Superb quality crustaceans were being landed as the spring commercial lobster fishery in Atlantic Canada began opening up in early April.
In lobster fishing areas (LFA) 31B and 32, where the season opened on April 9, “the good news is the quality is superb. These are hard-shell, fully meated, excellent, strong lobsters. They are the best quality lobster we’ve seen in the last six months,” said Stewart Lamont, general manager at Tangier Lobster.
A week into the season, landings are down, said Stewart for several reasons. “The season started 10 days early, the water temperature is one to two degrees colder and it’s been rough on the water. After the first two days, basically they have not had ideal conditions. Everyone is confident the lobsters are there but we need slightly warmer water. We need better fishing conditions for the landings to materialize, but there will be a quantity of lobster in the marketplace a week from now. I’m encouraged,” said Lamont.
The season opened with a $14/pound shore price that dropped to $12 on April 13 to match southwestern Nova Scotia shore price. The $12 shore price is “sketchy at this moment. The next two to three days I’m certain it has to drop to $10 as more lobsters are coming on the market from southwestern Nova Scotia, the Eastern Shore, Newfoundland and other jurisdictions. Our customers around the world know the inventory, know the seasons. They know the landscape as good or better than we do, so there’s an expectation of a price reduction but in my view, we finally have a good lobster to work with,” said Lamont.
As for markets, “demand has been lacklustre at best,” said Lamont.
“It has been disappointing to a greater degree than I expected. Our clients are buying 50 to 60 per cent of normal. They’re very cautious, not wanting to have lobsters in a falling market. Well, when a market falls it’s almost impossible for the various participants in the food chain not to take some lobsters as the price drops from one level to another. Our international clients are more nervous than our Canadian clients… we are cautiously optimistic if and when we get to a price that is acceptable in an affordability challenged world that reasonable sales will resume, but I am under no illusion with what is happening in the Middle East, with the chaos in America. The whole world is nervous right now and when you’re nervous you don’t go out and buy a premium food like lobster. We’re in a premium business. We have a quality product and the more that is recognized by our customers, I think the more confidence they will have.”
Rising fuel prices were impacting harvesters, shore buyers, live lobster and processed lobster exporters this spring, said Lamont.
“International air freight costs have increased 25 to 30 per cent. We’re now paying a war surcharge to airlines and couriers. That makes already challenging logistics and freight costs even more challenging. The other issue is a potential shortage of jet fuel. We had a flight canceled lately and there was some suggestion of a shortage of fuel, so that’s something we should look further into.”
LFAs in the Gulf of St. Lawrence began opening in late April. Going into those seasons, the Maritime Fishermen’s Union (MFU) said market conditions are favorable and should translate into a strong price for harvesters.
“Our lobster is in high demand this year. The exchange rate is favorable, and most importantly, we are no longer facing the threat of tariffs. All market signals indicate that the value of our product is strong,” said Réjean Comeau, President of the Maritime Fishermen’s Union in a media release.
The MFU pointed out that overall lobster landings have been declining for about three years, a structural trend that is helping support market prices. In addition, weather conditions suggest a slower pace of landings this spring, particularly due to a colder-than-normal season.
“Overall landings have been declining for about three years. With the impacts of climate change and strong demand for our resource, the market will be favorable for our members,” predicted Martin Mallet, Executive Director of the MFU.
The MFU said the shore price this spring must reflect fish harvesters’ economic reality.
“Operating costs have doubled since the pandemic, and lobster prices must reflect this reality. A price between $9 and $10 per pound is justified and necessary to ensure the viability of fishing enterprises,” Comeau said.
