China Agriculture & Food insights

In recent years, Ecuador's white shrimp export market has changed significantly. Although China is still its main exporter, due to a series of trade frictions and changes in demand, the export proportion of Ecuador's white shrimp is gradually tilting towards the United States and Europe. According to data from the Ecuadorian National Chamber of Aquaculture (CNA), as of September 2024, Ecuador exported 913,000 tons (about 2 billion pounds) of white shrimp to the world, with a total value of US$4.5 billion. However, unlike previous years, China's market share has declined, while the United States and Europe's share has increased. The transfer of the US and China markets and the strategic decision of diversification New crown During the epidemic, the instability of global logistics and supply chains prompted Ecuador to actively seek closer trading partners. The United States and some European countries became the main alternative markets during this period. This shift not only alleviated the market impact caused by the epidemic, but also helped Ecuador reduce its dependence on the Chinese market. In the first quarter of 2024, Ecuador's white shrimp exports to China decreased by 27% year-on-year. Weak demand in the Chinese market, rising demand in the US and European markets Although the ban has been lifted, due to China's slow economic recovery and lower-than-expected holiday consumption, the demand for white shrimp is not as good as in previous years, resulting in a decline in imports. According to statistics, in 2 In the third quarter of 2024, Ecuador's white shrimp exports to China fell by more than 10% year-on-year to about 491,000 tons, accounting for 54% of the total exports, down from 60% in 2023. While demand in China weakened, demand in the United States and Europe increased. In the first three quarters of 2024, the United States' imports of white shrimp from Ecuador increased by 8.3% year-on-year, and the proportion increased from 16.78% last year to 18.15%; the import growth rate in the European market was relatively small, increasing by nearly 3% year-on-year, and the proportion increased from 14.4% to 14.75%. Investment in high value-added products to meet the needs of the European and American markets In order to meet the diversified needs of the US and European markets, Ecuador has increased its investment in high-value-added shrimp products. This not only increases the competitiveness of white shrimp in these markets, but also becomes an important decision for Ecuador's industrial transformation. In the North American market, especially with the arrival of the holiday consumption peak season, the growth in demand has further pushed up the wholesale price of white shrimp. US importers are optimistic about inventory, and wholesale prices remain stable and may continue to rise in the future. Adjustment of the pattern of Ecuadorian white shrimp export enterprises From the perspective of enterprises, the performance of major white shrimp export enterprises in Ecuador is significantly different. Industrial Pesquera Santa Priscila is still the largest exporter, with obvious competitive advantages in the US market and a comprehensive profit margin of 4.43%. In contrast, Sociedad Nacional de Galapagos has a profit margin of 12.27%, and other enterprises have an average of 13.47%. It is worth noting that Omarsa's export ranking has declined significantly in 2024, from second place in 2023 to eighth place, showing the differentiated impact in market competition. Price dynamics

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