Price drop offsets good catches

Fall lobster landings believed to be on par with 2016 records

The president of the Prince County Fishermen’s Association says his members are hoping for a significant price adjustment once lobster buyers and processors move their inventories.

Lee Knox said Friday landings for the fall season, which ended on Monday, are believed to be on par with record landings in 2016. What’s different this year, though, is the price is nearly $2 less per pound.

Knox said fishermen received $6.15 per pound for canners and $6.50 per pound for markets, after adjustments, last year. Fishermen received $4 a pound for canners and $4.50 for markets this fall, but Knox said there are indications from buyers of a 25-cent per pound adjustment later on.

Buyers have blamed the lower prices in the fall, in part, on the value of Canadian dollar in relation to the U.S. currency and a shift in market demand. At most, Knox said, that might account for a one dollar a pound drop.

There is also an indication the fall fishermen are getting less for their catch because of the high prices paid during the spring season, as much as $7 and $7.50 a pound for the first three weeks of the season.

“They shouldn’t be robbing Peter to pay Paul,” he insisted.

Knox said fishermen are hopeful buyers will be able to come up with a larger adjustment for the fall fishermen.

As for now, with a price somewhere around $1.80 to $1.90 a pound less than in 2016, Knox said fall fishermen and the economy of western P.E.I. are losing out.

Based on a catch of 30,000 pounds, and a 50-50 canner/ market mix, a fisherman would have earned $189,750 last year and $135,000 this year.

While the value dropped significantly, Knox said the input costs did not. He estimated fishermen spend $50,000 to $60,000 a year for fuel, wages and bait. There are also boat payments and other costs. He suggested the area economy will be impacted by the price decrease, as fishermen will have to adjust their spending accordingly.

The reduction in income varies from port to port. Knox said P.E.I. fishermen to the north end of Lobster Fishing Area 25 saw as much as a 15 per cent drop in their landing, while fishermen in the central Strait area held their own or had increases.

The decrease to the north, he said, was expected because of the lobster carapace increase.

By contrast, Gerald Arsenault, who fishes out of Cap Egmont, said he had his best landings in 32 years on the water.

“It’s probably the best it’s ever been,” he said.

Before rebounding in recent years landings were so bad, Arsenault said, that there was hardly any gear south of Cap Egmont. Now, he said, gear is spread throughout the district again.

Knox acknowledges the effects of the carapace increase are most pronounced to the north. He said his board will meet next week and will resume efforts to slow down the scheduled carapace increase.

There was a two-millimetre increase this year following a one-millimetre increase last year. Another two-millimetre increase is scheduled for next year, which would bring the minimum carapace length to 77 mm.

He throws the price drop in the face of those who suggested the carapace increase would result in higher shore prices and argues the increase should be halted until areas negatively impacted by the increase are able to catch up.