Argentine Red Shrimp: 10-Month Shutdown Ignites Industry Crisis

Prices for Grade L1 red shrimp have risen to €9.5 per kg

As of late July 2025, Argentina’s red shrimp industry is mired in an unprecedented predicament: major fishing fleets have been idle for 10 months, supply chains are on the verge of collapse, global supplies of wild red shrimp are in critical shortage, and prices are soaring.

At the heart of the crisis is a deadlock between shipowners and the Seafarers’ Union (SOMU). Shipowners proposed a 22% pay cut to resume operations, but the union firmly rejected the plan. Amid the conflict, some fishermen have received death threats; over the 10-month period, many earned only around $500—compared to a potential $12,000 monthly in normal times.

European markets are bearing the brunt. In Milan, prices for Grade L1 red shrimp have risen to €9.5 per kg (surging by €2 in just three months). While Ecuadorian farmed white shrimp (€6.5 per kg) has emerged as a cheap alternative, the unique value of wild red shrimp remains irreplaceable for high-end buyers, with inventories remaining critically low.

Some exporters argue the crisis may harbor opportunities for transformation: the industry could use this as a turning point to shift from a "high-volume, low-price" model to "high-value, low-output," breaking the impasse through controlling fishing volumes and branding upgrades. However, the crisis also baldly exposes the systemic fragility of the global wild shrimp market—supply-demand imbalances and geopolitical instability are continuing to shake the industry’s foundations.

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