With all of the recent kerfuffle over cod and the subsequent ending of the three decades-old groundfish moratorium, the talk over the all-important snow crab fishery has suddenly taken a back seat in many industry circles.
As all of our readers know, the Atlantic Canada snow crab fishery has been in a state of flux for the last 18 months or so due to market uncertainty and price fluctuations.
In mid-April, the Fish, Food and Allied Workers Union (FFAW) and the Association of Seafood Producers (ASP) finally came to an agreement to start the Newfoundland and Labrador snow crab fishery with a minimum price of $3 per pound, up from the previous decision of $2.60.
The agreement was announced on April 14, around 12 hours before a union-led demonstration was scheduled in St. John’s to protest the previous pricing decision and after week-long tie-up wherein none of the province’s 57,586-tonne total allowable catch (TAC) had been
landed.
Looking back to the fall of 2023, both the FFAW and ASP expressed their intent to avoid a late start to the 2024 season by attempting to hammer out a formula, with meetings starting in late 2023. To aid in establishing a formula, the government commissioned a team headed by former Vice-President of Memorial University (Marine Institute) Glenn Blackwood.
As the start of the 2024 season loomed closer however, both parties went to the province’s Standing Fish Price Setting Panel with formulas that departed from the Blackwood formula. While the union claimed their formula closely mirrored Blackwood’s, the ASP argued that the union’s formula was not in line with harvester’s historical shares in the snow crab fishery.
But, with the assistance of the Newfoundland and Labrador provincial government, a new deal was struck to finally get harvesters on the water.
The new agreement, which trumped the price set by the Standing Fish Price Setting Panel, set the minimum price for crab in N.L. at $3 per pound throughout the season. Should market prices for 5–8-ounce sections of crab reach $6.50 USD, there would be a reconsideration in pricing.
Alongside a revamped crab price structure, public harvester protests resulted in the provincial government agreeing to allow buyers from outside the province to operate in Newfoundland and Labrador.
John Efford, a fish harvester from Port de Grave and the de facto leader of the so-called “Free Enterprise” movement, started a week of protests outside the provincial legislature to rectify what he saw as processors that had bred a lack of competitive pricing within the province.
The protests, at times, boiled over into standoffs between harvesters, government workers and the Royal Newfoundland Constabulary — resulting in one injured protester, one injured officer and an unprecedented delay in the N.L. provincial budget.
By March 21, however, a deal had been struck between Efford and the province with the help of the FFAW. The provincial government, in line with the protesters’– demands, promised to allow for processors outside the province to apply for licenses in N.L. Fisheries, Forestry and Agriculture Minister Elvis Loveless also promised to raise processing caps during the 2024 season. Efford also promised that the government would be conducting an in-depth review of corporate control within the fishery.
A bumpy spring to be sure.
But is this regional, billion-dollar fishery now starting to right itself? It appears as though it might be, to the relief of many stakeholders.
Despite the well-publicized rocky start to the season, a quick overview of Newfoundland and Labrador’s 2024 crab season has been overwhelmingly positive. Similar reports are also being heard from the Gulf of St. Lawrence snow crab fishery.
According to the FFAW, harvesters have experienced good catch rates, while hauling up some of the best quality crab that has been seen in years.
According to market watchdog Les Hodges Consulting, U.S. snow crab imports are surging this year, with much of it being Canadian-caught crab.
According to the consulting firm, U.S. imports of Canadian snow crab has increased by about 40 per cent over last year. And not only have shipments increased, but the price has been steadily rising as well.
“Canadian prices have risen in June 2024, with Gulf 5–8oz being 28 per cent more expensive than the same period in 2023. Prices for larger sizes (8+oz) have surged even more, increasing by 60 per cent due to the absence of Russian crab in the market. Despite higher prices, imports have remained strong,” Les Hodges Consulting explained.
For 2024, the totally allowable catch (TAC) for Canadian snow crab was 97,712 metric tonnes, a decrease of 2.6 per cent compared to 2023. The Gulf TAC was reduced by 27 per cent for 2024. However, this reduction was offset by quota increases in Newfoundland and Labrador.
The seafood consulting company pointed out that “in May 2024, U.S. imports of Canadian snow crab increased by 90 per cent compared to May 2023 at 35 million pounds. The total imports are up 39 per cent year-to-date, totaling 56.2-million pounds. The demand for foodservice and retail promotions has increased the pace of snow crab deliveries.”
However, despite the snow crab fishery setbacks in the Barents Sea, Canada still has capable competitors in the global marketplace.
Norwegian snow crab recently received Marine Stewardship Council (MSC) approval and processors have seen strong sales in the first half of 2024.
Overall, Norway has exported more than 6,300 tonnes of snow crab, valued at $67 million. Year-to-date shipments to the United States are up 36 per cent compared to 2023, representing 10 per cent of total U.S. snow crab imports.
And of course, you can never count Russia out of the snow crab game. The country currently has 35 vessels harvesting and processing snow crab for both the live and processed Asian markets.
So, to all of the prognosticators out there, what does the future hold for the 2025 crab fishery? It is nearly impossible to predict, but let’s hope this positive trend continues on for the next season and beyond.
