World economic crisis dampens Guatemala shrimp exports

Guatemala's shrimp exports dropped 43 percent in the first four months of 2009 compared to the same period a year ago, as the global economic crisis reduced demand, according to official sources.

Guatemalan producers exported 5.8 million pounds of shrimp in January to April, down from 10.2 million pounds a year ago, said Maria Olga Menendez, director of the Fisheries and Aquaculture Commission.

Revenue has also declined 39 percent to US$12.49 million from last year's US$20 million.

Currently, prices and demand have dropped because of the world economic crisis, said Menendez.

The decline in shrimp exports followed a 232-percent surge over the last three years, according to data by the Commission.

The opening of the Mexican, Spanish and French markets had contributed to that growth, Menendez said, adding that they had hoped to open new markets this year despite the worldwide crisis.

Erick Villagran, university professor of the Sea and Aquaculture Training Centre at the University of San Carlos, said the southern states of Mexico, which previously had maintained a policy of protectionism in terms of shrimp, had began allowing the entry of Guatemalan shrimps in 2005, which boosted domestic production.

The Mexican market grew due to proximity, speed of delivery via inland transport, and product quality, Villagran said.

At the moment, Guatemala exports headless, whole and frozen shrimp units with some cuts, Villagran added.