The Canadian snow crab fishery is facing a tough season, and prices are expected to be slightly higher for retail and foodservice customers.
Soon after the season opened in early April, there are already disputes between Newfoundland fishermen and the Canadian government’s Standing Fish Price Setting Panel, which set raw material prices for snow crab at USD 1.35 a pound this season. The boat price is slightly higher than last season but below 2008 levels.
In addition, Canada’s Department of Fisheries and Oceans slashed the Gulf of St. Lawrence’s snow crab quotas by 63 percent this season. The total allowable catch dropped from 20,400 metric tons in 2009 to 7,700 metric tons this year. In 2009, crab represented a landed value of USD 400 million, the largest contributor to the Newfoundland and Labrador fishing industries.
Suppliers and distributors are also concerned about the Canadian dollar’s exchange rate, which is even with the U.S. dollar.
“Last year, the Canadian exchange rate was USD 1.22, and now it is on par. There is tremendous pressure on the Canadian fisheries to make up for that,” said one East Coast distributor.
However, another East Coast distributor viewed the exchange rate as an opportunity for U.S. customers.
“The USD 1.35 boat price, if it holds, would translate to crab in the low to mid-USD 3 range, where many retailers can get customers excited with USD 4.99 promotions,” said the distributor. Restaurants that offer all-you-can-eat seafood buffets can also be successful with the USD 4.99 price.
However, supplies of snow crab carried over from last season are fairly low. Combined with boat prices and the reduced quota, one distributor expected higher snow crab prices this season.
The foodservice business struggled with last year’s crab prices, but retail customers promoted more than in the past, according to the distributor.
“Last year, we saw people not wanting to go out to eat and pay high prices. The foodservice business is not getting any worse, but might be only slightly better this year,” said the distributor.
