NOAA Fisheries published a snapshot report outlining the economics of the Gulf of America shrimp industry. The report breaks down prices of imported versus U.S.-caught Gulf shrimp, as well as landings, industry costs, profits, and participation in the fishery. It showed a decline in profits and economic stability of the fishery.
Declining Profits for Gulf Shrimp Fishery
The report describes a multi-decadal decline in the Gulf shrimp harvesting industry’s economic stability and profitability. Foreign farmed shrimp have driven shrimp prices lower and operating costs have increased.
From 2021 to 2023, total Gulf shrimp revenue dropped by more than half, from $489 million to just $221 million.
This isn’t due to a lack of demand. In fact, U.S. shrimp consumption more than quadrupled between 1984 and 2023. This increased demand was met primarily by imported shrimp—originally wild-caught foreign shrimp. Later, farm-raised shrimp became the primary source as aquaculture practices were developed, optimized, and expanded in developing countries around the world. By 2023, the proportion of Gulf-harvested shrimp made up only 4.5 percent of the U.S. market—down from 28.7 percent in 1984.
As a result of increasing volumes of imported shrimp at lower and lower prices, the average price of Gulf shrimp decreased as well. The price of Gulf shrimp, adjusted for inflation, decreased from more than $6 per pound in the 1980s to less than $2 in 2023.
"For decades, this fishery has been fishing down its capital stock—leading to slow attrition in good times. Bad times rapidly turn into crises," summarized Dr. Christopher Liese, industry economist and lead author on the report.
"The long life of shrimp vessels has masked a fundamental weakness: The fishery is not economically sustainable enough to reinvest in itself. This is an industry consuming its own capital to stay afloat, delaying a crisis rather than ensuring a future."
Landings Decline Despite Stable Shrimp Populations
U.S. wild-caught landings in 2023 were 15 percent below the average of the previous 10 years and 24 percent below the average of the previous 50 years. However, shrimp populations have remained stable and are not undergoing overfishing. So what’s driving the drop in landings? Declining profits are driving U.S. shrimpers out of the fishery.
“We know from our regular assessments that shrimp abundance is not the issue here,” stated Dr. John Walter, Deputy Director of the Southeast Fisheries Science Center. “We also know that because of declining profits, fewer vessels are shrimping, active vessels are shrimping less, and fewer crew are employed by the industry. This is driving the observed drop in landings, and exacerbating revenue declines.”
In fact, we saw a 19 percent decline in active shrimping vessels from 2021 to 2023, and an estimated loss of more than 1,200 jobs.
Identifying the Challenges
Given declining revenues and an estimated average annual profit margin of only 0.5 percent over the past 18 years, this fishery has not been economically sustainable for at least 20 years. Hence the fishery has seen minimal capital investment, and the average age of shrimp vessels has dramatically increased over the last 20 years.
While this downward trend is a long-term issue, the industry’s difficulties in recent years were intensified by disruptions related to COVID and inflation.
“The struggles the industry is facing are immediately apparent when walking the docks in any of the major shrimping communities,” explained Dr. Carissa Gervasi, lead of the Shrimp Futures Initiative. “Docks are in disrepair while giant vessels with peeling paint sit idly.”
For many shrimpers, prices are so low that it’s cheaper to leave the boats docked than go out shrimping. But leaving boats docked exacerbates the issue: Captains and deckhands move on to more stable, shore-based jobs. Vessels that sit idle for years often require substantial maintenance and repairs to become operable again.
“But many shrimpers are stuck. One fleet owner estimated that it would cost him $4 million to sell his 14 vessels and exit the industry. Shrimpers can’t afford to shrimp, and they can’t afford to stop shrimping.” — Carissa Gervasi
Addressing Barriers to Seafood Competitiveness
Assessing the economic status of the Gulf shrimp industry is a first step in addressing the barriers to restoring its competitiveness.
Sarah Shoffler, NOAA Fisheries’ seafood advisor, summarized, “This report puts numbers to the economic challenges facing the U.S. shrimp industry. Achieving a truly resilient Gulf shrimp industry hinges on its ability to sustain profitability. The path forward will likely involve a strategic combination of technological investment, market differentiation, and robust public-private partnerships. We are committed to exploring solutions that could support this industry into the future.”
This economic snapshot report is part of NOAA Fisheries’ Southeast Fisheries Science Center’s Shrimp Futures Initiative. We work with industry and other partners to understand the profound challenges facing the Southeast’s shrimp fisheries. We identify actions that could restore the fishery’s profitability in an uncertain future. This effort supports the NOAA Fisheries Seafood Strategy, aligns with Executive Order 14276, “Restoring American Seafood Competitiveness,” and positions us to better support our nation’s fishing communities.
