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Home > Current News > 2008

News: 2008

L.D.W.F. Releases Report on Survey of Louisiana Shrimp Dealers
Posted: 9/25/08

The Louisiana Department of Wildlife and Fisheries (LDWF) has released The 2007 Louisiana Shrimp Marketing Survey Report, which is an in-depth study of dockside shrimp dealers and the role they play in the Louisiana seafood industry.

This report summarizes findings of a series of interviews with 52 Louisiana shrimp dealers conducted by the LDWF Socioeconomic Research and Development Section according to the report's author Dr. Jack Isaacs, LDWF economist. The survey and the report were part of a project funded by the National Oceanic and Atmospheric Administration.

The report states that in 2006 the Gulf of Mexico accounted for 84 percent (289.1 million pounds) of all shrimp commercially harvested in the United States and 86 percent ($343.9 million) of the dockside value. Louisiana led all Gulf States with 46 percent (135 million pounds) of total gulf shrimp harvest and was second to Texas in gulf shrimp dockside value at 35 percent ($121 million).

Shrimp dockside prices have followed a steady decrease since 2000, dropping from a national average price of about $2.20 per pound to about $1.25 per pound in 2006. The average gulf price was $2 per pound in 2000 dropping to $1.25 per pound in 2006. Louisiana's average dockside price was about $1.65 per pound in 2000, falling to 95 cents in 2006.

"The main reason why the department conducted this survey was to gather a better understanding of the Louisiana shrimp market due to the historic decline in domestic shrimp prices," Isaacs said. "More specifically, we wanted to examine the pivotal role of dockside shrimp dealers in the marketing chain. The results may be interesting to anybody in the shrimp business or seafood industry or anybody with an interest in this vital – yet troubled – sector of the Louisiana economy."

The term “shrimp dealers” used in the report refers to businesses that buy shrimp directly from shrimpers, usually for commercial purposes. There were 52 dealers included in this survey who specialize in one important task: buying large amounts of shrimp (2.24 million pounds on average) from Louisiana’s shrimpers, then selling those shrimp to others in the seafood marketing chain, such as processors, restaurants and distributors.

All dealers surveyed bought both brown shrimp and white shrimp. Only one in five bought seabob and roughneck shrimp (smaller size shrimp) and pink shrimp, which are more closely related to brown and white shrimp. More than half of the shrimp dealers said they also purchased some type of finfish from fishermen in addition to shrimp, but generally in much smaller quantities.

Of the 52 surveyed dealers, 45 sold whole (“heads-on”) shrimp and 43 sold shrimp tails (“heads-off” shrimp still in their shells). Only 16 shrimp dealers produced or sold raw peeled shrimp, and two sold cooked and peeled shrimp. Most shrimp processing was done by separate businesses, such as processors or restaurants, who purchase these shrimp from dealers.

According to Martin Bourgeois, LDWF Marine Fisheries Biologist, the report delivers a clearer understanding of the shrimp marketing chain, which enhances the ability of the department in developing wise management recommendations affecting the Louisiana shrimp resource. Providing greater economic opportunities for Louisiana shrimpers and businesses within the marketing chain is critical to sustaining economic viability within Louisiana's most valuable commercial fishery.

Copies of the report may be obtained by calling the LDWF Socioeconomic Research and Development Section at 225-765-2605 or by visiting the LDWF website at www.wlf.louisiana.gov/pdfs/education/2007_Shrimp_Dealers_Survey.pdf.

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