Grants may not be enough to keep local shrimpers in business

More longtime shrimpers are opting to call it quits after years in the industry because of low market prices, the rising cost of doing business and the loss of equipment in the wake of hurricanes Katrina and Rita.

In years past, shrimpers from the bayou communities of south Louisiana would pass their vessels and pastimes to the next generation.

Members of the Louisiana Shrimp Association (LSA) met in Grand Isle on Thursday night to receive updates on the state of the industry from group leaders.

A zero interest loan and state grant program may offer temporary relief, board members told attendees.

The program is a pilot initiative to provide financial relief to help independent and small businesses reopen after the hurricanes. However, leaders of the association question whether shrimpers would be able to meet the criteria for receiving the monies.

The program’s guidelines call for the business applying to have greater than a 30 percent decline in revenue in the second quarter of 2006 versus the second quarter of 2005. But those numbers don’t reflect the true loss shrimpers suffered in the months after the storms.

“Most shrimpers made more money in the second quarter of 2006 because the shrimp were plentiful after the hurricanes,” said Clint Guidry, a board member of the association. “It’s really not fair because many of our members will not qualify because of plentiful shrimp in ’06 and the fact that most were out of business for at least four months in 2005 because of the storms. Most everyone’s income will have been higher in 2006 because of plentiful shrimp then.”

The small business retention program offers zero interest loans up to $250,000 and grants up to $20,000 for those businesses that meet the requirements.

“We really don’t know what to tell you regarding this program,” said A.J. Fabre, head of the LSA. “We would hate to tell you to fill out the form and get denied, then if they changed the criteria later you will already be on the denied list. Everyone here knows what their revenue was for those years, if you qualify, apply for the money.”

Fabre also asked for everyone in the industry to join the organization. “It’s not right that we are all working for people who are not members of the association. We’re tired of working for people who don’t want to help themselves. If you want to be a member, please join. If not, we don’t want you at our meetings anymore.”

The LSA will now begin to only send correspondence and industry news to paid members of the association, according to the LSA head.

Fabre also acknowledged that the LSA is expected to join and form an alliance with the National Cattlemens Beef Association. “They have many of the same problems that our industry faces such as dealing with imports, in their case its cheaper imported cattle,” he said. “Hopefully we can support each other and advocate for each other.

“There’s strength in numbers,” he said, acknowledging the beef group’s influential reach into virtually every state in the nation.

Grand Isle Mayor David Camardelle addressed the group, calling on shrimpers to join and to support the industry. “I know it’s not easy, but you have to keep fighting.”

He noted that meetings will be set up soon so that association leaders can meet with the new head of the Louisiana Department of Wildlife and Fisheries. Former state representative Bryan Hammett was recently named as that new department head.

Local shrimp dealer Dean Blanchard also offered the crowd a word of encouragement. “We need to stick together and we need new members for this organization. No one can make it at these prices but I believe those that can stick this out will be rewarded and make it in the end.”