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Top Species his own purchasing strategy. Typically, Maine Coast buys a boat run with about 50 percent being in shippable state, while the remainder goes to processing. "But I can't buy a boat run without a home for the lesser-quality lobster," he states. Maine Coast processes about 2,000 pounds a day in- going forward. Te hard-shell season shouldn't be impacted, he says, nor should the soft- shell price issue carry over to Canada's sales to the Far East and Europe. "It's a tough year for fisher- men and dealers alike," says Adams. Even though demand increased as summer rolled out, there has still been an overabundance of supply, so dealers are hoping moving more volume will help com- pensate for the lower price. Maine Coast ships to Eu- rope and Asia. But even those markets have tightened up, says Adams, either because of competition or Europe's weak economy. Te Europeans, he says, are becoming more fo- cused on price because their customers are as well. "Europe used to be a place to make more money," says Adams, "but it's just a place to move poundage for the same price now." East Coast Seafood ex- Products like Lobster Pot Pie help maximize efficiencies in production. house, he says. Tat is small, however, compared is a with large-scale processors, most of which are now in Canada. "Processing labori- ous process, and we don't have a cheap labor force in the United States," he says. Canada's industry is partially subsidized by New Bruns- wick's provincial government through aid for capital equip- ment purchases, which helps, notes Adams. Te processing sector has been under a lot of pressure, says Irvine, who adds it is hard to predict what will hap- pen with meat and tail prices ports about 70 percent of its supply to various countries. "Europe has always been a wonderful market for lob- ster and remains so," says Tourkistas, "with Asia show- ing increased demand for various product forms." Still, he says, the United States remains the lobster in- dustry's biggest market and, with the global economic crisis, East Coast has placed more prominence in the American market. Alexa Vodicka, progam officer from the Nova Scotia Department of Fisheries and Aquaculture, says Nova Scotia represents about 70 percent of Canada's lobster harvest and about 80 percent is exported to the United States. Te Canadian govern- ment and the lobster industry "will have to work hard and creatively to expand markets and increase the value for lob- ster," she said. "Government will continue to protect this 28 SeaFood Business September 2012 resource and manage it so the industry remains strong." Add value, push demand For companies that are buying processed lobster to create value-added products, like Hancock Gourmet Lob- ster in Topsham, Maine, the perception would be that they are getting a price break and should be passing that along to their retail and direct-to- consumer customers. But Cal Hancock, presi- dent, says she is paying more per pound this year than last year, although she's not sure why. "I'm not sure why prices Hancock still sells some live lobsters, "but it's a very small part of the business." Much of her business is di- rect to the consumer, although she is expanding both the re- tail and foodservice. "We try to do something a little differ- ent," she says of her product strategy, which ranges from traditional lobster bisque to lobster risotto to lobster mac and cheese. Te newest intro- duction is a gluten-free lobster mac and cheese option. East Coast's Tourkistas has also seen value-added lobster products on the rise due to "Europe used to be a place to make more money, but it's just a place to move poundage for the same price now," — Tom Adams, president, Maine Coast aren't coming down," she says, especially because a lot of the lobster is softshell. Hancock, who buys from a Maine-based processor, says because there are so few pro- cessors in the state demand re- mains high and prices go with that. "It's very frustrating," she says. "We set our price and try to keep it for a year." Meanwhile, she says, cus- tomers who have heard about the lobster glut are wondering why she isn't lowering prices. She's continuing to watch the market to see what hap- pens with lobster supply and prices, she says. "I try to be tuned in, and I'm curious about how this all turns out." Distributors and processors should fare OK, she says, "but it's hard on the lobstermen." Hancock got into the value- added lobster business to help create a new market for lobster beyond selling traditional live lobster. "I started business in 2000 with just that point in mind (that few people were doing value-added products)." Te company now has more than 30 products. increased demand for conve- nience when enjoying lobster. "A positive for the industry, value-added maximizes ef- ficiencies in production and helps to increase the value of lobster for all partners in the sales chain," he says. Live lobster remains a de- sired product, he adds, along with frozen forms like whole- cooked lobster and tails. Re- cently, East Coast introduced a pasteurized lobster product that is sold refrigerated, along with a new 1-pound bag of fully scored lobster claws that are sold frozen. Stability elsewhere Of course, Maine and Canada aren't the only sourc- es of lobster. Brazil, South Africa and several South American countries are sig- nificant suppliers of warm- water product, along with Australia. In 2011, the United States imported more than 3 mil- lion pounds of rock lobster from the Bahamas, more than 4.8 million pounds from Brazil, about 3.7 Visit us online at www.seafoodbusiness.com for specialty food stores Photo courtesy of Hancock Gourmet Lobster