Route to Recovery
A trip through the epicenters of the American recession

15:29 November 12th, 2009

Downturn brings fresh pain to struggling Gulf Coast shrimpers

Posted by: Nick Carey
Tags: Uncategorized, , , , , , , , , ,

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BAYOU LA BATRE, Alabama – Long before America slid into recession in late 2007, shrimp fishermen here on the Gulf Coast had been struggling to make a living.

“Twenty-odd years ago, if a shrimp boat came in with 100 boxes of shrimp, they’d consider that a good catch,” said Avery Bates, vice president of the Organized Seafood Association of Alabama (OSAA). “Now if you come in with 400 you’re barely scraping by.”

The main problem that shrimpers down here say they face is farm-raised shrimp imported from countries like Vietnam or China, or government-subsidized shrimp from Mexico.

“We take it right on the nose,” Bates said. “A lot of our boats have went right out of business.”

Bates said that back in the 1980s, some 4,500 U.S. shrimp boats trawled the waters of the Gulf of Mexico. Now, that number is down to 1,200 and dwindling fast.

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The complaint here is similar to one you will here from manufacturers around the country: a cheaper imported product has undercut the market and left local producers fighting to stay afloat. Shrimpers in this small town known as the seafood capital of Alabama say they have had to catch ever more shrimp over the years to keep up.

“The last good year we had around here was 2000,” said Greg Ladnier, owner of Sea Pearl Seafood Co Inc., which processes shrimp delivered by local shrimpers. “Back then a lot of farm-raised shrimp was affected with diseases and we had a good year for catches. So we were able to make up the difference.”

“Since then things have been bad,” he said as workers cleaned his plant following the heavy rains brought by tropical storm Ida. “Unless something changes what’s going to happen is already happening all around us. “

“As the price of shrimp goes down it’s harder and harder to make a profit and keep on going.”

High fuel costs and high maintenance costs have added to shrimpers’ woes and the recession has only made things worse. Shrimp is a luxury item and prices have slumped as American consumers have cut their budgets.

“Shrimp is like steak or hamburger,” said Ernie Anderson, OSAA president as workers at his distribution facility box up frozen shrimp to be hauled to customers. “People don’t have to eat it and it’s something they can do without if they need to spend less money.”

While readying the shrimp boat that he works on for a trip out into the Gulf – Gulf shrimpers will often go out for 20 to 30 days and freeze the shrimp they catch as they go within 30 minutes of catching it – Bob McClintoc said that he had just been looking through the boat’s log back at the year 2000 and regretted that he had.

Back then, the boat would sell “1620s” – meaning shrimp that weigh in at between 16 to 20 to the pound – for $7.40 per pound. Now that catch sells for $2.80 a pound.

“It’s enough to make you sick,” he said. “This is killing us.”

Anderson said that the local industry’s hopes for survival are currently pinned on a state law, which will come into effect next January, that will require restaurants to tell customers where their seafood comes from when asked.

“We believe that given a choice, most people will prefer domestic wild caught shrimp to farm-raised imports,” he said. “That should at least allow us to increase our market share just enough to stay in business,”

He added that the U.S. shrimp industry is lobbying for a national bill along the same lines, but that the restaurant industry and retailers are resisting it.

“Restaurants are not keen to have American consumers know what they’re eating,” Anderson said.

In the meantime, shrimpers like Steve Patronas say that they are caught between the high costs and low prices for their catches that are slowly choking off their way of live.

“Come the spring if shrimp prices are where they are now and fuel prices go up,” he said, standing on the deck of his small boat for shrimping close to shore, “then my boat isn’t going out.”

Photos by Carlos Barria

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27 comments so far

Ok, some Americans really need to wise up, crying rarely solves anything (no offence intended). I recommend you guys read “Only the Paranoid Survive” by Andy Grove, it talked about the early days of Intel in the 80’s where they were beaten at every turn by the Japanese in the computer memories market, until they decided to make a bold move and move into the micro-processor market. Look at them now! Nothing comes out of crying and complaining, instead it’s always better to try to beat the market by being innovative.

Also, China cannot be blamed for any of America’s mess. I mean, if China doesn’t keep their currency artificially low against the dollar, some other country will!

- Posted by Noobface

Tian Yue ~

I may not have been clear – my fault. I agree with most of what you say, perhaps even all of it. I don’t think it would be good for either China or the US to devalue the Renminbi right now. I think the Chinese are right that they want to keep the Renminbi where it is and that the US needs to put its own house in order. The US is mostly under a lot of stress right now – mostly its own fault – and is trying to blame other countries, including China, for its own mistakes.

All I mean to say, really, is that there is some place, in any country, whether it’s China, the US, or whoever, to consider the role of cheap imports. They are good in many ways, but if a country allows in *too* many cheap imports *too* fast it tends to destroy its own economy – I think the US did this, following the advice of its own most greedy advisers who made a lot of money peddling this supposedly brilliant advise to US companies. This is the US’ own fault, and the US needs to put its own house in order, not blame other countries.

The problem, as I see it, inside the US, is that the most powerful commercial interests lobby for the idea of a very extreme idea of markets and free trade, and I think that *anything* that is too extreme is a bad idea.

I don’t think our opinions are really very different, unless I’m mistaken.

Only my opinion, also.

- Posted by Big Al

[...] Shrimpers struggle [...]

- Posted by Full MOON Looks like a BURNT Chapati!Hunger SOS to a Billion! « Palashbiswaskl’s Weblog

“No one should be eating farm raised shrimp. That stuff is loaded with antibiotics and other drugs. Some of those drugs are illegal in the US. It is far better to eat wild shrimp.” - posted by BB
Agree. But why only shrimp? Farmed fish is equally bad. Especially imported from China. Remember the scandals with poisoned pet food and dairy (including baby food) tainted with melamine intentionally added to increase protein content (or rather to fool test determining that content)? If that’s how they treat food intended for human consumption, one could only imagine what they add to animal (including shrimp & fish) feed. Besides if you make an effort you can find wild caught fish at prices competitive, or even beating farmed fish. Wild Pacific salmon is less expensive than farmed Atlantic salmon, and tastes better, though looks not as gorgeous (mostly because farmed salmon is fatter, and pigment was added to the feed for that “salmon” color). Flounder and ocean perch (these are never farmed) are usually sold at the same price as tilapia (always farmed), and again taste better (though taste is individual matter).

- Posted by Anonymous

Fresh caught shrimp, and in particular, Gulf shrimp, are much tastier than farm raised (US or other) and foregn caught shrimp.

As for concerns about the method of catching fresh shrimp stirring up the bottom, what do you think shrimp eat? It’s what everybody else in the ocean is finished with….

No matter how small the fleet gets, there will always be a demand in the USA for fresh caught U.S. shrimp. Hang in there Ricky Robin and the shrimpers of St. Bernard Parish LA, of Bayou La Batre AL, of Calabash NC, etc.

- Posted by Rick B.

Big AI,at first,I’ll say I very respect to The USA,because of her democratic system.Alought she is not perfect,The USA have set an example over the world.
About the Chinese cheap labor and Renminbi,I think they maybe lead to the U.S. unemployment in some way.But obviously,they are not the main reason.Imagining if there are no Chinese cheap labor and Reminbi:on one hand,the rate of unemployment will decrease in US,and “the world factory” will begin to work once again;on other hand,the Chinese employment rate will decrease,meanwhile,there is no cheap products anymore.The result is that the commodity price in USA will go up,so you will spend more money in your daily life.And the demand of your products maybe reduce,because one of your customers—China has gone bankrupt.Perhaps someone will say that American will buy their products,because they get good jobs.However,the USA and China are both the producers also customers,when one becomes weak,another won’t be better.
And we have done a lot of works.We have bought lots of U.S. treasury bonds,instantly you want us to revalue Renminbi,what about our losses?You know saving so much money isn’t an easy thing for a developing country.
At least,the two countries have to cooperate with each other to deal with the common problems.
It is only my opinion.

- Posted by Tian Yue

What is so strange about outsourcing is that we are trying to put the world on a single economic plane. OK so US doctors and bankers will have to work for India based wages. This is socialism in the worst form and smacks of the company store and the company town where people live and die poor. Leave the foreign shrimp and the Chinese and Indian products be consumed by Chinese and Indian people. Global free trade is a failure now and always have been. How can we go on being governed by representatives who will sell their vote to the highest bidder. Well we can’t.

- Posted by f belz

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