Since last year the effects of climate variability and supply on the international market have been in check production of Nicaraguan crop shrimp
A number of internal and external factors have caused a fall of about 30 per cent since last year, both in the volume of production and in the value of exports of crop shrimp, the second most important product of Nicaragua’s aquaculture and fishing supply. And although as with other crises it also ignores it, the Ortega Murillo regime sought the support of the Chinese Ministry of Agriculture and offered to take advantage of the potential for the production of tuna, lobster, shrimp, sea cucumber, crab, octopus and squid, among other marine species.
According to foreign trade reports from the Central Bank of Nicaragua (BCN) in 2022, 11.38 million pounds of crop shrimp were exported and these sales generated $31.3 billion, as on average each pound was sold at $2.8 million. But since last year a number of factors, both external and internal, have led to a significant drop in the production and export of this product.
According to aquaculture media, the fall in demand for crop shrimp in some Asian countries, including China, along with the effects of heat waves, irregular rainy seasons, and the increase in production mainly in Ecuador, have caused price instability and have affected production in some countries, including Nicaragua.
They offer potential for shrimp and other species
This was reflected in Nicaraguan exports since only 5.80 million pounds of crop shrimp were sent abroad in 2023, or half of the previous year. This decline was in addition to the 10 cents reduction in the average pound price paid by the international market and together reduced revenue from these sales to $15.91 million, half of what was obtained in 2022.
Between January and July 2024 the downward trend continued. In this period Nicaragua only placed 3.24 million pounds of crop shrimp on the international market for which it earned $8.46 million. Another 10 cent and dollar reduction in the average selling price of this product also contributed to this reduction.
Nicaragua has offset the fall in the production and export of crop shrimp with the increase in the catch and export of lobster and fresh fish. Unfortunately the average selling price for the lobster plummeted, rising from $18.20 per pound in 2022 to 10.90 in 2024. These falls have been offset by the increase in the export volume of other species such as sea shrimp, tuna and sea cucumber.
Income is reduced by almost US$50 million
However, these difficulties have impacted on the income generated by exports from the aquaculture and fisheries sector, especially those carried out by companies operating under the preferential regime of Zona Franca where the main shrimp are located.
According to reports from the Ministry of Development, Industry and Trade (Mific), in 2021 total exports of this sector, i.e. those of the general regime and those in the Free Zone generated 306.45 million dollars and the following year rose to 311.11 million. But in 2023 they fell by almost $50 million and between January and July this year they have generated only $163.40 million.
Industry leaders who, for fear of reprisals, avoid identifying themselves, maintain that the effects of climate, mainly on coastal areas of the Pacific Ocean, are the main cause of this reduction in production. But they admit that the fall in prices on the international market, due to oversupply, discourages production, as production costs grew a lot and if the price of the international market is very low does not cover them, then shrimp farms choose to reduce or suspend production.
Fisheries and aquaculture lose productivity
For its part, the Food and Agriculture Organization of the United Nations, known worldwide as FAO, warns that the changes that global warming are reducing productivity in fisheries and aquaculture.
In the midst of these difficulties, the regime continues to bet that its new political ally will help it overcome these obstacles. Recently, they met with Sun Haiwen, deputy director of the fisheries bureau of the Ministry of Agriculture and Rural Affairs of the People’s Republic of China and with representatives of the China Association for Foreign Fisheries.
According to information released by official media, during the Sun Haiwen meeting, he highlighted the interest of that nation – to forge a mutually beneficial relationship with Nicaragua for the use of high-value-added species such as tuna… the capture of lobster, shrimp, sea cucumber, crab, octopus, squid and in the development of aquaculture, a sector in which China has very advanced technology and knowledge.
Industry leaders do not rule out Chinese companies coming to establish themselves in the country to operate, with the state-of-the-art technology they actually possess, the fishing and aquaculture potential of the country that is not yet exploited. However, they are not sure how beneficial for the country it is to deliver that reuse to more foreign companies, since the largest that already works are foreign capital, mainly Spanish.
This article has been translated after originally appearing in La Prensani