What Are the Challenges Facing the Wholesale Seafood Industry

Labor shortage, communication gap and poor and inadequate cold storage are some of the challenges of the wholesale seafood industry. 

FREMONT, CA: As a global industry, wholesale seafood impacts national and regional economies, eCommerce and development, food security, and income and livelihood security. During the past decade, sustainable seafood production has risen by 171 million tons compared to farmed seafood, valued at approximately $362 billion. Global wholesale fish industries are now a vital source of income for many people worldwide. The wholesale seafood industry faces the following challenges and solutions:

Supply Chain Management Challenges: Supply chain management in the seafood industry is challenging due to the demanding warehouse management process flow and logistic requirements. As a result of the pandemic, industry demands and practices have changed significantly. 

Because domestic demand may weaken, exporting may be a more lucrative market for wholesale seafood distribution businesses. In the supply chain for seafood, there are approximately 10 to 15 intermediates between fishers and farmers and the final consumers.

Due to their perishable nature, fish and shellfish are unstable and spoilage-prone. Due to this, temperature and packaging conditions significantly affect the product's shelf life. Moreover, improper handling or shipping of seafood will result in food waste and a drop in sales. The industry's cutting-edge asset tracking and monitoring technologies may increase traceability and mitigate logistical difficulties.

The top challenges highlighted are:

Shortage of labor: The fish business has always needed help finding labor because of the severe environment. U.S. seafood suppliers, processors, and wholesalers have faced a severe labor shortage, rising labor costs, transportation expenses, and rising costs for seafood, eCommerce packaging, and other supplies.

Solutions are:

Considering alternative equipment: One can accomplish more with fewer personnel by exploring multiple technological developments.

Utilizing new technology: Autonomous machines and drones can help eliminate the need for human labor.

Changing the production techniques: Switching from conventional to no-till tillage may allow the workforce to reduce some field work.

Communication gap: Lack of communication and fragmented information may negatively affect the wholesale seafood supply chain. Both parties need to be made aware of what the other is doing or not doing. Ineffective communication leads to inefficiency, mistakes, and unnecessary waste.