Print This Page


February 28, 2014

Mexico

No Insurance for First Crop of 2014

 

Mexican shrimp farmers usually begin stocking their ponds in April, but this year Agroasemex, the federal government agency that provides insurance to farmers, refused to offer them insurance because of the losses caused by the whitespot virus and early mortality syndrome in 2013.  In addition, international reinsurance companies, companies that share the risk with Agroasemex, said they would not offer coverage for national insurers.  One of the direct consequences of the lack of coverage is that farmers will not be able to get the funds to finance their crops.

 

Until 2012, the best-known insurers in Mexico, Mapfre, General de Seguros and ProAgro, offered coverage for shrimp farmers, but they stopped insuring shrimp farms for reasons similar to those given by Agroasemex.

 

In 2013, an outbreak of early mortality syndrome (EMS) hit Mexican shrimp farms, affecting about 32,000 hectares of the country’s 72,000 hectares of shrimp ponds.  Losses were estimated at $226 million.

 

Against this background, shrimp farmers are in a very difficult situation, which could lead to a drastic drop in shrimp Mexican production in 2014.

 

Source: FIS United States (editorial@fis.com).  Shrimp Farms Left Without Insurance or Credit, a Month Before Stocking.  February 28, 2014.

Print This Page