Shrimp has become Exhibit A in how the globalization of the food-supply chain has expanded to include not just commodities like coffee, sugar and beef, but virtually everything on the table. Once a local delicacy prized for freshness, shrimp is now produced at farms in Asia, South America and Mexico, and sucked up by distributors wherever the price is cheapest.
Shrimp reproduce quickly, can be frozen easily and have a freezer life of 12 months. That has spawned a multibillion-dollar global shrimp farming business and made the crustacean a popular item on menus at chains like Red Lobster, Olive Garden, Outback Steakhouse and Panda Express.
But the shrimp trade also illustrates how volatile that global supply chain can be. A restaurant in Los Angeles can feel the effects of changing weather patterns, natural disasters, or disease on the other side of the world.
These days, Santa Monica Seafood, the Southwest’s largest seafood distributor, says the Asian shortage has sent prices soaring for Mexican shrimp it buys. And, even with an upscale wholesale and restaurant clientele, Santa Monica Seafood isn’t passing along that extra cost, for now. Other restaurants, like Sizzler, don’t dare either.