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    Home > Food News > Food Articles > McIntosh: The biggest challenge in shrimp farming is not disease, but cost!

    McIntosh: The biggest challenge in shrimp farming is not disease, but cost!

    • Last Update: 2022-01-21
    • Source: Internet
    • Author: User
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    Since the global outbreak of the new crown epidemic , the cost of vannamei shrimp farming has continued to rise, and the rise and fall of terminal commodity prices seems to be decoupled from costs.
    In the opinion of senior people, this trend is unsustainable
    .
     
    Robins McIntosh, senior vice president of CP CP, believes that a key point for the sustainable development of the shrimp industry in the future is that international shrimp prices must match production costs
    .
     
    “Right now, vannamei farmers are facing higher feed costs, higher seed costs and other expenses
    .
    If pond prices don’t match production costs, many small farmers may close their doors tomorrow,
    ” McIntosh said
    .

     
    “In Asia, smallholder farmers make up the bulk of the shrimp industry, and their labor needs to be financially rewarded
    .
    The reality is that we’ve seen a shift in production trends, but the cost structure hasn’t kept pace
    .
    Farmers need capital to make ends meet.
    And resist the risks so that global production can grow steadily
    .
    But the market needs some adjustment at this time, otherwise I worry that farmers may become less aggressive in seedling and feeding
    .
     
    “For me, the biggest threat is not disease
    .
    An epidemic can affect yields for several years, EMS (Early Death Syndrome) lasts for four years, and vitiligo lasts 3-4 years
    .
    Today, I don’t have See any pandemic issues that could affect yield trends
    .
    "
     
      Based on 2020 and 2021 trends, market demand will absorb all of the increased production, McIntosh said
    .
     
      “Last year, the US imported a lot of shrimp, and a large part of it used government relief funds, which is now basically used up
    .
    Consumption in the US and China is very strong, and the market can always balance production and consumption
    .
    Global production increases It's fast, but I'm worried about whether consumption can keep up after the epidemic
    .
    "
     
      "During the epidemic, the uncertainty of the global logistics system has changed the dynamic pattern in Asia and the Americas.
    The cost of containers has risen to sky-high prices, and the impact on the shrimp industry value chain has even been transmitted to ordinary farmers
    .
    South America is closer to the United States, and Ecuador has proved its The product is fully adaptable to U.
    S.
    retail demand, and with the advantage of transportation costs, Ecuadorian shrimp looks more competitively priced
    .
     
      “Similarly, the market and prices will determine production in the next few years
    .
    If production grows faster than consumption, prices have to fall, which affects the rate of growth.
    Ultimately, production and demand will be synchronized through prices
    .
    If shrimp can come down to the price of chicken, , it’s perfectly fine to double the demand, but the question is can we ensure reasonable costs and profits?”
     
      “Ecuador has the lowest cost of shrimp farming in the world
    .
    If Ecuador’s costs keep rising and are on par with other countries, then some farms in Vietnam may well beat Ecuador [in price], but that generally doesn’t happen
    .
     
      McIntosh noted that Ecuador is the clear international winner when it comes to predictability of production costs
    .
    “I need to increase the predictability of shrimp farming, within which we can adjust profits and lower prices
    .
    I would say that Ecuador is the global leader in shrimp farming because their production model is better than Southeast Asia such as Vietnam.
    Countries are more predictable
    .
    "

    The price of aquaculture in the epidemic
     
      Robins McIntosh, senior vice president of CP CP, believes that a key point for the sustainable development of the shrimp industry in the future is that international shrimp prices must match production costs
    .
     
      “Right now, vannamei farmers are facing higher feed costs, higher seed costs and other expenses
    .
    If pond prices don’t match production costs, many small farmers may close their doors tomorrow,
    ” McIntosh said
    .

     
      “In Asia, smallholder farmers make up the bulk of the shrimp industry, and their labor needs to be financially rewarded
    .
    The reality is that we’ve seen a shift in production trends, but the cost structure hasn’t kept pace
    .
    Farmers need capital to make ends meet.
    And resist the risks so that global production can grow steadily
    .
    But the market needs some adjustment at this time, otherwise I worry that farmers may become less aggressive in seedling and feeding
    .
     
      “For me, the biggest threat is not disease
    .
    An epidemic can affect yields for several years, EMS (Early Death Syndrome) lasts for four years, and vitiligo lasts 3-4 years
    .
    Today, I don’t have See any pandemic issues that could affect yield trends
    .
    "
     
      Based on 2020 and 2021 trends, market demand will absorb all of the increased production, McIntosh said
    .
     
      “Last year, the US imported a lot of shrimp, and a large part of it used government relief funds, which is now basically used up
    .
    Consumption in the US and China is very strong, and the market can always balance production and consumption
    .
    Global production increases It's fast, but I'm worried about whether consumption can keep up after the epidemic
    .
    "
     
      "During the epidemic, the uncertainty of the global logistics system has changed the dynamic pattern in Asia and the Americas.
    The cost of containers has risen to sky-high prices, and the impact on the shrimp industry value chain has even been transmitted to ordinary farmers
    .
    South America is closer to the United States, and Ecuador has proved its The product is fully adaptable to U.
    S.
    retail demand, and with the advantage of transportation costs, Ecuadorian shrimp looks more competitively priced
    .
     
      “Similarly, the market and prices will determine production in the next few years
    .
    If production grows faster than consumption, prices have to fall, which affects the rate of growth.
    Ultimately, production and demand will be synchronized through prices
    .
    If shrimp can come down to the price of chicken, , it’s perfectly fine to double the demand, but the question is can we ensure reasonable costs and profits?”
     
      “Ecuador has the lowest cost of shrimp farming in the world
    .
    If Ecuador’s costs keep rising and are on par with other countries, then some farms in Vietnam may well beat Ecuador [in price], but that generally doesn’t happen
    .
     
      McIntosh noted that Ecuador is the clear international winner when it comes to predictability of production costs
    .
    “I need to increase the predictability of shrimp farming, within which we can adjust profits and lower prices
    .
    I would say that Ecuador is the global leader in shrimp farming because their production model is better than Southeast Asia such as Vietnam.
    Countries are more predictable
    .
    "
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