The lobster industry's challenge, part I
Many good things come to mind when people think of Maine and one of them is lobster for good reason. The iconic image of stacked lobster traps and lobster boats in our harbors are part of Maine’s picturesque appeal – and lobster is a tasty food enjoyed by locals and tourists alike. Moreover, the lobster industry is integral to Maine’s economy, the Midcoast economy, and the Maine brand.
This year, lobster has made headlines. Maine lobstermen are experiencing financial and marketplace challenges. This week I’d like to share some of the comments and concerns I’ve heard from lobstermen and provide some background on how this situation has come about.
It turns out that a confluence of factors has reached a tipping point for the Maine lobster industry. The first reason is that landings are up. While this may be positive, the increase in supply without an equal increase in demand causes an overabundance of lobster, thus driving down boat price. Even though Maine lobster landings have been steadily rising, demand for lobster has not kept pace and prices have been affected.
Another factor is the high percentage of soft-shelled lobsters or “shedders” landed this year. Shedders are lobsters that have recently lost their shell because they outgrew it, and started growing a new one. Because of this winter’s warm ocean temperatures, lobsters were more active, ate more, grew quicker and shed their old shells earlier in the season. Compared to hard shell lobsters, shedders don’t travel as well or last as long out of the ocean, so they have to be sold and cooked or processed quickly. When lobsters like shedders can’t be shipped to remote markets, it restricts demand to that of local markets and lobster processing plants. Meanwhile, the market demand for hard shell lobster goes largely unmet.
Another compounding factor is the shortage of Maine lobster processing. Maine has three processors to Canada’s more than 30. Because the Canadian government has subsidized their lobster processing industry for years, they have lower costs. This has made it difficult for Maine processors to compete. So for Maine lobstermen to get their lobster processed quickly, they are mostly at the mercy of Canadian processors who are in control of price. Furthermore, because of political pressure, Canadian processors pay Canadian lobstermen $1 more per pound than they have been paying Maine lobstermen.
This is the second year in a row where lobster prices have suffered. The steady increase in landings coupled with early shedders have compounded the problem – making this year the worst yet. Maine lobsterman lost between seventy-five cents to $1 per pound last year and lost up to $1.25 per pound this year. Some say the coastal economy has lost $200 million in just two years. This is not sustainable. At the latest Lobster Advisory Council meeting, it was estimated that up to 50 percent of our lobstermen may no longer have work if there is another year like this. Fishermen need to make a livable wage – and if we don't do something, we are going to lose a generation of young fishermen.
The Maine lobster industry is too important. And worse, the problems the industry is facing are far too serious for us to do nothing. We must look at ways to improve the flexibility and responsiveness of the industry so it can meet the changing market conditions.
Just weeks ago, I submitted a draft bill to address one aspect of the lobster industry’s challenges, but efforts can’t stop there – or wait for action by the next legislature in January. To that end, I am continuing a series of meetings with lobstermen, lobster processors, and other industry stakeholders including state and federal officials to collaboratively craft actions that can contribute to a brighter future for lobstering in Maine. We all agree that there isn’t one all-encompassing solution. There are, however, steps that can be taken that will move this industry and economy in the right direction, for example:
Increase competition. By improving the opportunity for seafood processing plants in Maine so they can compete with Canadian processing. That will create jobs, increase competition for our lobster supply, and help preserve the Maine lobster brand.
Improve quality. We must help lobstermen manage the quality of lobsters when they are harvested. This will increase the lobster yield at processing plants and avoid a glut of shedders. In the words of a few lobstermen, “if a lobster can’t lift its claws, it is too soft.”
More demand, new markets. We must find ways to increase demand for Maine lobster by increasing the variety of lobster products and reach out and expand to new market areas.
Times are hard for the lobster industry, yet I am optimistic that from this crisis will come opportunity – an opportunity that seeks solutions to shore up our lobster industry, defend our Maine brand, create jobs and strengthen our economy. Next time around, we will do better.
State Senator Christopher Johnson lives in Somerville and represents Senate District 20.
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