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At the top this year’s topics was the price of lobster, fuel costs, and landings. While the cost of a gallon of fuel is about what was paid per pound this season, there was a sense that something had to give. Grand Manan Island, Canada fisherman Laurence Cook sketched out the basic economic problem. He said that when he started fishing in 1991 fuel was .90 cents per gallon and lobsters were selling for $4.50 per pound. In the 2007 season, fuel was nearly $4 a gallon (US) and lobster was $4.50. The restaurant company representatives thought the current high price on the menu didn’t leave much room for a price increase. They cited the limit casual diners are willing to pay. Kevin Douglas, who is affiliated with Outback Steakhouse said North Atlantic lobster tail can easily be substituted with other proteins on the menu if the prices go beyond what the customer will pay. The casual dining sector is having a difficult time financially. “There is a limit to how much they can pay. We can’t lose this sector.” The discussion continued to focus on the difference between the boat and the plate price. That difference was attributed to the profit margins for the many hands in the process. They include the buyer, wholesaler, imported, airfreight, distributor and the retailer. In addition to profit at each one of these stops there is shrinkage; in other words, lobsters that do not arrive alive. Cook said there was a need to reduce the number of hands that handle the lobster in this marketing process. He referred to the difference between the $27 on the plate and the $4 he receives as a major point of concern to fishermen. Cook told Douglas, “We need to deal with the $23 between you and me.” Suggestions for cost-cutting included Mike Tourkistas, CEO of East Coast Seafood in Lynn , MA, who said dealers and fishermen could create partnerships. Marketing lobster brought up discussions of surcharges on licenses to fund a marketing plan. This has come up in the past and was described as having gone over like a lead balloon. Dana Rice asked, “Are you willing to put a penny a pound into marketing?” Obtaining an “eco label” as a means of improving consumer demand was considered a credible marketing effort. (See Great Green Hope, P. 14, May 08, Fishermen’s Voice) Cook said they were fishing one of the most environmentally sound fisheries in the world. Marketing that fact led to eco label discussions. Dana Rice said, “This eco-friendly business has scared me more than anything has scared me in my life”. Eco labeling would come as a result of certification from a European company. With right whale protection and threats to water quality being issues in the gulf of Maine some see these as problems that could be used against the Maine lobster industry. Water quality has been an ongoing issue at these Town Meetings. The price of lobster, fuel, and landings took center stage this year. Bob Bayer said the Lobster Institute, in response to the increasing concern over water quality and the use of pesticides on the coast, is organizing a large database on pesticides and hopes to make it available on the Institute website. Data collected from the 1999 Long Island Sound, New York lobster die-off will be included. |
