BP (NYSE:BP) Paying $20 Million for Seafood Safety and Marketing

Even though test after test concludes the seafood in the Gulf of Mexico is safe, the public in general isn't completely convinced yet, and businesses are hesitant to buy Gulf seafood as they did before the BP (NYSE:BP) oil spill.

To respond to that effect, BP will pay $20 million, to be spent over a 3-year period, to continue testing of the Gulf of Mexico seafood and to let the public know it is safe to eat through marketing efforts.

Florida Agriculture and Consumer Services Commissioner Charles H. Bronson communicated with BP over the issue three months ago, asking for the additional financial help.

Before the oil spill was capped, the original request had been for $59 million from Bronson.

Approximately 5,300 commercial fisherman work the Florida waters.

BP (NYSE:BP) Says all Gulf Food Samples Passed Test So Far

After literally thousands upon thousands of Gulf seafood such as oysters, shrimp and fish having been tested, not one has failed a test searching for Corexit or polycyclic aromatic hydrocarbons (PAH), the latter of which could cause cancer, according to BP's (NYSE:BP) COO for the Gulf Coast Restoration Organization, Mike Utsler.

That said, Utsler added they're working with state agencies in the Gulf to improve testing, as well as creating standardized testing to be used going forward.

"The important thing is to define a standard baseline since that’s not something that’s been tested before — what’s the baseline is for the potential presence of this product, Corexit, a surfactant used in many differing types of substances such as toothpaste, baby shampoo, and the same base product found in discharges of the Mississippi and other rivers," Utsler said.

To generate confidence in Gulf seafood, chief enforcement officer for the Marine Resources Division, Major Chris Blankenship, said chemical and sensory analysis will continue.

BP (NYSE:BP) Oil Spill Hits Seafood Processors Hard

A recent report alleges the seafood processors in the Gulf region were hit especially hard by the BP (NYSE:BP) oil spill, as a variety of concerns over food from the Gulf has apparently hit the industry hard.

Another variable is the ongoing recession, which makes it difficult to evaluate how much is as the result of the oil spill and how much if from national and international economic hardship.

Obviously some is connected to the oil spill, as demand for seafood shrinks from past levels.

The reason it affects the seafood processing industry more is restaurants and grocery stores can tap into other sources, while the Gulf seafood processors, for the most part, are reliant on Gulf seafood to do business.

Being out of favor at this time, it's going to be a long road to recovery for them, and likely some of them won't survive.