Shrimp Baiting: Potential Impacts on the Profitability of South Carolina Commercial Shrimpers

Mark Henry, David Barkley, and Queen Vo
Dept. of Ag. & Applied Economics, Clemson U., Clemson, SC 29634-0355, 864-656-3374, FAX: 864-656-5776, mhenry@clemson.edu

A concern has been raised that the South Carolina recreational shrimp baiting fishery might be reducing catch rates and therefore revenues of the commercial shrimp trawler industry. Moreover, some commercial shrimp trawler owners and related businesses (e.g., coastal wholesalers, etc.) share the view that harvest and/or illegal sales by non-commercial actors in state shrimp markets may have an impact on the long-term viability of the commercial trawler sector in SC. At present it is not clear whether the shrimp baiting fishery has actually reduced the fall season catch rates of the SC shrimp trawler fleet and research by others is planned to address this concern. With this caveat in mind, two economic issues warrant careful study when considering the existing commercial trawling industry. First, if the shrimp baiting fishery has or could eventually reduce the catch rates of the SC trawler fleet during the fall season, will this catch rate effect have a significant influence on the cash flow and the related overall profitability of commercial trawlers and related businesses? Second, if the shrimp baiting fishery has a significant impact, what are the likely aggregate economic impacts on coastal counties and the state of South Carolina? This study of the SC trawler industry addresses these shrimp industry issues.