The Island economy depends largely on the seafood industry of the Chesapeake Bay. Smith Island is known for its unique location, settlement and cultural history. Island crafts and trade are emerging in conjunction with tourist trade. Crabmeat, however, still dominates the local economy. Most of the islanders derive their income as watermen or from seafood processing.

The women of Smith Island have traditionally picked crabs and sold the meat through home operations. Unfortunately, those operations did not meet State Department of Health and Mental Hygiene requirements.

The University of Maryland Eastern Shore Rural Development Center, Salisbury State University and RDA Cooperative Service were able to assist the pickers in forming a co-operative which owns, operates and maintains this new centralized facility open to all pickers on Smith Island.

The 1600 square foot mini crab processing plant provides continued employment to this rural area. Fifteen crabmeat pickers will work here and are estimated to produce 23,600 pounds of crabmeat during the first year.