Processor Reacts to Decision

by Fishermen’s Voice Staff

Antonio Bussone said he was stunned by Gouldsboro’s decision to deny him the CDBG grant on September 20th. “It’s a depressed area, an abandoned building, and nothing else coming along, and our company was coming with opportunity. Some fishermen and coops gave us positive feed back,” Bussone said.

Bussone thought some people in the audience asked questions about finances at the September 20 meeting simply to generate a negative feeling, but with no knowledge of business. “Someone asked where I would get a $20 million dollar line of credit, well I don’t need a $20 million line of credit for this business. We are already buying these lobster and sending them to Canada, we would instead process them here,” he said.

Bussone is still in discussions with the engineers redesigning the plant. A set of drawings is expected in three weeks. The company’s timetable was put off schedule by the detailed application process for the federal development grant. Instead of the grant he is now looking at alternative financing and developing other options. One option is a joint venture with a major Canadian distributor of frozen lobster.

Live Lobster ships lobster weekly to markets in Hong Kong, Japan and Vietnam. Antonio Bussone worked in marketing for a lobster business in Massachusetts for three years before starting Live Lobster 11 years ago. Before that he was a business consultant at a law firm .

He said, “I would like to send a message to all those who lost their jobs (at the Stinson plant), but didn’t come to the meeting, and may not feel comfortable getting up to speak before a crowd. We want to offer them a job in their community.”

John Hathaway, owner of Shucks of Maine lobster processing in Richmond, Me., noted a study that showed 60% of Maine lobster goes to Canada and comes back as value added product. “It has been widely believed for some time that there is a need to add value to Maine lobster to create jobs, strengthen the industry and coastal communities,” he said.

Jim Nimon, from the governor’s office and the state development office, said he was surprised by the outcome of the Gouldsboro meeting on the 20th. He said he expected a review of documents but got a discussion of documents that were not there.

A state backed loan that would have collatoral from Bussone involved and other debt at reasonable rates are now being considered alternatives. “The community would again be the conduit for this money, but it would be made as risk averse as possible,” Nimon said.

Nimon said, “We are pushing to get the lights on at the Gouldsboro plant.”

A Gouldsboro resident said the selectmen have worked hard, and have anguished over this. He said, “We want the jobs for the community, but we also want some assurance that this is not an act of desperation likely to end in failure.” Some residents are concerned the governor’s efforts to get a buyer into the plant are pressuring the town and trumping it’s ability to study a decision that they will have to live with.

Given that public money is in part driving this particular transaction at this time, the selectmen believe they should have something to say about how that money is spent in their town. Beyond success with the town any processor will need considerable success with new products in new markets.

Hathaway expressed confidence in the plant’s potential citing trends in the way food is purchased and consumed. “Many people want lobster, but they also want convenience,” he said.

Food vs. the live animal is real for many people. There are apparently enough consumers who do not want a live lobster in hot water that processors consider it a trend. Hathaway said,

“Wal-Mart and other marketers are pulling lobster tanks from their stores.”

In state processors would face less shrinkage and shipping costs. Hathaway said high-end restaurants will still need the hard-shell lobster. His business sells to the European Union countries, but he thinks “the United States is a fertile market for value added lobster product.”

“Maine’s is the strongest brand in the world, and lobster is the best celebration food in the world,” said Hathaway.