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Ecuadorian Shrimp Industry Closely Monitoring Chinese Demand as 2025 Progresses

ECUADOR
Friday, January 24, 2025, 03:00 (GMT + 9)

Since 2023, Ecuador’s aquaculture industry has faced declining revenues due to falling shrimp prices and weakened demand from China, according to FishRetail.ru.

From January to October 2024, total sales reached approximately $5.7 billion, a 7% drop compared to the same period the previous year. China continues to dominate as the largest market for Ecuadorian shrimp, accounting for 53% of exports, followed by the European Union (25%) and the United States (15%).

Challenges in the Chinese Market

Felipe Ribadeneyra, executive president of the Federation of Ecuadorian Exporters (Fedexpor), emphasized Ecuador’s strengths despite the challenges:

“Ecuador has always been a reliable supplier. Our key advantages include resilience to external factors like biosecurity threats, climate change, and power outages; strong production capabilities; and robust relationships with customers across markets.”

However, Ribadeneyra acknowledged the challenges in the Chinese market:

“The reality is that China is not in the best economic shape. Sales to China have declined by nearly 20% due to sluggish growth. While China has implemented countercyclical measures to boost consumption, they’ve yet to see results. Although other markets, like the U.S. and the EU, are showing growth, China remains our largest market.”

Industry Outlook for 2025

Looking ahead, José Antonio Camposano, president of the Ecuadorian Chamber of Aquaculture (CNA), highlighted the uncertainty facing the industry:

“In 2025, we’ll need to remain vigilant. We must monitor whether other countries reduce their shrimp supplies and whether prices recover. For the market to respond, there needs to be an increase in global consumption.”

Camposano also pointed out the impact of broader economic policies:

“U.S. and Chinese economic decisions will significantly influence consumption trends. Despite challenges within Ecuador, the export business must persevere.”

Trade Agreement with China

Gustavo Cáceres, president of the China-Ecuador Chamber of Commerce, discussed the Ecuador-China Free Trade Agreement, which took effect in May 2024:

“The agreement has only been in place for seven months, and tariff reductions are being phased in gradually. It will take several years for tariffs to be completely eliminated.”

Fluctuations in Exports

Ecuadorian shrimp exports saw significant fluctuations in 2024, with volumes varying between 104,000 tons in August, dropping to 86,000 tons in October, and rising again to 118,000 tons in November.

Gabriel Luna, president of shrimp producer GLuna, expressed cautious optimism:

“Production growth in 2024 was only around 1%. The industry has entered a period of technical stability, and the peak in November exports does not indicate a sustainable upward trend.”

Ecuador’s shrimp industry faces a complex year ahead, with hopes resting on recovering demand from China, continued market diversification, and strategic adaptation to changing global dynamics.

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