Employees at work at a shrimp processing plant. (Photo: MARM)

Shrimp farmers brave the crisis

ECUADOR
Friday, September 25, 2009, 01:10 (GMT + 9)

Ecuador exported 146 million pounds of shrimp worth USD 297 million in the first five months of 2009, figures that are significant for the industry, if the international context is taken into consideration. In the same period in 2008, 152 million pounds of shrimp worth more than USD 339 million were sold abroad.

The European market was the target destination of almost 70 million pounds of shrimp worth more than USD 141 million.

Some 69.7 million pounds were shipped to the United States, 1.5 million to Asia, 707,086 pounds to African countries and 4.6 million pounds to the rest of the Americas.

For Robert Bolona Paez, one of the directors of the National Aquaculture Chamber (CNA), the shrimp farming sector is moving forward thanks to the impetus of executives, given that they [are used to] facing natural, economic and political problems, El Nuevo Empresario reports.

Ecuador has around 180,000 hectares allocated to shrimp production.

According to data furnished by the United Nations (UN) Food and Agriculture Organization (FAO), in 2006 the country produced 150,669 metric tonnes, whereas 140,335 metric tonnes was produced in 2007, and 150,479 tonnes a year later.

The FAO estimates that Ecuador will produce 166,776 metric tonnes in 2010, according to an article published in Global Aquaculture Advocate.

On the issue, Bolona Paez commented: “Ecuador is not a country blessed for producing shrimp because of the climate; the cold does not let shrimp grow. Nonetheless, quality shrimp is produced here all year long. For that reason, I tip my hat to shrimp farming producers and Ecuadorian biologists.”

“In fact, the sector faces several problems, on top of climate, like the prices of the international market – in the case of exports – disease, [and] production costs, which are inflated at this time,” he added.

In addition, he indicated that the margin of production costs and sales costs is narrowing daily: “The nutrients for shrimp have risen because there is a shortage of raw material to make feed: soy and corn. To get an idea, one is produced and three are needed to make feed. In raising the cost of feed for shrimp, the production cost is increased.”

In any case, he insisted that the activity has not decreased: “What has dwindled is the sales cost in the international market, for that reason, one sees that more was exported, but less was earned in the annual balance."

“I have confidence in shrimp farmers because they are industrialists with mettle; they will come out ahead,” he asserted.

Meanwhile, the Ministry of Agriculture is drafting a reform to the Fisheries Law regulation that will contemplate new rules for the renovation of shrimp farming concessions in beaches and bays.

Among the new obligations are health certificates of all employees, Social Security deductions, tax payments and the requirement that shareholders not be sheltered in foreign tax havens, El Comercio reports.

According to Jose Centanaro, Subsecretary of Aquaculture, if those requirements are not fulfilled, they become grounds for rescinding the concession.

“Now, not only is it about fulfilling the aquaculture part but also about social responsibility, like health and taxes with the State,” he affirmed.

Meanwhile, the requirement “that shareholders not be established in foreign tax havens, when that was not in the negotiations” had surprised them, CNA President Cesar Monge remarked.

At present, of a total of 1,200 shrimp farming estates, 325 have initiated the legalisation process.

Related article:

- Half of all shrimp farms operate irregularly

By Analia Murias
editorial@fis.com
www.fis.com  

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