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Commercial Fisheries News
Volume 34 Number 8
April 2007
Maine ’06 lobster catch strong; prices tumble
HALLOWELL, ME – A closer look at Maine’s preliminary lobster landing figures for 2006 released late in February by the Department of Maine Resources (DMR) shows significant changes in landing patterns and prices in different areas of the coast.
Overall, compared to 2005, the coastwide preliminary catch remained strong at 66,607,536 pounds, but at $272,580,125, value was down significantly from record high prices paid in 2005.
DMR emphasized that the data were preliminary and, as of the end of March, landings were still coming in “with the possibility of an increase of an additional few million pounds,” said Heidi Bray, DMR marine landings specialist.
The preliminary data showed that several of the major lobster producing counties had a decrease in overall landings, except for Hancock and Washington. Hancock rose by 776,389 pounds, while Washington County fishermen came in with an additional 1.76 million pounds compared to final 2005 landing figures.
Sagadahoc and Waldo Counties also showed poundage gains.
The landings data correlated with other DMR monitoring programs, such as sea sampling, trawl survey, juvenile settlement, and ventless trap, which showed lobsters shifting away from the southwest and Midcoast regions to Downeast, according to DMR lobster biologist Carl Wilson.
“2004 was the first year for mandatory dealer reporting,” Wilson noted. “We now have three years (2004-2006) of consistent landings data. And when you combine all our programs – by looking at lobsters from one month old to (recruitment into) the fishery – we can see what is going on today and tomorrow, including the regional changes.”
Prices
Even as Downeast landings were up, the price per pound plummeted in all counties compared to 2005 with Hancock having the largest overall average decrease at 64 cents per pound. York County had the lowest price decline at 39 cents per pound.
For the first time in a decade, by most accounts, lobsters were molting by July 4, 2006. That should have been good news but the molt was followed by only spotty landings.
Fishermen’s concerns were evident with a lower boat price and skyrocketing costs for fuel and bait.
“In 2006, the average price I paid for fuel was $2.56. That’s 23 cents per gallon more than I paid in 2005,” said Clive Farrin, president of the Downeast Lobstermen’s Association and a Boothbay Harbor fisherman. “I paid between $95-$100 a barrel for pogies.”
Market speculation
Just about everyone has an opinion about why the price dropped substantially from 2005, with the general consensus being that it was due to overall market conditions and caused by a number of factors.
“Supply and demand. The lobster market is global,” said Peter McAleney, president and owner of New Meadows Lobster in Portland.
Back in 2005, Maine’s catch was late and Canadian processors paid a higher-than-normal price for Canadian and US lobsters, explained McAleney. When 2006 came, the Canadians had expensive lobster meat in their freezers that they had to move before buying more, he said.
The Canadian processors’ predicament was significant because they typically buy as much as 30 million pounds of Maine’s lobster catch, according to industry observers.
Spiros Tourkaskis is the executive vice president of AHI Group/East Coast Seafood Inc. Based in Lynn, MA, the company is a worldwide distributor of lobster and has a plant in Canada.
Late in 2005, buyers speculated it was not going to be a big year, but then the lobsters came in heavily, according to Tourkaskis.
“Some people lost their shirts by the end of 2005 and into 2006,” he said. “Last year (2006) was a correction.”
Kristen Millar, executive director of the Maine Lobster Promotion Council, agreed with McAleney’s and Tourkaskis’ assessment.
She observed that a lot of consolidation has taken place in the infrastructure of many Canadian companies because of high live lobster prices that were paid. Expensive inventory had to be maintained while those companies continued to lose money, she said.
Imposter lobster
Millar and council Marketing Director Marianne LaCrouix added that “imposter lobster,” such as langostino, an edible crustacean not considered a lobster, was a contributing factor to lower prices paid to lobstermen.
In 2006, restaurants, including many large chains, switched from lobster meat to the significantly less expensive langostino. The FDA approved the use of the name “langostino lobster” for restaurant use on menus.
“What drives the industry is lobster meat, and when there is a shift in demand it reverberates back to the boat (price),” said Millar.
Rosanne Mizzoni
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