Aquaculture America 2024

February 18 - 21, 2024

San Antonio, Texas

ECONOMIC IMPACT OF SHELLFISH CLOSURES IN VIRGINIA

Fernando H. Gonçalves *, Jonathan van Senten, Katheryn Parraga-Estrada , Michael H. Schwarz, Charles Clark

Virginia Tech - VSAREC | SEAMaR

 15 Rudd lane
Hampton, VA, 23669
ocfernando@vt.edu

 



Shellfish aquaculture is the largest sector of the Virginia aquaculture industry, responsible for 84% of the sales value of the industry. Oysters and hard clams are the main species raised on Virginia farms, demonstrating a 44% growth from 2013 to 2018. These species filter nutrients from the water and rely on the environmental quality of the Chesapeake Bay to grow healthy shellfish. To minimize the risk of disease from molluscan shellfish and crustacea products at the wholesale level, the Virginia Department of Health created the Division of Shellfish Safety (DSS). This division is responsible for protecting the health of  molluscan shellfish and crustacea consumers  by ensuring that shellfish growing waters are appropriately classified for harvesting and that molluscan shellfish and crustacea processing facilities meet sanitation standards. VDH DSS imposes shellfish growing area closures when routine seawater sampling detects fecal pollutant averages in higher concentrations than the allowed standard levels or when one inch or more of rainfall affects conditionally approved areas. This action is essential to protect farmers and consumers from runoff pollutants and contaminants in the bay. It reduces the risks of contaminated shellfish making it into the seafood supply chain, potentially necessitating shellfish recalls. However, closures disrupt shellfish farm activities, including the disruption of sales and marketing activities, causing an economic impact on shellfish farms. Therefore, w e developed and implemented a short and targeted survey to assess the effects of shellfish closures on farmers in Virginia for 2021 and 2022 .  The impact of shellfish closures on labor income was estimated at $0.64/acre/day in 2021 and on sales at $0.47/acre/day in 2021 and $1.35/acre/day in 2022. Based on the rates these impacts affect the shellfish industry, the total sale loss in Virginia due to closures was estimated to be $2,169,801 in 2021, $4,895,087 in 2022, and labor income was $1,477,311, which represents the loss of 89 jobs in 2021. These impacts account for 2.12% of the total direct effects on sales output, 9% of jobs and labor income of the shellfish industry in 2021, and 4.66% of sales output in 2022. Tracking the sources of contaminants and increasing access to leasable grounds/waters were pointed out as the preferred alternatives to reduce the negative economic effects of closures. Despite the limited engagement of participants in providing complete responses, t his study provides shellfish growers with insights into strategies to mitigate sales losses during shellfish closure events, enhancing their resilience and sustainability.