The Impact of imports, including farm-raised shrimp, on the Southeast shrimp processing sector
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The Impact of imports, including farm-raised shrimp, on the Southeast shrimp processing sector
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    Processing activities of southeastern shrimp processors increased in recent years. This activity was linked to an increase in shrimp imports. An initial source of the new supply was Ecuador. Farming of shrimp in pond systems there rapidly increased United States purchases to a record 101 million pounds by 1987. Shrimp from China and Taiwan added another 80 million pounds to United States supplies by 1987. Imports primarily from shrimp farming nations were thereby recognized by some processors as a new source of raw material. Twelve of the surveyed processors in the Southeast began use of imported shrimp after 1984. New sources of supply introduced an element of stability to the southeastern industry for those processors using the shrimp. Stability in terms of entry and exit among the region's establishments utilizing imports was found to be higher than non-users. Hence, as more establishments adopt the use of imports, especially farm-raised imports, in their processing activities, total industry stability in the Southeast may be expected to rise. The analysis indicated a possible decline in industry concentration in 1987. This decline, to the extent that it might be related to increasing raw material availability and hence, less ability among the larger firms to exhibit some control over input usage, suggests that an additional decline in concentration might be forthcoming as aquaculture supplies expand. Exporting countries with farmed shrimp supplies could at some point lessen these influences on southeastern processors if they increase their value added processing.
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