The oil spill is taking a big toll on Gulf of Mexico oyster supplies.
Around 60 percent of Louisiana's oyster beds were closed by mid-June as a precautionary measure, according to a processor. In addition, Louisiana's freshwater diversion project, which releases water from the Mississippi River to Plaquemines Parish's wetlands areas, may further reduce oyster supplies. While the state released fresh water to help protect the area from potential oil seepage, the fresh water changes the salinity of the water and often causes oyster die-off, according to suppliers.
The Gulf states lead the United States in oyster production, accounting for around 67 percent of the nation's output in 2008, according to the National Oceanic and Atmospheric Administration. Louisiana alone accounted for 12.78 million pounds, valued at USD 38 million, followed by Texas (2.7 million pounds), Mississippi (2.6 million pounds), western Florida (2.5 million pounds) and Alabama (72,776 pounds).
The lack of supply due to precautionary closures is driving up prices, to the point that restaurants are looking for alternative sources and some may be forced to take them off their menus altogether. Dock prices are up 30 to 40 percent to between USD 35 and USD 40 per bag, oyster processors report. The dock price is typically around USD 28 this time of year. Meat prices have also risen to between USD 10 and USD 12 a pound.
"We are seeing the highest prices we have seen," said one oyster processor.
Meanwhile, the state's freshwater diversion project may cause an additional drop in supply this season, according to processors.
"We are very concerned about kill-off from fresh water diversion. Too much fresh water will kill oysters," said one processor.
"We are already getting reports of some dying. There is about a 10 percent to 20 percent mortality in the state right now," added another processor.
Those are the short-term concerns. Over the long-term, fishermen, distributors and others are worried about consumer perception of Gulf oysters. Even though there have been no reports of contaminated oysters on the market, and state and federal agencies are conducting extensive tests, the brand may be hampered in the long run, said sources.
"The biggest loss over time is the brand. There will have to be discounting to get market share back," said one processor. "We are seeing a soft market [and] we sell both to retail and foodservice."
