Shrimp farmers in Mexico confront rising feed costs, pursue quality solutions

Shrimp farmers in Mexico are seeing increases in feed costs, leading the industry to seek alternatives amid the pressure to ensure high-quality nutrition.

Mexico, the sixth-largest provider of shrimp to the US in the year's first two months, has seen increases in aquaculture feed costs in recent days, according to farmers.

Feed costs were on a downtrend early in 2025, but after the US added tariffs, those costs began to shift, according to Javier León, executive director at National Council of Manufacturers of Balanced Feed and Animal Nutrition, or Conafab.

Such prices are a major factor in pond efficiency, as feed is the main cost in shrimp production. Feed can make up to 70% of production costs, and costs are even more relevant as shrimp prices have decreased in the early months of 2025.

The Platts' PDTO Shrimp CIF US was $9,590/mt May 5, unchanged from the previous day but down from $10,913/mt Jan. 2.

Mexico mostly imports raw feed materials

Mexico does not produce enough raw materials necessary for feed manufacturing to be self-sufficient.

"Mexico imports 80% of the wheat and 90% of the soybeans consumed nationally, making it very concerning that prices could rise due to a tariff war," Conafab President Jaima Almazán said.

Historically, the shrimp industry has faced challenges related to feeding. In the past, many producers used low-quality feeds that did not meet the nutritional requirements of shrimp, resulting in slow growth and high mortality rates. However, with the increasing demand for high-quality shrimp in the market, producers have begun investing in balanced feeds that meet higher standards.

During the pandemic, shrimp production fell drastically, leading to a reduction in feed prices. Those prices recovered in 2023 and were little changed in 2024.

Among the components, aquaculture feed needs to include ingredients rich in energy mixed with protein sources and additives to provide balanced nutrition. Also, shrimp nutrition is complex, as the crustacean's needs vary at each growth stage, being even greater in the early stages.

To achieve the necessary characteristics, feed is prepared in specialized plants, combining fish meal and oil, squid, krill, grains such as soybean and wheat, and animal byproducts. Blends of amino acids, vitamins and minerals are also added.

Grains such as wheat and corn are used as a source of energy. In turn, protein sources include fish meal, animal byproducts and soybean paste, with the latter seeing an increase in its use, León said.

Soybean prices influence feed costs

Almazán said soybean prices are one of the main drivers of feed costs.

"Soybean is the queen protein in feed production due to its lecithin content, stability and availability," he said. "If soybean prices rise, it will significantly affect feed prices."

Platts' daily Soybex FOB Santos, Brazil, was assessed at $410.81/mt May 2, up from $408.43/mt April 30 and up from $378.85/mt Jan. 2.

But not all signs point to a reduction in supply. Prices of soybean meal, which is used in animal feed production, continue to be pressured due to high levels of soybean processing globally, according to analysts. And the Peruvian supply of anchovies, a key ingredient in fish meal, is headed for a record high catch quota this fishing season.

"The prices of fish meal and oil already dropped due to increased anchovy catch quotas in Peru," Almazán said.