Feds Say it’s Okay – Go Ahead
And Enjoy Gulf Shrimp and Fish

The Red Lobster restaurant chain is holding the line on seafood prices thus far.

Notwithstanding the BP oil spill, shrimp legally harvested from the Gulf of Mexico remains safe, nutritious and delicious.

The shrimp is safe to eat, declared the National Oceanic and Atmospheric Administration (NOAA) after chemically analyzing samples pulled from waters near the BP oil spill in the Gulf of Mexico. The same goes for tuna, grouper and other seafood tested, based on more than 400 samples scrutinized since the Deepwater Horizon oil drilling platform exploded and collapsed into the sea about 40 miles off the coast of Louisiana on April 20. Crude has been gushing ever since, with an estimated 89.3 million to 176.4 million gallons having polluted the environment thus far.

Marine biologists from the Louisiana Department of Wildlife & Fisheries (LDWF) have also been collecting specimens from the state’s coastal fisheries – both in open and closed fishing grounds. Over 416 samples consisting of 14,700 individual animals [of which 11,300 were shrimp] were examined by independently-contracted labs between May 3 and July 11. The result of thorough tissue analysis: “No sample has been found to have hydrocarbon (oil compounds) concentrations at or above the ‘Levels of Concern’ as established by NOAA and the FDA.”

Meanwhile the reduction in US domestic supply following the closure of approximately one-third of Federal waters to Gulf fishing boats, out of fear of contaminated fishery products entering the human food chain, has apparently not resulted in higher checks paid by diners at the nation’s largest seafood restaurant chain. Clarence Otis, chairman and chief executive officer of Darden Restaurants, which owns Red Lobster, told CNBC in late June that he does not anticipate the BP oil spill will have major impact on menu prices. As for shrimp, which it sources around the world, Darden typically locks in negotiated prices with suppliers of farm-raised product well before harvest time.

While nearly one-third of the domestic seafood consumed in the USA comes from Louisiana waters, and the state ranks as the leading supplier of shrimp, it remains a fact that more than 90% of shrimp consumed in the nation is imported – mostly in frozen form. And prices being paid by importers have definitely been on the rise. This is due in part to the fact that supply of farm-raised shrimp has been reduced by 40% to 70% in Indonesia and Brazil, where viral outbreaks and disease problems have wreaked havoc.

Thailand, which is the leading supplier of shrimp to the US market and generates an estimated 21% of the world’s export trade in the popular shellfish, is gearing up output to meet demand.

“We think next year will be the biggest year ever for Thai shrimp exports,” said Rapibhat Chandarasrivongs, minister for agriculture and head of the Thai government’s Office of Agricultural Affairs in Washington, D.C. “While we lament the oil spill in the Gulf as a tragic disaster, we know we must be ready to increase production and step in to provide safe, healthy and environmentally-friendly shrimp in the United States and other nations.”

With the boats of many Gulf commercial fishermen at anchor and the US government declaring fishery disasters for Louisiana, Mississippi, Alabama and Florida, QFFI asked a longtime analyst of the seafood industry what the fallout was for American packers of frozen shrimp.

“They have been buying up imported shrimp to keep their businesses open and operating,” he replied.
The veteran observer continued: “If all of the Gulf shrimp production was lost to the spill impact, it would have only a marginal impact on prices and consumption. They only constitute between seven and 10% of the total consumption. In fact, it appears right now that the loss may not be significant. Overseas farmers and packers are taking advantage of a short US inventory position and holding product off the market.

The import statistics paint a picture of only about a two percent decline year to date, so this is not very significant overall. Meanwhile prices have shot up about 30% on imported shrimp in large and middle sizes, and the expectation is that these prices will hold until mid to late summer, and then start back down in the fall months.”