Ecuadorian shrimp farmers take advantage of new put option
Offering harvest data and secure same-day payment, the new system – developed by XpertSea – allows farmers and buyers to focus on growing their business and providing quality shrimp to the world.
Throughout 2020, Ecuador’s shrimp sector faced many challenges – from falling international prices and domestic consumption to labor and logistics shortages caused by restrictions in the market. Covid-19. Although the stress was felt by everyone in the supply chain, farmers felt increasing pressure to sell their stocks and get paid quickly as prices continued to fall.
Harry Viafara, the owner of the 160-hectare Exporcareca shrimp farm near Guayaquil, tested the new system.
“It was becoming increasingly evident that Ecuador was experiencing liquidity problems as processors continued to lower their purchase prices. The prices were so low that there were times when we couldn’t cover all the production costs, ”said Viafara, who has been farming for five years.
During this time, Viafara sold its shrimp directly to the processing plant and waited, on average, 16 days to receive the proceeds from the sale. In order to reduce his risk, he would negotiate a 50% upfront payment in case the processor is unable to pay on time. However, after working with XpertSea, Viafara was able to improve its cash flow and ability to honor its commitments with suppliers and staff by receiving 100% of its payments within three days.
“Thanks to XpertSea’s agile payment process, I get my payment in two or three days, and I don’t have to worry about any delays created by market volatility. This certainty of payment helps me maintain commitments with my suppliers, my staff and the other supports that we use on a daily basis to keep our farm running smoothly, ”he explained.
As part of XpertSea’s harvesting service, Exporcareca also took advantage of the monitoring tools provided to assess the weight distribution of the shrimp. Since mid-August they have been using the new mobile app weekly, to assess growth in 16 ponds. The digital sampling technique helps them improve harvest planning.
“I heard about XpertSea through social media and other social networks. I was a little skeptical at first, but after trying the app and their quick checkout services, I was surprised how well it worked and would advise anyone else interested to give it a try. XpertSea is a very dedicated company that not only has cutting edge technology, but also provides the necessary field support to ensure your success, ”said Viafara.
The market was first launched in a limited version in Ecuador and India. In its first months of operation, over 7 million pounds of shrimp were marketed, providing essential cash flow to farmers. The market is currently open to all Ecuadorian farmers and buyers, with more countries expected to join in 2021. XpertSea says “the data-driven market is the first step towards creating a more transparent supply chain and profitable for the global $ 45 billion shrimp market. ”.
“By working with farmers and helping them raise better shrimp, we learned first-hand their struggle to access liquidity and loans from traditional banks, as well as their concerns about dealing with new buyers to secure better prices, ”said Valérie Robitaille, CEO of XpertSea. “With all the unique data we collect on shrimp, we realized we could help them market their crops and unlock their access to cash. Our data-driven marketplace with same-day payment terms creates the foundation of trust buyers and producers need to grow their businesses and meet international demand for sustainable seafood.
Aqua-Spark has invested in both XpertSea and Hatch, which owns The Fish Site, but we remain editorially independent..