Ecuador seeks efficiency gains as shrimp prices remain under pressure

Shrimp producers in Ecuador continued to seek ways to reduce costs and improve operational efficiency amid a period of historically low prices, while production volumes remained high during the first week of August.

Platts, part of S&P Global Energy, assessed head-on shell-on 30-40 count shrimp FCA Guayaquil at $4,000/metric ton on Aug. 7, closing the first weekof the monthat a level that continued to weigh on industry margins despite efforts to optimize production.

Market participants said the current oversupply of 30-40 count shrimp in the spot market has left some small and medium-sized integrated producers with limited pricing power.

Sources said those exporters have at times accepted minimal or even negative margins on spot sales, as weak buying interest and ample availability have made it difficult to clear inventories at higher prices. In such cases, selling at a loss was viewed as preferable to holding unsold stocks, which can constrain pond availability for subsequent production cycles.

"Processors can't afford to remain idle. Fixed costs are killing them, so taking a small loss is still better than not moving product at all," one producer said.

Industry participants have reported mounting concerns over farm fixed and operating costs, prompting producers to pursue strategies aimed at generating more biomass in less time and with greater feed efficiency. According to a second producer, "Overhead burns your money; the less you apply it to biomass generation, the more remains on the farm," highlighting the impact of indirect costs on operating profitability.

Another market participant based in Ecuador summed up the challenge facing producers: "Spending the first 30 days of cultivation on biomass that grows very slowly destroys you."

The comments reflect a sector focused on lowering per-kilogram production costs rather than reducing overall output volume. Despite weak demand sentiment, Ecuadorean shrimp exports remained at record levels through May, according to data from the National Chamber of Aquaculture, suggesting the industry continued to prioritize productivity and scale.

The combination of low prices, elevated costs and abundant supply suggests many producers view efficiency gains as one of the few available tools to protect margins while awaiting a more sustained recovery in international demand.