May 30, 2013

Honduras expects rise in shrimp shipments due to tariff benefits

Fuelled by tariff benefits granted by the EU, Honduran shrimp sector entrepreneurs expect to be able to increase their shipments to the European continent.

According to Marco Polo Micheletti, shrimp industry consultant, with the Association Agreement between the EU and Central America at least 20 markets could be opened for producers in the sector. Some of these destinations would be England, Germany, Spain, Italy and France.

"We are talking about 25 countries and perhaps it would not even adjust the production," the business consultant stated.

Meanwhile, shrimp entrepreneurs are also exploring ways to market their products in mainland China. In this market, Honduran exporters are facing different challenges: quality, quantity and distance.

Micheletti, former director of the National Aquaculture Association of Honduras (Andah), highlighted that the Chinese also produce shrimp and that the aquaculture industry is very competitive. This, coupled with the distance, makes it more difficult to enter the Chinese market than Europe or the US.

Although Honduras has high potential for exports to various markets, productivity does not achieve the necessary volume. Although producers make huge investments, the amount produced depends on water quality.

At present, the industry generates 25,000 direct jobs and around 125,000 indirect jobs. In the coming weeks, when harvest starts, farmers will know the price expectations in the international market as well as quality and volumes that can be exported.

According to the Minister of Agriculture and Livestock, Jacobo Regalado, for this year it is expected shrimp exports will generate at least about US$200 million in revenue. In 2012, Honduras produced 57 million pounds of shrimp (25.9 million kilogrammes).