International Trade Story Series Report "Life And Death": Ecuador White Shrimp Trade Chain In The Virus Storm

Ecuador's white shrimp has never touched the public as much as it does today.

On July 15, the leading group for the prevention and control of Xinguan pneumonia in Shapingba District of Chongqing issued a notice on the positive results of nucleic acid test on some outer packages of frozen Southern white shrimp imported from a cold storage in western logistics park. This is after Dalian, Xiamen, Yunnan, China again from Ecuador frozen shrimp packaging new coronavirus detection area.

Previously, according to the General Administration of Customs of China, on July 3, Dalian customs and Xiamen Customs detected positive NCV nucleic acid in the inner wall and outer packaging samples of frozen South American white shrimp containers imported by three enterprises in Ecuador, and immediately suspended the registration qualification and import of products of the three enterprises in China, and took measures such as returning and destroying the temporarily detained goods.

The reporter of 21st century economic report learned in the interview that terminal retailers all over the country have taken off the shelves of Ecuadorian white shrimp in large quantities, and some local governments have implemented a "one size fits all" policy, requiring that the sale of Ecuador white shrimp be stopped completely, and the sales of white shrimp have stagnated.

For domestic white shrimp importers and dealers, the current situation can be described as "internal and external troubles", many people are facing the risk of capital chain fracture. "We can't get a refund from foreign manufacturers, and we can't sell it in China. It's really a big blow." An importer told the 21st century economic reporter.

The export volume of Ecuador white shrimp to China has increased greatly in recent two years, especially in the first half of this year. It is a "net red" product in China. According to the data provided by the business department of the Consulate General of Ecuador in Guangzhou to the 21st century economic report, in 2019, the export volume of Ecuador white shrimp to China reached 2.083 billion US dollars, an increase of 249% over the same period of last year. From January to may 2020, Ecuador's shrimp export to China reached 1.038 billion US dollars, an increase of 70.5% over the same period last year.

But now, the white shrimp industry chain is facing "life and death".

Pressure on importers

"Not a good seafood business this year." Mr. Wang, who runs seafood counters in supermarkets and convenience markets in Jinan, complained to 21st century economic reporters that "after the salmon incident, all fish could not be sold. Just a little bit better signs, Ecuador white shrimp accident again After seeing the news, he took the initiative to remove the Ecuador white shrimp on the counter for the first time.

Mr. Wang told reporters that since the outbreak of the epidemic, the sales of seafood in his home has dropped by 30%, and many of his peers have lost money and closed down.

The importers interviewed used the term "disaster of destruction" to describe the attack. The export volume of the three manufacturers with positive samples is 27% of the total export volume of Ecuador shrimp to China, involving a large number of Chinese importers, and the situation of return is very common. Although the manufacturer will claim for the returned goods, the freight should be borne by the importer.

In Tianjin, Mr. Liu mainly imports Ecuadorian white shrimp through agent companies. He told reporters of the 21st century economic report that it is estimated that thousands of containers have been affected. Ecuadorian manufacturers do not have a unified solution for containers that cannot enter the customs and can only return to the port. However, after receiving a large number of returns, the manufacturer is likely to be unable to refund immediately due to limited capital flow. "I have paid the full amount in advance for this batch of goods. The manufacturer has promised to return 20% of the deposit first, and then will write a statement with legal effect, promising to settle the balance within one or two months. This situation is very good."

What is more difficult is the goods that have entered the customs. On July 10, the General Administration of customs, the National Health Commission and the General Administration of Market Supervision issued the "notice on emergency disposal of frozen South American white shrimp imported from Ecuador" to all parts of the country. The urgent measures required include: the customs should inform the importers to recall the frozen South American white shrimp produced by the relevant three enterprises after March 12 and have entered the domestic market; and the market supervision of various regions The management department is responsible for supervising the dealers to stop selling and seal up the frozen shrimp produced by the relevant three enterprises after March 12.

"Some dealers' products have been sold. Will foreign manufacturers recognize the recall? If it is impossible to recall and face destruction, who will compensate for the loss? In this situation this year, there must be a number of enterprises going bankrupt. " Mr. Liu said.

The reporter learned in the interview that in order to avoid risks, the local government also has a "one size fits all" phenomenon in the implementation process. Regardless of the brand and date, as long as it is Ecuador white shrimp, it will be removed from the shelves. A large-scale Ecuadorian white shrimp importer in Beijing told reporters that it usually imports more than 100 containers a month, with the value of more than 100 million yuan, sold to the major wholesale markets and supermarkets in China, and the current sales volume has dropped by 90%. He told 21st century business reporter that the national sales of white shrimp are stagnant. Imports of Ecuadorian white shrimp will be stopped until the situation becomes clear.

Hit consumer confidence

In the view of a number of importers interviewed, the severity of the development is beyond imagination, especially in the local circulation field, the detection of positive outer packaging of Ecuadorian white shrimp will aggravate consumer panic. Fan Xubing, director of the China aquatic products circulation and Processing Association, analyzed the 21st century economic report reporters that the salmon incident, the Ecuador white shrimp incident, and the outbreak of a number of foreign meat processing plants successively had an impact on consumer confidence and would lead to consumers to reduce the purchase of imported seafood.

Carlos Carlos, an Ecuadorian ambassador to China, said he had never reported positive for the virus. At present, the government of Ecuador is working with relevant Chinese departments to check all aspects of white shrimp production to further ensure the food safety of all products. The two governments are conducting high-level communication to find a solution as soon as possible. Ecuadorian president Moreno also visited Santa Priscilla headquarters to personally verify that the company strictly abides by all biosafety conditions for white shrimp farming, processing and transportation.

Carlos laleia said that it is hoped that Chinese consumers can resume eating seafood as time goes on. Therefore, we must carry out active promotion work. In terms of food safety, Ecuador is further becoming comprehensive and mature.

According to local media reports, in the first quarter of 2020, Ecuador's exports reached 5.317 billion US dollars, a year-on-year increase of 1.4%, of which shrimp exports increased by 16.8%. Peng Paolo, commercial counselor of the commercial office of the Consulate General of Ecuador in Guangzhou, told reporters of the 21st century economic report that the Ecuadorian government has taken more safety and protection measures for workers and product care in view of the special situation of the global epidemic situation. The Ministry of Fisheries of Ecuador has issued a ministerial agreement aimed at strengthening actions to prevent and control the transmission of new coronavirus among aquaculture and fishery workers Broadcast related risks. The Ministry of Fisheries of Ecuador has established the covid-19 Technical Supervision Committee (COT), which is responsible for the design, implementation and monitoring of the health and food safety policies for aquatic products (white shrimp).

The reporter learned that the risk of infection with new coronavirus is low in shrimp culture. Wang Zhiping, chairman of South America Hengxin, President of Ecuador's white shrimp breeding enterprise and President of Ecuador's China Fujian General Chamber of Commerce, told the 21st century economic report that the white shrimp breeding environment is open, ventilated, and sunny, and the workers work independently, and the enterprise also has strict prevention mechanisms.

In the processing and transportation links, fan Xubing analyzed that some white shrimp processing plants in Ecuador were not highly automated and labor-intensive, and there were certain risks. Considering the severe epidemic situation in Ecuador, the detection of new coronavirus carried out by the relevant departments in the country was limited, so it was difficult to detect and track close contacts. Therefore, the outer boxes of products in the loading and unloading process may contact Ecuador Cases of infection in guador.

"But there is no need to panic about the whole import of Ecuadorian white shrimp. It is suggested that the relevant departments must recall or destroy all the products involved in circulation, so as to relieve consumers' concerns. " Fan said.

According to the business department of the Chinese Embassy in Ecuador, as of 8:00 on July 16, a total of 71365 cases of new coronal pneumonia were confirmed in Ecuador.

China's demand drives the shrimp industry in Ecuador

Ecuador is the birthplace of Penaeus vannamei, with unique aquaculture conditions and a reputation of "shrimp paradise". The long Pacific coast is densely populated with 70% shrimp farms in Guayaquil Bay.

Wang Zhiping has been engaged in the cultivation of white shrimp in Ecuador for 22 years. The company has a breeding base of 5000 hectares with a daily output of 60 tons. There are about 1000 employees, including a large number of aquaculture professionals introduced from China. He told reporters that Ecuador white shrimp for low-density, large water surface extensive type of original ecological culture. Since the export of white shrimp to China, the output of the company has increased by 20% every year.

How does an Ecuadorian white shrimp get to the table of Chinese consumers? According to Wang Zhiping, in Ecuador, from 10:00 p.m. to 2:00 a.m. of the next day is the working time for catching white shrimp. After the live shrimp are caught, they need to be transported to the processing plant, then washed, graded, fixed weight, boxed, frozen and put into storage, then exported, and floated at sea for 36-45 days, and finally came to China.

In recent years, Ecuador has become the largest exporter of non oil products such as white shrimp and white shrimp. Peng Paolo told the 21st century economic reporter that the growth of Ecuador's shrimp industry is largely due to the Asian market, especially the Chinese market. In 2019, China's market will become the main export destination of Ecuador's white shrimp, with a market share of 62%, followed by the European Union and the United States, accounting for 17% and 14% respectively.

Driven by China's tariff reduction and consumption upgrading, Ecuador's export of white shrimp to China has surged since 2017. According to fan Xubing's analysis, in 2017, a large-scale shrimp disease broke out in domestic cultured prawns, and the output decreased by about 30%; in recent years, domestic consumption has been significantly upgraded, and the purchase quantity and frequency of prawns are constantly increasing. Prawns including Arctic shrimp, Argentinean red shrimp and South American white shrimp have become the fastest growing categories among all import industries; due to the expansion of production capacity in Ecuador and India The price of South American white shrimp has been continuously lowered with high cost performance, which is welcomed by Chinese consumers.

Fan Xubing believes that in the long run, the Ecuador white shrimp incident will not change the Chinese consumers' habit of "eating shrimp", and the imported white shrimp will continue to grow. "The scale of Penaeus culture in China is very large, and there is limited water area in China, so there is little room for further improvement of shrimp production. Therefore, if consumers refuse to import white shrimp, it is very difficult for domestic prawns to make up for this vacancy in a short period of time. "

He also pointed out that compared with Vietnam, Thailand and other Southeast Asian countries, the price of South American white shrimp from Ecuador and India is more competitive, while the Indian white shrimp is mainly exported to European and American countries and has low recognition at home, so it is difficult to replace Ecuador's export to China.

"The Chinese market has great growth potential for all industries. As far as shrimp exports are concerned, maintaining the highest quality standards has always been the main challenge and goal facing Ecuador. " Carlos laleia said the new outbreak did affect the white shrimp industry in Ecuador. Since the outbreak of the epidemic, the government and enterprises of Ecuador attach great importance to it and take effective measures to ensure the quality of products.

Carlos laleia told reporters that before the outbreak of the epidemic, the Chinese and Ecuadorian governments established a very effective communication mechanism under the framework of the comprehensive strategic partnership agreement and the "belt and road" initiative memorandum of understanding. Any problems that may arise in the two countries can be dealt with quickly. Ecuador is willing to improve and adopt new ways, and is committed to providing "our Chinese friends" with the best quality products.

White shrimp market is expected to recover

For the white shrimp traders, the price of shrimp has been falling again and again this year.

"Since the beginning of the epidemic, I have ordered for the fourth time. Before the goods are delivered to the port, the domestic price has already fallen below the purchase price, and I will pay for it as soon as I buy. Even if we can sell the white shrimps of 40-50 specifications in our warehouse, we will have to pay 80 yuan for one box compared with the import price. " Mr. Liu said.

Ma Xinyang, who is in charge of Shanhai, an importer of white shrimp in Ecuador, told reporters in the 21st century economic report that in March and April this year, due to the urgent epidemic situation in Europe and the United States, no more orders were placed for Ecuador's white shrimp, while the epidemic situation in China has been effectively controlled. In order to alleviate the inventory pressure and open up the market, Ecuador has stimulated Chinese importers to pursue orders through reducing prices, and a large number of white shrimp are exported to China.

"In April, there were quite a lot of trading companies pursuing orders from abroad. The goods basically arrived in Hong Kong in May and early June. Many companies couldn't keep up with the capital chain, so they had to sell cheaply to exchange for funds, and then pick up the goods from the port. The market is a relatively abnormal state, and shrimp farmers, manufacturers and importers are all losing money." It's not like that many importers have caused a serious imbalance between supply and demand

Ecuador, on the other end of the Pacific Ocean, has suffered huge losses. The small and medium-sized shrimp farmers engaged in the white shrimp industry have created more income for the local farmers. Wang Zhiping told reporters that due to the recent decline in the price of shrimp in Ecuador, at present, the farms are losing 0.3 US dollars per kilogram, and small enterprises have higher costs and more losses. Farmers do not have enough funds to support the operation of the farm, can only reduce the breeding density. At present, the output of farmers has decreased by about 30% - 40%. If the price does not rise, it will further drop to 50%. Some enterprises are directly closed and shrimp farms are idle. "Now the market, shrimp farmers can not have a profit, can only say as far as possible to survive."

In Ma Xinyang's view, in the future, with the gradual recovery of demand, the decrease of domestic Ecuador white shrimp supply is expected to drive up the price of white shrimp. In Ecuador, the "risk-taking" policy of "white port" will not be involved in the "next month", and the "risk-taking" policy of some importers will not be involved in the next month.

"At present, domestic white shrimp inventory pressure has eased, the market is slowly warming." He said, "at present, the factor affecting the price is not too much supply, and the epidemic situation has led to price drop, which makes downstream customers dare not purchase. As the epidemic situation gradually improves, the market will return to normal. "

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