CHAPTER IX 



CONCLUSIONS AND RECOMMENDATIONS 



A study of the 1953-195li shrimp aaarket situation reveals the 

 dangers the industry is exposed to during periods of unusual supply 

 shortages or gluts. Exceptional profit -making opportimities may lead to 

 overcrowding in the fishery; the reduced catch per operating unit may 

 necessitate intensified fishing efforts; the resulting overfishing in 

 turn aay imperil supply. Supply deficits may cause price inflation, 

 which, especially if coincident with a general recession in the econony, 

 may adversely affect demand, bring about stagnation in the wholesale 

 market and threaten the fisherman with niin. The disaster resulting 

 from this vicious circle is magnified if, just as sales decline, supply 

 suddenly becomes more plentiful and the augmented stocks have to be 

 disposed of at less than break-even prices. Particularly vulnerable 

 at such times are those fishermen who are burdened with high fixed costs, 

 such as those who had to invest in bigger and sturdier boats to exploit 

 the new off-shore fishery. 



The shrimp industryts welfare can be safeguarded best (1) by 

 increasing the efficiency of operations at all levels, and thus effecting 

 cost savings in shrimp production, processing, and distribution, and 

 (2) by stabilizing markets. 



Production problems in the fishery and their possible solutions 

 have been discussed in (Chapters II, IH, and IV. The processors problems 

 and their possible solutions are covered in Chapter V. Chapters VI and 

 VH dealt with the problems of the distributor and the mechanics of 

 marketing. These two chapters together with the stu(^ of consumption 

 and price analysis in Chapter VIII and the case stu(^ in this chapter, 

 outline possible solutions for the problems engendered by market 

 instability o 



WHAT ACCOUNTS FOR THE UPS AND DOWNS IN THE 

 SHRIMP M/LRKET— A BRIEF CASE STUDT 



Figure II - 33 shows the month by month changes in supply, 

 cold storage holdings, and wholesale prices of shrimp from January 1951 

 to December 19^8. An inspection of the chart indicates that early in 

 1953 seasonally short supplies followed by a substantial drop in cold 

 storage holdings produced a sharp rise in wholesale prices. 



1U3 



