When a Shrimp Is About Something Bigger

Red Lobster’s “Ultimate Endless Shrimp” is back. Paying approximately $20, diners can start with two shrimp selections. Still hungry, they can order more shrimp…and more…and more…

During 2016, Insider sent two reporters to experience the endless phenomenon. At first thinking 100 shrimp was their max, they ordered no alcohol and avoided starch and bread. It did not work out as they expected.

After 7.5 hours, at 305 shrimp, they decided to stop.

We can watch their progress in this video:

Where are we going? To the reason we can have endless shrimp.

Shrimp Imports

Our story starts in Japan before World War II when Motosagu Fujinaga helped to make affordable shrimp. As one of the first aquaculture developers, he was able to reduce the price of dancing shrimp. A pricey delicacy, they were dipped in sake and given to diners while wiggling.

Meanwhile, in the U.S., shrimp was also a luxury. As an extravagant appetizer, a jumbo shrimp cocktail started a special meal. During the 1970s, 70 percent of the shrimp we ate were wild-caught in the U.S.

The home of shrimpers, places like Delacroix Island, Louisiana used to thrive. Now though, high quality domestic shrimp production has been quashed by cheaper imports. Whereas hundreds of people had lived on the Island, now just 25 remain. There used to be 85 commercial boats, now, 25. And, adjusted for inflation, shrimpers are making way less than 40 years ago.

Louisiana shrimpers tell us that their wild shrimp catch is inconsistent. Day to day, they cannot guarantee quantity. Red Lobster though, needs a steady dependable massive supply. The answer? Go elsewhere–especially if it is cheaper. Not superb, farm taste from aquaculture is acceptable.

Below, you can see from the Red Lobster website where they get their shrimp. Not including the U.S. Gulf Coast, Red lobster tells us that they get their shrimp from seven countries:

The result? We import 94 percent of the shrimp we consume. ”

Our Bottom Line: Comparative Advantage

Endless shrimp takes us to some pretty big questions about trade. They all relate to comparative advantage. First explained by19th century economist David Ricardo, comparative advantage makes the world economy more efficient when each country produces whatever requires the least sacrifice.

For example, if you have to decide who will do the dinner dishes, just ask the alternative for each person. If someone says he will watch Netflix and someone else has work to complete, then the first person has the comparative advantage for the dishes because he sacrifices less.

Similarly, with shrimp, from the Red Lobster list, you can see which nations have the comparative advantage. They are why we can order “Endless Shrimp.” But they are also the source of a less tasty product and Delacroix Island’s demise.

They leave us with the questions about comparative advantage that have surfaced recently. Basically, we are asking if we want the most efficiient production from comparative advantage.

Or, do we want to produce more in the U.S. and instead order “limited” shrimp?

My sources and more: One of my favorite podcasts, Outside/In is from New Hampshire Public Radio.  This week, their look at shrimp reminded me of Red Lobster’s “Endless Shrimp” offer and this Insider experience. Then with its environmental lens, this paper further complicates the picture.