Stable output but surging undercurrent? Ecuador's shrimp industry turns to China market for breakthrough

Sandro Coglitore, CEO of Omarsa, Ecuador's second-largest shrimp producer, bluntly points out that white shrimp production will not rise in 2024, a judgment based on the cumulative effect of multiple adverse factors.  On the one hand, cold weather has had a direct impact on marine ecology and fishing operations, increasing production difficulties and costs; on the other hand, falling prices in major global markets, particularly weak demand in key markets such as North America and Europe, have reduced incentives to invest in fishing operations, further limiting production growth. 

Omatha expects overall revenue to remain around $900 million in 2024, while production will remain roughly at 350 million pounds (158,757 metric tons), a stable but worrying figure. 

Even more severe is the anti-dumping and countervailing duty barriers faced by Ecuadorian shrimp in the United States market, which seriously limit the competitiveness of its products in the United States.  This trade environment has forced producers such as Omatha to adjust their marketing strategies and shift more resources and energy to the Chinese market.  As one of the largest shrimp consumption markets in the world, China's demand stability and growth potential provide new development opportunities for Ecuador's shrimp industry. 

 Cogritore pointed out that demand for Chinese prawns has remained strong, showing steady growth even under the impact of the COVID-19 epidemic.  This trend provides Ecuadorian shrimp producers with a broad market space, but it also brings supply chain management and marketing challenges.  Especially as production may decline, how to ensure adequate inventory supply during peak demand seasons (such as Christmas in the United States and Chinese New Year) has become a difficult problem for producers. 

 Faced with these challenges, manufacturers such as Omartha have taken a series of proactive measures.  On the one hand, they have strengthened their marketing efforts in the Chinese market and are committed to enhancing brand awareness and market share; on the other hand, they have increased the added value and competitiveness of their products by launching customized value-added products, such as specialty shrimp products targeting Chinese consumers 'tastes.  In addition, in response to the problem of extended customs clearance time in China, manufacturers have also planned logistics and procurement strategies in advance to ensure that products can reach consumers in a timely manner.