Argentina faces shrimp supply challenges amid evolving market dynamics

Argentina faces supply challenges in early 2025 as strong EU demand for larger-sized shrimp contrasts with an oversupply of smaller sizes and reduced purchases from China.

By November 2024, Argentina's shrimp exports to the EU rose 15% year on year to 70,920 mt, cementing its position as the second-largest shrimp exporter to the region. In comparison, Ecuador remained the largest supplier, exporting 167,626 mt to a European market that saw a 4% year-on-year import increase, reaching 500,458 mt.

Argentina continues to lead as Europe's largest supplier of wild-caught shrimp, but recent developments underscore industry challenges. A one-week fishing suspension in Chubut Province, ending on Jan. 14, aimed to protect small shrimp stocks. According to seafood media, this drew criticism for its limited impact. Industry stakeholders argued the measure failed to allow sufficient time for ocean currents to bring in larger, higher-value specimens, leaving smaller sizes (L3 and L4) dominating oversupplied inventories.

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Competition from farmed Vannamei shrimp—priced significantly lower—has further pressured smaller wild-caught categories, intensifying price declines. Larger Argentine red shrimp (10-20 pieces/kg) saw spot prices climb 25% in 2024 to $10.18/kg EXW Spain, fueled by high demand and limited supply, as fishing activities predominantly yield smaller sizes, preventing larger counts from replenishing stocks.

The Platts HOSO Shrimp CIF EU index held steady at $5,500/mt on Jan. 20, underscoring persistent challenges for medium and smaller sizes as Argentina's shrimp sector balances opportunities in premium segments despite headwinds from global competition and shifting market dynamics.