Granjas Marinas, the leading Honduran shrimp producer, is consolidating its two main divisions Granjas Marinas San Bernado (GMSB) and Granjas Marinas Laboratorio (GML) into a single enterprise.
From now on the company will be officially be known as Empacadora de Productos Aquaticos San Lorenzo SA de CV (ESL).
The move gained the blessing of the country's regulators, allowing the company to put half a dozen subsidiaries, including Crimasa and Codelpa, in addition to dormant firms, under one umbrella.
"We are a vertically integrated activity and determined that efficiency required putting everything under one roof," ESL CEO Victor Wilson told IntraFish.
ESL produced 40.5 million pounds of shrimp in Honduras in the year ended Feb. 28. The vast majority of production is exported. Shipments abroad run to $100 million (€89.7 million) a year.
Wilson reiterated his forecast from the start of 2019 that he expects both his company's production and export growth and that of Honduras as a whole to be flat this year because of the lengthy, bureaucratic process in getting projects approved and also in view of low shrimp prices.
In its announcement of the merger, the company called on the Honduran government to help the industry fight strong competition from rival producing nations Ecuador, Thailand and India, which it said benefit from lower energy costs, much lower fuel costs, more competitive interest rates, a smoother legal pathway to getting projects approved, as well as government subsidies and support in cases of natural disaster.
Honduras exports almost all of the shrimp it produces.