Ecuadorian shrimp enters the United States with force at a time when sales fall with China

The shipments allow Ecuador to displace Indonesia from second place.

Ecuadorian shrimp is fighting tough Asian competitors in the US market amid this pandemic. Shipments of this product grew last February and made Ecuador the second largest supplier in the United States.

Indonesia was in second place,But the Ecuadorian shrimp farmers have momentarily retaken that position due to the growth of exports.

Last February, exports grew in tons compared to the same period in 2020, according to the Ministry of Production.

The Minister of Production, Iván Ontaneda,he celebrated this second place on his Twitter account and linked it to "a coherent and strengthened business relationship."

Unlike sales to China,shipments to the United States have performed betterso far this year and they are subtracting the quota from Asians.

Figures from theNational Chamber of Aquaculture(CNA) report that sales in February to the US market reached$ 67.57 millionfor 27.87 million pounds. To the United States it was 10 million additional pounds than in the same month last year.

Sales growth in pounds in the North American market represented 58% in that month, contrary to the 42% decrease in shipments to China. Sales to the United States represent 22% of what the country sells.

In February,total sales to different markets represented $ 288.29 million with 126.63 million pounds. Ecuador exported more than in the last two months, but the price was lower.The average per pound was $ 2.28, the lowest in the last twelve months.In the same month of 2020, the price was $ 2.53.

What influences Ecuador to sell more in the United States?

Shrimp sales to China, one of the main markets, have fallen in this pandemic year and that has pushed exporters to try to compensate for those falls by looking for sale options in the United States.

The Ecuadorian shrimp sectoris striving to serve segments such asretail(supermarkets and sale through online channels)and others that demand shrimp tails and value-added products.

"This effort implies investments and increases in the processing costs of this shrimp that was previously sold whole to other countries and distribution channels," he says José Antonio Camposano, president of the CNA.

Web portals specialized in sales of aquaculture products indicate that prices and a change in buyer behavior have favored the sale of Ecuadorian shrimp in North America.

Willem van der Pijl, consultor del portal Shrimpinsights, He argues in an analysis that many buyers have moved from Indonesia to, for example, Ecuador because Indonesian producers tend to focus on larger sizes, whereas these US buyers actually require smaller sizes.

This publication notes that the National Chamber of Aquaculture and Sustainable Shrimp Partnershiphave been aggressively promoting Ecuadorian shrimp and aim to differentiate it from its Asian competitors, claiming sustainability and superior quality.

"With this strategy, Ecuador tries to enter the retail markets of the United States and Europe, which until now have been dominated by Asian suppliers," says Shrimpinsights.

The president of the CNA indicates thatThe Ecuadorian product has a higher standard than the competition in that market since antibiotics are not used in Ecuador.“The Asian competition is very tough, but it has serious problems of rejections due to the presence of antibiotics. Ecuador has a clean record ”, assures Camposano.

Being geographically closer and having a stable supply throughout the year have also helped the sector improve its shipments to North America. The sector expects to continue growing in the North American market while demand has suffered a contraction in others.