The Reasons Behind the Shortage of Canned Shrimp

Take a stroll down the canned seafood aisle of your local grocery store and you may notice something missing – those familiar colorful cans of cooked shrimp that are usually abundant. Lately canned shrimp has been disappearing from stores, leaving many shoppers puzzled and disappointed. What’s causing this shortage? As it turns out, the lack of canned shrimp stems from various factors impacting supply chains.

Impact of the COVID-19 Pandemic

The COVID-19 pandemic has significantly disrupted food production and distribution globally. Seafood, including farmed shrimp, was heavily affected. Transport restrictions, labor shortages, and temporary factory closures made it difficult to process and export shrimp. This kicked off the shortage of canned shrimp that still persists.

Early in the pandemic, demand shifted from foodservice to retail as restaurants closed and people cooked more at home. Canners struggled to adapt their production pipeline to meet rising grocery demand for canned shrimp while foodservice orders evaporated

Overseas Farming Challenges

Most canned shrimp comes from overseas farmers predominantly in Southeast Asia and South America. Many shrimp farms are still recovering from production and distribution headaches caused by COVID-19 restrictions.

Farmers also had trouble getting shrimp to ideal harvest size due to suboptimal weather conditions and disease outbreaks affecting shrimp growth. This led to smaller shrimp size yields, while canners prefer larger shrimp.

Smaller shrimp command lower prices, which harms farmers. And they typically go to prepared foods, not cans. So canned shrimp inventories dwindled.

Labor Shortages

Like many industries, shrimp farming and processing plants have been hit with labor shortages, slowing output. Fewer workers means less shrimp is being harvested, transported, and canned to restock grocery shelves.

With demand still robust as life returns to normal, canned shrimp makers are struggling to catch up without adequate staffing. And recruiting employees remains challenging.

Transport Snarls

Even after shrimp is canned, getting it to retailers has been delayed by tangled supply chains. A lack of shipping containers and rail car/truck driver shortages has severely hampered seafood transportation and distribution.

These delays result in canned shrimp sitting in warehouses rather than hitting store shelves. Without product moving smoothly to distributors, grocery inventories shrink.

Hoarding Exacerbates Scarcity

Seeing empty canned shrimp shelves, some panicked shoppers started hoarding whatever cans they could find. This stockpiling further limited supply, making the shortage appear even more drastic.

While understandable given uncertainty around when more stock would come in, hoarding created a supply chain feedback loop. The more cans flew off shelves, the longer it took to rebuild inventory.

Prices Rise in Response

Basic economics dictates that when demand exceeds supply, prices typically rise. That has proven true for canned shrimp. Shortages allowed retailers to hike prices to take advantage of high demand.

Higher prices may prompt moderation in consumption, but for consumers with few suitable alternatives, buying less canned shrimp is not an option. They end up paying more for a product in short supply.

Seeking Out Substitutes

With canned shrimp difficult to source, many shoppers turned to frozen and fresh versions, depleting those inventories as well. Imitation “shrimp” made from blends of fish and shellfish also grew more popular.

Canned tuna, salmon, crab, and other seafood have served as replacements in recipes calling for shrimp. Expanded demand put pressure on their availability too, however.

Efforts to Rebuild Supply

To alleviate shortages, shrimp farmers and canners are working to ramp up production and rebuild inventory. But this takes time after two years of unstable conditions.

New farmed shrimp crops must mature to harvest size. Processing plants need to increase capacity, which requires adding shifts and workers. And distributors must catch up on backlogs from transportation issues.

While progress is being made, consumers will likely continue to see sporadic canned shrimp shortages until supply chain kinks are fully smoothed out. Stocking up when you spot cans can help in the interim.

The pandemic kicked off a perfect storm of factors that curtailed canned shrimp output right when demand was surging. Until farming and production stabilize, we’ll have to weather the uncertainty of shrimp can supply. But the tastes of summer awaiting us—shrimp cocktails, salads, and pasta bakes—will make it worth the wait!