Disputes and disagreements over prices are nothing new in the Newfoundland and Labrador fishing industry — in fact, some would call them the norm.
However, a few months ago, this year had the promise of being a little different, as N.L. harvesters were anticipating record or near record price for snow crab and maybe even Northern shrimp. But things are not quite going as planned.
Earlier this year, in N.L., where the crab price is chosen through a collective bargaining process by the province’s Fish Price Setting Panel, many fishermen were disappointed by this year’s price. For 2022, the Price Setting Panel sided with the Association of Seafood Producers’ (ASP) offer of $7.60/pound, a rollover of the 2021 price. The FFAW-Unifor had requested a price of $9.05/pound.
However, on May 12, the Panel received an application from the ASP requesting that it reconsider its decision dated April 1, 2022, concerning the price and conditions of sale for snow crab in 2022.
The Panel reviewed the ASP’s rationale for requesting a reconsideration and conducted a preliminary review of the market information available on short notice.
“The parties were advised by the Panel on May 12, 2022, that it had reviewed the market information available, specifically Urner Barry pricing and market commentaries. Based upon the review, the Panel concluded that the snow crab market is significantly lower than considered at the time of the initial snow crab hearing. Therefore, the Panel was prepared to reconsider its 2022 snow crab pricing decision.”
After review, the Panel said it believed there was reason to expect that the market price will continue to fall and reach a level in the $9–$10/pound U.S. range and accepted the final offer of the ASP of $6.15/pound.
The growing uncertainty surrounding crab continued when, two weeks later on May 30, the ASP announced that its members were compelled to take further action regarding changes in the international marketplace.
The ASP said “it has serious concerns that the snow crab market is not functioning in a normal manner, and that U.S. and Japanese buyers have been reluctant to place orders for snow crab or have slowed their crab purchases week after week in the hopes of finding the bottom of the market.
Newfoundland and Labrador has to date landed and produced over 60 per cent of the crab, well ahead of previous years given this year’s quota increase.”
“There are real market challenges all through this process for my members,” says Derek Butler, Executive Director of ASP. “The market simply is not operating as usual.”
Butler said in order to support a stable business and the functionality of the marketplace — not only in 2022 but for 2023 as well — companies in the province will be limiting their production.
He added that the industry is cognizant of the impacts on workers and communities, but status quo cannot continue.
“Producers cannot continue normal production in this uncertain environment. Some members will be taking corporate decisions to limit production over the balance of the season. There is a clear necessity to support the market and stabilize pricing by limiting supply.”
Predictably, the FFAW-Unifor said the slowdown in production had the potential to be catastrophic with a significant amount of quota remaining for the 2022 season.
“Close to 70 per cent of 50,000 metric tonnes of the Newfoundland and Labrador quota has been landed. Labrador harvesters have just started to harvest crab, but the company has committed to purchase their catch. Harvesters were critical of ASP’s intentions and believe these companies must be required to be more transparent regarding information on product yields and markets. Many harvesters have made huge investments in their enterprises and ASP’s message causes unwarranted stress and anxiety on harvesters, crews, plant workers and all their families. Inshore Council members also point out that harvesters across the province will not tolerate unfair treatment of independent harvesters if companies prioritize boats tied to companies or those from out of province,” the union stated.
Shrimp Prices
There is also trouble brewing on the Northern shrimp front.
N.L. harvesters are set to see a big jump in the price they will get this year for their shrimp — $1.42/pound. Last year they received $1/pound.
However, some fishermen are accusing processors of refusing to pay the 2022 price laid out by the Price Setting Panel.
La Scie fisherman Terry Ryan even threatened to dump his first load of Northern shrimp for the season at an estimated loss of $100,000 if there’s no buyer when the catch lands at the wharf.
“The panel system of fish pricing in this province is not working and that point that must be hammered home,” says Ryan, who together with son Josh operate the Atlantic Bluefin Too. “The fishery needs a good shake, and that’s what we plan to give it.”
2022 Cod Prices
This year, it appears there is some price positivity for cod prices.
The FFAW-Unifor announced that following negotiations with ASP on the price of cod for the 2022 season, the result was a 33 per cent and 31 per cent increase in the price for Grade A cod.
Last year, the Panel accepted the ASP’s final offer. The price for Grade A cod for the spring season was $0.73/pound and the price for the fall season was set at $0.80/pound — the same prices harvesters received in 2020.
