Future of Lobster Markets in
Value-Added Products

John Hathaway processes Maine lobster at his company, Shuck’s Maine Lobster, in Richmond, Maine. Hathaway’s lobster processing mantra is innovation in value-added Maine lobster food products. His commitment to that has earned him two Prix d’Elite awards at the Brussels International Seafood Show. It is also reflected in his company’s slogan, “Revolutionizing the way the world eats Maine Lobster.”

Hathaway was asked about two recent lobster stories in the news. The imposition of Chinese tariffs on Maine lobster and more recently Luke’s Lobster partnering with Maine lobstermen in retailing Maine lobster nationally at Whole Foods markets. “Putting the politics aside, there are currency, judicial and other risks in trading overseas. Shipping live lobster to China is a low-profit-margin business,” said Hathaway.

Hathaway said shipping 70% of the Maine lobster harvest to Canada or China is not a good long-term model for the Maine brand or Maine fishermen.

Hathaway believes the entire Maine lobster harvest could and should be consumed in the United States. Could, because of what “a U.S. population of 325 million and a 2017 lobster harvest of 111 million pounds, with about 18% of that the eatable meat means. It means there is enough Maine lobster meat for less than one lobster roll per every third person in the U.S. once a year,” Hathaway said. Should, because what this means, said Hathaway, “is the U.S. market is enormous for Maine lobster. We can’t raise more lobster like we can raise beef cattle, for instance. Therefore, it’s better to add the value right here in Maine so we can create jobs and brand value right here in Maine.

“Americans love the Maine brand,” said Hathaway. It’s a celebration food. And why not, it’s the best food product in the world.” The markets for steaming and eating them on the beach or breaking up a cooked shelled lobster at home or in a restaurant are small. Currently the much larger Maine lobster harvests and changing eating habits require new, larger and diverse markets with a variety of lobster products for those markets. New products are being developed, from frozen tails to lobster Mac N’ Cheese, he said.

“The recent Luke’s Lobster of Maine agreement with Whole Foods is a good example of innovative ways of adding value and marketing lobster the way people want it,” said Hathaway.

The popularity of the Maine brand, the growing population of the U.S., the changing eating habits and the relatively fixed quantity of Maine lobster all mean there is a great opportunity for expanding the number of value-added lobster products into increasingly valuable markets. The increase in demand will increase the profitability from the supermarket cooler back through to the lobster boat, said Hathaway.