Lobster - the Bargain Food

Photo Courtesy of Joi Ito

Most people would consider lobster to be a luxury food, rather than a bargain food. And a few years ago, they would have been right. Today, though, they might want to re-think that assumption. The price of lobster is the lowest it has been in 20 years. As recently as 2006, lobster was selling at $10 a pound. At that price, it certainly was luxury food! But today, lobstermen are only getting $2.55 to $3 a pound, and retailers are selling it for not much more, sometimes as little as $3.49 a pound. In fact, I've read recently that lobster is now less per pound than hot dogs!

These low prices are putting the lobstermen in a real pinch. Some are saying they need to get more than $3 just to break even, and they're losing money every time they go out on the water if they sell to wholesalers.

And so, there are many lobstermen who have been setting up on roadsides, selling out of stalls and the back of trucks, to get a price a little better than wholesale. Those prices are a little less than retail, too, though, so they're a really good bargain for the lobster eater.

The problem with this is – what is it doing to retail demand? If people are buying directly from the lobstermen, rather than the retail store, then the retail store is selling less, and buying less, does that drive the price down even more? Or will more people buy from the lobstermen, maybe get to know them, and start feeling loyalty, and buy from them directly more often, and with the middleman cut out, the lobstermen will end up doing better? The whole thing makes my head hurt. I'm glad I'm not in economics.

What I DO know for sure – if you like lobster, there has never been a better time to buy it. Whether it is from a roadside truck, your local fish shack, the tank in your grocery store, the restaurant downtown, or even if you're ordering it for delivery online. Get your lobster feed!