Prices of marine products inflated by supply difficulties

The inflationary pressure of recent years on the price of fish and seafood is far from fading, according to the most recent economic analysis from the Department of Fisheries and Oceans (DFO).

In particular, the value of lobster landings in the province has multiplied by 5.4 between 2011 and 2021, going from $37.9 million to $206.0 million. That of snow crab more than tripled during the decade, going from $58.5 million to $183.6 million.

“It’s a strong trend,” comments economist Ali Magassouba, from the DFO regional office in Quebec.

For the year 2021 alone, he calculates that Quebec lobster fishermen benefited from a 69% increase in the price paid at the dock compared to 2020. The crabbers benefited from a 97.3% increase. He attributes this inflationary surge to the difficulty of delivering marine products “from sea to plate”, among other things due to the shortage of labour.

“There’s pressure on the supply chain,” he says. That is, trucking, warehouses, factory workers. There are job shortages throughout the distribution chain. It makes it longer, more difficult and more expensive. The cost ends up being passed on to consumers and fishermen benefit.”

The DFO economist also notes that government support measures to stimulate the economy during the COVID-19 crisis have favored demand for fish and seafood, “because overall there have been more money to consume. That said, Ali Magassouba recognizes that too high a rise in consumer prices could curb consumer enthusiasm.


Prices of marine products inflated by supply difficulties

Hélène Fauteux / QMI AGENCY

“In addition, the interest rate increases expected by the Bank of Canada in 2022 could further slow consumption,” he explains.

For his part, Jean-Paul Gagné, director general of the Quebec Association of the fishing industry (AQIP), is optimistic, but cautious.

“The mood is optimistic,” he says. People are very interested and ready to buy in very large quantities. We can therefore expect a certain stability with 2021, even if we should not take for granted the extraordinary rise in prices that we have experienced. However, with the war in Ukraine, everyone is on the sidelines. We are not immune to upheavals that could tilt prices.

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