As we all know now, concerns about COVID-19 and efforts to slow the spread of the disease have been implemented across much of the United States. While we wait and hope that the restrictions are effective in protecting public health, we know that these steps have had an economic cost already, and we can anticipate that these costs will increase over time.
With the closures of restaurants, many are aware that restaurant workers and owners are in crisis. Maybe less intuitively, the closures of restaurants have had a dramatic impact on American seafood harvesters and suppliers. One study has estimated that almost two-thirds of seafood purchases in the United States are made in restaurants.
With no sit-down service in restaurants, orders have dried up. In conversations with local seafood distributors, sales came to a complete stop. Some restaurants have had trouble paying their invoices for prior orders, and some have asked for credit. These distributors have had to lay off workers and are scrambling to make ends meet.
Many distributors, in turn, have told seafood harvesters to stop harvesting. While some harvesters have tried to adapt and turn to direct sales to consumers, this is probably only a stop-gap measure. Talking with some local oyster farmers, some have had to lay off workers and they are uncertain about the future of their farms.
What can you do?
If you’re a consumer, see where you might be able to purchase American seafood to support your local seafood harvesters. The National Fisheries Institute has noted that seafood is a healthy choice and also provides answers to some frequently asked questions about seafood safety in relation to the coronavirus. Oysters, in fact, are a naturally high source of zinc (which has been shown to help with immune response to viruses). And, of course, once restaurants open back up, go out and enjoy some local seafood at your favorite restaurants!
Options for seafood industry
If you are in the seafood industry, there are a couple options currently. The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses, including aquaculture, suffering substantial economic injury as a result of the coronavirus. For more information, call 1-800-659-2955 or email disastercustomerservice@sba.gov. Note, however, that this program requires collateral and has severe penalties for defaulting.
The USDA's Farm Service Agency has an emergency farm loan program that may be available now or may become available in your area. FSA's emergency loan program is intended to help eligible farmers and ranchers rebuild and recover from sustained losses. For anyone that has lost his or her job due to COVID-19, you can find information about help in Alabama and Mississippi.
Of course, there may be other options as we go forward.