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Seafood Supply and Demand Disruptions: The Covid-19 Pandemic and Shrimp

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  • Schmitz, Andrew
  • Nguyen, Ly

Abstract

We develop a theoretical trade model based on classical welfare economics and apply it empirically to both importers and exporters of shrimp, the most traded seafood, to determine the effects of the Covid-19 pandemic on the excess supply and excess demand of shrimp industry. We consider two time periods and compare these to the base period before the pandemic. Period 1 (March–June 2020): there is a net economic loss globally of $194 million due to lockdowns. Period 2 (July 2020–June 2021): there is a net welfare gain globally of $885 million due to increased shrimp demand. Overall, the global net economic gain was $692 million. For the United States alone, shrimp consumers gained $470 million while shrimp producers gained $24 million, which is relatively consistent with the net quasi-consumer gain of $475 million due to the Covid-19 pandemic.

Suggested Citation

  • Schmitz, Andrew & Nguyen, Ly, 2022. "Seafood Supply and Demand Disruptions: The Covid-19 Pandemic and Shrimp," 2022 Allied Social Sciences Association (ASSA) Annual Meeting (Virtual), January 7-9, 2022 316534, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:assa22:316534
    DOI: 10.22004/ag.econ.316534
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    Keywords

    Demand and Price Analysis; International Relations/Trade;

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