P.E.I. Sitting On $25m in Surplus Frozen Lobster
The Seafood Processors Association of Prince Edward Island (P.E.I.) wants the government to step in and help deal with a $25 million frozen lobster surplus.
The lobster was caught and processed in 2008, but with a failing economy, consumers aren't buying what they consider luxuries, leaving lobster processors with valuable inventories they can't sell.
With the spring lobster season approaching, unsold inventory is driving lobster prices lower, leaving fishermen wondering if they can cover the cost of going out on the water and processors wondering if they can borrow money against the unsold stocks to pay for this spring's catch.
"Hopefully over the course of a short week, we will arrive at some hard and concrete decisions with respect to what we need - what can be given the processing association and/or the industry to help us over this hurdle," Olin Gregan, executive director of the association, told CBC News.
Gregan also said processors met with representatives from both levels of government on Wednesday.
The P.E.I lobster industry generates $250 million in revenue annually and employs 7,500 people during peak season.