On December 1, the press office of the President of Ecuador said in a statement that diesel subsidies for large farms with production areas of more than 30 hectares would be reduced from December 2. The statement also said that the diesel subsidy for shrimp farms with an area of no more than 30 hectares would remain unchanged.
Ecuador’s National Chamber of Aquaculture Commerce (CNA) said the price of fuel for shrimp production would now rise to US$3,917 per gallon. Due to the loss of government subsidies, the $1.87 per gallon price for farmers increased 209%. This will increase the cost of production per pound by $0.16, which will seriously affect the competitiveness of the industry, and even put the manufacturer at risk of bankruptcy.
In Ecuador, most shrimp farms have more than 30 hectares. Even 100-hectare farmers in Ecuador are considered small.
It will be interesting to know what percentage of shrimp production in Ecuador is considered to come from small farms.