The U.S. seafood industry has been hit especially hard by the coronavirus situation, and industry leaders are asking for increased federal help.
The main problem is the severe slowdown in restaurant meal consumption, because 68% of all U.S. seafood consumption is in restaurants (compared with about 52% of food as a whole). In addition, seafood has a complicated and often international supply chain, which becomes a problem as overseas ports slow down or close entirely due to labor shortages. When seafood can’t be sold right away, it must compete with other products for scarce frozen-storage space.
As a result, demand is dropping and so are prices, especially for high-end species. The Portland (Maine) Fish Exchange usually moves up to 60,000 pounds a week but is down to one-third of that. Lobster prices for March dropped by 33% compared with last year.
The industry is asking federal government leaders for various forms of help, including $1.5 billion in direct relief to fishing communities, processors and other businesses, and $500 million to buy surplus seafood. The federal aid package approved in late March included $300 million of relief for the seafood industry.
