Ecuador – Prices Rise on Demand from China
Ecuadorian exporters report higher shrimp prices at the end of the Brussels Seafood Show (April 21 to 23, 2015).
Francisco Vanoni, a sales executive at Omarsa, one of Ecuador’s biggest shrimp exporters, said prices were down before the trade show and that they bounced back when it ended.
At Expalsa, another major exporter of Ecuadorian shrimp, Juan Gomez, commercial director, said, “Three weeks ago prices dropped about $0.40 per kilo in just a day and remained low until the Brussels show. The drop was linked to problems at destinations in China, as there was an issue with meat smuggling and many buyers feared shrimp imports couldn’t get through.”
Multiple sources at the Brussels Seafood Show reported that the so-called “backdoor” imports from Vietnam into China have been stopped. Some players involved in this illegal trade of foodstuffs and other products across the border have been imprisoned, so shrimp importers became more cautious about it. The ending of those imports put prices under pressure temporarily, however, the Ecuadorian shrimp price is now up as “the Chinese have realized prices hit bottom”, Gomez said. “We started to have an abrupt demand from Asia at the trade show, as now China wants to buy.”
According to Vanoni, Omarsa closed the Brussels’ show with strong sales. “We have sold the big April harvest,” Vanoni said.
Although China is buying more than other markets, USA demand is expected to go up in May, and European demand is also projected to nudge up, due to the upcoming summer season.
As prices have bounced back, they are projected to follow an upward trend, although year-on-year prices have dropped about 30%, as production volumes were up 20% in 2014 and 10% higher in 2015 over the previous year, Gomez, from Expalsa, said. “There is no room for prices to keep going down. If this happens, Ecuadorian farmers will produce lower volumes.”
Source: Undercurrent News [eight free news reads every month]. Editor, Tom Seaman (email@example.com). Ecuadorian Shrimp Prices Bounce Back Amid Return of Chinese Demand. Alicia Villegas (firstname.lastname@example.org). April 27, 2015.