Strong landings, low prices boost lobster sales

Following record Maine landings of 75.6 million pounds valued at USD 221.7 million in 2009, fresh and frozen lobster buyers are enjoying a stable supply and low prices moving into the 2010 season. Ex-vessel prices at the end of 2009 were as low as USD 3.50 a pound, f.o.b. Boston.

In March, Maine boat prices fell from a high of USD 5.60 a pound to a low of USD 4 for crated lobsters fresh from the pound. Canadian pound lobsters remain in the high-USD 5 range, f.o.b. Boston.

According to one Maine processor, the availability and low price of fresh lobster last year brought many new customers into the market in spite of a weak economy. Heavy landings resulted in a larger percentage of the catch going to processors as compared to 2008. This trend is expected to continue this year if fishing is good and prices remain depressed.

Another factor depressing the fresh market is that at the end of 2009, pound keepers on both sides of the U.S-Canadian border had high levels of low-priced inventory. Three months later and approaching a new season and better weather, wholesalers must sell off inventory.

“Lobsters that have been held for 12 weeks are not good for frozen production and the vacation season has not really kicked in yet,” said another Maine processor. “We need the best quality fresh caught lobsters to freeze.”

Despite a weak U.S. dollar, one exporter who sells meat, tails and whole-cooked lobsters said international sales are good.

“Most of our frozen product is going into the domestic market, into retail, cruise lines, casinos and restaurant chains,” he said.

Wholesalers report vacuum-packed frozen claw and knuckle meat at close to USD 15 per pound, f.o.b. New York. Raw frozen tails were priced in the high-USD 14 range for 3- to 4-ounces; low- to mid-USD 15 range for 4-5s; high-USD 15 for 5-6s and USD 17 for 6-7s, f.o.b. Boston.

Large retailers are also benefiting from the low prices. Last season’s lobster glut translated into record sales for many chains. One large East Coast retailer said that its 2009 Mother’s Day special exceeded expectations with the “most lobster ever sold” by the chain. They are expecting similar sales this May if prices remain down.

Fishery scientists are in agreement that the resource is in good shape. But the wild cards affecting price appear to be weather and lobstermen’s ability to endure record-low prices. Given their costs, it will be a challenge for many to continue operating regardless of the volume.

Maine Lobster Landings (in millions of pounds)

       Year        Pounds

Maine Lobster Landings (average price per pound, ex-vessel)

     Year         Price

    2009         $2.93 
     2008         $3.50
     2007         $4.43
     2006         $4.08
     2005         $4.63
     2004         $4.04
     2003         $3.74
     2002         $3.32
     2001         $3.17
     2000         $3.28
     1999         $3.45

Source: Maine Department of Marine Resources

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