Low lobster prices hurting area's economy

Low lobster prices are causing some lobstermen to ask for federal aid.

There was an article on the front page of the Telegraph Journal this morning, an interview with a lobster fisherman, Rejean Comeau, from the Acadian Peninsula in New Brunswick. He was warning of catastrophic consequences for the Acadian Peninsula if next year is the same as this year for the lobster market. This is because the lobster fishery is the most important part of the economy for the peninsula. Kind of like the automotive industry for Detroit and southern Ontario.

Personally, I think the Acadian Peninsula is not the only area that will be hard hit if these depressed lobster prices continue. Lobster is fished from Newfoundland to North Carolina. It's an important part of the economy for many areas in the Atlantic provinces and New England states, and of course coastal Maine is synonymous with lobster. They've done a good job branding themselves!

The problem is, with so many people in these areas being fishermen, when the prices are low, their salary is effectively cut. In the article, Rejean Comeau said prices were down 40 per cent. I'm not sure, but I believe that that 40 per cent drop happened in a single year. I sure know that if my salary were cut by 40 per cent, I wouldn't be spending as much money. And that's exactly what's happening; the lobstermen don't have money to spend, and all the other businesses in these areas are suffering from it.

Because of the recession, the Canadian automotive sector got a 4 Billion dollar bailout, which is all targeted at jobs in Ontario. The lobster fishery got $65 million, spread over 5 years, and that has to be divided between 5 provinces – New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland, and Quebec. Keep in mind the lobster fishery is THE largest fishery in all of Canada. As lobster prices continue to drop, some lobstermen have been saying that the aid package is not enough, and they need more to keep the fishery going, or some of them will have to sell their boats, and that could have devastating economic effects in those local areas.

So the cause of all of this is the current prices. I mentioned in a previous post how low the wholesale price was, but I didn't say what the retail price was, and that, after all, is what most of us are paying to get lobster in our kitchen.

So here's the scoop on retail prices. I went down to my local Sobeys and Superstore this morning, and they are selling live lobster for $8.99 per pound. That is lower than what the wholesale price was just 2 years ago. In comparison, chicken breasts were $7.99 per pound, and steaks were between $7.99 and $9.99, depending on the type.

I don't have millions lying around to help with the industry, so what I'm doing to help is having lobster for supper tonight.

New! Comments