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Top Species Flatbread pizza is one of many value-added American lobster products. processors wouldn't pay a fair price for their catch. As a result, lobstermen in New Brunswick in early August set up blockades at processing plants, prevent- ing trucks from bringing in U.S. lobster. In the spring, says Geoff Ir- vine, executive director of the Lobster Council of Canada, processors were paying $4.50 to $5 (Canadian) a pound. But once the Maine softshells came onto the market they were paying just $2.50 to $3. "Te serious warming in the Gulf of Maine has brought lobsters to market earlier and in greater num- bers," says Irvine. Te blockades come from a Lobster Ample North American supply keeps prices low, concerns high BY JOANNE FRIEDRICK T he 2012 season with its excess inventory and re- sulting low prices has been a re- minder for the North Ameri- can lobster industry that yes, you can have too much of a good thing. As much as diners love lob- ster and relish an abundant supply, those who catch and distribute it are struggling to come to terms with this sum- mer's supply glut and what it means for their businesses. Te reason for this year's banner catch goes back to last winter's mild weather, says Tom Adams, president of Maine Coast, a seafood dis- tributor in York, Maine. Te higher-than-average tempera- tures kept the water warmer and influenced when lobsters began shedding their shells. "Usually we don't see shed- ders until July," he says, but this year lobsters began molt- ing in late May, about four to six weeks early. Additionally, says Adams, mild temperatures influenced the Canadian catch, raising harvest numbers in late spring and contributing to the glut. Prices fell as a result, with U.S. fisherman getting an average about $2.25 a pound, he says, though some claimed boat prices were as low as $1.70. Adams pays between $2.50 and $3 a pound, and then has to grade the catch to find what is shippable. "We certainly have seen 26 SeaFood Business September 2012 tremendous landings this sea- son," says Michael Tourkis- tas, president and CEO of East Coast Seafood in Lynn, Mass., which procures lob- sters from Maine and Canada. "Matching the supply and de- mand issue is an inherent and long-standing challenge faced by all facets of the lobster in- dustry. From boat to plate," he says, "lobster remains a highly regarded and highly delicate operation to manage." One of the key issues with the glut of shedders, says Ad- ams, is that these lobsters can't be shipped long-distance be- cause of their highly perish- able nature, so they either are sent to processors in Maine or Canada, or are sold to retail- ers and restaurants to be con- sumed within New England. Canada, U.S. face off Te fact that more Maine lobster has been heading to Canada's processing plants has caused a backlash among Canadian fishermen, who before the start of their summer season feared "faction of harvesters in New Brunswick who are taking it out on Maine lobster," says Irvine. "Everyone was happy through the end of June," he says, but then the market be- came flooded with supply. Both Maine and Canada have been addressing the is- sue, notes Irvine, but have taken slightly different ap- proaches. He says Canada is more focused on addressing marketability issues, such as the quality of the catch, how prices are set and defining the brand. Maine, he says, is concen- trating more on promotion of lobster. And Adams, who re- cently attended a meeting put on by the Maine Department of Marine Resources that ad- dressed the glut issue, says there is a push for a bigger, better marketing campaign. "Marketing helps," says Adams, certainly "but there's only so much that can be sold in the spring. Proces- sors can only take so much." Because of the issues with the protests in Canada, Ad- ams has had to reconsider Visit us online at www.seafoodbusiness.com Photo courtesy of Hancock Gourmet Lobster