All Ecuador and India's shrimp producers can do is hope and pray against the collapse of their key market in China in the wake of the coronavirus outbreak.
"If importers and distributors can not sell their inventory during Chinese holidays they won’t be able to put in new orders, affecting the market," the head of the Ecuadorian Chamber of Aquaculture Jose Antonio Camposano told IntraFish.
"We are definitely expectant to what will happen in the next couple of weeks."
China's growing importance
In recent years, Ecuador's shrimp production has found a growing market in China and in November tripled in volume and value from a year earlier, hitting 101 million pounds (45,813 metric tons) and $271.4 million (€246.7 million), making it by far the country's largest market, accounting for some 55 percent of production.
Ecuador’s exports to the Asian powerhouse nation stumbled in September, slipping to their lowest since February before bouncing back in October after China placed a ban on a group of producers shrimp on health grounds.
Santa Priscila, Winrep, Expalsa, and PCC Congelados y Frescos saw their ban lifted in late November following the earlier lifting of the ban on Omarsa shipments.
Now, in the face of a threatened pandemic, shutdown cities, frozen logistics and potential border closures, all Ecuadorian producers can do is to carry on their work towards China's new sanitary requirements and hope the situation dies down.
"We know it is really important to underline the quality of the Ecuadorian shrimp so the consumer is confident of what’s he’s bringing to the table," said Camposano.
India facing price crash
Indian producers are facing a similar scenario, with 40 percent of exports bound for the Chinese market.
"The import restrictions and slow down from China after the recent coronavirus outbreak will definitely affect the Indian shrimp industry," Manoj Sharma, Indian shrimp farming veteran and the founder of a new high-tech production system, told IntraFish.
"The biggest crash down will be on farm gate prices of shrimp in all count and sizes."
With the shrimp farming season yet to start in India, however, the situation at least comes in time to allow farmers to rethink their stocking plans.
"I personally will try to reach out to my shrimp farming community to make them understand the situation and reduce stocking densities," said Sharma.
