Recession proof scallops keep New England town afloat

Jennifer Levitz -

Scallops Ride to Rescue — Demand, Rising Prices Keep Former Whaling Port in Massachusetts Above Water.

Known as the “Whaling City,” this coastal New England community celebrates its salty air and maritime heritage at every turn. A section with cobblestoned streets is known as the New Bedford Whaling National Historic Park. The annual mid-winter “Moby-Dick Marathon” brings together townsfolk for a 25-hour nonstop reading of the epic that was inspired by author Herman Melville’s journey on a whaling ship that departed New Bedford in 1841.

But the city’s modern fortunes are tied to a far smaller sea creature: scallops.

Scallops account for New Bedford’s status as the largest U.S. commercial fishing port in terms of value at $249 million in 2009, according to the latest federal fishery statistics. And scallops, unlike lobster, have proven remarkably recession proof with prices rising steadily through the downturn even as the amount caught held relatively steady. The wholesale price for a pound of the U.S. sea mollusk is $11.20, 41% higher than in November 2007.

U.S. fishermen say the weak dollar makes the famously meaty scallops that thrive in the northern Atlantic more affordable.

Belgium, France, and other countries are buying more. Fresh-scallop exports to Canada alone jumped 110% in the first four months of this year compared to the same period last year and rose 22% to France, according to federal trade statistics.

Many expect to see higher demand for scallops from China, which banned Japanese seafood because of concerns about radiation following the March earthquake and tsunami.

At the same time, the U.S. scallop supply is limited by federal conservation rules to an annual catch of roughly 50 million pounds. Areas where they can be caught are rotated to allow beds of young scallops to grow.

There is growing global demand for lobsters, too, but supply has been plentiful, with record landings in 2010, and the price has been only slowly coming back after plunging in 2008. The industry has resisted many lobstering limitations, believing open access to the fishery is best long-term for preserving fishing jobs, said Patrice McCarron, executive director of the Maine Lobstermen’s Association.

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