Consumer resistance to high prices ensued. This factor, 

 plus an easing of the tight supply sitxiation as the result of the 

 seasonal pickup in production, led to a price break in May. Prices 

 thereafter failed to recover to their normal extent when supply took 

 its customary dip d\iring the following winter months. They started 

 to drop again, even before supply had fallen to its seasonal low (the 

 point when prices usually reach a peak) in March of 195U. At the same 

 time cold storage holdings did not decline to the extent they had in 

 other years indicating a failure of demand to attain its previous 

 level. As a result, when supplies began to build up later in 195U, 

 frozen holdings reached an unprecedented high. The inventory accumu- 

 lation was encouraged by a tendency on the part of the dealers to 

 withhold supplies in the hope of a favorable turn in the market. 

 Prices continued to drop for the remainder of the year. Early in 

 1955 price recovery set in when cold storage holdings were drastically 

 reduced. 



The effect on the fisherman may be shown by tracing the 

 developments in the fishery starting with the extension of operations 

 to the Dry Tortugas and the Gulf of Cair^jeche. 



The opening of new fishing gixjunds in 1950, and the subse- 

 quent market expansion, stimulated the boat building program in the 

 following years. Table IX - UO shows the registrations of new fishing 

 vessels of five net tons and over in the South Atlantic and Gulf States 

 during 1951-1955. 



TABLE IX - UO.— fEW VESSEL REGISTRATIONS IN THE 

 SOUTH ATUNTIG AND GULF STATES, 1951-1958 



Year Number of vessels Year Number of vessels 



The number of registrations being 50 percent higher in 1953 

 than in the preceding year shows that boat building was further en- 

 couraged by the rise in shrimp prices prior to June 1953. 



The peak in registrations, however, was not reached until 

 195U, or well after the shrimp market had started to decline. Vessels 

 had alreacfy been ordered in the shipyards before the drop in the 

 market destroyed the optimism engendered by the upward spiral in prices. 



While vessels joined the fleet at the rate of more than one 

 a day, producers' prices took a sharp dip. The break in ex-vessel 



1U5 



