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Commercial Fisheries News
Volume 36 Number 12
August 2009
Lobster coast copes with low prices
STONINGTON, ME – If media coverage could somehow pay off in higher boat prices, the lobster fleet would be sitting pretty. Both close to home and around the country, mainsteam media are telling the story of cheap lobsters. Consumers are hearing there is good value in eating lobsters now because not only are they fresh and locally caught, but they’re also more affordable than ever.
And, as the catch improves in the weeks ahead, everyone along the distribution chain is glad to have the chance to sell.
It’s that expectation of a bargain buy, though, that’s giving lobstermen heartburn.
Along the Maine coast, which leads the region in production, prices on new shell lobsters have ranged from as low as $2.25 up to $3 a pound.
It can be hard to compare prices from harbor to harbor and sometimes even within the same harbor. Co-ops often “hold back” something from the daily boat price, which is returned to fishermen as a year-end patronage dividend or “bonus.” The amount of that bonus can only be estimated and, while some private dealers pay the full boat price upfront, others try to work a bonus payment into their pricing.
But, however the daily price is being cast, the reality for boats is that it is a dollar or so a pound less than it was last summer at this time. And that price is putting harvesters dangerously close to the tipping point. Hopes of profitability are raised at prices closer to $4 a pound than $3, which is entering the break-even territory for businesses. Depending on debt-load, the closer the price is to $2 and the longer it holds at that level, the greater the chances of business failures.
Further, harvesters, just as many dealers, say they have little control over the price they receive. Without holding capacity for the perishable, live product, “sometimes you sell ’em cheap to move ’em” is the reality.
Lobstermen are making adjustments in their fishing practices as they can, reducing expenses by allowing longer sets, using less bait per trap, or cutting back on the throttle. Some are changing the lay for their sternmen, paying shares after daily expenses are subtracted instead of before, or even going alone. Others say they are working harder since the only way to make up for the low price is by selling more volume.
Some have taken to direct sales. Licensed dealers argue that in the long run, roadside selling actually puts downward pressure on the boat price. Harvesters, who can make up that dollar a pound or more, aren’t convinced and take advantage of the opportunity to sell directly to consumers if they can figure out the logistics.
Holding back on production has also been talked about, but any co-ordinated attempt could be seen as price fixing. Those legal implications are real enough to likely stand in the way of any organized tie-up effort.
Throughout the industry, no one denies that this is a serious situation, and the sense is it will not get better through this season because the national economy still has not healed.
Lobster Fest 2009
The Maine Lobster Promotion Council (MLPC) is working on a plan for a fall lobster sales shindig in local communities. It is looking for volunteers from towns all along the Maine coast to serve as coordinators for a massive event called “Lobster Fest 2009.”
On Oct. 11, participating communities will offer lobsters for sale to the public at a flat rate to draw media and public attention to the lobster industry.
“Similar events last fall in Stonington and Boothbay Harbor were hugely successful in moving 3,000 to 5,000 pounds of lobster in just a few hours,” said MLPC’s Director of Marketing Marianne LaCroix. “Even more importantly, the events showcased the lobster industry in a very positive light and created great media coverage that continued to increase demand for lobsters throughout the fall.”
LaCroix said the MLPC is ready and willing to advise volunteer coordinators on how to organize their events and will provide: logistical support; help with media outreach; and promotional items such as T-shirts.
The goal is to recruit at least 20 communities. As of July 17, six had signed up to participate – Stonington, Portland, Boothbay, Scarborough, Georgetown, and Belfast.
The MLPC also is ready to assist anyone interested in putting on such an event on a different date, La Croix added.
For more information, call LaCroix at (207) 287-5140. /cfn/
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