Lower Landings, Stormy Days Didn’t Lead to Immediate Price Increases
Same quality, lower quantities and strong demand but lower prices — so what gives?
This is the question most lobstermen in LFA 34 (western and southwestern Nova Scotia) are asking themselves as the heady days of Christmas are over and attention now turns to the Chinese New Year and Valentines Day.
Last year, at this time, some harvesters landed product 28 days in a row. This year, high winds cancelled the initial dumping day and have appeared every two or three days since then, limiting fishing time.
Quality was also a problem as record warm temperatures in the Gulf of Maine led to late moults and for water-logged product.
The problem was noticed in both inshore and offshore waters. One fisherman in St. Mary’s Bay said when he dropped a lobster from the pot and it fell on the deck of his boat, the shell cracked. This was a first for him.
A year ago, processors were paying market prices for sub-par lobsters which explains why it will probably end up as the most profitable lobster fishery for harvesters in years.
Things appear much different this year.
Prior to the opening of the season at the end of November, the word from buyers was that things would change from a year ago, price wise — no more top dollar for processing grade stuff.
Harvesters were greeted with $5.25/pound on opening week — a dollar less a pound than was the case 12 months ago. When you factor in inflation, this is about what harvesters received in the 1980s — this despite lower landings and a demand from the U.S., Asia and Europe which was consistent with last year’s where prices opened over $6/pound and jumped to $13/pound over the winter, settling back substantially during the spring part of the fishing season.
By January 4, the price had increased to $9/pound as shippers prepared for the lucrative Chinese New Year in late January. Valentines Day is the third of the most important three dates on the lobster fishing calendar.
Many lobstermen hold on to their catch until there is a price increase. This can become a Russian Roulette-type of scenario if the product held in holding tanks was of sub-par quality to begin with. High mortalities can bankrupt a fishermen or buyer in a very short time.
One harvester said he held on to half his catch and only sold when the price jumped to $8/pound as Asian buyers had to get the product to satisfy commitment in China for their New Year.
While catches were high on opening day, but quickly petered out as was the case in the Bay of Fundy and in the Grand Manan area.
As of January, the offshore operations (more than 20, 30-miles out) were landing 2,000 pounds after a two or three-day set. For the inshore sector, 400 pounds was the norm.
It is estimated that in LFA 35, landings are down 30-35 per cent and up to 40 per cent in LFA 36.
These figures will probably emerge from LFA 33-34 as fishing days were seriously curtailed due to inclement weather conditions.
The Stanfield International Airport in Halifax is the hub for most trans-Atlantic and Asian shipments of live lobsters during this time of year.
Fifteen international cargo flights were due to take off from here during the Christmas/Chinese New Year season.
In 2015, seafood exports from the airport were up by $57-million to $149-million.
A new kid on the block, Shelburne, Nova Scotia-based First Catch Fisheries, an offspring of the Chinese company Fishing Forever, has purchased 4.5 acres of land at a former Canadian navy base in the south shore town. It plans to erect a seafood processing plant later this year which eventually could employ 100.
The company chartered a jumbo jet to fly lobster directly from Nova Scotia to Asian markets faster. As with any other perishable commodity, the shelf life of a live lobster is short and the fastest it can be brought to market the better.
First Catch Fisheries says after 50 hours out of the water, lobster quality begins to disappear. These flights will cut travelling time to only 18 hours.
Korean Air Lines and Qatar Airways both fly lobsters to Asia but not directly, which takes more time.
At the time of this writing, First Catch Fisheries was looking for other buyers wishing to ship to China to use its jumbo jet service as it has a 105-tonne capacity.
The lack of aircraft cargo space used to be a problem for local shippers out of the Halifax airport, but this has been alleviated somewhat with the construction of a new terminal.
Some good news came out of DFO tests on scallops in St. Mary’s Bay, which has seen dead fish and shellfish wash up on its shores in December. There were no toxins in the scallops or lobsters tested.
Alain d’Entremont of Kenney Fisheries in Digby, N.S. was pleased to hear the news because it means the scallop he sells are fit for human consumption. During the past weeks, he was inundated with phone calls from customers globally about the quality of his product as news of the fish kill-off in St. Mary’s Bay made international headlines.
