When the Stinson Cannery in Gouldsboro closed, it seemed like Maine was moving in the wrong direction. Instead of adding natural resource processing jobs, the economy was shedding the very last cannery in the state and the 128 good jobs that went with it. This didn’t make sense – this state’s economy was based for decades on the understanding that Mainers could find good work in adding value to the products of the forests, fields and fisheries.
With the encouragement of state government, my company, Live Lobster, decided to take up the challenge of reinvigorating the facility and converting it into a processing facility for Maine lobster, Maine’s iconic product. With the addition of our facility in Gouldsboro, there are only four lobster processors in Maine as opposed to 18 in Atlantic Canada.
We knew there would be difficulties in succeeding where a big company like Bumble Bee Foods had given up, but we believed that a key building block in the future of Maine’s coastal communities is an active seafood processing industry.
Our vision for this facility aligns perfectly with the larger opportunities in the Maine economy. We want to do our part to reverse the trend in which lobsters are harvested in Maine waters, sent to Canadian processing facilities, and then purchased back by American distributors and consumers, with the profits and tax revenues from our signature industry being largely captured by foreign companies and the Canadian government.
The lobster processing industry is a prosperous industry, and it should bring prosperity to Maine. Instead, processed Maine lobster has become a Canadian product.
With its economic history of paper mills, potato and blueberry farms, canneries and tourism, Maine has long understood the importance of making good use of the plentiful natural resources with which it has been blessed. The state has prospered in part because of the economic benefit of these industries, with spillover effects that go far beyond the families who work these jobs and the dollars that spread to the communities and regions that host them.
Despite record catches, Maine’s lobster industry is in danger because it lacks an essential element of a strong natural resources economy — the local processing of the product and the financial benefit to the local economy.
The economic impact for the families and communities involved in harvesting is amplified when a natural resource is processed or improved here in the state. This holds true when a tree is turned into paper, when potatoes are cut into French fries and when lobsters are processed for consumers.
Maine needs to tap into the immense opportunities that will exist if we build a lobster processing industry in Maine. This can generate tens of millions of dollars of economic activity for the state and keep these dollars from flowing to Canada. It can be done, but it will require the concerted efforts of businesspeople, government and coastal communities working together in our common interest.
Since last August, my company’s initial attempts to keep some of this work in Maine have been challenging. We have made a very serious investment, spending more than $2 million in facilities improvements and putting 75 full-time employees on our payroll, most of them former Stinson cannery employees who had been out of work for almost 18 months.
We are creating a business where none has existed before and we have faced significant challenges working with government agencies, local economic interests and Canadian competitors in the industry. In spite of this, thanks to our dedicated workforce and excellent local managers, we are gaining a significant market share and producing a superb product.
Maine people are proving that lobster processing is an industry that can support economic development in Down East Maine. My company is privileged to be part of this.
If we are to continue to be globally successful in an increasingly competitive environment that sends good Maine jobs overseas and out of the country, Maine needs to get back to its successful economic roots and develop a thriving, value-added natural resource economy. My company has committed to this effort and others will certainly do the same as our commitment proves successful.
I urge our state and regional leaders to work together to put Maine people to work in lobster processing facilities to ensure that processed lobster is a Maine product and to create stable jobs for coastal families. I welcome anyone who is interested to visit us in Gouldsboro and see what our people are doing.
Antonio Bussone is president of Live Lobster, based in Chelsea, Mass.
There is a back story here which the BDN should cover. It involves the economic and political interests in Downeast Maine that are sustained by a status quo in which the great majority of the people have to live with joblessness and poverty. When someone like Antonio Bussone tries to create jobs that can support a more prosperous community, those interest go to work to block him. They make job creation a daunting task. In the background are Canadian businesses that want natural resources from Maine, but want any value-added products to come from Atlantic Canada. A small number of businesses in Downeast Maine depend on the Canadian interests. In the case of the lobster industry, the Canadian processors fix the price and Maine buyers who supply the Canadians accept the prices as fixed in order to do business. This in turn depresses what Maine lobstermen can receive for their product, but for the most part they too are dependent on the Canadian processors and their Maine representatives. They have no choice. To create lobster processing in Maine it is necessary to challenge this “ecosystem” and the price fixing involved. To do so is risky because of the power of the interests arrayed against anyone who tries to challenge this “ecosystem.” If it takes courage for a businessman to take such a risk, it also takes courage for local and state politicians to support the businessman who is willing to take the risk. Profiles in courage in politics are rare? The question for all of us, I believe, is whether we support a status quo that assures poverty and joblessness, or whether we want to give prosperity in Downeast Maine a chance. Apparently it is easy to blame the welfare system and those who depend on it, but in many ways welfare simply represents palliative care for those who have no better economic alternative. Perhaps we should focus on the business interests that have invested in poverty because for those interests IT HAS BEEN GOOD FOR BUSINESS. Perhaps the BDN could do stories on the economy in Downeast Maine and on who gains and who loses because of the status quo, on who might gain and and who might lose if this “ecosystem” were challenged. Perhaps poverty need not be the necessary condition of doing business in Downeast Maine?
Processing lobster in Maine is potentially a good thing for our economy, but quite a few things stated in this article are a bit misleading. Sadly I feel that the Bumble Bee plant has past its usefulness and throwing tax dollars at it will never work, and that is what has happened. When in office the last Governor ordered a study conducted by a company called the Mosely Group to see what was wrong with the lobster industry and why are prices not as high as a lot of people would like them to be. They concluded that the industry was grossly over competive, that causing profits to be very slim in the sales area. With slim profits the industry is in a self perpetuating spiral down with one guy undercutting another to get the sale. We have seen an explosion in lobster landings as well and everyone knows about supply and demand. The article states that their are eighteen lobster processing plants in Atlantic Canada, that number itself is quite low if you include the crab plants that are now processing lobster to extend their work year. We also need to understand that Maine landed a whopping 93 million pounds in 2010 and the numbers for 2011 look larger than that, at the same time the vast majority being soft shell. Canada has made the infastructure investments to sustain their own fisheries generations ago, they did not import lobsters from the US until the eighties to process. There is another company about to construct a brand new large lobster plant in Maine right now all on their own without needing tax dollars in grants, conservation easments, or State backed loans. Then we might see business run properly not on tax-dollar life support.
Processing lobster in Maine is potentially a good thing for our economy, but quite a few things stated in this article are a bit misleading. Sadly I feel that the Bumble Bee plant has past its usefulness and throwing tax dollars at it will never work, and that is what has happened. When in office the last Governor ordered a study conducted by a company called the Mosely Group to see what was wrong with the lobster industry and why are prices not as high as a lot of people would like them to be. They concluded that the industry was grossly over competive, that causing profits to be very slim in the sales area. With slim profits the industry is in a self perpetuating spiral down with one guy undercutting another to get the sale. We have seen an explosion in lobster landings as well and everyone knows about supply and demand. The article states that their are eighteen lobster processing plants in Atlantic Canada, that number itself is quite low if you include the crab plants that are now processing lobster to extend their work year. We also need to understand that Maine landed a whopping 93 million pounds in 2010 and the numbers for 2011 look larger than that, at the same time the vast majority being soft shell. Canada has made the infastructure investments to sustain their own fisheries generations ago, they did not import lobsters from the US until the eighties to process. There is another company about to construct a brand new large lobster plant in Maine right now all on their own without needing tax dollars in grants, conservation easments, or State backed loans. Then we might see business run properly not on tax-dollar life support.
How much money has the state actually invested in the Gouldsboro operation? Almost nothing so far? How much has it saved because 75 people have jobs again? How much will it save if 125 to 200 people have jobs in Prospect Harbor?
It is true that the lobster processing industry is in the Maritimes at the moment not in Downeast Maine. It is also true that an LNG terminal is in Altlantic Canada, not in Downeast Maine. It is also true that most wook processing is in Canada not in Northern Maine. And, as a result the jobs are in Canada and not in rural Maine. That is the status quo. Is that what we want the future to be. Who gains? Who loses?
Actually quite a bit I beleive a FAME loan and two grants to date totalling over a million and more in the works. A hefty some for more like 40-50 jobs that are really part time during a time of economically tough times and this state needs to focus on anything but a new venture in an overcompetitive oversupplied business that is very functionable with minimal state input of regulation or my tax dollars!
Well actually there are 75 jobs, there has not as yet been a FAME loan (that was misreported in the BDN) and the grants total far, far less. Given that the FAME loan would BE a loan, that is not money lost to the taxpayer? Perhaps you might want to begin by fact-checking rather than repeating rumors? What economic development would you support in Downeast Maine?
Well acording to the staff of FAME there indeed has been a loan for 750k secured by the principal’s property in Mass. which by the way is underwater. Being familiar with the industry and processing if their are indeed 75 people employed at the former Bumble Bee plant for processing they are bleeding epic proportions. I guess you get what you pay for. 5,000lbs.pr/day and 75 people I think perhaps I am not the one repeting rumors.
You really are misinformed. I wonder why your friend at FAME is misleading you? And I do have a great deal of respect for the workers who were putting in 15 hours days in December to make the business a success. But there are a lot of rumors going around. And a few people do have something to gain if Live Lobster can be discredited. The status quo is good for a few people. Anyone who challenges it is taking a risk. An old story in Downeast Maine. By the way, since you know my name, perhaps you would want to say who you are?
The discussion on this matter seems fruitless, the facts are that as a hard working member of this industry I am appalled by corporate welfare in any form. Times are tough and this endevor in my opinion does not seem like it has a chance to make it, there are numerous unpaid bills around already for bait from seiners , bait dealers, packaging suppliers, and last but not least lobster fishermanas reported by this newspaper. The bad debt even streaches to Atlantic Canada with one dealer being owed over a million right now from 2010. Prospect Harbor has never even approached a 20,000/lb day in processing their target was 10,000 anyway. Even Bernie Madoff seemed like a great option to a lot of people but that was then in very different times.
Mainefishman: You really like to hide behind half-truths and misinformation. Your need to do that is revealing. Why not try to actually respond to the information being posted here. Would Downeast Maine be better off if lobster processing in Maine were to fail?
Very comforting words to those who are owed a pile of money!
I would like to give some insight on the early interest and background of the Company ,that I work for called Lobster Web/Live Lobster. I have worked in the Industry for 26 years, Independly as a lobster broker and for established Maine,Mass. and Rhode island dealers. When I went to work for Antonio Bussone in 2008, I found it very challanging as his dreams were basically the same as mine.
We had decided that we wanted a processing plant in Down East Maine, so I was hunting for the best location when we heard about Bumble Bee closing. If we had not gone in and bid on this property, I do believe it would not be open today. Others were interested, but no money was offered. Everyone thought (because of their established names and political influences ) that they could get the factory for nothing, BUT we stepped in and offered real money. That was the beginning of our first hurdle.
Then we got word from Gov. Baldachi,s office that they would support us in applying for a grant with the town of Gouldsboro. That turned into a nightmare as the town selectman had already picked who they supported and it wasn’t us. I guess everyone knows the slander that was printed in the local papers and the stories on the local TV stations were unreal. Having been born in Wilton, Me. and being of Italien heritage myself, how well I know how predgudice people can be. We were wanted in Gouldsboro by the people, but not the town fathers (who claimed they were speaking for the people) This was dissproven after many town meetings and the people finally got their way,but it held up the opening of our plant by about 3 months. For our employees that was 3 more months without paychecks!
I believe these town officials and the people that fed them the wrong info should have slander charges slamed againts them and so should the Mediia that printed or annouced them.
However thru all this we are still operating as Lobster Web in PH nad we will be there for a long time. Don’t you think that it is time for the town to get behind us and wish us well and say that because of our persistance that their town might prosper?
Just to correct a little more of your misinformation. Workers at Live Lobster processed almost 20,000 lbs of lobster a day for 27 out of the 31 days in December. In comparison with two other lobster processors in Southern Maine who have received a $2.4 million loan and a $300,000 grant respectively (all public money), Live Lobster has received $400,000 in grants and loans (from the state and federal government), funds for which they applied and which are available to anyone trying to reinvigorate local economies. This is a small fraction of the money that Live Lobster has invested in Prospect Harbor. Finally if you were to investigate more carefully, you would find that Live Lobster is working actively with the State to enforce basic conversation rules. I wonder if any of your information is accurate.
On another note as reported in this papers court news on Jan.12 this company was in possesion of illegal lobsters and it is rumored that a few more carges are forthcomming. We have a very productive and vibrant fishery in lobsters why support someone who does not follow basic conservation rules?
You speak about the Mosley Group Study, I think that that study within itself was a waste of taxpayers money ,partly because they did not include imput from businesses in the industry. That’s about the same as the stupid restrictions on the shrimp season. We all realize at Prospect Harbor that we should never have gone for any Goverment money.It causes big haedaches and costs a lot of money to the Company applying for the funds. However, regardless of what you think, we not only created jobs, but we also raised lobster prices in the area,and if you do not realize that fact,you are not really paying attention to your own livelyhood.
As a former employee of BumbleBee Foods and a current employee of Lobster Web, Prospect Harbor I am truly dismayed at the amount of negativity our company continues to receive via blogs and press. I was there when BumbleBee closed the doors and lip service was given by all the Federal, State and Local politicians as to how they would move “Heaven and Earth” to get us all back to work. Thus far, the only mover in the group has been Mr. Bussone who has managed, with primarily his own resources to get a little over half of the former employees back to work. For a lot of my fellow employees this move has been a godsend. We want to work and be productive, not sit at home collect unemployment checks, food stamps and be a drag on the State’s already overburdened economy. This negativity has again reinforced the idea that we do “Live in the Other State of Maine”.
Any rumors as to illegal processing and anti-conservation efforts need to fall back on the harvesters themselves. When buying large volumes of lobster every day, some times in excess of 500-1000 crates, is is not possible to check every lobster until they arrive at the plant for grading. How did the illegal catch get into the crates?? Look to your own group to answer that – two or three unethical fishermen out of 100 can cause many headaches for any a processor as “in your possession is the law”. To my knowledge, the Management Group at Prospect strives to follow all the rules to the best of their ability and have even worked with Marine Patrol to help expose offenders.
It’s very easy to take “pot shots” from a distance. Come live the life! Visit the plant and see for yourself. To my knowledge the Management Staff welcomes the opportunity to show the Community and any other interested parties what is taking place. Our pride in the facility will prove to naysayers that we want to succeed, even though we know that it’s a tough uphill battle fraught with many roadblocks.
In regards to the amount of money that Lobster Web has received from Gov. grants, it is exactly $200,000 and 200,000 dollar loan,which has to be paid back. We did not receive the#750,000 LOAN from FAME as of yet, although it was approved. Loans are not taxpayers money.
As far as creating only part time jobs,I can only say that this is a seasonable business and we did very well to keep our people working 60 to 70 hours a week the entire month of Dec. Can you even imagine what this did for our Employes, for their family Xmas. after being unemployed last year?
Misinformed people should reseach their opinios before they put them in print. Lobster web processed 15,000lbs.to 18,000lbs. every day for 3 weeks in Dec. Certainly when we first started it was less,but our employees had to train and learn the process. I might add that we are very proud of our crew and their outstanding performance during the Holiday rush. We made our goals because , even though everyone was tired and cranky, they worked together as a team. I agree that it will be slow now untill next lobstar season, But we have a lot of work to do during this slow season to button down our hatches and prove to Down East Maine that we are not going away!
In regards to the amount of money that Lobster Web has received from Gov. grants, it is exactly $200,000 and 200,000 dollar loan,which has to be paid back. We did not receive the#750,000 LOAN from FAME as of yet, although it was approved. Loans are not taxpayers money.
As far as creating only part time jobs,I can only say that this is a seasonable business and we did very well to keep our people working 60 to 70 hours a week the entire month of Dec. Can you even imagine what this did for our Employes, for their family Xmas. after being unemployed last year?
Misinformed people should reseach their opinios before they put them in print. Lobster web processed 15,000lbs.to 18,000lbs. every day for 3 weeks in Dec. Certainly when we first started it was less,but our employees had to train and learn the process. I might add that we are very proud of our crew and their outstanding performance during the Holiday rush. We made our goals because , even though everyone was tired and cranky, they worked together as a team. I agree that it will be slow now untill next lobstar season, But we have a lot of work to do during this slow season to button down our hatches and prove to Down East Maine that we are not going away!
In regards to the amount of money that Lobster Web has received from Gov. grants, it is exactly $200,000 and 200,000 dollar loan,which has to be paid back. We did not receive the#750,000 LOAN from FAME as of yet, although it was approved. Loans are not taxpayers money.
As far as creating only part time jobs,I can only say that this is a seasonable business and we did very well to keep our people working 60 to 70 hours a week the entire month of Dec. Can you even imagine what this did for our Employes, for their family Xmas. after being unemployed last year?
Misinformed people should reseach their opinios before they put them in print. Lobster web processed 15,000lbs.to 18,000lbs. every day for 3 weeks in Dec. Certainly when we first started it was less,but our employees had to train and learn the process. I might add that we are very proud of our crew and their outstanding performance during the Holiday rush. We made our goals because , even though everyone was tired and cranky, they worked together as a team. I agree that it will be slow now untill next lobstar season, But we have a lot of work to do during this slow season to button down our hatches and prove to Down East Maine that we are not going away!
I would like to give some insight on the early interest and background of the Company ,that I work for called Lobster Web/Live Lobster. I have worked in the Industry for 26 years, Independly as a lobster broker and for established Maine,Mass. and Rhode island dealers. When I went to work for Antonio Bussone in 2008, I found it very challanging as his dreams were basically the same as mine.
We had decided that we wanted a processing plant in Down East Maine, so I was hunting for the best location when we heard about Bumble Bee closing. If we had not gone in and bid on this property, I do believe it would not be open today. Others were interested, but no money was offered. Everyone thought (because of their established names and political influences ) that they could get the factory for nothing, BUT we stepped in and offered real money. That was the beginning of our first hurdle.
Then we got word from Gov. Baldachi,s office that they would support us in applying for a grant with the town of Gouldsboro. That turned into a nightmare as the town selectman had already picked who they supported and it wasn’t us. I guess everyone knows the slander that was printed in the local papers and the stories on the local TV stations were unreal. Having been born in Wilton, Me. and being of Italien heritage myself, how well I know how predgudice people can be. We were wanted in Gouldsboro by the people, but not the town fathers (who claimed they were speaking for the people) This was dissproven after many town meetings and the people finally got their way,but it held up the opening of our plant by about 3 months. For our employees that was 3 more months without paychecks!
I believe these town officials and the people that fed them the wrong info should have slander charges slamed againts them and so should the Mediia that printed or annouced them.
However thru all this we are still operating as Lobster Web in PH nad we will be there for a long time. Don’t you think that it is time for the town to get behind us and wish us well and say that because of our persistance that their town might prosper?
I would like to give some insight on the early interest and background of the Company ,that I work for called Lobster Web/Live Lobster. I have worked in the Industry for 26 years, Independly as a lobster broker and for established Maine,Mass. and Rhode island dealers. When I went to work for Antonio Bussone in 2008, I found it very challanging as his dreams were basically the same as mine.
We had decided that we wanted a processing plant in Down East Maine, so I was hunting for the best location when we heard about Bumble Bee closing. If we had not gone in and bid on this property, I do believe it would not be open today. Others were interested, but no money was offered. Everyone thought (because of their established names and political influences ) that they could get the factory for nothing, BUT we stepped in and offered real money. That was the beginning of our first hurdle.
Then we got word from Gov. Baldachi,s office that they would support us in applying for a grant with the town of Gouldsboro. That turned into a nightmare as the town selectman had already picked who they supported and it wasn’t us. I guess everyone knows the slander that was printed in the local papers and the stories on the local TV stations were unreal. Having been born in Wilton, Me. and being of Italien heritage myself, how well I know how predgudice people can be. We were wanted in Gouldsboro by the people, but not the town fathers (who claimed they were speaking for the people) This was dissproven after many town meetings and the people finally got their way,but it held up the opening of our plant by about 3 months. For our employees that was 3 more months without paychecks!
I believe these town officials and the people that fed them the wrong info should have slander charges slamed againts them and so should the Mediia that printed or annouced them.
However thru all this we are still operating as Lobster Web in PH nad we will be there for a long time. Don’t you think that it is time for the town to get behind us and wish us well and say that because of our persistance that their town might prosper?
I congratulate you Mr Brinkley for initiating a sorely needed discussion about a long ignored region of our state and its well known resource — lobsters. A resource whose profits have eluded these coastal communities as, with Maine wood, is too often shipped to Canada to be processed and then returned to the US for sale and distribution.
I particularly urge you to continue your intelligent support of this DOWNEAST initiative and the entrepreneur who is running major risks while building the foundation of a lobster business which has already created local jobs with more to come.