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    Home > Food News > Food Articles > Competition in Ecuador's shrimp market intensified, and Skretting lowered its expected earnings

    Competition in Ecuador's shrimp market intensified, and Skretting lowered its expected earnings

    • Last Update: 2022-10-25
    • Source: Internet
    • Author: User
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    In 2013, Dutch feed producer Skretting acquired Ecuadorian manufacturer Expalsa and officially entered the South American shrimp feed market
    .
    In the past ten years, Skretting Latam's production capacity has gradually increased from 15,000-20,000 tons per month to 8-90,000 tons, and its market share has become larger and larger
    .
     
    Carlos Miranda, general manager of Skretting Latam, told UCN: "In the beginning, we were a $100 million company, and now we have a turnover of almost $1 billion and annual sales of 1 million tons
    .
     
    In 2022, Ecuador's shrimp feed demand is about 2.
    2 million tons, and the compound annual growth rate of Ecuadorian shrimp production has been maintained in double digits for a long time, attracting a number of foreign companies such as ADM, Cargill, Bioma, Haida Group and Vitapro to strengthen their investment layout, and fiercely compete
    with a number of local feed companies such as Agripac, Inprosa and Molinos Champion.
     
    However, rising costs of soy, corn, vegetable oil, wheat, fish oil, fishmeal and other feed ingredients mean feed producers have had to raise selling prices and lower their expected earnings
    this year.
     
    "We have to remind our clients that there is a war going on in Ukraine, there is a huge inflation problem in the United States and Europe, and China's economic growth is slowing down because of the lockdown, which is a huge crisis
    ," Miranda said.
    We had to pass on some of the costs, but most importantly, our customers need to understand that the feed they buy today is consistent in quality and possibly improved
    .
     
    According to Miranda, the biggest challenges for Ecuador's shrimp industry are market prices, disease and overcapacity
    .
    To support future market growth, Skretting invested $6 million in Guayaquil to open an innovation center equipped with state-of-the-art laboratory equipment to test
    key technologies for the South American white shrimp farming industry.
    "The technologization of farms in Ecuador has accelerated industrial integration, and if large farms can be technological, small and medium-sized farms will follow, and we need to provide some support
    .
    "
     
    The rapid growth of production in Ecuador has raised concerns among environmental groups about the ecological costs, claiming that marine pollution is increasing and the environmental carrying capacity of aquaculture has become overwhelmed
    .
     
    Miranda explains that the Guayaquil farm has been improving its sewage treatment this year, "Five years ago, 80% of the wastewater was discharged into the sea without treatment, and at the beginning of this year, 90% of the wastewater was treated by the factory, and the solid waste that sank to the bottom of the pond was dug during the drying period
    .
     
    During the development of the new pond, Skretting played an active role
    in preventing ecological damage by advancing mangrove planting programs.
    The World Wide Fund for Nature (WWF) has positively evaluated
    Ecuador's mangrove conservation through satellite photo analysis.
     
    "As a feed company, we create social benefits in Ecuador, and if an employee enters the Skretting factory, they become middle class and enjoy social security
    .
    Their children will be able to finish school and go to college
    .
     
    "Ecuador's feed industry has created thousands of jobs over the past few years; By the end of next year, at least five new feed mills will be operational, and if one plant employs 1,500 full-time workers, it will support 7,500 families with three children, or 22,000 people
    .
    Miranda said
    .
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