For thousands of years, shrimp has been considered an accessible protein source for coastal communities around the globe. From Indigenous fishers in the Americas to 13th-century Chinese vendors, shrimp has been an unfussy form of sustenance. But its perishable, so it was only with refrigeration that shrimp became more accessible to U. S. high-class restaurants. For example, shrimp cocktail was popular as a party food from the 1960s to the 1980s, but it was later laughed at as tacky. But now, its coming back into fashion — and its more pricey than ever.
Some high-end shrimp cocktails cost more than $30, which makes this starter one of the more expensive ones on the menu. And although shrimp prices are lower now than theyve been on average over the past decade, at $7. 72 per kilogram, theyre trending slightly upward.
Partly, inflation and price uncertainty are to blame for why shrimp cocktail can break the bank. Because of problems in the supply chain like COVID-19 and Russia’s war in Ukraine, food prices are going up everywhere. This means that it costs more to eat out. Harvesting shrimp is also not easy. Also, making a perfect shrimp cocktail isn’t an afterthought; it’s a carefully planned dish that costs time and money to make in a restaurant job market that is still tight.
Shrimp is one of the most popular seafood options around. The sweet, succulent taste makes it a staple appetizer at restaurants and a dinner table favorite. However shrimp doesn’t come cheap. It’s often one of the most expensive items on a seafood menu. You may wonder, with shrimp being such a small creature, why is it so expensive compared to other types of seafood?
There are several factors that contribute to the high cost of shrimp. In this article, we’ll take a detailed look at the top 10 reasons behind the steep prices of this crustacean delicacy.
1. Limited Supply and High Demand
Unlike other seafood like tilapia or salmon that are easily farm-raised, shrimp exist primarily in the wild. Commercial shrimp farms exist, but account for less than 10% of the global supply. Over 90% of shrimp come straight from the ocean.
Wild shrimp have breeding and growth patterns dictated by nature, not human control. Their populations fluctuate yearly based on climate conditions, food availability, predators, and diseases. When environmental conditions are poor, less shrimp survive and reproduce, leading to smaller harvests.
At the same time, demand for shrimp is very high and continues to rise globally. Limited supply plus high demand equals higher prices. Bad harvest years can send prices soaring due to shrimp shortages.
2. High Mortality Rate
Shrimp have a naturally high mortality rate. Under ideal conditions, an adult female shrimp will produce about 100,000 to 1 million eggs. However, on average, only 1-2 of those eggs will survive to adulthood.
Shrimp eggs and larvae are vulnerable to predators and environmental factors. They suffer massive die-offs during transport from hatcheries to grow-out facilities. Even at optimal commercial farms, there is about an 80% mortality rate from the egg stage.
The delicate nature of shrimp makes it hard and expensive to raise large numbers to maturity. Their low survival rate limits supply availability.
3. Frequent Disease Outbreaks
Disease is a constant threat in shrimp populations. Viruses like white spot syndrome (WSS) can wipe out entire shrimp farms. Once a disease takes hold, farmers often have to destroy and disinfect a whole infected pond to stop further spread.
Common shrimp viruses can cause up to 100% mortality rates at farms. Even with stringent biosecurity measures, outbreaks still occur because viruses are impossible to completely eradicate. The frequent disease outbreaks decimate shrimp stock, further driving up costs to make up for losses.
4. Long Grow-Out Period
It takes 3-6 months for a shrimp to reach harvest size, ready to be sold. During this lengthy grow-out time, shrimp are fed expensive high-protein diets and cared for by farmers. The longer it takes a shrimp to mature, the more time and money farmers have to invest before earning any returns.
Other popular seafood like tilapia or catfish have much shorter grow-out times of only 5-8 weeks. The difference in time investment contributes to shrimp’s high production costs. Longer grow-out also limits how many harvests farmers can yield yearly, restricting supply levels.
5. Labor-Intensive Fishing and Farming
Whether fished wild or raised on farms, harvesting shrimp is a labor-intensive process. For wild-caught shrimp, boats have to diligently trawl fishing areas to locate shrimp aggregations. Once a productive area is found, bulky nets are dragged for hours to collect shrimp.
At farms, ponds must be monitored daily to ensure water quality. Workers hand feed the shrimp and perform regular sampling to track growth. Shrimp are captured in nets when they reach maturity. The hands-on nature of caring for shrimp adds substantial labor costs.
6. Need for Specific Conditions
Shrimp require very particular water conditions to thrive. For wild shrimp, ideal temperatures, salinity and oxygen levels can change by season and location. Their habitat range is limited by their biological needs.
At commercial farms, maintaining the right water chemistry is extremely challenging. Shrimp grow best at warm temperatures around 30 C. The water must have a high salinity and sufficient dissolved oxygen. Achieving these strict parameters adds equipment, electricity, and monitoring expenses. It’s a precarious balance that’s costly to uphold.
7. Export Costs
Most shrimp farming takes place in tropical coastal regions of Asia and Central/South America. However, the biggest consumer markets are in the U.S., Europe, and Japan. To reach these buyers, shrimp must be shipped long international distances.
Transporting delicate seafood halfway around the world is no easy task. The shrimp must be kept chilled with ice or refrigeration to prevent spoilage. Exporters use specialized containers and air freight services to swiftly fly the shrimp to overseas markets. All these costs of proper handling and overnight express shipping drive up the final price.
8. Seasonal Availability
Wild shrimp harvesting is restricted to specific seasons when shrimp are most abundant. In the U.S. Gulf Coast, the season peaks from late summer to early fall when conditions are ideal for shrimp growth and congregation. Colder months see very little activity.
When shrimp is out of season, frozen product has to be relied upon to meet demand. Freezing technology has improved, but fresh shrimp still commands a premium price. Seasonal availability limits the fresh shrimp supply, letting sellers hike costs due to scarcity.
9. Size Variation
Shrimp are sold by size per pound. The standard sizing terms from smallest to largest are:
- Colossal – under 10 shrimp per pound
- Jumbo – 11 to 15 shrimp per pound
- Extra Large – 16 to 20 per pound
- Large – 21 to 25 per pound
- Medium – 26 to 30 per pound
- Small – over 30 per pound
Larger shrimp sizes like colossal and jumbo are the most prized since they offer the sweetest flavor and best texture. But they make up only a tiny portion of a harvest. It takes longer to grow shrimp to these premium sizes. The bigger shrimp demand higher prices due to their rarity compared to smaller specimens.
10. Rising Fuel Costs
Fuel is a significant expense for the shrimp industry. Fishing boats and shipping vessels burn large quantities of fuel. At shrimp farms, powering the necessary equipment and infrastructure uses electricity and diesel.
As crude oil prices increase, fuel costs eat into profit margins. These expenses get passed onto consumers through higher retail pricing. Energy-related operating costs continue to rise, driving inflation in shrimp and seafood prices generally.
Why Does This Shrimp Cost More Than A Car?
Why is shrimp so expensive?
Hopefully, you now feel as though you can understand why shrimp is so expensive. Certainly, there are some things about where you live and the type of shrimp that you purchase that are going to impact this pricing. In the end, it is essential to remember that for great, fresh-tasting food, the pricing is likely going to be higher than you expect.
Do farm-raised shrimp lower their costs?
Of course, some of the farm-raised shrimp can probably lower some of their costs because of the lack of ship maintenance, but this is not always the case. There are additional costs involved in farm raising shrimp, and those costs need to be factored in as well.
How much does a pound of shrimp cost?
Some large chains, like Wegmans and some regional Whole Foods Markets, as well as upscale markets like Eataly and the Lobster Place in New York, also carry them, albeit at a premium price of $14.99 to $18.99 per pound. Americans prefer to buy their shrimp already peeled, and without heads.
Should I pay more for shrimp?
The more money you pay now, the better you will enjoy the fresh taste of the food. If shrimp is something that you really enjoy, try to move a bit closer to the sea, and chances are you will find that the pricing is lower, and the availability is much better as well.