Order Code RS22241
Updated September 19, 2005
CRS Report for Congress
Received through the CRS Web
Hurricane Katrina: Fishing and Aquaculture
Industries — Damage and Recovery
Eugene H. Buck
Specialist in Natural Resources Policy
Resources, Science, and Industry Division
Summary
Hurricane Katrina struck a center of commercial and recreational fishing along the
Gulf of Mexico coast, where 10% of the shrimp and 40% of the oysters consumed in the
United States are produced. Initial losses to seafood production are estimated at $1.1
billion for Louisiana and could exceed $200 million for Alabama, exclusive of
infrastructure. Although Alabama waters have been closed to commercial fishing until
pollution-related contamination concerns are resolved, undamaged fishing vessels are
being readied to resume fishing. In addition, inland areas account for much of the U.S.
farmed catfish production. This report summarizes damage assessments and recovery
efforts, with more detailed assessments provided as they become available. This report
will be updated as warranted to incorporate new information.
Hurricane Katrina struck the Gulf Coast of the United States on August 29, 2005,
causing widespread flooding and significant property and infrastructure damage to the
fishing and aquaculture industries in the Louisiana, Mississippi, and Alabama region. A
total of 15 major fishing ports, 177 seafood processing facilities, 1,816 federally permitted
fishing vessels, and an unknown number of state permitted fishing vessels were located
in this region.1 Katrina earlier brushed across the Florida Keys, causing damage there.
The number of fishing vessels beached, sunk, damaged, or otherwise lost has not yet
been determined; other vessels are trapped in back bays by debris that blocks shipping
channels. For fishermen who did not lose their vessels, recovery may be mitigated
somewhat as many fishermen are traditionally opportunistic, adaptable, and highly
mobile, moving vessels to avoid catastrophe, shifting deliveries among ports as stocks
move or prices offered by processors change as well as changing gear and refitting vessels
to exploit different stocks at different times of the year. Unlike oysters, which likely
suffered significant mortality, fish and crustacean populations may have suffered minimal
increased mortality due to the hurricane. However, marketablility of catch could be
1 For a background discussion on the difficulties in counting fishermen and vessels, see CRS
Report RS21312, How Many Commercial Fishermen?
Congressional Research Service { The Library of Congress

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affected by contamination from storm runoff or consumer concerns about such.
Persistence of high fuel costs could have a significant effect on the economic viability of
the more fuel-consumptive sectors of domestic seafood production (e.g., shrimp trawling)
relative to imported seafood. Damage to processing facilities and disruption of former
market dealer relationships will add to recovery time and alter broader seafood markets
and product availability.
Shrimp. Commercial shrimpers fishing out of or delivering to Alabama,
Mississippi, and Louisiana ports account for almost half of all U.S. shrimp production.
Katrina has destroyed or severely damaged shrimp boats and shrimp processing and
storage facilities throughout this area during this, the peak harvesting season; other
vessels are beached or trapped by debris blocking shipping channels. How much of the
processing capacity and how many vessels might be salvageable is still being determined.
For shrimp, the Louisiana Department of Wildlife and Fisheries estimates the 12-month
potential loss at dockside at more than $81 million, with 12-month potential production
losses at the retail level at almost $540 million.2 An undetermined number of shrimpers
may have drowned trying to ride out the storm aboard their vessels, but information is not
yet available to document these fatalities. Several million pounds unrefrigerated shrimp
at damaged processing plants must be disposed; the Coast Guard reportedly has approved
ocean disposal of this waste.
Even prior to Katrina, this segment of the U.S. fishing industry had been declining
due to competition from less-expensive foreign imports and among domestic harvesters,
since domestic capacity is much greater than necessary to efficiently harvest the resource.
In addition, shrimp trawling is very fuel consumptive and rising fuel costs make shrimp
trawling increaingly uneconomical; some shrimpers who survived Katrina may find it
difficult to resume fishing because of high fuel costs. Additional impediments to
shrimping are the underwater obstacles that foul and damage shrimp trawls; hurricane
debris will provide many new obstacles (i.e., “hangs”), and Katrina’s storm surges may
have moved former obstacles to new, uncharted positions.3 Some shrimp fishermen from
the affected area may relocate to Texas or Florida, if their trawlers are capable of repair
and fishing. Others in the affected areas have refloated beached vessels and are readying
undamaged vessels to resume fishing.
Oysters. With the decline of oyster harvest from the Mid-Atlantic region, the Gulf
Coast has been supplying most of the recent domestic oyster harvest. Oyster beds and
oyster vessels along the Gulf Coast were extensively damaged, if not totally destroyed by
siltation and contamination related to Katrina. Molluscan shellfish (oysters, clams, and
mussels) beds in Louisiana and Mississippi are closed to harvesters. For oysters, the
Louisiana Department of Wildlife and Fisheries estimates the direct loss of available
resource at more than $205 million and the 24-month potential loss at dockside at almost
$45 million, with 24-month potential production losses at the retail level at almost $300
2 Louisiana Dept. of Wildlife and Fisheries, Preliminary Analyses of Economic Losses Caused
by Hurricane Katrina to Louisiana’s Fisheries Resources, Sept. 7, 2005, 6 p. (Hereafter
“Louisiana Analyses”)
3 Louisiana’s Underwater Obstruction Removal Program estimates between $600 to $15,000 to
remove a single obstruction.

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million, assuming oyster mortality at 99% based on the size and strength of Katrina.4
While the Louisiana Department of Wildlife and Fisheries estimated oyster reef
rehabilitation costs would exceed $860 million,5 a Gulf Oyster Task Force more recently
estimated the cost for restoration of oyster beds and infrastructure at more than $400
million6 and the Gulf Oyster Industry Council said it would cost more than $335 million.7
In addition, the Florida oyster industry, struggling to recover from damage by earlier
Hurricane Dennis, has been closed because of toxic red tide; Florida seafood processing
facilities normally receive oysters from Louisiana and Texas. Because of extensive
hurricane-related pollution and related contamination concerns, oysters in areas affected
by Katrina may not be harvestable for an undetermined period. However, areas adjacent
to the more devastated areas are being reopened for harvest — based on test results, the
Louisiana Department of Health announced on September 16, 2005, that oysters in
Terrebonne Parish were safe to harvest.
Spiny Lobster. In the Florida Keys, an estimated one-fourth to one-half of all
commercial spiny lobster traps were tangled or destroyed by the passage of Katrina.
About 600 individuals are licensed to fish for spiny lobster in this area, and account for
about 80% of Florida’s lobster harvest.
Other Fisheries. The Louisiana Department of Wildlife and Fisheries estimates
the 12-month potential losses at dockside for crab ($12.3 million), freshwater fish
($190,000), menhaden ($44.6 million), and other saltwater fish ($11.8 million), with 12-
month potential production losses at the retail level for crab ($82 million), freshwater fish
($1.3 million), menhaden ($93 million), and other saltwater fish ($79 million).8
Processor and Dealer Infrastructure. Coastal seafood dealers and processors
suffered damage from severe flooding, with many anticipated to be total physical losses.
Flooding destroyed docks, electrical systems, and costly machinery and processing
equipment (e.g., compressors, motors, peelers, conveyors). Estimated repair times range
from as little as a few weeks to as much as a year, depending on the availability of power,
clean water, and functional sewer systems, as well as the response of insurers and the
availability of replacement equipment. In some areas, smaller dealers sell fresh product
to larger local processors, delaying the reopening of the smaller dealers until the larger
processors can resume work.9 Laitrim Machinery, a major manufacturer of shrimp
peeling, grading, and cooking equipment, reports that its main factory in Harahan, LA, a
suburb of New Orleans, sustained only minor damage, and has resumed operations.10
4 Ibid., p. 1.
5 Ibid., p. 2.
6 Headlines, Seafood.Com News, Sept. 19, 2005.
7 IntraFish Media, $335 Million to Rebuild Gulf Coast Oyster Industry, Sept. 19, 2005, 2 p.
8 Ibid., p. 1.
9 Alabama Marine Resources Division, Preliminary Assessment of Alabama’s Seafood Industry
following Hurricane Katrina, Sept. 7, 2005, 3 p.
10 Headlines, Seafood.Com News, Sept. 15, 2005.

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Aquaculture. Mississippi catfish operations appear to have suffered little
damage from the storm; some lost power, but high winds and other factors contributed to
no significant loss of fish. High winds and waves in large ponds did cause some levee
damage from erosion. A major concern for catfish and crawfish operators is the loss of
their New Orleans market, as this was a significant market for their products. Louisiana
catfish and crawfish producers apparently avoided damage to their operations as most
were outside the affected areas. Preliminary Louisiana aquaculture product and
infrastructure losses have been estimated for turtles ($7.4 million for 2005; $5 million for
2006), alligators ($11.4 million for 2005; $3.8 million for 2006); oysters ($34 million for
2005; $33.8 million for 2006), and other species ($1.9 million for 2005; $0.8 million for
2006) for a total projected aquaculture loss of $54.6 million (2005) and $43.5 million
(2006) for Louisiana.11
Recreational Fishing. Damage to small boats and charter craft has been
extensive; however, information is still sketchy on how this sector may have been
affected. The Louisiana Department of Wildlife and Fisheries estimates the 12-month
retail value of lost sales resulting from the potential disruption of recreational fishing
activities at almost $200 million.12 Artificial reefs have not yet been inspected to
determine the extent of possible damage. However, the system of buoys marking the
artificial reef off Grant Isle, LA, has not responded since Katrina hit and may be damaged
beyond repair; replacement costs are estimated to exceed $500,000.13
Fishery Management. The National Marine Fisheries Service (NMFS) has
many employees and contractors in the area damaged by Katrina. As of September 7,
2005, NMFS had made contact with all 132 employees and contractors in the affected
area. The NMFS facility at Pascagoula, MS, sustained significant damage.14 The Gulf
of Mexico Fishery Management Council meeting originally scheduled for September 12-
16 in New Orleans has been postponed until October and moved to St. Petersburg, FL.
It is unknown what effect the hurricane and related events, including pollutant
runoff, may have on fish and shellfish stocks. Inshore nursery areas could have been
disrupted. Although the hypoxic “dead zone” off the mouth of the Mississippi River
normally dissipates at this time of year, it might be displaced or altered in size, due to
increased river discharge. Management measures may need to be reviewed to assess their
adequacy in protecting fish and shellfish stocks if any stocks are determined to have been
significantly harmed by Katrina-related events. Contaminants in runoff waters could
affect the edibility and marketability of some fish and shellfish.
Seafood Consumers. While some fish and shellfish from the Gulf may
disappear from the market, extensive domestic and imported seafood alternatives remain.
There could be some increase in price as retailers adjust to different products and
11 C. Greg Lutz, aquaculture specialist, AgCenter, Louisiana State University, Baton Rouge, Sept.
3, 2005.
12 Louisiana Analyses., p. 1.
13 Ibid., p. 6.
14 Photographs of damage were available at [http://www.nmfs.noaa.gov/pascagoula.htm] on Sept.
7, 2005.

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suppliers. The price of oysters may be more affected than some other seafood products,
because of less opportunity for substitution of similar items. However, some shrimp and
oysters are still being produced in the Gulf; areas such as western Louisiana are landing
and shipping seafood. In addition, fishermen are moving quickly to resume fishing with
those vessels that were relatively undamaged. The U.S. Food and Drug Administration
(FDA) is working with state and local officials to visit seafood processors, packagers, and
transporters in the affected area to determine if stored product caught prior to the
hurricane is safe. Although Alabama processors report a supply of stored shrimp that will
be marketed, the FDA is not aware of any seafood caught prior to the hurricane from the
affected areas that has entered the commercial marketplace since the hurricane.15
Disaster Assistance. On September 9, 2005, Secretary of Commerce Carlos
M. Gutierrez declared a fishery failure in the Gulf of Mexico, a necessary precursor for
federal fishery disaster assistance.16 The affected area includes the Florida Keys and along
the Gulf Coast from Pensacola, FL, to the Texas border. Fishery disaster assistance is
provided primarily through two authorities — §312(a) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. §1861a(a)) and §308 of the
Interjurisdictional Fisheries Act (16 U.S.C. §4107). These NMFS programs are further
detailed at [http://sero.nmfs.noaa.gov/grants/fda.htm] and [http://www.nmfs.noaa.gov/
mb/financial_services/disaster.htm]. Aquaculture loss may be covered under the U.S.
Department of Agriculture’s Noninsured Crop Disaster Assistance Program, with details
at [http://disaster.fsa.usda.gov/nap.htm]. On the private front, various fishermen’s groups
and associations from other regions and nations have announced special funds and
programs to assist Gulf of Mexico fishermen.
Capacity Reduction. Distress in the commercial shrimp industry presents a
potential opportunity for a capacity reduction program to remove vessels and licenses
permanently from the fleet. Such a program might be funded as part of disaster relief and
could provide both compensation for damages for those who decide to sell their licenses
and vessels as well as reduction in competition to those who may decide to resume
shrimping. A summary of NMFS capacity reduction programs can be found at [http://
www.nmfs.noaa.gov/mb/financial_services/buyback.htm].
Habitat Concerns. Contaminants from runoff and hydrocarbon spills are
expected to cause fish kills and losses of crustacean and molluscan species in nearshore
areas. Reported contaminant sources include seven major oil spills from refineries or tank
farms that total 6.7 million gallons,17 releases from 25 major sewage treatment centers and
many smaller ones, and runoff from countless fuel storage tanks and household and
15 U.S. Food and Drug Administration, FDA Hurricane Katrina Recovery Update: Seafood
Availability and Safety, Bulletin 2, Sept. 12, 2005, available at [http://www.cfsan.fda.gov/~dms/
fsdisas2.html], on Sept. 16, 2005.
16 A press release is available at [http://www.commerce.gov/opa/press/Secretary_Gutierrez/2005_
Releases/-September/Katrina%20Economic%20Recovery%20Effort.htm], on Sept. 9, 2005.
17 [https://www.mmrs.fema.gov/news/publichealth/2005/sep/nph2005-09-14.aspx], on Sept. 19,
2005.

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industrial chemical stores (antifreeze, bleach, acids, alcohols, etc.).18 In addition,
increased nutrients in storm runoff have the potential to stimulate harmful algal blooms
in offshore waters. Water masses containing debris are reportedly moving eastward into
Florida coastal waters; no information is available to determine the extent these waters
may be transporting contaminants. The NOAA research vessel Nancy Foster is working
off the Gulf Coast to study the effects of Hurricane Katrina on marine resources and the
ecosystem. The State of Florida is also testing offshore waters southwest of Panama City.
In addition, NOAA has chartered a private shrimp trawler to assist sampling for any
evidence of toxic contamination and pathogens.
There is no estimate yet of losses to the extensive and unique habitat provided by
seagrass beds along the Louisiana coast in Breton and Chandeleur Sounds. Species that
depend on these seagrass beds include marine mammals, turtles, and fish, as well as
migratory waterfowl.
18 Louisiana Analyses, p. 6.

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