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Seafood Prices Soar Amid Supply Chain Issues and Worker Shortage

August 5, 2021 โ€” A post-Covid-19 economic inflationary surge has seafood places rewriting their menusโ€”sans lobsters, scallops, crab and many fish dishes.

Prices have risen by as much as 50 percent in the last quarter due to a lack of fishers and truck drivers combined with climbing consumer demand, reports Christine Blank of SeafoodSource.com.

โ€œThe price we had to charge to be profitable was almost insulting,โ€ Josue Pena, chef at The Iberian Pig in Atlanta, tells SeafoodSource.com. He was forced to remove the restaurantโ€™s signature crab coquettes after crab prices nearly doubled.

Overall, the wholesale price of finfish and shellfish rose 18.8 percent from June 2020, according to the Bureau of Labor Statistics, reports Will Feuer of the New York Post. Halibut soared from $16 a pound to $28, while blue crab skyrocketed from $18 to $44โ€”an increase of more than 140 percent.

Per Bloombergโ€™s Adam Jackson and Kate Krader, the jump in seafood prices is part of broader inflationary increase working its way through the economy as the United States continues to emerge from the pandemic. However, the seafood surge is also related to an employment shortage, port congestion, lack of product, rising prices and transportation issues.

โ€œDistributors used to hustle and bustle to get your business,โ€ Jay Herrington of Fish On Fire in Orlando tells Bloomberg. โ€œYou donโ€™t get a delivery, or itโ€™s a late delivery. Sometimes we have to go and pick it up.โ€

Read the full story at Smithsonian Magazine

No crabs, no scallops: Seafood is vanishing from menus in U.S.

July 27, 2021 โ€” At the Clam, there are no scallops.

Prices went โ€œcrazy,โ€ says Mike Price, who co-owns the Greenwich Village restaurant, and so he yanked them off the menu. Over in Napa Valley, Phil Tessier, the executive chef at a popular spot called PRESS, did the same. And in Atlanta, at the tapas joint the Iberian Pig, chef Josue Pena didnโ€™t stop at scallops. The Alaskan halibut and blue crab are gone, too.

That last one was a killer, Pena says. Crab croquettes had become a signature dish. โ€œPeople were like, โ€˜Whatโ€™s up?โ€™โ€ But, he says, with wholesale costs soaring like they are, โ€œthe price we had to charge to be profitable was almost insulting.โ€

For restaurants across the U.S., the reopening from COVID lockdown has been anything but easy. Theyโ€™ve struggled to hire back enough waiters and chefs, often being forced to dangle double-digit pay hikes, and have been rocked by cost increases and shortages on all kinds of items โ€” from condiment packets to takeout packaging and chicken wings. So this jump in seafood prices, part of the broader inflationary surge working its way through the U.S. economy, is only further squeezing restaurateurs just when they were supposed to be raking in cash as they recover from all those months lost to the pandemic.

Seafood prices rose about 11% in the 12 months through early July from the previous period, according to NielsenIQ. Stretch out the time horizon a little, Pena says, and the increases on certain hard-to-find products are much starker yet. A pound of halibut, he says, goes for $28 from the local seafood distributor he buys from in Atlanta. Before the pandemic, it was $16 at most. And blue crab has gone from $18 a pound to $44. But at least he can find crab. In Orlando, Brennan Heretick, co-owner of High Tide Harryโ€™s, had to stop selling crab fingers because wholesalers in the region stopped offering them.

Just like in dozens of other overwhelmed industries in the booming economy, there are any number of factors causing the shortages and price spikes: The ports are congested; there arenโ€™t enough fishermen; there arenโ€™t enough truck drivers; and demand for seafood at restaurants is soaring.

โ€œDistributors used to hustle and bustle to get your business,โ€ says Jay Herrington, who owns Fish On Fire, a restaurant thatโ€™s a 10-minute drive from Heretickโ€™s place. Now, โ€œyou donโ€™t get a delivery, or itโ€™s a late delivery. Sometimes we have to go and pick it up.โ€ Thatโ€™s something heโ€™d never seen before. Herrington recently raised entree prices, which range from $10 to $20, by as much as $3 to offset the higher costs. โ€œThereโ€™s just no stopping it,โ€ he says.

Read the full story at The Seattle Times

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