Recently, the global vananmei shrimp market is very bleak. Market demand has dropped sharply. Influenced by inflation, increased energy costs and economic recession, the import of vannamei shrimp in the US and EU markets has declined. The Chinese market was affected by the rebound of the epidemic, and catering in some regions was impacted. In October, catering revenue fell by 8.1%, and the demand for various ingredients, including vananmei shrimp, slowed down.
At the same time, in many countries, including China, the devaluation of their own currencies has led to a decline in the purchasing power of enterprises for foreign products. All import enterprises are faced with two adverse conditions: high import costs and sluggish market demand, which further reduces the willingness to import vananmei shrimp.
Ecuador’s vananmei shrimp production has increased significantly this year, and has been trying to expand more overseas markets. The monthly export data collected this year is also quite gratifying. But at present, the global vannamei shrimp market demand is weak. Will this result be maintained in the last few days of this year?
The current weak market consumption has led to a decline in the export volume of a large number of vannamei shrimp producers. Some processing enterprises said that local raw shrimp production and factories have capacity, but unfortunately, there are no orders. This situation directly affects the raw material price. In the 45th week, the price of raw materials for most size of shrimp fell by about 20%.
Compared with the quotation of the previous week, the quotation of size 20-30, 30-40 of Santa factory fell by 0.5 dollars/kg, and the price of 40-50 dropped by 0.3 dollars/kg. Compared with the same period of last month (before and after October 10), the difference between the quotations of 20-30 is 1.1 dollars/kg.
Affected by this, Ecuador shrimp production enterprises, especially small ones, appear to loose confidence. Small producers from Guayas Province worry that the low price will last until next year, and even lead to the closing of some peers: “In view of the current situation, we expect that the price will not rise until January or February next year”, “production costs remain high, prices remain low, and export profit margins are reduced or even zero, so many peers are likely to stop operating again”.