Oregon crab exports to China: 'That hurts'
CHARLESTON, Ore. -- Oregon crab exports to China are expected to double this year according to the National Oceanic and Atmospheric Administration, but that doesn't mean good news for local markets.
Officials say that almost 1.5 million pounds went overseas in 2010, and that number increased to 2.2 million pounds in 2011.
Local fisheries are already having a hard time with the season opening late and less crab coming in than usual, on top of outside buyers taking away their business.
Hallmark Fisheries in Charleston says it lost over 40 percent of business to foreign markets last year. Local fisheries are already having a hard time with the season opening late and less crab coming in than usual...on top of outside buyers taking away their business.
Those outside buyers can offer crabbers more money than local fisheries can, and Scott Adams from Hallmark says he just can't compete.
"It's really obvious for me," Adams said. "I have boats that fish year round and I haven't seen them for a week. Where are they? One of our most faithful boats, first trip, sold to an outside buyer, and that hurts because we have to have the product to keep us going."
Adams says he sees the crab industry having the same fate as the logging industry in Oregon.
The commercial Oregon Dungeness Crab season got off to a late start this year because of a low meat content percentage; but, the season runs through the middle of August 2013.
Let's make one thing perfectly clear so that we don't have some people think this is an opportunity for China bashing. Mr. Adams makes the observation that local processing businesses are suffering because the lower catch level is being bought out from under the local market. He even goes as far as to draw an analogy to the timber industry, which is flawed on many levels. Timber cutting dropped on account of environmental restrictions, not lower levels of available timber. There's no spotted owl swimming under Oregon's Pacific Ocean waves.  It's sad that the catch level has declined and that crab typically was less meaty earlier this year.  But what I find interesting is that I've noticed crab pricing at the retail level as being consistent over the last three years in Medford and Grants Pass, near where I live. We get a low of $4.99/pound and an average price of $6.99/pound. What that suggests is that local consumers are eating less crab, probably on account of having less disposable income for a somewhat luxury food. The supply of crab is down this year and even with China buying-up more of that available supply, the pricing has still remained roughly the same at the local retail level. That strongly implies a drop in the level of local demand.Â
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It's unfortunate that Mr. Adams' business is taking a hit, but it's quite possible given these price trends that the local market wouldn't be willing to buy much more crab at these prices anyway given a lack of sufficient disposable income. At least the fisherman are finding a willing buyer at the higher prices and that money is flowing into the Oregon economy as a result.
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Our level of exports has pretty much nothing to do with these challenges because whatever is being harvested is being consumed by one group or the other regardless. The health of the crab population is an independent issue. Our nation's economic problems and less ability for as many local people to buy crab is an independent issue. Let's keep our thinking clear on all this stuff. The first step to solving a "problem" necessitates accurately describing the situation.
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Eric Dubin
that's sad..
crabby face. :)