International competitors 

 also have the economic advantage 

 of low production and labor 

 costs, according to South Atlantic 

 Fishery Management Council 

 fisheries anthropologist Kathi 

 Kitner. 



Many shrimpers in the South 

 Atlantic and Gulf of Mexico find 

 it is not cost effective to fuel up 

 their boats, repair their nets and 

 go out on the water, Kitner adds. 

 Other costs, including insurance and boat 

 maintenance also are on the rise. 



Markets and restaurants have been able 

 to make profits as wholesale slirimp prices 

 have dropped, but prices to the consumer 

 stay steady, according to Cheuvront. Thus, 

 domestic shrimpers have felt the brunt of the 

 price drop impact. 



But others are affected by rising costs 

 as well. 



Fish markets, packers and restaurants 

 face high property taxes on their prime 

 waterfront property, Kitner explains. As 

 more people move to the coastal regions, the 

 cost of real estate rises. In turn, the property 

 taxes increase. Many fisheries-related 

 business owners on the waterfronts seriously 

 consider offers that they are receiving for their property. 



Here in North Carolina, Cross has received inquiries about his 

 property from developers of marinas and condominiums. Potential buyers 

 are not looking for the business, but rather for the land. "There is no 

 doubt that the land we sit on is worth more for other applications, but as 

 of now I haven't accepted any offers," Cross says. 



Keeping Afloat 



The future of North Carolina shrimping is not all grim. People like 

 Cross and those at DMF and Sea Grant are exploring solutions to the 

 difficulties facing the industry. Several plans are already in the works. 



In response to falling prices, Congress allocated $35 million in 

 disaster relief for U.S. shrimpers in February 2004. The TAA program, 

 which was approved by the U.S. Department of Agriculture (USDA) 

 Foreign Agricultural Service, provided monetary relief for North Carolina 

 shrimpers — 5 cents per pound harvested in 2002 for those who could 

 prove that they were economically impacted by the increased imports. 



About 900 North Carolina commercial shrimpers sold their catches 

 in 2002, but only about 90 met the initial TAA requirements, applied and 



TOP: Shrimp trawls off the North Carolina coast. 

 BOTTOM: Glenn Hopkins now devotes more time 

 to crabbing than shrimping. 



attended workshops. Even fewer 

 met final reviews to receive the 

 assistance. 



The TAA program also 

 provided free training for the 

 participants. Organized in 

 North Carolina by Sea Grant, 

 the training program gave an 

 overview of the world market, 

 along with general business 

 education to assist shrimpers 

 in dealing with recent changes 

 — how to address problems, cut costs or 

 possibly exit the business if they choose. 



The North Carolina shrimp fishery also 

 has been certified for the TAA program for 

 shrimp landings in 2003. Now individual 

 shrimpers must reapply for the new round of 

 assistance by mid-February. 



On another front, in January 2004 

 the Southern Shrimp Alliance (SSA) filed 

 a petition to federal regulators accusing 

 six large exporting countries of illegal 

 "dumping" on the shrimp market. That 

 includes imports that are sold substantially 

 below market price or are given price 

 advantages through foreign government 

 subsidies. 



The SSA petition is especially 

 important because it has turned into the largest trade action in American 

 history, says Kenny Lewis, North Carolina representative to the SSA 

 Board of Directors. 



The International Trade Commission (ITC) can impose tariffs on 

 countries that they find to be in violation of anti-dumping provisions 

 of U.S. trade law. Responding to the SSA petition, the ITC ruled that 

 the U.S. shrimp industry has been harmed by imports. The final ruling, 

 expected in mid- January, could result in shrimp import tariffs. 



If tariffs are imposed, Lewis anticipates importers likely will absorb 

 most of the cost. 



The tariffs would cause shrimp prices to stabilize during the next 

 few years, to just above current levels, Cross says. "It will not offer 

 permanent relief. Some see it as the savior of the industry, but it isn't. 

 Other things have to be done if this industry is going to survive." 



Finding a Niche 



So what does Cross suggest be done? "We have to reinvent the 

 wheel on marketing," he says, adding that shrimpers must be willing to 

 help market their product on a consistent supply and price basis. 



20 WINTER 2005 



