The American Wild-Caught Shrimp Industry and the Environment: A Reciprocal Relationship

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1 Food Researched: Shrimp Focus of Research: The current domestic wild-caught shrimp industry, interactions between the industry and the environment Name: Amy Teller May 18, 2010 The American Wild-Caught Shrimp Industry and the Environment: A Reciprocal Relationship Objective(s) The nature of wild-caught shrimp fishing requires me to address how environmental change affects the industry and how the industry affects the environment. I also cover the work that advocacy groups, industry groups and the U.S. government are doing to improve the sustainability of the shrimp industry and protect the marine environment from shrimp fishing. Summary of Findings Where is the Domestic Wild-Caught Shrimp Industry at Today? 75% of the shrimp produced in the world still comes from shrimp fishing, though much of it is consumed locally. Less than half of internationally traded shrimp is wild-caught (Clay, 473). About two-thirds of the wild-caught shrimp that Americans eat is imported, primarily from Asia and Latin America (Iversen, Allen and Higman, Preface), and 80% of the total shrimp Americans consume is produced internationally (Wald, 1). Even so, about 366 million pounds of shrimp are caught in U.S. waters each year (Iversen et al., Preface). This very obviously does not meet all of America s demand for shrimp. The average American eats 3.5 pounds of shrimp each year, and it surpasses tuna as the most popular American wild-caught seafood, both fresh and frozen (Food and Water Watch). Shrimp is so well liked more many reasons including that it is cheap compared to other wild-caught fish, available year-round and comes in various sizes (Clay, 497). The current trends in the wild-caught shrimp market are increased demand, increased supply and increased interest in quality (Clay, 499). For example, the production of Pacific white-leg shrimp increased by 854% from , and price declined by 62% over the same period (Clay, 500). The main buyers of wild-caught shrimp are institutions, which make 70% of shrimp purchases in the United States. Shrimp almost always moves through an institution and is rarely purchased and prepared directly by the consumer (See Fig 1 in Appendix). The individuals who work as purchasers at these institutions determine which types of shrimp most Americans will consume (Clay, 497). Darden, the owner of Red Lobster and Olive Garden, makes half of the restaurant purchases of shrimp and SysCo, one of North America s largest food distribution companies, buys about half of the shrimp that is distributed in the United States. Darden spent over $1M in both 2008 and 2009 on lobbying in favor of food safety and the 1

2 Labeling Education and Nutrition Act (OpenSecrets.com). Food safety is very important to the shrimp industry. Wild shrimp is fished in two general regions around the United States. Warm-water shrimp are found in the Southeast from Texas to the Carolinas, and cold-water shrimp are found in the Northern Atlantic, Northern Pacific and Alaska. Cold-water shrimp accounts for only 22% of the total amount of shrimp caught in the country and just 8% of the value, making the warmwater industry in the Gulf of Mexico and Southern Atlantic the greater contributor to the domestic industry as a whole (Iversen et al., Preface). How Are Shrimp Caught? Shrimp fishermen in the United States today most commonly use trawls to catch shrimp. A trawl is a cone-shaped mesh net consisting of a body with lateral wings extending forward from the opening, which are kept open horizontally by two otter boards. The trawl is dragged across the seafloor as it is pulled from the stern of a boat. A boat can be rigged to tow a single trawl, as it is in Figure 2 (See Appendix), or two parallel trawls (FAO Fisheries and Aquaculture). How Does Trawling and the Wild-Caught Shrimp Industry Impact the Environment? Shrimp trawling can greatly harm marine ecosystems. Trawling causes the agitation of benthic habitat and catches other organisms (ex: red snapper, sea turtles, seahorses, crabs) along with the shrimp (Iversen et al., 138). These marine animals caught unintentionally are called bycatch. Trawling kills about 1.8 million tons of marine life annually and shrimp fishing produces about 25% of the world s by-catch (Seafood Watch). Shrimpers in U.S. waters are required by state and federal regulations to use trawls that incorporate Turtle Excluder/Trawling Efficiency Devices (TEDs). When regulations were first passed, shrimpers blocked navigation channels with their vessels in protest and the required use of TEDs was subsequently suspended. The work of environmental groups like Food and Water Water got the regulation reinstated and it is now heavily enforced (Iversen et al., 138). TEDs reduced the mortality of sea turtles caught in trawls by 97%, which is quite a remarkable statistic (U.S. Department of State). On April 30, 2010, the U.S. Department of State certified 38 nations as meeting criteria relating to the protection of sea turtles in the course of shrimp trawl fishing set forth in Section 609 of Public Law Section 609 bars the import of shrimp and shrimp products harvested in ways that may adversely affect some sea turtle species (U.S. Department of State). However, this ban does seem to have some loopholes, such as when the Department of State certifies to Congress that the government of the harvesting nation has taken measures to reduce the incidental taking of sea turtles in its shrimp trawl fisheries (U.S. Department of State). The Department makes certifications annually on May 1, and the U.S. government provides technology and aid to many shrimp-producing countries to contribute to the recovery of sea 2

3 turtles. 6 of the 7 species of marine turtles are designated as endangered or threatened under the Endangered Species Act (U.S. Department of State). Nevertheless, 3 to 15 pounds of by-catch are still produced, on average, by each pound of imported shrimp (Seafood Watch). How Is Overfishing of Shrimp Prevented in U.S. Waters? The two ways to avoid depletion of shrimp populations are to regulate fishing and to conserve and enhance shrimp habitats. The United States has strict regulations to manage wild shrimp populations to be sure that stocks are not depleted. The eight southeastern coastal states set minimum net mesh sizes to allow young shrimp to escape through the holes. It is much more beneficial if young shrimp are released to continue to grow, reproduce and then get caught once they are larger and more valuable (Iversen et al., ). Also, shrimping zones are closed in the spring to allow shrimp to spawn. The federal government manages the shrimping zones that exist beyond state jurisdiction, which ends at 5.6 km from shore. The Magnuson Fishery Conservation and Management Act of 1976 created the Exclusive Economic Zone, which extends from state water boundaries out to 371 km from shore (Iversen et al., 130). Shrimp, particularly the young, rely on vegetative habitat like marsh grasses, mangroves and algae (Iversen et al., 28). The destruction of this habitat by dredging, pollution, climate change and any of a number of other factors threatens shrimp populations. However, damaged habitats can be restored through water management and replanting of vegetation. Americans are increasingly concerned with wetland protection, and wetlands larger than 10 acres are protected under the Clean Water Act (Iversen et al., 135). The preservation of wetlands is ideal for maintaining shrimp populations, making this one situation in which what is good for the industry is also good for the environment. How Does Environmental Change and Degradation Impact the Productivity of Shrimp Fishing? Environmental factors like water salinity and temperature affect the growth and survival of shrimp populations. Intolerable environmental conditions vary from species to species some shrimp cannot survive if temperatures warm too much, while others cannot survive in cooler water temperatures (Iversen et al., 27). If water temperatures become much higher or lower and/or salinity changes, as is predicted with climate change, shrimp populations will suffer, as will the wild-caught shrimp industry. Environmental degradation has a greater impact on warm-water shrimp because they live in shallow estuaries at early life stages, while young cold-water shrimp are found in deep water (Iversen et al., Preface). Estuaries are considered to be especially vulnerable to climate change and they are also close to shore and at greater risk to human impacts like the dumping of waste, agricultural runoff and oil (Iversen et al., 137). These environmental stressors and pollution make shrimp more susceptible to parasites and disease. Disease outbreaks reduce the shrimp populations, reducing supply for the wild-caught industry. This decreases profits for the industry and raises prices for American consumers of wild-caught shrimp (Clay, 500). 3

4 The Current BP Oil Spill and the Shrimp Industry in the Gulf of Mexico The oil spill from the BP oilrig that exploded 50 miles off the coast of Louisiana on April 20 th has impacted the shrimp industry in the Gulf of Mexico (See Fig 3 in Appendix). NOAA has suspended shrimp fishing in a large zone around the spill (Wald, 1). Fishermen are actually being trained to help clean up the spill, and many hope to be hired to work for BP's clean up team as that is the only other work available to them. Bernel Prout, a fisherman from Louisiana, says, Either the seafood industry or the oil industry that s the only jobs down here, so I guess I m trying to move from seafood to oil today (Brown, 1). A representative from BP says the company wants to hire as many fishermen and local people as possible for clean up in an attempt to compensate (Brown, 1). Shrimpers in Louisiana and Alabama are suing BP for their economic losses and accusing the company of negligence (Gorman, 1). Each of the lawsuits seeks economic and compensatory damages of at least $5 million (Gorman, 1). The oil spill came at a particularly bad time for the shrimp industry as it coincided with spawning season. As the oil continues to gush 5,000 barrels per day into the Gulf of Mexico, young shrimp are moving from the estuaries out into the sea (Gorman, 1). Deborah Long, a spokesperson for the Southern Shrimp Alliance says, So they're moving directly into the path of the oil spill, in reference to the young shrimp (Gorman, 1). If oil reaches the estuaries, shrimpers could be feeling the effects for 20 years (Seversen, 1), because if the young population is decimated, it will prevent the young shrimp from growing and reproducing. However, the extent of the damage to the shrimp industry is still uncertain. As Richard Arsenault, a Louisianabased lawyer involved with filing one of the lawsuits, says While we're still in the embryonic stages of quantifying the environmental impact, we're watching in real time, and somewhat helplessly, a slow-motion disaster (Gorman, 1). Shrimp fishermen spend up to 18 hours a day on the boat, and pay is not regular or guaranteed. The profits for the fisherman depend on the amount of shrimp one catches that day (Iversen et al., 93). Additionally, proceeds from the sale of the catch go first to vessel maintenance and then larger shares go to the boat owner and captain. The crew of fishermen receives reduced shares (Iversen et al., 95). A low year, like this one may turn out to be, can hit the fishermen hard. The shrimping boats still require maintenance and the owner still needs to be paid even if the catch is negligible or the boats are docked (Iversen et al., 95). The wildcaught shrimp industry runs on a tighter profit margin than aquaculture (Clay, 497), and this is one of the reasons for that. Shrimp fishing brings in $1.3 billion each year to the state of Louisiana, and shrimp is an essential part of local cuisine (Severson, 1). Gulf state fisheries, farmers markets and restaurants sold out of shrimp by early May It will be interesting to see how the oil spill affects the availability of shrimp in the rest of the United States. Since most of the shrimp Americans consume is imported, it is highly likely that shrimp will still be readily available at Darden restaurants. The Southern Shrimp Alliance The Southern Shrimp Alliance is a dynamic alliance of eight southern coastal states from North Carolina to Texas, representing the harvesters, processors, and distributors of American wild caught shrimp, dedicated to giving the consumer a wild-caught, nutritious shrimp 4

5 from sustainable stocks in the Gulf of Mexico and South Atlantic waters, and thereby bringing long term stability to the domestic shrimp industry (Southern Shrimp Alliance). They spend $200,000-$400,000 annually lobbying for issues that relate to the sustainability of the domestic wild-caught industry including: management and conservation of shrimp fisheries, appropriations for research, regulation of offshore aquaculture, food safety and inspection and regulation of shrimp imports and international shrimp trade (OpenSecrets.com). They have not gotten involved with the lawsuits against BP for the 2010 oil spill (Gorman, 1). Food and Water Watch Food and Water Watch is a non-profit organization working with grassroots organizations around the world to create an economically and environmentally viable future. Through research, public and policymaker education, media, and lobbying, (they) advocate policies that guarantee safe, wholesome food produced in a humane and sustainable manner and public, rather than private, control of water resources including oceans, rivers, and groundwater (Food and Water Watch). Their website offers suggestions for consumers and policymakers to improve industrial shrimp production. Food and Water Watch s recommendations for policymakers include: increasing funding for inspections of imported shrimp directed at Congress, significantly increasing physical inspections and testing of imported seafood and developing a similar process to the one USDA has for meat directed at the USDA, and closing the loopholes in Country of Origin Labeling rules to include all seafood, whether processed or fresh, at every store and restaurant directed at Congress and the USDA (Suspicious Shrimp, 16). The recommendations for consumers include: contacting representatives to ask for the previously mentioned recommendations to be carried out, asking at grocery stores and restaurants where the shrimp comes from and whether it was wild-caught or farmed, choosing domestic wild-caught shrimp, or if necessary, choosing shrimp that has been farmed in the United States by an environmentally responsible, closed-system shrimp aquaculture operation (Suspicious Shrimp, 16). Seafood Watch Seafood Watch is a Monterey Bay Aquarium program that helps sustain wild, diverse and healthy ocean ecosystems that will exist long into the future. (They) do this by encouraging consumers and businesses to purchase seafood that is fished or farmed in ways that don t harm the environment. When there is scientific uncertainty, they err on the side of conservation (Seafood Watch). Seafood Watch has a website and also distributes pocket guides that designate different types of seafood, including shrimp, as Best Choices, Good Alternatives, and Avoid. Since the effects of trawling on marine ecosystems and the health of shrimp populations differ by geographic region, it is important to consult a resource like seafood watch to determine which types of shrimp are most sustainable. All species of US wild-caught shrimp are deemed Best Choice or Good alternative, and most imported shrimp should be avoided (Seafood Watch). 5

6 However, consumers rarely see any reference to species, country of origin or whether the shrimp is farmed or wild-caught. Shrimp is generally only classified by size and method of processing (Clay, 493). This highlights the importance of Food and Water Watch s recommendations. Consumers need to ask at restaurants and stores where the shrimp is from and whether it has been wild-caught or farmed. Also, if county of origin labeling becomes required for seafood, consumers will be able to clearly see where shrimp comes from. Since the industry is so centralized, with most of the shrimp Americans consume provided by a few institutions, getting an answer to where the shrimp comes from and the passage of the country of origin regulation seem unlikely. A great alternative for now is to buy directly from local fisherman if the consumer lives near the coast or to buy from a store that labels the origin of the shrimp voluntarily. Appendix Figure 1. This diagram shows that most of the shrimp consumers eat passes through the same concentration of retailers, restaurants and institutions, while just a small amount goes directly from US Shrimp Fishermen to consumers (Iversen et al., 85). 6

7 Figure 2. Shrimp boat pulling a single trawl (FAO Fisheries and Agriculture, 2010). Figure 3. The oil spill as of May 15, 2010, approaching the estuaries of Louisiana (Photo: NASA), and the distribution of catch quantities of shrimp in the Gulf of Mexico (Iversen et al., 82). The two areas overlap. 7

8 Sources Brown, R. (2010, April 30). Fishermen sign on to clean up oil. New York Times, Retrieved from 0gulf&st=cse Clay, J. (2004). World Agriculture and the Environment. Washington DC: Island Press. FAO Fisheries and Aquaculture. (2010). Geartype Fact Sheets. Retrieved from Food and Water Watch. (2008, June). Suspicious shrimp. Retrieved from Gorman, S. (2010, April 29). Gulf state shrimpers sue bp over oil spill. Reuters, Retrieved from Iversen, E.S., Allen, D.M and Higman, J.B. (1993). Shrimp Capture and Culture Fisheries of the United States. New York, NY: Halsted Press. Monterey Bay Aquarium. (2010). Seafood watch. Retrieved from Opensecrets.org. (2010). Retrieved from ance&id = Seversen, Kim. (2010, May 6). As Oil Threat Creeps Closer, a Rush on Seafood. New York Times, Retrieved from Southern shrimp alliance. (2007). Retrieved from U.S. Department of State. (2010, May 4). Sea Turtle Conservation and Shrimp Imports. Retrieved from Wald, Matthew. (2010, May 7). Clarifying Questions of Liability, Cleanup and Consequences. New York Times, Retrieved from 8

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