U.S. Gulf shrimp is in high demand, as consumers are buying large quantities over fears that it will soon be un available due to the disastrous oil spill in the Gulf of Mexico.
Although the Louisiana Department of Wildlife & Fisheries opened the fishery in early May, many of the shrimp are still small, suppliers report, and certain areas off the Louisiana coast remain impacted by closures, especially in the southeastern part of the state.
"We have sold everything we had. The local people are hording shrimp and filling their freezers," said one Louisiana shrimp buyer.
The Gulf shrimp industry produces about 180 million of the 1.2 billion pounds of shrimp consumed in the United States, according to the American Shrimp Processors Association in Biloxi, Miss.
Still, by mid-May, the shrimp that was being caught was in the 200- to 300-count range, according to the ASPA.
Wholesale and retail prices are up at least USD 1 a pound, compared to the same time last year. The P&D 50-60s that would normally be priced at USD 3 to 3.50 a pound wholesale are now around USD 3.95. P&D 16-20s that would have been USD 6 a pound are now around USD 7.
Shrimp processing plants in Louisiana and Mississippi are running at 5 to 10 percent capacity of what they would normally be this time of year, according to the ASPA. The plants’ main customers are retailer, not foodservice buyers.
While some retailers had been buying more U.S. shrimp in recent years, they may need to defer to imports from Asia and Latin America, which concerns domestic producers.
"Importers are telling our customers that there won’t be shrimp for a year. Some are asking them to sign a two-year contract," said the buyer.
Still, the ASPA expects a strong Gulf shrimp season, as long as the oil stays away from shrimping areas: "Our normal season wouldn’t have been in full production until late May. We are still hopeful that we are going to have a good season."
