If you’re a fan of shrimp cocktails or any dish that calls for canned shrimp, you may have noticed a shortage of this seafood staple in recent months.
The reasons behind this shortage are varied, from bad weather in Southeast Asia to labor shortages and supply chain issues.
In this article, we’ll explore the different factors contributing to the scarcity of canned shrimp and what it means for consumers.
So sit back, grab a snack (hopefully not one that requires canned shrimp), and read on to learn more about why your favorite seafood may be harder to come by these days.
Why Is There A Shortage Of Canned Shrimp?
The main reason for the shortage of canned shrimp is bad weather in Southeast Asia, where most of the world’s shrimp are harvested. Heavy rains and floods have destroyed many shrimp farms, leading to less seafood being available on the global market. This has resulted in prices for canned shrimp nearly doubling in the past year.
Small-scale shrimp farmers, who contract to sell their product to larger seafood trading companies, are hesitating to stock their ponds, which could result in a shortage of shrimp by the end of the year. Additionally, many farmers who have committed to seeding their ponds are facing difficulty buying shrimp feed due to a severe shortage caused by the closure of two of the country’s largest feed factories.
Labor shortages and supply chain issues are also contributing factors to the shortage of canned shrimp. There simply aren’t enough people to “make the goods, move the goods and sell the goods,” according to industry experts. The recent invasion of Ukraine by Russia has disrupted supply chains from Europe, further exacerbating the problem. Labor shortages continue due to people still being out due to COVID-19 or resigning due to low wages and poor work conditions.
Demand for canned shrimp has been very high due to more people cooking and eating at home, a trend that started at the onset of the pandemic. However, industry experts believe that there is no reason for people to stockpile as the food supply chain will likely rebound in a similar fashion as lumber did after its shortage.
Weather Disruptions In Southeast Asia
The weather disruptions in Southeast Asia have been a major contributor to the shortage of canned shrimp. The region has been experiencing unusually heavy rains and storms over the past few months, making it difficult for fishermen to get out on the water and do their job. As a result, there have been lower than normal catches of shrimp.
The bad weather has also affected shrimp farms, as many have been destroyed by floods and heavy rains. This has led to less seafood being available on the global market, and has resulted in prices for canned shrimp nearly doubling in the past year.
Furthermore, the current closure of most of the country’s hatcheries has compounded the problem. Only a few hatcheries in the region are still operational during lockdowns, but many had to dump their fries even before lockdowns came into effect because they were unable to find buyers. Small-scale shrimp farmers are hesitant to stock their ponds, which could result in a shortage of shrimp by the end of the year.
Labor Shortages In The Shrimp Industry
The shrimp industry is facing a significant labor shortage, which is adding to the global shortage of canned shrimp. Jobs at seafood processing facilities are often seasonal, meaning workers can go months without a paycheck. They also require long hours and often entail repetitive and physically draining work in cold or wet conditions. The problem has been compounded by immigration regulations, which have made it difficult for the industry to find enough workers.
In Texas, the shrimp industry has been relying more and more on experienced Mexican shrimp fishermen, but with Congress not renewing the H-2B Returning Worker Program, the industry is worried about possible labor shortages. The government has already reached the H-2B visa cap for the second half of 2017, leaving the shrimp sector concerned as the 2017 season starts mid-July.
In Southeast Asia, where most of the world’s shrimp are harvested, labor shortages and supply chain issues are also contributing factors to the shortage of canned shrimp. Small-scale shrimp farmers who contract to sell their product to larger seafood trading companies are hesitating to stock their ponds due to a lack of workers. Additionally, many farmers who have committed to seeding their ponds are facing difficulty buying shrimp feed due to a severe shortage caused by the closure of two of the country’s largest feed factories.
To address this problem, some in the industry are turning to technology and automation to help with labor shortages. The founder of ID WATER, Yu Wan-Chou, believes that unmanned farming with the help of technology is the future of the industry. By deconstructing traditional ways of shrimp rearing and introducing indoor rearing approaches, it is possible to manage environmental factors effectively without the uncertainties of weather. With automated equipment such as self-developed automatic feeding equipment, automatic blowdown system, and image recognition, cutting down the manpower at the production line would gradually realize an unmanned future for the aquaculture industry.
Supply Chain Issues And Transportation Challenges
In addition to the weather-related issues affecting the shrimp industry, supply chain issues and transportation challenges have also contributed to the shortage of canned shrimp. The pandemic has caused disruptions in the global supply chain, with many countries implementing lockdowns and travel restrictions that have made it difficult to transport goods across borders. This has led to delays in shipments of seafood, including canned shrimp.
Moreover, the shortage of aluminum, a major component in the manufacture of cans, has also affected the availability of canned shrimp. The tight supply of aluminum is due to China’s efforts to reduce its carbon emissions, which slowed down the production of aluminum and other energy-intensive metals. Rising gas costs in Europe have also contributed to the shortage of aluminum. As a result, certain companies, such as seafood canneries, have struggled to obtain enough cans for their products.
Transportation challenges have also affected the availability of canned shrimp. The closure of many ports and shipping routes due to the pandemic has made it difficult for seafood trading companies to transport their products to other countries. This has resulted in a decrease in the amount of canned shrimp available on the market.
Impact On Consumers And Retailers
The shortage of canned shrimp is not only affecting the supply chain, but it is also having a significant impact on consumers and retailers alike. Consumers are facing higher prices for canned shrimp due to the limited supply, and some retailers are struggling to keep up with demand.
For consumers, the shortage of canned shrimp means that they may have to pay more for their favorite seafood product. With prices nearly doubling in the past year, some consumers may have to choose between buying canned shrimp or other grocery items. Additionally, some consumers may have to switch to other seafood products or brands due to the limited availability of canned shrimp.
Retailers are also feeling the impact of the shortage of canned shrimp. Some retailers are struggling to keep up with demand, leading to empty shelves and frustrated customers. Others may have to increase prices to offset the higher costs of obtaining canned shrimp from limited suppliers. This can lead to a decrease in sales and revenue for retailers, which can have a negative impact on their bottom line.
Alternatives To Canned Shrimp: What To Use Instead
If you are unable to find canned shrimp due to the current shortage or prefer not to use it in your recipes, there are several alternatives that you can use instead. One option is to use fresh or frozen shrimp, which can be found in most seafood sections of grocery stores. It is important to note that you should use cooked shrimp and not raw shrimp in your recipes.
Another option is to use lobster meat as a substitute for shrimp, particularly in recipes that call for larger chunks of seafood. While lobster can be more expensive than shrimp, it has a similar taste and texture that can work well in many dishes.
Fish sauce is another alternative that can be used in place of dried shrimp in various recipes. It has a unique savory and slightly salty flavor that can add depth to dishes. It is best to start with a small amount and adjust the flavor to your liking.
For vegan or vegetarian substitutes, shiitake mushrooms, fermented bean paste (fu ru), miso, doenjang, taucheo, and vegetarian oyster sauce are all options that can be used. Each one has its own unique flavor profile and can be mixed with other ingredients such as soy sauce, kelp stock, or crushed peanuts for added texture and flavor.
Future Outlook For The Canned Shrimp Industry
Despite the current shortage of canned shrimp, the future outlook for the industry remains positive. The global canned seafood market is expected to grow at a compound annual growth rate (CAGR) of 7.61% during the forecast period from 2022 to 2028. Rapid urbanization and increasing demand for healthy and nutritious food are anticipated to drive the demand for canned seafood products over the next few years.
Canned seafood has a longer shelf life compared to freshly available products, making it long-lasting and requiring no refrigeration. This food form is gaining popularity among consumers, especially working individuals, as it can be transported and stored using much less energy compared to frozen products. Furthermore, many varieties of canned fish are considered non-perishable and can be safely stored for up to five years, reducing food waste.
The global shrimp market is projected to grow from $33.81 billion in 2021 to $53.63 billion in 2028 at a CAGR of 6.81% during the forecast period. This growth is expected to be driven by factors such as high nutritional content, high protein content, and ease of availability of shrimps. Shrimps are widely used in the preparation of various cuisines such as Asian cuisines, resulting in their high use and thus propelling the market growth.
While there may be temporary disruptions in supply chains due to weather or geopolitical events, industry experts believe that the food supply chain will likely rebound in a similar fashion as lumber did after its shortage. As such, consumers should not panic or stockpile canned shrimp, as the industry is expected to recover in the coming years.
