No Glut, No Price, Now What?

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DMR Commissioner Pat Keliher, at podium, talked with fishermen at four locations in June and July about the Maine lobster resource, harvest, prices, marketing and Canada. Regarding improving boat price changes, “this industry is what’s going to drive change,” said Keliher. Lobstermen’s union members seated in foreground row all wore red union T-shirts. © Photo by Sam Murfitt

Harvesters in the region have been catching a higher quality lobster than last year, but less volume. So far, the season seems to be normalized compared to last, when shedders arrived strong in June and flooded the Canadian processors. This is the glut that last year drove prices down and tensions high. Most in the industry are chalking up last season to an anomaly.

Lobster dealers were better prepared this year for a similar harvest, DMR Commissioner Patrick Keliher stated on Tuesday, assuring that the communication between U.S dealers and Canadian processors has been improved.

But as low prices remain, without a glut, harvesters at Tuesday’s meeting wanted to know why. “I wish I could give you that answer,” Commissioner Keliher stated. “You’ve proven that you’ll fish for $2/lb., so is that what you’re seeing this year?”

Concerns last year about the low price becoming a norm were voiced on the wharfs and at meetings, as harvesters continued to go out to traps while receiving less than $2/lb. That low price remains as this season gets ready for full swing, and wonderings of price-fixing were expressed to the Commissioner.

“We come in with what we own and get told what we’re going to get paid. The state’s got us trapped. This industry is broken,” harvester Thurman Radford, stated, “Price fixing exists.” After suggesting the subpoenaing of dealer’s records and phone calls to “see who’s convoluting with who,” Keliher answered that an investigation was conducted by the Attorney General a few years ago and there was not enough evidence found to move forward.

“At the end of the day, this industry is what’s going to drive change. State regulations aren’t going to help with the low boat price,” said Keliher.

Though there is little consent within the industry, one constant factor is the lack of dealer input to the conversation at public hearings and listening sessions. Keliher urged the harvesters in the room on Tuesday to create an open dialogue with the dealers, yet they are rarely a presence at the meetings.

What all in the industry hope will improve the boat prices is the marketing bill that will go into effect this fall. Harvesters will pay for the effort through license surcharges, resulting in about $2.5 million over the course of three years.

Harvesters bear the brunt of the industry woes, with heavy investment before even heading to traps, and most have expressed frustration in footing the bill for the marketing effort. Through the collective dis-consent and frustration, however, came the decision to invest one more time into the marketing plan. Some lingering bitterness about the additional costs was evident at Tuesday’s meeting, however as one harvester stated, “I don’t see how any of us can complain about prices and not support a marketing program.”

The new marketing program would result in the dissolution of the Maine Lobster Promotion Council (MLPC), and a new collaborative, consisting of 11 voting board members, will be comprised to carry out the program. Nine of those members will be appointed by the Commissioner after industry nominations. Each zone will nominate three people, which Keliher stated could be harvesters or experienced business-minded folks. There will also be three seats for dealers and two seats reserved for public representation, as well as the DMR commissioner or designee and the Department of Economic and Community Development commissioner or designee. There will be an annual report on the project that will be presented to the Marine Resources Committee as well as the industry at the annual forum and a five-year sunset clause on the project.

“The goal of the marketing collaborative is to have a positive impact on boat prices,” Keliher stated. Though optimistic about the marketing program, he maintains that there is no guarantee that it will work, or that it will trickle down to the harvester’s pockets.

Besides paying money toward a marketing plan, are lobstermen taking their own steps to drive up dock prices? As the industry changes, so, too is the mindset of some harvesters.

“We’ve gotten used to coming in and throwing crates on the dock, putting the boat on the mooring and going home. It’s time we get involved,” Mike Dassatt, secretary/treasurer for DELA stated.

Following the meeting, Patrice McCarron, executive director of the MLA, stated that the Association has been working with fishermen to improve the quality of the lobsters, therefore maximizing the potential value for every lobster brought in. She also said that the MLA believes the marketing plan will play a huge role in the drive to increase boat prices. When the economic recession hit in 2008, 70 million pounds of lobsters were landed in Maine. Last year, the number of lobsters landed in the state had increased by 80%, while still in the recession.

“We need to build demand. The supply is there,” she stated.

McCarron, though quiet during the meeting, did announce some upcoming whale line meetings in regards to vertical lines. The public meetings will be held in four locations at the beginning of August.

Joel Pitcher, organizer for the IAMAW lobstermen’s union, says that coming to some consensus is important for the industry as a whole, regardless of organizational affiliation.

“There’s a big misconception that we’re trying to affect price,” Pitcher stated after Tuesday’s meeting. What the union is hoping to do, is to get more lobstermen actively involved. The union currently has 500 members.

“The collective power of people is what it’s about,” Pitcher said. “You have to have skin in the game. You have to do more than vote.”