Low prices have lobstermen adrift
7/22/09 | 16 comments

Low prices have lobstermen adrift


Compounding their woes, diesel fuel costs twice what it did in 1994
By Bill Trotter
BDN Staff
BANGOR DAILY NEWS PHOTO BY BRIDGET BROWN
“Like I tell the fishermen, you don’t sell to me, I don’t have a job,” said Stanley Beal of Barney Cove Lobster Co. on Beals Island on Tuesday. Beal said he started his lobster business when he was 14. “The price is a problem, there’s no question, for the fishermen. On the other hand, the economy is down, and people have no money to buy [lobsters],” he said. Low prices have lobstermen adrift Compounding their woes, diesel fuel costs twice what it did in 1994 Buy Photo

ELLSWORTH, Maine — The price lobstermen get for their catch has not bounced back since it plummeted last year.

Although it has fluctuated some, the price mostly remains below $3 per pound, and for some areas along the Maine coast, it is below $2.50, as it was last October when prices plunged.

The last time the average price lobstermen received for their catch dipped that low was in 1993, when it was $2.47, according to state statistics.

Compounding the lobstermen’s difficulties is the fact that other prices that affect the cost of doing business, such as diesel fuel and bait, are much higher than they were in the 1980s and early 1990s, when the boat price ranged from slightly under $2 per pound to more than $2.50.

In 1994, the national average price for diesel fuel was around $1.10 per gallon, according to the federal Energy Information Administration. Since spiking to $4.70 per gallon a year ago, diesel prices are now around $2.50. That year, the average price Maine lobstermen received for their catch was $2.59 per pound, roughly the same as it is now.

The low prices have some fishermen in Washington County calling for a statewide tie-up, in which lobstermen would leave their boats moored in the harbors with the goal of pushing prices up to the point at which they say they can earn a living.

According to The Associated Press, a group of lobstermen from the Jonesport area met Sunday to talk about organizing such a protest. Lobstermen there are getting around $2.35 a pound but hope that, with a tie-up, they could force prices to around $3.25 or $3.50 a pound.

Attempts Tuesday to contact fishermen in the Jonesport area who are involved in the tie-up effort were unsuccessful.

But while some fishermen are calling for a work stoppage, others say they oppose the idea.

Glen Beal of Beals said Tuesday that he did not attend Sunday’s meeting but thinks enthusiasm for a work stoppage in his area has ebbed since. Lobstermen elsewhere in Maine don’t seem to be interested in participating in a tie-up, he said, and he isn’t either. He said he doesn’t know what else he would do if he weren’t fishing.

“Everyone would like to get more money,” Beal said. “I’d rather make what I’m making now than make nothing. This is it for me.”

Clive Farrin, president of Down East Lobstermen’s Association, said Tuesday that where he fishes in Boothbay Harbor, the price he’s getting is $2.75 per pound, which is about 15 cents better than the low price he got last fall. He said the number of visitors to the Boothbay area, one of Maine’s more popular tourist destinations, seems lower this summer than in previous years.

As for tying up to boost the price, Farrin said it doesn’t make sense to him. Lobstermen could catch fewer lobsters or none to try to bring the price up, but as soon as they start regularly hauling traps, the price would drop again, he said, and in the meantime they’ve got to try to pay their bills.

“The economy itself has got to get healed up,” Farrin said. “You could tie up for a month, and you’re not going to fix the global economy.”

Officials with Maine’s largest commercial fishermen’s group, the Maine Lobstermen’s Association, are steering well clear of any work stoppage that may be seen as an attempt to boost the price. Officials at MLA are concerned that anything interpreted as a demand about what the price should be before lobstermen go back out to haul traps could result in a phone call from federal prosecutors.

In the 1950s, MLA was sued by the federal government when it encouraged lobstermen to stop fishing until certain price conditions were met. The group was taken to court, where it faced charges that it was violating federal antitrust laws by attempting to fix the price of lobster.

MLA fought the charges, but lost the case. Since the 1957 court decision, it has been bound by a consent decree with the U.S. Department of Justice.

“The MLA is committed to be at all times in full compliance with applicable laws, including federal and state antitrust and unfair competition laws which prohibit restraint of trade,” MLA Executive Director Patrice McCarron said in a news release Monday. “The MLA has been proactive in seeking long-term solutions through the [Governor’s Task Force on the Economic Sustainability of Maine’s Lobster Industry], and we believe that today’s economic crisis underscores the urgent need to move forward with that process.”

On Tuesday, McCarron said MLA’s experience 52 years ago was why it is “staying out” of any plans to tie-up to protest the low prices.

McCarron acknowledged that lobstermen are having a hard time with what they are getting paid for their catch. A few months ago, prices had risen since the drop last fall, to between $3.50 and $4 per pound, she said. Prices usually rise in winter and early spring when the supply of lobster is relatively low compared to demand.

But with the onset of shedder season in late June, when lobsters start molting their shells and become less durable for transportation, the price went back down again, McCarron said. She said MLA’s price report from last week indicated lobstermen were getting between $2.50 and $3 per pound.

“The same week last year it was $3.75 to $4.35,” McCarron said. “It’s definitely extremely low for this time of year.”

McCarron said Maine’s lobster industry, which in 2008 brought ashore an estimated $235 million worth of lobster, continues to suffer from the weak global economy, as do many industries. There may be hope of a long-term boost in the industry by investing more in lobster product development and marketing, she said, but short of that the only likely way lobster prices might recover is if the global economy does, too.

“Retail sales are down. Food service is down. Consumer confidence is down,” McCarron said. “In the short term, we’re not going to see any turnaround.”

The Associated Press contributed to this report.

btrotter@bangordailynews.net

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Comments
16 comments on this item
On 7/22/09 at 12:08 AM, begformercy wrote:         Repeated separate thumbs down will cause comment to be hidden

I hear a lobster bailout is in the works...

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On 7/22/09 at 4:57 AM, Jazz11 wrote:         Repeated separate thumbs down will cause comment to be hidden

Someone is making money and it's not the lobster men. On Friday last I paid $6.99 for a one pound lobster.

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On 7/22/09 at 5:15 AM, bobsmith wrote:         Repeated separate thumbs down will cause comment to be hidden

What a buch of cry babies.....maybe they should have studied in school and got a real job instead of day dreaming of the BIg catch.

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On 7/22/09 at 7:15 AM, BoBeep wrote:         Repeated separate thumbs down will cause comment to be hidden

I agree with Lobstarok. Get a 'real job'? Your post only shows your ignorance.

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On 7/22/09 at 7:40 AM, freewill wrote:         Repeated separate thumbs down will cause comment to be hidden

There is great disparity between the boat price and retail price; however, lobster is not a staple and these are tough economic times so demand has diminished. I hope this fishery survives.

bobsmith, as a proponent of education, do you support the fisherman's retraining program and are you in favor of retraining the people who depend on the lobster fishery? Have you spent time on a lobster boat watching how hard these cry babies work?

Admittedly, the lobster lobby is strong and the profit has been huge but these people work hard with no benefits and no retirement. We ought not be mean spirited, empathy is a good thing.

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On 7/22/09 at 7:57 AM, Bangorian wrote:         Repeated separate thumbs down will cause comment to be hidden

The bottom line is that there are too many people trying to earn a living off lobster fishing. It's time for this industry to be scaled back by reducing the number of available licenses. Then the price will stabilize. Sorry guys.

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On 7/22/09 at 8:05 AM, Knightscross wrote:         Repeated separate thumbs down will cause comment to be hidden

In case these Lobster men don't know it we are in a Depression. Eating Lobster is the last thing on peoples mind right now. Every year now, Lobster men cry about bait, fuel, price, lack of Lobster. I fished Lobster 15 years and got out of it. Got an education and a very good job. Maybe these whiners should get an education and move on to a better job instead of shooting each other over $2.35 lb Lobster.

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On 7/22/09 at 8:12 AM, bendover wrote:         Repeated separate thumbs down will cause comment to be hidden

I fished Lobster 15 years and got out of it, Only a flatlander would say that they fished lobsters!

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On 7/22/09 at 9:37 AM, blackbear219 wrote:         Repeated separate thumbs down will cause comment to be hidden

Tell me where I can go to buy directly from the lobstermen. I'll skip the store and gladly pay the same amount.

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On 7/22/09 at 9:42 AM, islandmotherof1 wrote:         Repeated separate thumbs down will cause comment to be hidden

Being the wife of a lobsterfisherman, I would like to share some thoughts. First, lobstermen are intelligent. They need to have a wealth of knowledge about the speicies in order to catch lobster. The have been able to keep the fishery healthy and sustainable on their own for several generations. Second, they do not have any control over the price of lobster as noted in the article and have to take what they can get even when expenses continue to increase steadily. Even minimum wage goes up. Third, when lobstermen make less money the entire state suffers as state revenues go down due to less income tax paid in. Lobstermen are not cry babies, they just want to make a decent living and inform the public that they are not responsible for the high price of lobster on the market. You do the math. Perhaps we should have processing plants in Maine instead of Canada. It would provide jobs and create a healthy economic competion for those in the business of processing lobster. We know the economy is soft and that lobser is considered a luxury for most. Unfortunately it is a luxury not because of the price that lobster fishermen are getting paid but because fo the greed of those higher on the "food chain". Those of us living in a state known for "the way life should be" need to work together to keep our industries thriving instead of making negative comments. Even though there are things happening in our state that I don't agree with, I wouldn't want to live anywhere but here. Let's show our Maine pride and stand together to keep Maine "the way life should be".

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On 7/22/09 at 9:46 AM, islandmotherof1 wrote:         Repeated separate thumbs down will cause comment to be hidden

blackbear219 you can go to any wharf that buys lobster from the fishermen and pay a lower price. Some of the stores in Washington County are selling lobster at cost or very close to cost. Thanks for your support.

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On 7/22/09 at 10:51 AM, valgal10 wrote:         Repeated separate thumbs down will cause comment to be hidden

HAVE THE CO-OP COME TO BANGOR AND SELL THEM AT THE SAME PRICE HANNAFORD IS GETTING, THEN MAYBE THE LOBSTERMEN CAN MAKE A LITTLE MORE THAN THE 2.25 BOAT PRICE...SAD, VERY SAD SITUATION...

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On 7/22/09 at 10:53 AM, hockeydad99 wrote:         Repeated separate thumbs down will cause comment to be hidden

I too, would gladly pay $10 a pound or more directly to any fisherman who can get live lobsters to me all the way to me in NC. They retail here for $15-$20 per pound, and you'll drop $30 or more for a plate containing real Maine lobster at a restaraunt. The problem is clearly the middle men. Every set of hands those bugs go through drives the prices higher. The only way I can see the lobstermen can control prices is to take the distribution of them on themselves, and cut out the middle man. Obviously, it is easier said than done. Until they reform the industry so that all hands that touch the critters get their FAIR SHARE of the pie, this debate will never end. In the mean time, maybe some of these fishermen should stop driving around in $40,000+ brand new trucks, and settle for $10,000 3 year old ones. That would save them a lot of money. I have a hard time feeling bad for the "struggling" family living in a $300,000+ house and drive around in multiple $30,000+ vehicles. Maybe they should adjust and live within their means like the rest of us.

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On 7/22/09 at 12:08 PM, Iheartfark wrote:         Repeated separate thumbs down will cause comment to be hidden

hockeydad, you are absolutely right. The fishing industry has always been a volatile one. If some of these guys would keep in mind that just because the price is up one year, doesn't mean it will stay that way, they would be much better off. Saving for a rainy day instead of buying expensive toys and houses would be smart, especially if you don't have a backup plan for when the price and/or demand drop.

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On 7/22/09 at 2:14 PM, Mark44 wrote:         Repeated separate thumbs down will cause comment to be hidden

Now you just gotta keep The Nature Conservancy dirtballs from controlling your industry, the intellectually stunted “politicians” from over regulating it, and you might have a fighting chance!

.

.

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On 7/22/09 at 6:15 PM, DougLavigne wrote:         Repeated separate thumbs down will cause comment to be hidden

Send some of that Lobster here to Arizona, I would be glad to pay $10.00 a pound, at Redlobster in Arizona, they will charge you over $50.00 for a 3 pound lobster, $24.00 for the 1st pound and $16.00 per pound for the rest of the weight of the lobster, now that's some serious price gouging.

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