USDA purchases $52M of Pacific Northwest seafood

Published 8:30 am Thursday, August 4, 2022

WASHINGTON, D.C. — The USDA has agreed to purchase $52 million of Pacific Northwest seafood to help buoy an industry hard-hit by COVID-19 and other market disruptions.

The agreement includes $22 million of whiting, $18 million of rockfish and $12 million of pink shrimp, which will be distributed to domestic food assistance programs nationwide.

Lori Steele, executive director of the West Coast Seafood Processors Association, said the federal assistance is a “big win” for producers, especially after 2020 when pandemic-induced restaurant closures wiped out 70% of the domestic seafood market overnight.

It is the USDA’s largest single purchase of Northwest seafood to date. Last year, the agency bought $45.9 million of products for the first time in May, and $16.5 million in October.

“Obviously, the USDA liked our products,” Steele said. “Our processors did a really good job working in the system. We were able to build off of that success, and have a much bigger purchase of the same products this year.”

Purchases were made under Section 32 of the Agricultural Adjustment Act of 1935, which allows the USDA to buy surplus commodities in sectors reeling from market shocks and distribute them domestically to support prices for producers.

Qualifying for Section 32 is not easy, Steele said. Processors were subject to federal audits to ensure products met specifications before they could become USDA-certified.

“It was a huge step last year to get that inaugural purchase,” Steele said. “Once you’re in the door, it’s just a matter of providing good service and good product.”

COVID-19 isn’t the only problem facing the Northwest seafood industry, Steele said. Exports have also taken a hit, she said, due to the global supply chain crisis as well as Russia’s invasion of Ukraine. Ukraine is the biggest export market for Pacific whiting.

West Coast lawmakers have led several pushes to ensure seafood was included in the USDA’s commodity purchasing programs. Sen. Jeff Merkley, D-Ore., said the latest purchase “ensures Oregon’s coastal fishermen and seafood producers receive critical financial assistance needed to continue operating and providing services here in Oregon and beyond.”

Steele said she hopes that, by helping feed hungry Americans, producers will also be able to reach new consumers and increase demand for Pacific seafood domestically.

“It’s going to reach a lot of consumers who maybe we wouldn’t have otherwise reached or who aren’t familiar with these products,” she said.

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