Economy takes toll on Maine lobstering
(File photo: Wendy Maeda/Globe staff)
PORTLAND, Maine (AP) -- Maine lobstermen are talking about tying up their boats, and dealers are suggesting they haul fewer traps to get prices back up as the global economic crisis sends shivers through the state's signature fishery.
The wholesale price of Maine lobster has plunged more than 20 percent in the past week to as little as $2.60 per pound in some harbors. Dealers say the international credit crisis has effectively shut off orders from major processors in Canada.
Meanwhile, consumers are losing their appetite for the seafood as they watch the financial markets tumble, flattening demand just as Maine enters its peak lobster season. The high prices for fuel and bait aren't helping lobstermen, either.
"This is the worst time for this to happen," said Peter McAleney, owner of New Meadows Lobster in Portland, who has been asking lobstermen to haul fewer traps to limit the glut.
Maine Marine Resources Commissioner George Lapointe said this is a time of year when lobstermen count on earning a lot of money and landing a lot of lobster, but "the price is bad and getting worse."
"The prices are, from what I can tell, the lowest they've been in almost two decades," said Lapointe. "Think about just the cost of living compared to two decades ago."
There have been some calls in the industry for state intervention that could include an emergency shutdown to stabilize the market. But Lapointe said but he can shut down a fishery only in the case of a fish population collapse, not a market collapse.
At the end of September, the wholesale price of lobster was between $3.50 and $4 a pound along the coast, lobstermen and dealers say. On Wednesday, the price was about $3 per pound in Portland and $2.60 to $2.75 per pound in the midcoast region.
"There's rumors they're going lower, to $2.25 or two bucks," said Sonny Leeman, manager of the South Bristol Fishermen's Co-op. "I don't know what's going to happen if they keep going down any more. It's a very scary situation as far as I can see right now."
Last year, the average annual price paid to lobstermen was $4.44 per pound. The price has not been as low as $2 since 1980, according to state data. (AP)
I visited Maine in mid October '08 and was taken aback by the high restaurant prices of lobster at the time, all the while we were hearing complaints about how low the price was and the lobstermens' plight.
"Help out a lobstermen and get a lobster dinner while you're here" was something I heard on several occasions. I never ate a bite on my vacation there -I felt like as a tourist I was being price gouged. I was a walking wallet and a bit of a muggle too. Such a shame, I looove lobster. I would have paid a reasonable price but lobster was always the most expensive item on every menu we saw. It was as much or more than at an upscale restaurant at home in the Pacific Northwest. I have one shred of advice for the lobstermen in Maine. Convince restauranteurs to lower their outrageous tourist pricing on lobsters so they can move those bugs. Just because people are on holiday doesn't mean they still have a credit line like it's 2005!
Can I say this loud enough to the Maine tourist and fishing industries? THINGS ARE TOUGH ALL OVER ---Don't you get it? Visitors might be economizing too!