(Halifax) In the Maritimes, the price of lobster is reaching unprecedented heights.
Posted at 3:05 p.m.
“Our lobsters are now made of gold. Prices were the highest in commercial history,” said Stewart Lamont, general manager of Tangier Lobster, a live lobster exporter in Nova Scotia.
When the pandemic hit, demand from the export and catering industry plummeted. The landed price for lobster – the amount fishermen receive from buyers at the wharf – has dropped to $4 a pound.
But then sales rebounded after the first wave of COVID-19.
Canadian lobster exports reached a staggering $3.26 billion last year, beating the previous record of $2.59 billion set in 2019.
With many consumers saving money during the pandemic, the crustacean long considered a luxury item for special occasions has become one of the best sellers in the United States.
Additionally, “there is unlimited demand in Asia for Canadian lobster,” said Colin Sproul, president of the Bay of Fundy Inshore Fishermen’s Association. “It’s a premium product and we have a good business relationship. »
Strong demand, coupled with lower catches during the winter months, is driving consumer prices up to $19.50 per pound.
Prices have since dropped to around $14.50 this week and could fall further.
The opening of several lobster fishing grounds across Atlantic Canada in the coming weeks should boost supply, which should dampen prices, Lamont said.
If prices rise again to $20 a pound and stay there, some restaurants and grocery stores could stop selling the shellfish altogether, he warned.
But the reality is that fishermen also face crippling inflation – in addition to the heavy debts many take on to join the industry, experts say.
Rising fuel and labor costs, large loans on boats, licenses, equipment and ongoing maintenance are eating away at all profits, they say.
Meanwhile, the cost of bait used in traps is set to rise after Fisheries and Oceans Canada announced the closure of the commercial mackerel and commercial bait fishery on the east coast, citing concerns that the declining population has entered a “critical zone”.
“The biggest source of bait has just been eliminated from the industry,” Sproul said. We will have to import bait and it will cost us more. »
Inflation, uncertainty from surging COVID-19 cases and the potential impact of Russia’s invasion of Ukraine on shipping and demand could also influence lobster prices, he says .