The Decline of Private Sector Oyster Culture in Virginia: Causes and Remedial Policies

Oyster production from private grounds in Virginia has declined significantly since 1960. Restoring industry production requires a better understanding of the reasons for this decline. Currently, state fishery managers and the popular press attribute the decline to the oyster disease Haplosporidium nelsoni (MSX). In fact, private planters themselves consider MSX disease as the primary constraint on the future profitability of private oyster culture. This study analyzes potential causes of the decline using a simulation model of oyster production with data from the 1960s, 1970s, and 1980s. The analysis suggests that rising seed prices driven by economic and productivity changes are more important than MSX in reducing the economic incentives to private planting. Therefore, reducing oyster seed prices is an effective policy strategy. However, education of planters will also be needed to assure a better understanding of the profit potential in oyster planting.