Louisiana shrimpers are set to put into effect a moratorium on harvesting to protest falling shrimp prices at the dock. Photo: Facebook
by Ed Lallo/Gulf Seafood News Editor
For more than two weeks talks of a strike by Louisiana shrimpers have filled VHF radios and social media. Talk has turned into action according to Louisiana Shrimp Association’s president Clint Guidry, as state shrimpers have put a moratorium on harvesting to protest falling shrimp prices at the dock.
Acccording to Louisiana Shrimp Association’s president Clint Guidry, “This is an industry problem that needs an industry solution.” Photo: Ed Lallo/Newsroom Ink
The work stoppage of undetermined length was decided upon at an informal meeting of Louisiana Shrimp Association attended by more than 250 shrimpers from across this state. “This is not a strike,” Guidry told Gulf Seafood News. “This is a fisherman initiated work stoppage. We are asking everyone to stand united for this industry from the west to the east coast of the state.”
According to Guidry, “This is an industry problem that needs an industry solution.” The self described peacemaker, organizer and diplomat wants to work closely with shrimp processors to find solutions beneficial to both sides.
He said the shrimp stoppage is specially timed to currently declining catches. The expectation is for that to change in approximately a month’s time, and he’s hoping by then shrimpers and processors can find solutions to make sure everyone is profitable.
Sliding Shrimp Prices
Fishermen have been furious over sliding dockside prices just weeks into Louisiana’s fall white shrimp season. In addition, Guidry says he has not seen anything marketwise that warrants the falling prices that according to him are below profitable levels.
Grant Bundy, of Bundy Seafood in Lafitte, unloads shrimp at his docks. . Photo: Ed Lallo/Newsroom Ink
“During past weeks, prices on the New York frozen shrimp market have fallen between five to ten cents, but at Louisiana shrimp docks the fall has been over a dollar a pound since opening day. Shrimp prices are currently the same level they were 13 years ago,” he said.
Domestic shrimp prices have been on the rise for more than a year due to a shortage of imports from the top shrimp producers in Southeast Asia, which export a majority of the farmed raised shrimp. Early mortality syndrome, a disease that percolates through shrimp farms and quickly infects infantile shrimps before they have a chance to mature, has limited Asian imports.
With more than 90 percent of shrimp consumed in the United States coming from imports, any change in foreign supply affects both domestic and import prices, as well as the overall prices consumers pay.
Guidry feels that Louisiana processors have done a good job at selling their shrimp on the open market, however he feels more transparency is needed in how prices are determined and set by the processing industry.
“Historically, there has been tension between fishermen who harvest shrimp and the processors who buy them,” said Tommy Lusco, owner of Baton Rouge Shrimp Company. “Six months ago packing houses were competing against each other to get product because of lack of availability. Price rose because of these premiums that were being offered.”
According to the Baton Rouge processor, large packers were paying so much they are now forced to cost average the supply in stock because imported shrimp is once again becoming more available, forcing shrimp prices to drop. “It is impossible in today’s market to sustain the $3 lb. price difference of six months ago between domestic and imported shrimp,” he said.
Two Worlds Collide
Fishermen and processors often have differing world views. Processors are cast in the role of responding to an increasingly brutal global marketplace driven by supply side economics, while fishermen are portrayed as not having the foresight to see the world beyond the dock.
For both players, everything is affected by price.
According to Lusco, large packers were paying so much they are now forced to cost average the supply in stock because imported shrimp is once again becoming more available, forcing shrimp prices to drop. Photo: Ed Lallo/Newsroom Ink
Lusco says that current shrimp prices are still above those paid the same time last year. The recent price drop however has tightened the profit margin for shrimpers that must absorb fuel costs of more than $3.50 gal, as well as expenses for ice, crew, repairs, insurance, and other miscellaneous items.
“We would like to keep the prices at a level that shrimpers are making more money, but the world market and the willingness of our customers to pay higher prices for Gulf shrimp determines our selling price as wholesalers,” said Gulf Seafood Institute board member Jim Gossen, chairman of Sysco Louisiana Seafood. “Because of the recent large price differences between imported and domestic, we have seen a shift away from domestic.”
In addition, according to the National Oceanic and Atmospheric Administration, shrimp landings for the Gulf of Mexico for the first six months of this year have been off more than 15% Gulf-wide, and more than 22% in Louisiana.
Will a moratorium be successful in rising the price shrimpers receive at the dock?
Unlike the large Texas and Florida shrimp fleets that are owned or fish for specific processors; Louisiana shrimpers are very independent family-owned businesses. “It would all depend who and how many go on strike,” explained Lusco about the possible effectiveness of a strike.
“Please respect everyone during this time,” Guidry asked his members. “When you do something like this it hurts everyone, the fisherman, the dock owner and the processor. We have to sit down and come together to solve these problems.”
Come to Texas and see our prices it’s bulls hit I’m from louisana born and raised and a fourth generation of shrimpING