The COVID-19 pandemic was declared a national emergency in the United States on March 13, 2020. With the severe disruptions in seafood sales to eating and dining places, producers have to develop ways to directly sell their products to consumers.
INTRAFISH reported that globally, restaurants would lose 25 to 30 percent of total restaurant sales compared to 2019. U.S. consumers spent an estimated $102.2 billion on fishery products in 2017, including $69.6 billion at restaurants and other foodservice venues and $32.5 billion at retail. U.S. restaurants had sales of $450 billion during the 12 months ending in January. Just over 48 percent of this is from off-premise dining, such as takeout or delivery.
During this global pandemic, consumers eat more meals at home, indicating that they are making more regular trips to the grocery stores. Consequently, the rush in consumer purchases in retail establishments will push demand higher and jack up retail prices. The U.S. rate of food inflation in 2020 far exceeded as much as three times more than the average food inflation rate during the benchmark period (Fig. 1).
Direct losses or gains in retail prices of selected fresh and frozen seafood products
The economic analysis results showed that U.S. retail prices of selected seafood products rose and fell over the years, from warm to cold months and due to recessions, the US-China trade war and the global COVID-19 pandemic.
The retail prices of fresh/frozen raw shrimp products (21-25) fell by -33 percent in 2020. The US-China trade war exerted significant downward effects on retail prices of fresh/frozen raw shrimp.
The retail prices of fresh/frozen raw shrimp (16-20) rose by 3 percent in 2020. The global pandemic, recession, trade war and dollar index did not significantly affect retail prices.
The mean increase in the retail prices of fresh/frozen lobster tails (4 oz.) averaged 32 percent in 2020. COVID-19, recessions, the US-China trade war and the dollar index did not significantly affect retail prices of fresh/frozen lobster tails.
The mean increase in the retail prices of fresh/frozen snow crab clusters averaged 13 percent in 2020. Recessions exerted significant downward effects on retail prices of fresh/frozen snow crab clusters.
Retail prices of fresh/frozen salmon fillets dropped in 2020. The direct loss in retail prices of fresh/frozen salmon fillets averaged about 7 percent in 2020. Recessions and the US-China trade war exerted significant downward effects on fresh/frozen salmon fillets on retail prices.
Retail prices of fresh/frozen cod fillets rose in 2020. The direct gain in retail prices of fresh/frozen cod fillets exceeded more than 10 percent in 2020. The US-China trade war exerted significant upward effects on retail prices of fresh/frozen cod fillets.
Retail prices of fresh/frozen catfish fillets fell in 2020. The direct loss in retail prices of fresh/frozen catfish fillets could be higher than 11 percent in 2020. COVID-19, recessions and the US-China trade war exerted insignificant downward effects on retail prices of fresh/frozen catfish fillets.
Retail prices of fresh/frozen tilapia fillets declined in 2020. The direct loss in retail prices of fresh/frozen tilapia fillets could be higher than 9 percent in 2020. COVID-19 and the US-China trade war exerted significant downward effects on retail prices of fresh/frozen tilapia fillets.
Meet the author
Benedict C. Posadas, Ph.D.
Extension Research Professor of Economics
Since 1990, Ben Posadas has consistently developed and maintained the Mississippi State University Coastal Research and Extension Center’s (CREC) extension and research program in economics with... Read more
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