Maine and Canadian lobstermen are receiving a higher value for their catch, with growth from emerging markets. The increased value of the product is attributed to steadily climbing demand for lobster not only in the United States but also in China, Japan, Hong Kong, South Korea, Belgium, France and other countries.
In Maine, the catch soared to an overall value of USD 456,933,346 (EUR 407, 921, 569) in 2014, with dealers paying harvesters USD 3.69 (EUR 3.33) a pound on average, a hike of 79 cents per pound over 2013, according to the Maine Department of Natural Resources. The actual landings in Maine declined from 127,773,264 pounds in 2013 to 123,676,100 pounds in 2014, according to the DMR.
“The reason the price stayed so stable was because of demand from China – some data says there was 15 percent to 20 percent higher demand from China,” said Matt Jacobson, executive director of the Portland-based Maine Lobster Marketing Collaborative. “With Chinese affluence rising, the demand for luxury goods has gone up. With it, Maine lobster is enjoying significant Chinese demand.”
Canadian lobster exports have also risen significantly, primarily because of increased demand from China, the United States, Japan and Hong Kong. “Demand in China is being driven by the growing middle class and the growing demand for premium seafood. In South Korea, we have a free trade agreement where we didn’t have one before,” said Geoff Irvine, executive director of the Lobster Council of Canada in Halifax, Nova Scotia.
The value of Canadian lobster exported in 2014 rose 32 percent to CDN 1.525 billion (USD 1.22 billion), while volume rose 19 percent. The biggest increased lobster category exported was frozen tails and frozen whole cooked/raw meat. Around 60 percent of Canada’s lobster exports stem from U.S. lobster, which is often processed and shipped around the world.
Canada’s top five export markets for lobster in 2014 were the United States, China, Japan, Hong Kong and Belgium. Exports to the United States increased 28.3 percent reached CDN 1.2 billion (USD 965.67), while exports to China soared 84.4 percent to reach CDN 78.2 million (USD 62.9 milion). Other big gainers were exports to South Korea, which spiked 52.5 percent to CDN 18.3 million (USD 14.7 million); Japan, which rose 38.4 percent to CDN 47.7 million; Hong Kong, which rose 40.9 percent to CDN 41.7 million (USD 38.4 million); and Belgium, which increased 25.1 percent to CDN 28.3 million (USD 22.7 million).
The Canadian Lobster Council has also increased lobster marketing, rolling out a new generic marketing plan in February. The plan aims to build on the Canadian lobster brand with the message, “The best lobster in the world comes from Canada.”
“Marketing lobster under the Canadian brand is important, because lobster sales for live and processed products are growing dramatically in China, Hong Kong and South Korea, where the Canadian name and maple leaf symbol are synonymous with high quality and trustworthiness,” according to a statement from the Lobster Council.
Demand for U.S. and Canadian lobster has grown because of the improved U.S. economy. “People are going out to eat more and eating seafood again,” Irvine said.
Restaurants are featuring more lobster appetizers and entrées and many U.S. supermarkets have been running specials on lobster. For example, West Des Moines, Iowa-based retailer Hy-Vee recently featured cooked whole lobsters for USD 11.99 (EUR 10.58) a pound and Boston-based Roche Bros. is selling stuffed 5- to 6-ounce lobster tails for USD 6 (EUR 5.29) each during Lent.
However, a buyer for another Northeastern U.S. supermarket chain said that supply of live lobster has been tight since November and wholesale prices have risen as a result. The buyer is seeing an average of USD 11 (EUR 9.93) per pound for live whole lobsters wholesale and an average of USD 17 (EUR 15.35) a pound and higher for 3- to 4-ounce coldwater lobster tails.
