July 3, 2006

US shrimp bountiful but few takers

After the havoc wrought by hurricane Katrina, US farmers on the Gulf Coast are having a bumper harvest of shrimp. 

However, high diesel prices and low shrimp prices are still cutting into profits.

The price of diesel has more than tripled over the past four years while shrimp prices were half to a third of what they were four years ago.

It was not clear whether the bumper harvest was due to the bountiful shrimp supplies or the lack of competition- half the shrimp boats that went out in 2005 are not venturing out again this year as shrimpers believe it is no longer feasible, according to Mike Brainard, director of the shrimp and crab bureau for the Mississippi Department of Marine Resources.

Many boats had also been damaged during the hurricane, thus needing costly repairs and leaks that were not discovered until it went out during shrimping season. The debris strewn waters also posed a hazard for fishermen.

Most shrimpers blame imported shrimps from Asia for the falling prices. Despite measures to curb foreign imports through anti-dumping tariffs, it did not stop Asian countries from ranking among the top 10 suppliers of shrimp to the US market last year.

Shrimpers have been appealing for relief at a recent meeting with the National Oceanic and Atmospheric Administration.

Shrimpers are now selling shrimps direct from their boats instead of the wholesale houses where lower prices are offered. Business has been brisk. The average price for fresh medium shrimp is about US$2.25 a pound.