The Barcelona Seafood Show was alive with activity as producers and clients from around the world convened. Although many meetings were engaging, only a handful of sales were made.
Throughout the show, the dominant sentiment was that shrimp prices would decrease, but the precise extent remains to be seen.
China’s May 1 holiday resulted in heightened local consumption as numerous Chinese vacationers travelled however, a considerable inventory remains in China.
Meanwhile, India’s shrimp output failed to achieve large volumes.
The current situation in Ecuador involves:
- Ongoing rain affecting harvests.
- The initiation of the first May harvest.
- Factories working to complete most pending orders.
- Chinese clients insisting on substantial price reductions, rendering desired prices unattainable for farmers.
- Raw material prices remaining uncertain as everyone anticipates stabilization.
The ideal outcome entails finding a balance between raw material prices, factory selling prices, and the prices Chinese clients are willing to pay. This balance, however, may not be achieved if:
- Farmers opt to harvest minimally, awaiting better prices in subsequent harvests.
- Chinese buyers postpone purchases in anticipation of further price drops.
As of now, the prices for shrimp sizes 20-30, 30-40, and 40-50 have been reduced, but it remains unclear if these prices are final or we can still expect some price reduction. Meanwhile, the impact on 50-60 and 60-70 sizes is expected to be less pronounced due to their smaller volume.