Unlike Ecuador, India, or Vietnam, Brazil and Mexico are growing by serving local demand. Industry leaders at the Global Shrimp Forum explained how this model is shaping resilient shrimp sectors.
Brazil: Intensification and integration for a fast-growing domestic market
Brazil’s shrimp industry is positioning itself for rapid expansion, driven by strong domestic demand and increasing production efficiency, according to Pierre-Joseph Paoli, president for growth and commercial excellence at ADM Animal Nutrition & Health, speaking at the Global Shrimp Forum.
Annual production currently stands at around 210,000 metric tons, nearly double the volume of five years ago. Within the next five years, it is expected to reach almost 500,000 metric tons. The current total production value is estimated at $1.1 billion.
With more than 3,500 farms nationwide, the average shrimp size is 12 grams, with 2.5 production cycles per year on an average farm size of 20 hectares. Production costs range from $2.50 per kilogram for 10 g shrimp to $3.60 per kilogram for 20 g shrimp.
Brazil’s shrimp sector is evolving along two tracks. On the one hand, coastal farms in the northeast (notably Rio Grande do Norte and Ceará) are medium (10-50 ha) to large (50-1,000 ha) producers operating semi-intensive systems at 10–30 shrimp per cubic meter, benefiting from high salinity (15-50 ppt) and proximity to the sea.
On the other hand, inland farms, typically small (<10 ha) to medium operations, run more intensive systems (30-70 shrimp/m³) at lower salinities (0.5-5 ppt). These systems demand more precise management of feed, genetics, and water quality.
Most of the country’s farmers (70%) are micro-producers, yet large and medium farms drive the bulk of production, mirroring consolidation trends seen in Ecuador.
Overall, the industry is moving toward intensification. This trend is also reshaping hatchery dynamics. Once dominated by third-party facilities in Rio Grande do Norte and Ceará, more producers are now establishing integrated hatcheries to produce their own postlarvae. While there are still around 25 commercial hatcheries in operation, the number is shrinking as vertical integration increases, raising questions about the need for locally adapted genetics.
Production costs remain a challenge, with shrimp still priced higher than poultry and beef. Paoli noted that adopting technology, from aeration to automated feeders, is key to lowering costs and boosting efficiency. “If you reduce costs, you make shrimp more affordable. That opens the door to broader consumption,” he said.
Unlike Ecuador, which has built global dominance through exports, Brazil’s shrimp industry is largely inward-facing. This protected market structure shields producers from global price volatility.
Around 70% of shrimp is sold fresh. Consumption is rising alongside production: per capita intake has increased from 250 grams in 2003 to 1.1 kilograms in 2023 and is projected to reach 1.5–2 kilograms within the next five years, Paoli said.
Still, there are hurdles to broader adoption. Many consumers perceive shrimp as an expensive, cholesterol-heavy protein. At the same time, logistics challenges mean that shrimp labeled “fresh” may spend five to six days in transit before reaching major cities, compromising quality. Frozen and processed shrimp are increasingly seen as a solution to broaden access. Sustainability and traceability are also growing concerns for consumers, especially as the market gradually shifts toward processed and frozen formats, Paoli reported.
Mexico: Recovery, consolidation, and technification drive competitiveness
Mexico’s shrimp industry is at a crossroads, balancing a strong domestic market with the need to modernize, according to Andrés Marriott, Latam North Strategic Marketing & Technology Director at Cargill Animal Nutrition and Health.
Roughly 95% of Mexico’s shrimp remains in the domestic market, where strong prices leave little incentive to export, Marriott explained. At the farm gate, shrimp can fetch about $4.50 per kilogram, creating solid margins for producers and keeping most supply within national borders. However, limited access to financing means much of the industry’s growth depends on suppliers and farmers themselves rather than banks or large investors, an obstacle during challenging times, he noted.
The industry has faced several setbacks in recent years but has continued to grow. In 2013 a Vibriosis outbreak cut production by nearly 40%, from 100,000 to 60,000 metric tons. Producers responded by adopting disease-resistant broodstock, laying the groundwork for recovery.
By 2017, automatic feeders began entering farms, though adoption was uneven since some technologies, such as acoustic feeders, didn’t fully fit local conditions. In 2023, new disease-resistance issues resurfaced. Still, one breakthrough was the successful deployment of acoustic feeding technologies adapted to Mexico’s production environment.
The year 2024 marked one of the industry’s best in a decade. Shrimp output reached an estimated 200,000 metric tons across 1,700 farms, with technology adoption helping reduce feed conversion ratios from 2.2 in 2022 to about 1.5. Production costs also fell, improving competitiveness.
About 90% of Mexico’s shrimp is produced in just two states: Sonora and Sinaloa. Sonora has 29,000 hectares with 140 farms operating higher-density (20 PL/m³) marine-water systems supported by reliable electricity, yielding 3.5 metric tons per hectare annually. Sinaloa, by contrast, has 54,000 hectares and around 800 farms, where lower-density (11 PL/m³) estuarine systems rely heavily on diesel power, yielding 1.1 metric tons per hectare per cycle.
Scale also varies. Although Mexico farms about 102,000 hectares in total, just 20 large operators control 38% of the area and 60% of total production, signaling gradual consolidation. Semi-intensive systems account for about 95% of production, followed by intensive systems at 4%.
Marriott presented 2025 data from Sonora showing continued improvements in feed conversion ratios and production costs, reinforcing the positive trend. “This shows the Mexican industry is switching from a reactive industry to a proactive one,” he said.
Still, challenges remain, including disease outbreaks, the need for genetic improvement, slow adoption of technologies such as feeders and aerators, and labor shortages.
Marriott stressed that Mexico should not try to copy Ecuador’s model. “The model should be tropicalized in Mexico,” he said, pointing to the country’s higher water temperatures, along with different genetics and environmental conditions.
David Castro, director general at Manta Ray, agreed that increased technification will drive growth. “I don’t think we will see a growth in hectares, but in consolidation. Big groups from Sonora will start making more investments in technification, and that will go down south to Sinaloa,” he said.
The panel concluded that neither Mexico nor Brazil is likely to compete in international markets within the next five to six years. Instead, both countries are expected to continue protecting and strengthening their domestic industries.
