U.S. military purchases Gulf of Mexico seafood, boosting an industry battered by oil spill

Workers shuck raw oysters at Motivatit Seafood in Houma, La. Sales of oysters, fish and other seafood products from the Gulf of Mexico dropped dramatically after last year's BP oil spill. (David Rae Morris)

The commissaries deal was brokered by Ready 4 Takeoff, a group that has worked since Hurricane Katrina to help the Gulf Coast, and Navy Secretary Ray Mabus. Mabus was appointed by President Obama in June to oversee the gulf's recovery from the oil spill.

DeCa spokesman Kevin Robinson said the agency viewed promoting gulf seafood as an opportunity to expand its focus on domestic seafood and broaden choices for commissary shoppers.

The gulf buys are not receiving special funding but are part of a DeCa revamp of its purchasing.

The New Orleans Fish House, a wholesaler that buys from fishermen at dockside, is making an initial shipment of 10,000 pounds of gulf seafood to the commissaries, said Mike Ketchum, director of retail sales. Some will be packaged frozen shrimp products under the label of famed chef Emeril Lagasse.

"Compared to our existing customers, that is on the lower end," Ketchum said. "But we see it taking off quickly. They could certainly become one of our biggest customers."

So far, 72 of the 249 U.S. commissaries have committed to stocking gulf seafood, but more could join the program. Before, a large majority of the seafood stocked at commissaries was imported, Ketchum said.

Progressive Grocer magazine ranked the commissary chain as the nation's 17th largest grocery chain.

"That's true of all the grocery industry, but now our government is stepping up and saying they will use domestic product," he said.

The boost comes at a good time. The New Orleans Fish House, for instance, was selling $40 million in seafood annually before the spill. Now, Ketchum said, the company is doing about $10 million in sales.

A recent Louisiana Seafood Promotion and Marketing Board survey found that 70 percent of people are still nervous about eating gulf seafood, said executive director Ewell Smith.

"And that's with all the testing that has been done and is still being done," he said.

Some commissary customers have been just as nervous, but not enough to pull seafood from the shelves, Ackerman said.

"We believe that will fade quickly," he said.

- Associated Press