Shrimp capture. (Photo: Nelson Saldivia)

Shrimp firms lay off over 400 workers

ECUADOR
Thursday, April 17, 2014, 03:00 (GMT + 9)

Two processing and exporting shrimp firms from Costa Rica have been forced to lay off 412 employees since October last year, following a sharp drop in production.

In addition, both companies located in El Cocal of Puntarenas, reported losses totalling USD 1.5 million, El Confidential informed.

The executives of the two firms, Emmanuel del Pacifico and Talmana, claim that their situation worsened after the judgment of the Constitutional Court prohibiting the issuance of new fishing licenses for those using trawling.

This gear is considered as one of the most harmful to marine wildlife techniques by environmentalists, since in the shrimp catching process other species are caught and then discarded.

However, both companies ensure they can develop a sustainable fishery and that their fishing activity is carried out in the deep sea and not on the coast.

In the case of Talmana, the plant had to stop production in 2014 and lay off 132 workers. It has already accumulated a loss of USD 500,000.

The manager of the firm, Román Chavarria, said they sold all their boats and only 18 employees were kept for the plant maintenance.

In this situation, the company is analyzing to restructure the business, either in Costa Rica or abroad.

Meanwhile, the company Emmanuel del Pacifico has reduced its production by 50 per cent since last November and gradually made 280 employees redundant. To date, this exporting firm has recorded losses of more than USD 1 million, after stopping two cargo ships heading abroad, explained Ernesto Rodriguez, executive president and legal representative of the company.

In statements to El Confidencial, Chavarria explained his company was fishing for shrimp in an area that is a mile deep, and ensured the process was not as harmful as it is thought. In this regard, he complained that all fishermen were rated equally, without being given the opportunity to explain how they work.

In addition, he stressed that they were fishing for camellon shrimp, which is not in danger, but it was confused with camellito shrimp (Heterocarpus vicarius).

Failure to renew fishing licenses leads some customers to fear that a sustainable and long-term stable supply can not be ensured so that "they prefer to seek other markets," he regretted.

As to Emmanuel del Pacifico, its chairperson pointed out the court ruling affected them because the company captured langostina, a product that has never been fished in Costa Rica and has nothing to do with coastal fisheries.

Talmana’s fishing license expires in 2016 and Emmanuel’s in, 2017.

Shrimp fishermen are now pinning their hopes on the newly elected president of Costa Rica, Luis Guillermo Solís, who would be requested for a quick solution for workers and entrepreneurs, informed Entorno Intelligente.

Chavarria and Rodriguez trust that the new government listens to the sector and understands their way of working "is not as harmful as they believe it to be."

By Analia Murias
editorial@seafood.media
www.seafood.media

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