Confusion reigns in the Gulf….
Confusion reigns in the Gulf….
I have only been buying the shrimp in earnest here at Stavis Seafoods for the last five years, so my historical perspective is a bit skewed when it comes to all time low pricing in certain markets. This year for sure, we have hit the ALL TIME low since Hurricane Katrina and beyond when it comes to domestic shell-on and peeled shrimp. Up here in the New England states we really try and stick to using white shrimp from the Gulf, as our consumer tastes just prefer milder wild shrimp; but, we still keep our pulse on the brown markets as well. When 16-20 white shell-on domestic shrimp hit bottom about three years ago, many of the importers who were only focusing on tiger shrimp and other Asian species jumped in and bought truckload after truckload.
This year there are many factors in play that have driven the price to below the record low of three years ago. The fuel costs have been relatively low, the fishing in the Gulf has been exceptional, the import prices of tiger shrimp have remained fairly stable due to lower production and the currency exchange and, frankly, the economy is still NOT improved enough for importers and speculators to jump in and make container load purchases unless they have prior commitments. These factors have resulted in lower and lower prices of both shell-on shrimp and peeled shrimp.
So are we at the bottom? Well, this is the BIG question for all of the buyers large and small out there. If there is a significant weather event (hurricane season is upon us) and fishing gets interrupted, the prices could creep back up. If suppliers hold their inventories and the economy does not improve, then the “sales for cash” could keep markets remaining weak. We are about to come into the Mexican wild season starting in October and if they have good catches, then the prices could remain low in the Gulf as well.
When my dad, Ed Stavis bought the shrimp here for over 30 years he would always say, “dealing in all of these markets is fun and interesting,” and boy was he right! He was the master and we still have the most animated discussions over the shrimp markets today. Whether or not we are at the bottom of this market, the good news in this economy is that consumers can enjoy wild caught domestic shrimp in many forms at really affordable prices, and it should be on any and all menus in restaurants and in retail chains across America.