Prince Edward Island and northern Nova Scotia fishermen are scratching their heads in bewilderment these days over lower-than-expected prices for spring lobster. At the halfway point in the season, it’s well past time for some straight answers from buyers, processors and shippers.
All market factors heading into the May 1 opening indicated a strong season for prices, certainly matching, if not surpassing, 2017. Yet, the latest fish price report indicates otherwise. The price per pound for canner lobster ranges between $5 and $5.50, while markets are fetching $6 to $6.50. That’s a $1 drop since opening day and about $1 less than last year — comparable with prices paid in 2002. The province is heavily dependent on a successful lobster fishery, which annually generates hundreds of millions of dollars in economic activity.
Optimism among fishermen was never higher this spring. Every indicator pointed towards a strong shore price: Booming exports to China and Japan; developing markets in Europe; low inventories; high demand in the American market spurred by a favourable U.S. dollar and low catches in Maine; and additional live holding capacity.
What could possibly go wrong for fishermen?
The season thus far has seen average landings as the weather was cool and nagging northeast winds plagued fishermen much of May. Fishermen face higher costs for fuel and labour. Bait is scarce and expensive this spring. And harvesters see consumers paying double the price they are receiving — at lobster pounds, stores and restaurants. And fishermen wonder what’s the problem here? A very good question.
The P.E.I. Fishermen’s Association summed it up succinctly last week in a press release stating that harvesters are “confused and frustrated.” Ever since irate fishermen tied up their boats five years ago to protest low prices, the harvesting sector has worked hard and invested heavily to improve the industry to earn better prices — upgrading on-board storage and purchasing equipment to keep lobster in top condition.
The harvesting sector on P.E.I. has spent more than $300,000 annually promoting Island lobster — going it alone to develop markets — so fishermen are obviously disappointed with the dividends this year. Island lobster buyers stopped paying a matching one cent per pound marketing levy but fishermen continue paying that levy to promote their product. Fishermen are progressive and innovative in promoting and advertising their catch while companies are the laggards and foot-draggers.
We should be past this point in the evolving lobster fishery. There should be a shore price set before the first lobster is landed. Harvesters should be bargaining on prices collectively and negotiating on a sector-wide basis.
Fishermen are not talking strike action at this point but such drastic measures might only be another price drop away. Harvesters are talking amongst themselves but won’t tip their hand yet. At the wharf, fishermen are at a loss to explain what’s happening except to suggest collusion among buyers who are taking higher profits at their expense. It’s hard to reach a more plausible conclusion.
Something smells here — and it’s not day-old lobster bodies.
