IRVINGTON, Ala., Oct. 8 (UPI) -- A domino effect of BP's catastrophic oil spill is the layoff of processing workers because of decreased demand for Gulf Coast seafood, industry experts say.
The National Oceanic and Atmospheric Administration says a huge number of businesses along the gulf have felt the hit from marinas to restaurants, hotels and fishermen, but seafood processors have been hurt doubly-hard, USA Today reported Friday.
"It's slowed way down," says Tony Lyons, owner of Southern Aire Seafood crab processing plant, who says revenue has slid 95 percent since the start of the spill. "We may not be open by the first of the year."
NOAA says under normal conditions there are 195 seafood processors across the Gulf Coast normally employing more than 9,000 workers generating more than $1 billion in revenue a year.
But since the oil spill crab and shrimp fishermen either took work with BP cleaning up the spill or have not been able to return to their fisheries because of the oil. Also, demand for gulf seafood has been down because their longtime customers, such as restaurants and grocery chains, have turned to other sources or are skittish to buy gulf seafood, the newspaper said.
"This is a classic supply chain management problem," says Ivan Miestchovich, professor of economics and finance at the University of New Orleans. "If you have one weak link, the whole chain breaks down."
Louisiana officials met with BP representatives to ask for $170 million to help bolster the region's seafood brand. They got $15 million for marketing, which mostly went to promote tourism, USA Today reported.
