Conxemar serves as a window to the world and to real life as well. Amid the greetings, meetings, and seasonal decorations, many items recycled from previous editions still breathe in households. The event mirrors daily life for buyers from across the globe who import Galician seafood products, revealing the approach many buyers take, often prioritizing other goods over fish. Thus, the fair and its sales activity reflect a snapshot of the economic rhythms of the countries that form the company’s main markets.
If Euribor stood at 2.5 percent last year and now hovers above 4.2 percent, the pressure is clear. A manager from a top five industry company notes that quotas must be reviewed as monthly costs rise by hundreds of euros. Consumers today favor marine protein, yet the product’s share in baskets continues to shrink. The primary cause of declining turnover is tighter margins, compounded by rising operating and financial expenses. In some cases, the situation edges toward bankruptcy, as reported by FARO of the Prensa Ibérica group. Another industry operator adds, surprisingly, that tough months are ahead but can be endured.
Within Nueva Pescanova, the company has adapted its Essential line to the new market reality. The year’s strongest Christmas push is already underway, accompanied by substantial working capital use. Planned changes include smaller Argentine shrimp tins alongside the traditional two-kilogram packs. Packaging is cleaner and more transparent, featuring bar-coded slices. This shift does not signal a return to mass marketing but rather a move toward value-added products aligned with household preferences.
Purchasing policies must adjust quickly to demand, while some players lag or take longer to adapt. Inventory levels reflect this gap: materials bought at higher prices may yield little to no return. A merchant explains the trend, driven by two factors: weak demand (prices fall) or consumer resistance when costs are shifted to the final price. The industry faces stagnation and full freezers, with reports of swordfish containers given away at five euros instead of twelve. A longline operator voices the frustration of these conditions and the need to adjust strategy.
Investments
The margin contraction has strained cash flow for several firms. Yet the sector has pushed forward with sizable investments over the past decade to strengthen presence at origin, diversify markets, and add value to raw materials. Data from the Scientific, Technical and Economic Committee on Fisheries (Stecf) of the European Commission show that net investments in inorganic growth activities, fleet improvements, cold logistics, and processing plants totaled around 680 million euros in this period. Modern ships, enhanced freezing lines, and efficient packaging technologies illustrate the push toward more integrated supply chains.
Major players such as Profand, Iberconsa, Nueva Pescanova, Pereira, Pescapuerta, Fandicosta, Atunlo, and Wofco have engaged in this strategy. While some companies carry more debt than others, most feel the pressure of higher financing costs. An executive familiar with ifevi notes that an eight percent financing operation is untenable when margins cannot support it. Fandicosta is addressing the sale of its Moaña head office, Atunlo is renegotiating debt, and several others may follow similar paths due to internal factors or supplier networks affected by broader market stress.
Beyond the financial challenges, external disruptions ripple through supplier and customer markets. In Namibia, a weak pelagic and sardine campaign and an atomized quota system push shipowners to secure deals with many partners to keep operations running. Galicia remains a pivotal supplier region with notable players such as Nueva Pescanova, Grupo Iberconsa, Mascato, Grupo Pereira, and Copemar maintaining a strong presence.
In Ecuador, the El Niño phenomenon threatens large-scale shrimp farming, with over 110,000 hectares at risk. Pescanova operates about 8,000 hectares with Promarisco. Prices for vannamei shrimp have been historically low, and recent export data from the Ecuadorian government shows higher volumes but reduced earnings. Regardless of market reactions, producers face higher costs for feeding, processing, and exporting in the post-COVID era and amid the fallout from the Ukraine conflict.
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