While the price of Maine lobster and sales are strong this year, overseas demand is not as high as in previous years because of the strong U.S. dollar compared to other currencies.
“We are seeing a lot less demand this summer from China compared to the last two to three years, because of their stock market and the devaluation of their economy,” said Tom Adams, owner of Maine Coast Shellfish in York, Maine. “There will still be growth there for many years, but that growth has stalled in recent months.”
Instead, some buyers from China, France and other countries are sourcing lobsters from Canada because of the more favorable currency exchange.
“More buyers are coming from everywhere. Lobster seems to be a hot commodity right now and a lot of that has to do with China,” said Craig Avery, president of the Prince Edward Island Fishermen’s Association. In addition to the favorable currency exchange, lobster suppliers and associations have built the demand for lobster overseas, according to Avery. “I have made three trips to china in recent years, and we have promoted our own PEI Fishers brand in Europe.”
Canadian lobster processors have also opened up new markets in Sweden, Russia, Korea and other countries.
As a result of increased demand, prices on Canada lobster are “quite a bit higher” this season, according to Avery. The boat price is around USD 5 (EUR 4.44) a pound and USD 5.50 (EUR 4.89) a pound for market-size lobster. Last year, the boat price started at USD 3.75 (EUR 3.33), and then rose to around USD 4 (EUR 3.55) per pound later in the season.
Canadian lobster supply is also steady after a strong start to the season, according to Avery. Actual landings will not be reported by the government for a few months.
Maine lobster prices are around USD 50 cents to USD 1 (EUR 0.89) per pound higher because of a slow start to the season and strong overall demand. The average price reported by buyers is USD 4 (EUR 3.56) per pound for soft shell and USD 6 (EUR 5.34) a pound for hard shell at the boat. Wholesale prices for hard shell, shippable lobster range from USD 5.25 (EUR 4.67) to USD 5.50 (EUR 4.89) per pound.
“Pricing is much more competitive this year, and our margins as wholesale exporters are much tighter than previous years. Our margins are down almost 20 percent over last year,” Adams said.
While Chinese demand for U.S. lobsters may be lagging this year, U.S. and international demand for Maine lobsters is still strong, Adams said. Maine Coast’s business is diversified fairly evenly between three primary markets: the United States, Europe and Asia.
“As an industry, companies have invested pretty heavily in worldwide marketing,” Adams said. “We will exhibit at four different seafood conventions in the next year, including trade shows in Boston, Belgium, Hong Kong and China.”
