ANALYSIS: Ecuador's Shrimp Value-Added Capacity Constraints Drive HLSO Flows to China, Europe
Ecuador's limited capacity for value-added processing remains a significant concern, particularly as replacement costs in the country are now reportedly considerably higher than those in Asia. This cost differential appears rational, given the comprehensive expense structure from farming through processing. However, this dynamic represents a supply-and-demand imbalance rather than necessarily indicating a competitive disadvantage.
Ecuador has demonstrated for years its ability to produce peeled product lines at competitive prices relative to Asian counterparts. The challenge lies not in competitiveness per se, but in Ecuador's...
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