Wholesale prices of live blue crab and crabmeat are strong this summer, because the U.S. Gulf supply is down due to the oil spill. Decreased imports from Venezuela have also helped strengthen prices.
U.S. demand for blue crab, however, is waning. "The Gulf is not producing a lot of crabs, which has made the market better on [our] crabmeat," said a Northeast distributor. While some blue crab fishing areas were closed through early August, the lack of demand for Gulf seafood is hurting the industry most.
"The market is very erratic and weak. I was going to send my crabmeat to a restaurant chain, and they said they would not take anything from the Gulf Coast," said a Gulf crabmeat distributor.
Northeast crabmeat is priced at USD 11 to USD 12 per pound, compared to USD 8 to USD 9 per pound at the same time last year. Jumbo lump crab is wholesaling for USD 18 to USD 19 per pound.
Last year, live crab imports from Venezuela were driving the U.S. price down, according to the Northeast distributor. "This year, their crab supply is way down, probably a quarter of what it usually is," said the distributor.
While supply from the Chesapeake Bay and other areas of the Northeast is strong this year, demand is not there. "The economy is not doing very well, so crabs are getting cheaper," said the distributor.
As a result, dock prices are down in both the Northeast and Gulf states. "Crabbers are getting, on average, 25 to 35 percent less than they were getting last year," said the Northeast distributor. Gulf Coast prices on live crab have dropped to 62 cents a pound at the dock, from 72 cents a pound in 2008.
"You need to offer the consumer some type of value to lure them back to buying Gulf seafood. We are going to have to do what it takes to get seafood customers back to the market," said the Gulf distributor.
Overall imports of blue-swimming crabmeat have soared over the past year, which may impact domestic prices later in the season. U.S. crabmeat imports jumped from 18.8 million pounds in June 2009 to 20.3 million pounds in June 2010, according to the National Marine Fisheries Service.
