Moseley Group provides Maine lobster industry assessment

A recent report conducted by The Moseley Group suggests that Maine’s lobstermen and wholesalers should work collaboratively and eliminate rivalry and competition amongst themselves in order to ensure the future health of the industry.

The Franklin, Mass.-based consulting group was hired in February by the Task Force on the Economic Sustainability of Maine’s Lobster Industry, formed by Governor Baldacci to help strengthen and improve the state’s leading fishery.

The Moseley Group also recommended that the industry focus its efforts on marketing by initiating a USD 2 million (EUR 1.4 million) marketing campaign to stabilize 2009 prices, in addition to spending USD 7 million (EUR 5 million) a year in future marketing campaigns to support the industry. Funding for the campaigns would come from industry fees and federal grants.

According to the Moseley Group, such marketing efforts could help bring lobstermen an additional USD 20 million (EUR 14.4 million) in revenue.

One impediment to creating cooperation in the industry comes from hawking, or lobstermen who sell their catch independently without the help of a dealer or retail outlet, impacting the economy by selling their lobster often at slightly higher price than they would get from a dealer, but at a lower overall retail price. The growth of lobster hawking has created a division in the industry between lobstermen and dealers that have tried to put a stop to it, warning that the practice is unfair and may drive prices down even further.

"A lot of people are trying to position their businesses to survive right now," said George Lapointe, commissioner of Maine’s Department of Marine Resources.

In addition to a drastic drop in sales and exports, last year’s wholesale prices dropped to USD 2.25 (EUR 1.6) per pound in some parts of the coast, the lowest in more than a decade. While Maine lobstermen caught 3 million pounds more lobster in 2008 than in 2007, 2008 sales were down nearly USD 50 million (EUR 36 million) to $235.6 million (EUR 168.9 million).

Ex-vessel prices this spring have hovered between USD 3.50 (EUR 2.52) and USD 4 (EUR 2.88) per pound and rose as much as USD 1 (EUR 0.72) in the past week but are expected to settle back down after the Fourth of July holiday. Many fear boat prices could tank to between USD 2 (EUR 1.44) and USD 3 (EUR 2.16) a pound by the end of summer, when lobster catches peak and tourism decreases.

"A lot of these guys simply aren't able to earn enough out there to warrant going out," said Jim Acheson, a University of Maine anthropology professor and expert on the lobster industry. "I haven't ever seen the situation anywhere near as bad as this."

Maine’s lobster industry task force is scheduled to deliver its final report to the governor in early July.

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