1. Fisheries Impacts of Hurricanes Katrina and Rita
Rex Caffey, Associate Professor LSU AgCenter & LA Sea Grant
Focus on two things – the storm impacts to key fisheries resources, and the prevailing market conditions prior to these 2 storms

2. Shrimp Largest portion of the commercial fleet is the shrimp fishery
Storms did not discriminate based on vessel size
Some boats not damaged directly, rather indirectly by negative market factors compounded by the 2 storms

3. Shrimp Fleet disruption (sunk, destroyed, damaged, displaced)
Southeast: %
South Central: %
Southwest: %
Habitat damage – 100 square miles of coastal marsh?
Very strong post-storm catches from remnant fleet
Read and explain
Dockside losses are for both Hurricanes and are derived from preliminary estimates by economists with the LSU Agricultural Center
Slight decrease in dock prices, 30% increase in fuel costs
Dockside revenue losses of $90.4 million

4. Shrimp: La Gear Licenses
42% Reduction
Read and explain
But is shrimp production declining? Not really, production in recent years has been strong, in fact per capita consumption of shrimp in U.S. is up 30% in last 5 years alone.
Instead, prices of domestic shrimp are falling – at that’s what’s behind this trend

5. Processed Value Billions ($) Import Quantity Millions (lbs)
Shrimp: U.S. Value & Imports
Source: Diop, H. 2004
Processed Value Billions ($)
Import Quantity Millions (lbs)
Reduced prices can be partially illustrated by the reduction in U.S. processed shrimp value – from a peak of ~ 1.75 Billion in the mid 80’s to around 1 billion in recent years.
Concurrently, imports of foreign shrimp – mostly farm raised – have increased from ~200 to 1200 million lbs during the same period. Imported shrimp now comprise more than 75% of U.S. shrimp consumption.

6. Crabs
Taking a look at Crabs – this is a picture of some post-storm trap cleaning taken by Marty B. in the Cypermort Point area.

7. Crabs Mobile industry, low barriers to entry
Very strong catches after the storms – lag effect?
Decreasing dock prices, increasing in fuel costs
Dockside revenue losses of $18.7 million
Read and explain

8. Crabs: LA Resident Licenses
Source: LDWF 2004
Fluid industry – responds quickly to market signals – potential for over-fishing

9. Oysters
Explain

10. Oysters Estimated mortality from silt deposition Southeast: 50-70%
South Central: %
Southwest: %
Precautionary closures, areas reopened as of 11/05
Sustained price increase due to Chesapeake?
Note that LOTF claiming loss of 400 million lbs of in shell oysters
Recovery plan has 45 recommendations, including calls for crop insurance access, funds for resurveying and reposting of leases, and a marketing campaign to combat misperceptions
Louisiana Oyster Recovery Plan
Dockside revenue losses of $27.5 million

11. Oysters – LA Resident Licenses
Source: LDWF 2004
Reduction in oyster leaseholder licenses from near 3000 in 1990 to just over 1000 in the past decade. Reduction in prices after 20/20 scare and attempts to ban LA product

12. Crawfish
Some of this water was pretty salty 6-7 ppt!

13. Crawfish
Some saltwater damage in southernmost range of production: Lower Vermilion, Iberia, St. Martin.
Semi-drought conditions pre-Katrina and post-Rita
30% increase in fuel costs Sept- Nov.
Poor recruitment in fall sampling – short, late season
Read /explain
Loss of in-state markets could be big issue
Production revenue losses of $38 million

14. Imports Millions (lbs Meat) Domestic Production Millions (lbs Live)
Crawfish - LA Production & Imports
Source: NMFS 2003
Imports Millions (lbs Meat)
Domestic Production Millions (lbs Live)
Note difference in live weight and processed weight – note loss of processing sector

15. Finfish
From commercial – to recreational

16. Finfish Commercial losses: Menhaden: $25.2 million over coming year
Other finfish: $14.7 million over coming year
Capacity reduction for federally-permitted species
Limited entry?
Individual Transferable Quota (ITQ)?
Vessel buy-out programs?
Read/explain
Charter boat industry heavily impacted
$27 million in lost revenue over coming year

17. Finfish: Licensed Charter Guides
Source: LDWF 2004
Number of Guides
90% are resident guides
65-70% are coastal – thus heavily impacted
LCBA pursuing a $50K campaign “Fishing is back in LA” over coming months

18. Fisheries Infrastructure

19. Fisheries Infrastructure
Vessels missing, damaged, in need of salvage
Commercial: 1,800 – 3,500
Recreational: 30,000 – 40,000
Tremendous damage to fisheries infrastructure: docks, ice houses, processing, storage, markets
Prices constrained by lack of cold-storage capacity
Unknown damage to 110 seafood processors
Note that many of these commercial vessels were not insured
Bumble Bee shrimp cannery closed last week – capacity of 100,000 lbs day
N.O. Cold Storage had 1 million CUFT of capacity – no longer available, existing cold storage units are maxed out
Lack of processing and storage capacity will further depress prices and industry recovery
LRA estimates that of 3,500 restaurants in N.O. area, only 26% had reopened as of November 30th
Temporary/permanent loss of domestic retail outlets
Seafood markets and dealers
Of 3,500 New Orleans restaurants, 74% remain unopened as of 11/30 (La Restaurant Assoc.)

20. Prospects for Fisheries Recovery
Despite habitat damages, stocks will recover in short-term
Fishermen less resilient, will require assistance
Federal Fisheries Disaster Declaration
Emergency loans, state and federal grants, trade relief
Capacity reduction : market-based and program-based
1-year economic impact for commercial and recreational
Dockside revenue loss: $203.7 million
Dockside plus retail losses $406 - $508 million
Dockside losses are for both Hurricanes and are derived from preliminary estimates by economists with the LSU Agricultural Center
Dockside plus retail based on an economic multiplier of
Infrastructure losses still unknown, likely to be major $
Strong recovery expected for recreational charter sector
Continued decline expected in commercial shrimp sector

21. Hurricane Recovery Resources