By Nolan McKendry | The Center Square

Louisiana’s seafood industry is gearing up for a major shift as the state’s new labeling law takes effect. The Louisiana Department of Health is set to enforce Act 372, which mandates clear labeling for imported shrimp, crawfish, and other seafood.

This legislation, which applies to restaurants, retailers and suppliers, aims to ensure transparency for consumers and protect Louisiana’s iconic seafood industry.

The law comes in response to growing concerns about misleading packaging and menu descriptions.

Agriculture Commissioner Mike Strain explained how the rules work at a Seafood Safety Task Force hearing on Jan. 15.

“If a package features Louisiana imagery — like a shrimp boat or a Gulf Coast scene — but the seafood is imported, it must include the country of origin in 30-point font on the front of the package,” Strain said.

The legislative intent behind Act 372 is clear. Lawmakers highlighted the importance of shielding consumers from deceptive marketing and safeguarding public health.

The state’s seafood culture, renowned globally, faces threats from mislabeled products. Terms like “Gulf” and “Louisiana caught” often appear on seafood originating from foreign countries that lack Louisiana’s stringent quality standards.

Enforcement will involve inspections by the Department of Agriculture during routine checks. Noncompliance could lead to hefty fines, ranging from $15,000 for a first offense to $50,000 for repeated violations. Retailers found in violation may face stop orders halting the sale of mislabeled products until corrective actions are taken. To avoid waste, businesses can add compliant stickers to existing inventory.

The task force emphasized that the goal is consumer awareness, not targeting specific businesses. However, the scale of seafood mislabeling across the Gulf Coast underscores the urgency of the issue.

Recent investigations have revealed alarming levels of deception. For example, a study of 44 restaurants in Biloxi, Mississippi, found that 82% were misrepresenting imported shrimp as Gulf-caught. Similarly, Royal Red Shrimp— a premium, FDA-protected variety — was often substituted with cheaper Argentinian shrimp.

This kind of fraud not only misleads consumers but also undermines Louisiana’s domestic seafood market. Gulf shrimp, once a hallmark of local pride, has been devalued by imports marketed as local. Erin Williams of SeaD Consulting warned that this deception drives down demand for authentic Gulf shrimp and jeopardizes the livelihoods of shrimpers and coastal communities.

“If customers think they’re already buying Gulf shrimp, there’s no incentive for restaurants or distributors to pay a fair price for the real thing,” Williams told The Center Square in December.

The challenges facing Louisiana’s seafood industry extend beyond labeling. Over 90% of shrimp consumed in the U.S. is imported, with much of it originating from countries like India, Ecuador, and China.

These imports often contain chemicals banned in the United States, raising additional health concerns. Moreover, foreign producers benefit from substantial government subsidies, giving them a significant edge over U.S. shrimpers who receive little support.

David Chauvin, a Louisiana seafood company owner, is among those fighting back. He’s awaiting a ruling from the International Trade Commission on a case against major shrimp-exporting nations. Chauvin argues that unfair subsidies and the U.S. Treasury’s inaction have devastated the domestic shrimping industry.

“We’re not asking for handouts; we’re asking for a level playing field,” he said.

The financial strain on Louisiana’s shrimpers is compounded by skyrocketing diesel prices, which have surged over 30% since President Joe Biden took office. High fuel costs, coupled with declining shrimp prices due to import competition, are forcing many shrimpers to dock their boats for good.