Argentina's fishing industry grapples costs, tax hikes, market challenges

Argentina's fishing industry is under mounting pressure as rising costs, tax hikes and market challenges lead participants to warn of an unsustainable situation while foreign investors continue to expand their presence.

The country's key fishing chambers, including the Argentine Fishing Chamber, Cafrexport, and the Chamber of Deep-Sea Fishing Vessel Owners, issued a joint statement Jan. 28 cautioning that without urgent policy adjustments, financial losses could become unmanageable. The Unique Extraction Tax (DUE) for shrimp surged by 80.5%, further straining exporters already navigating weak growth and volatile markets.

During the launch of the 151st fishing ship Marlene del Carmen Feb. 1, Astillero Naval Federico Contessi shipyard President Domingo Contessi reinforced these concerns, stating, "Processing plants are closing, vessels are operating at a loss, and the future remains uncertain," according to Seafood Media.

Despite these challenges, Argentina's fishing exports totaled 503,000 mt in 2024, valued at $1.981 billion, according to CAPECA data. Shrimp remained a key driver, with 93,000 mt of whole shrimp exported at an average price of $5,616/mt. Shrimp tails accounted for approximately 50,000 mt.

Spain remained the top destination, importing 55,576 mt of Argentine shrimp valued at $328.4 million, reflecting a 17.4% year-over-year increase.

Foreign investment continues to shape Argentina's seafood sector facing financial strains. According to media reports, Spain's AISA Group finalized its acquisition of Cabo Vírgenes SA on Jan. 30. The Rawson-based shrimp processor and exporter operates a fleet and processing facilities with a freezing capacity of 60 mt/d, enabling an annual output of over 10,000 mt.

The company also manages cold storage in Argentina and Spain with a capacity exceeding 5,000 European pallets. The deal underscores sustained foreign interest in Argentina's seafood industry, even as domestic producers grapple with rising costs and market uncertainties.