulatory challenges and ensure smooth execution of orders.  However, although this strategy eased the export pressure to a certain extent, it failed to fundamentally reverse the downward trend in export volume.  Behind this, there are not only uncertain factors in the international trade environment, but also insufficient adjustment of Ecuador's native white shrimp industry itself. 

In sharp contrast to the sharp decline in exports, the price of Ecuadorian white shrimp in the Chinese market has remained relatively stable.  Take the ace white shrimp as an example, the quotation of different specifications (such as 3040,4050,5060) is maintained at a relatively stable level, without significant fluctuation.  This phenomenon seems contradictory, but in fact it contains multiple factors. 

First of all, the supply-demand relationship in the global white shrimp market is one of the key factors affecting prices.  Although Ecuadorian white shrimp exports to China were blocked, increased production from other white shrimp suppliers such as India and Vietnam filled some of the market gaps, thus maintaining price stability to some extent.  Secondly, Chinese consumers have high brand recognition and quality recognition of Ecuadorian white shrimp, and this rigidity of market demand also supports price stability.  Finally, Ecuadorian white shrimp exporters may have adopted more flexible market strategies in the face of export pressure, such as adjusting export structure and optimizing cost control, in order to maintain competitiveness in the Chinese market. 

To sum up, the decline in the export volume of Ecuadorian white shrimp in the Chinese market and the coexistence of stable prices not only reflect the complexity and challenge of the current market environment, but also point out the direction for the future development of the industry.  Faced with the coexistence of challenges and opportunities, Ecuador's white shrimp industry needs to keep a clear head and firm confidence, actively respond to changes, and achieve sustainable and healthy development.