Rising Operating Costs Negatively Impacted Enterprises’ Bottom Lines
While the final tally isn’t in, lobster landings in Prince Edward Island’s spring lobster fishery were solid this year.
“We do not have official landings for the spring 2022 lobster fishery at this point, but reportedly overall landings have been strong. They may be off slightly over last year but officially that remains to be confirmed,” says Molly Aylward, executive director of the P.E.I. Fishermen’s Association (PEIFA).
“It was a good season,” says Jerry Gavin, executive director of the P.E.I. Seafood Producers Association (PEISPA). “The only concerns I heard was the cost to operate lobster gear especially, fuel and bait price increases.”
Aylward said according to the Lobster Fishers of Prince Edward Island Marketing Board, prices were generally between $7.50 to $8.50/pound during the spring season, which opened on May 3 in LFAs 23, 24, 26a and 26b after a two-day weather delay. Aside from the delayed opening, overall the weather was cooperative with few days missed due to wind, said Aylward.
“Fishermen were faced with additional challenges this year, including the rising cost of fuel, bait and overall inflation. This added to the cost of doing business which has an impact on the bottom line,” said Aylward.
Higher operating costs were also a challenge for processors, said Gavin. “Costs are up dramatically on the processors side as well,” he said. “Electricity, shipping, everything.”
On a positive note, processors haven’t had any major issues with finding labour this year.
“Our temporary foreign workers all got here on time with no issues. Our workforce now is 40 per cent temporary foreign workers, plus some temporary foreign workers with permanent residency that live in our rural communities now which is awesome,” said Gavin, adding he expects about 100 high school and university students have taken advantage of the incentive program funded by the province and coordinated by the PEISPA this season.
Market-wise, in-shell products moved fairly well and early this season, said Gavin, noting there is still a lot of meat and tails in inventory. “Hopefully that will move soon,” he said.
As for the fall fishery in LFA 25, which runs from Aug. 9 to Oct. 10, the minimum lobster carapace size has increased to 79 mm this season.
“If the carapace size keeps going up, there will be less and less canners which is disappointing for some of our processors because there’s a good niche for that canner lobster,” said Gavin.
“People like a small whole cooked lobster at a good price. Everyone has that big size lobster. We are the only ones with canners.”
About half the landings in the spring fishery, where the minimum carapace size is 75mm, are canner lobsters, said Gavin. “Right now, we’re quite a ways from the market size in spring. A lot of our canner product is processed in shell.”
The 79mm carapace size in LFA 25 is only two mm away from the 81mm minimum for market size lobster. Landings in the fall season for the most part are processed for meat and tails, said Gavin. “We will see how that plays out.”
Aylward said members are continuing to invest in better equipment, such as insulated holding tanks and canopies which has helped to improve the quality of the lobster when landed.
“This was made possible through a PEIFA project funded through the Atlantic Fisheries Fund,” she said.
Aylward said the PEIFA wishes all fishers a safe and prosperous fall lobster season.
The spring season closed on July 1 for LFA 24, 26 A1 and A3 and July 3 in LFA 26 A2.
