Prolific and unprecedented record catches of Homarus Americanus appear to be the norm, for now, in the Maritimes.
Everyone is aware of how much the Eastern Canadian lobster industry has grown and prospered in recent years. But it is not until the numbers are broken down, does one actually see how this always lucrative fishery has grown exponentially — especially over the last decade.
A myriad of eye-opening, jaw-dropping lobster statistics were recently presented by Fisheries and Oceans (DFO) at the Maritimes Region Lobster Economic Update presentation to the Regional Lobster Advisory Committee.
The scope of growth in the industry is quite staggering. From 1990 to 2016, the total North American inshore landings of American lobster have more than doubled and is up 91 per cent since 2007.
Preliminary estimates indicate that 2016 was the record total for North American inshore landings of American lobster at 161,706 tonnes — made up of the third all-time highest landings in Canada (89,783 tonnes) and highest all-time in the U.S. (71,923 tonnes). The Maritimes region alone accounted for 61 per cent of the Canadian total and 34 per cent of the North American total.
The presentation also pointed out that despite the many reports to the contrary, it is not quite accurate to state that lobster landings are down south of Maine — probably more like south of Cape Cod, since 2016 saw record landings for Maine, New Hampshire and Massachusetts.
DFO is reporting that Maritimes region inshore lobster landings hit 60,852 tonnes for the 2015-16 season, with a landed value of $885 million — both records. With some fishermen’s logs still outstanding, preliminary landings for the 2016-17 season was sitting at 47,816 tonnes — equating to a landed value of $773 million.
In 2016, inshore lobster landings from the Maritimes region were on par with the previous season at 54,646 tonnes, with landings having roughly plateaued for the rest of Atlantic Canada and Quebec (at 35,137 tonnes).
To nobody’s surprise, lobster fishing areas (LFA) 33 and 34 lead the way in the Maritimes and the rest of Canada, for that matter. LFAs 33-34 witnesses a six-month fishery that has grown to become the largest lobster fishery in the world.
In LFA 33, 2015-16 season, a total of 10,049 tonnes of lobster was landed through 695 licences, for a value of $148.8 million.
However, this impressive total paled in comparison to LFA 34, where nearly 30,000 tonnes were landed, amounting to a value $421.5 million. There was a total of 979 licences issued for LFA 34. This equates to a very impressive, average landing value of $430,541 per licence.
Basic economics tells us for an industry to produce an ever-increasing supply, there must be a growing demand for the product — and Atlantic Canadian lobster is certainly in demand.
Total Canadian lobster exports reached a record $2.148 billion in 2016 — with a 61:39 split between frozen/processed and live lobster exports.
The value of frozen/processed lobster exports tripled from the post-financial crisis low of $425 million in 2009 to $1.310 billion in 2016. Live lobster export values increased 2.4 times from the low of $346 million in 2010 to $838 million in 2016. It is worth noting that this total was actually down from the 2015 value of $855 million.
So where is this lobster going?
Traditionally, the U.S. has always been the largest importer of locally caught lobster and it still remains the largest market — for now.
Canadian exports of frozen/processed lobster to the U.S. reached $1.310 billion in 2016. During the 2000 to 2016 period, the U.S. averaged about 85 per cent of processed lobster export value — that figure dropped to 78 per cent in 2016.
The total percentage of live lobster shipped to the U.S. was as high as 80 per cent in 2001. That number has slipped to just over 60 per cent in 2016.
Enter the Asian appetite
for the tasty crustacean.
In 2016, $154-million worth of frozen/processed lobster was exported to Asian markets, up from around $20 million in 2008/09.
But the most significant Asian growth is coming from the live lobster market.
Asian market imports of Canadian live lobster reached $256 million in 2016. China and Hong Kong accounted for $167 million of this total, while South Korea, the second-most important Asian market, imported $43 million worth of lobster.
Now that Asian consumers appear to have developed a yearning for the lobster caught off Eastern Canadian shores, the sky is the limit on how much this market could grow, particularly in China.
Also on a positive front, thanks to the September 21, 2017 implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the eight per cent tariff on Canadian live lobster exports to the EU has been eliminated. This opens up a plethora of new opportunities for Atlantic Canadian lobster processors to the EU’s $22-trillion market and 500 million potential new customers.
For now, it appears to be full-steam ahead for this region’s lobster industry. Markets are growing, catch rates are solid, the stocks appear to be healthy and prices are consistent.
As the numbers indicate, the importance of this fishery cannot be understated. The lobster industry is an economic engine that is not only critical to rural areas of the Maritimes, but has the potential to be one of Atlantic Canada’s most commercially successful international exports.
A lot is riding on lobster. It is important this fact is not overlooked during these perceived good times. Solid management plans, good fishing practices and careful, accurate stock monitoring are all key elements that must be taken into consideration to ensure this healthy, growing fishery stays that way.
