June 26, 2023

 

Vitapro's US$80 million shrimp feed plant in Ecuador set to begin operations

 
 

 

Vitapro-owned shrimp feed producer Nicovita is progressing with its US$80 million investment in a new shrimp feed plant in Ecuador, scheduled to commence operations in the second quarter of 2024, IntraFish reported.

 

Despite difficult trading conditions caused by low market prices, Allan Cooper, corporate business and value creation director at Vitapro, expressed confidence in the industry's fundamentals and Ecuador's competitive advantages in the global shrimp market.

 

The upcoming plant will be located on the same property as another facility that Vitapro expanded in 2021 as part of a separate US$32 million investment, which also involved the expansion of shrimp and trout feed facilities in Peru. This expansion will significantly increase Nicovita's total production capacity by at least 40%.

 

Ecuador is experiencing a surge in demand for shrimp feed, driven by its thriving exports. With approximately 99% of its shrimp production being exported, Ecuador recorded shipments of 2.34 billion pounds valued at over $6.6 billion in 2022, reaching a record high. In the first four months of 2023, Ecuadorian shrimp exports already totalled 858 million pounds, marking a 21% increase compared to the same period last year, indicating the potential for yet another record-breaking year.

 

Technological advancements have played a crucial role in boosting shrimp production in Ecuador. The implementation of automated feed equipment and aerator systems, combined with improved access to electricity grids, has enabled producers to stock shrimp at higher densities in ponds, leading to increased harvests.

 

In addition to favourable market conditions in China and other regions, the Ecuadorian shrimp industry has benefited from a decline in supply growth in India.

 

Vitapro, the aquaculture feed subsidiary of Peruvian conglomerate Alicorp with a value of US$3.3 billion, also owns Salmofood, a supplier to the Chilean salmon farming industry. The company operates in several other South and Central American countries, including Nicaragua, Costa Rica, Panama, Guatemala, and Mexico.

 

-      IntraFish

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