Dominque Ditcharo at his dock in Buras, La. In 2005 Hurricane Katrina shut down Gulf fishing operations and completely destroyed their dock. Photo: Phillip Colwart Photography
by Louisiana Small Business Development Center staff
When big storms begin angling toward the Gulf Coast, fishermen and seafood processors in south Louisiana get nervous. It’s a natural reaction for people who earn their living by supplying some of the world’s most popular seafood for dining tables across the country.
Path of Hurricane Katrina that struck Louisiana coast. Satellite Image: NOAA
Dominique and Derek Ditcharo, owners of Ditcharo Seafood, LLC – one of the area’s best-known shrimp suppliers – know first hand the potential steep losses for their business that violent storms can cause.
From their dock in Buras, La., they buy and sell close to five million pounds of shrimp annually. In 2005 Hurricane Katrina shut down Gulf fishing operations and completely destroyed their dock.
With financial help from various sources, after Katrina the family rebuilt their dock, but subsequent years brought more storms. Hurricanes Gustav and Ike struck the coast within weeks of one another in 2008, wreaking havoc on fishing operations and producing power outages that lasted for weeks.
“We needed help but I didn’t know who to go to,” said Dominque Ditcharo.
A Source for Help Before it is Needed
That changed when Ditcharo met Sandy Nguyen, a business consultant with the Louisiana Small Business Development Center – Greater New Orleans Region (LSBDC-GNOR), who specializes in working with fishermen and seafood businesses.
Well known among the Buras area fishermen, Nguyen introduced herself to Ditcharo and they quickly became business allies. “It turned into a very good relationship,” said the area shrimp processor.
“We needed help but I didn’t know who to go to,” said Dominque Ditcharo. That changed when Ditcharo met Sandy Nguyen, a business consultant with the Louisiana Small Business Development Center – Greater New Orleans Region. Photo: Phillip Colwart Photography
Nguyen assisted Ditcharo with the process of completing applications for disaster assistance through the state of Louisiana. She also helped him understand the importance of keeping careful records to help document losses in the event of future storms.
“There are certain documents required in order to get disaster grants and loans, and now that I know these things, I always try to have these records available,” explained Ditcharo.
Nguyen visited Ditcharo Seafood repeatedly after Gustav and Ike to answer questions and make sure all applications were completed. She also discussed the need to have a disaster preparation, or business continuity, plan that would help prevent steep losses during future storms.
Recalling the earlier business disaster, Ditcharo said “I learned to set deadlines”.
In the face of an upcoming storm that struck the coast, the company had bought more that $100,000 worth of shrimp. When the storm closed roads and knocked-out electrical power, customers were nowhere to be found.
He took a nearly total loss on the shrimp and said, “That will never happen again.”
Now when storms threaten “we cut off buying early and tell the boats to come in and hunker down,” he explained.
According to Nguyen, various pieces of the seafood industry are so interdependent that one cannot survive without another. “If the shrimpers can’t work, for instance, the shrimp processor has no supply,” she said.
A Regular Visitor on the Waterfront
A frequent visitor to the fishing docks, not just after a disaster but between storm as well, she sees her job as addressing the needs of all the businesses in the area, not just those that have sought assistance in the past.
A frequent visitor to the fishing docks, Sandy Nguyen (center) sees her job as addressing the needs of all the businesses in the area, not just those that have sought assistance in the past. Photo: Stock
Her message to her community is always the same: “The more prepared you are the better your chances of recovery.”
In 2010, the Gulf of Mexico experienced the worst oil spill in U.S. history when the Deepwater Horizon oilrig exploded off Louisiana’s coast.
The disaster not only brought oil drilling to a near halt, but also shut down almost every segment of the coastal seafood business. Once again, the livelihoods of fishermen and business owners were threatened, but Nguyen says “her businesses were ready”.
“When the spill came along, my clients got their paperwork together and they were ready to get started,” she said with a gleam in her eye. “I was really proud of them.”
BUSINESS IMPACT:
Shrimp processor buying millions of pounds of product from local fishermen. Objective to find ways to minimize damages and downtime stemming from large storms striking the Gulf Coast regularly.
D. Ditcharo Seafood LLC challenge:
- Need to find quicker ways of getting business assistance after a destructive storm.
- Need to maintain better records in order to document losses after future storms.
- Need to improve pre-storm planning to ensure the business is not caught with excess product on its hands.
LSBDC Solution:
- Provide hands-on assistance to complete grant and loan applications.
- Educate business owners about record-keeping methods.
- Ensure that owners understand the steps necessary to return to business quickly after a storm or disaster.
- Educate owners on pre-storm preparation techniques that will minimize product losses and business down time.
Results:
- The business has a plan it executes before storms, including notifying shrimpers of an early cutoff for buying their product, allowing the fishermen to take their boats to safety and enabling the company to avoid having product it cannot sell.
- Business owners understand the process for applying for disaster assistance and know the steps they must take to document their losses.
- Business owners are keeping better records.
For more information on emergency preparedness, visit www.lsbdc.org or contact LSBDC GNOR at (504) 831-3730 or lsbdc.gnor@lsbdc.org. The LSBDC is funded in part through a cooperative agreement with the U.S. Small Business Administration, Louisiana Department of Economic Development, and participating universities.
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