The scallop season in the United States’ most valuable port – New Bedford, Massachusetts – started on 1 April amid a closure of all restaurants in the state and uncertain market conditions across the globe due to the ongoing COVID-19 crisis.
The New England Fishery Management Council had recently approved the scallop framework and was anticipating a healthy 52 million pounds in landings, with an expected ex-vessel value of USD 487 million (EUR 446.6 million). Now, with restaurants across the country closed, those numbers may be thrown for a loop.
According to the Milford Daily News, prices of scallops dropped by USD 2.00 (EUR 1.83) a pound, and prices of most species were facing similar or worse drops.
“They are collapsing. It’s real,” Keith Decker, CEO of New Bedford-based Blue Harvest Fisheries, said during a 20 March conference call with the Division of Marine Fisheries. “This is having a profound impact on the seafood industry.”
In addition to that, a recent anonymous survey of seafood dealers representing in excess of USD 50 million (EUR 45.8 million) in sales in 2019 by the Woods Hole Sea Grant found sales were off by an average of 99 percent, and that dealers had laid off 95 percent of employees.
"I spoke with shellfish growers and dealers who largely deal with shellfish products (but some other stuff too), and have spoken to more since," Josh Reitsma, Fisheries and Aquacultture Specialist with Woods Hole Sea Grant, told SeafoodSource The reality of the situation is shellfish sales are dramatically hard hit by restaurant closings, there are some folks getting creative with ecommerce and home delivery type stuff but even those guys are saying their market is down around 99 percent."
While restaurant closings impacted sales to foodservice, retail sales were initially up dramatically, Northern Wind co-CEO George Kouri told Seafoodsource.
“It has increased year over year same period significantly," Kouri said.
However, he predicts that the initial extreme spike was an abnormality, and won't last at that level.
“Each week that goes by, we’re starting to see the curve flattening on retail and club sales, as we believe the initial two to three week spike was due to panic buying, and people filling their refrigerators and freezers," he said. “It’s getting back to a more normal rate.”
He added that he has seen price drops in scallops, but most other material costs are the same.
“We don’t believe this is indicative of what we’re going to see on a longer term basis, but again, no one knows," he said.
A story by Rhode Island Public Radio found a similar story in terms of scallop prices, with fishermen wondering whether they were going to take trips or not.
"I’m questioning myself whether I’m going to make a trip or wait to see if maybe there are restaurants open and a demand starts again," scalloper Eric Hansen told the publication. "But right now everything is in flux."
The scallop industry isn’t alone in the region, with several other industries facing similar price drops. Maine’s lobster fishery was reporting dealer prices of as little as USD 2.00 (EUR 1.83) a pound for lobster.
Members of both industries are hoping that the USD 300 million (EUR 275 million) in aid earmarked for the seafood industry in a U.S. stimulus package can help offset the losses resulting from the COVID-19 closures.
Photo by Chris Chase/SeafoodSource
