Lower lobster price costs the Island millions

By Eric McCarthy

FOR THE SOU’WESTER

Although catches are said to be at least on par with last year, spring lobster fishers in P.E.I. are not seeing the same kind of financial returns for their efforts.

“It’s roughly a $25-million loss to the Island’s economy, based on last year’s prices,” said P.E.I. Fishermen’s Association’s managing director Ed Frenette.

Prices are down by at least a dollar a pound from last spring. Shore price ranges from $4 to $4.50 per pound for canners and $4.50 to $5 per pound for markets.

Input costs, fuel in particular, are higher this year.

Some fishermen suggest the fishing industry here could benefit from more competition on the wharf, and from more processors, even if it means breaking the agreement the provincial government has with Ocean Choice to limit the number of processing plants.

Ocean Choice would not have to make any further payments to government on its purchase of the failed Polar Foods assets if government permitted more lobster processing plants to open.

Frenette agrees the argument is worth considering, especially if more plants mean a better price for lobster and more processing jobs.

“It might be a balance,” he said.

Frenette is not surprised government’s decision to allow buyers to apply for buying licences after the season started hasn’t had any takers. Buyers would have had their plans made by then he said.

Provincial Fisheries minister Allan Campbell is unconvinced more processors would have an impact.

His department has been in touch with processors and was informed that, while they are quite busy, they are able to keep up with the supply.

Campbell said his department has contracted someone to prepare a report on the market conditions as they exist locally and in the United States.

A larger scale study of the industry will be carried out later in the year.

Frenette fears a small group of buyers are controlling the price and, as bad as it is now, he worries what the price will be when the fall season opens.

(Eric McCarthy is a journalist with Transcontinental Media’s Journal Pioneer, which is a contributor to the Sou’Wester.)