Prince Edward Island Fishermen's Assoc.

News Release – for immediate release Wednesday May 8, 2013

$2 gap in lobster prices between Provinces:
MFU and PEIFA fish harvesters immediately require detailed explanations from NB lobster buyers

Confederation Bridge, May 8, 2013 – While PEI and East Coast NB fish harvesters might not seem to be the most obvious alliance these days, their respective organizations met recently to discuss an overall mutual irritant. They ended up agreeing on one simple demand and a set of questions directed towards PEI and NB lobster buyers in response to documented lobster prices given to their members.

The two groups are requiring a comprehensive response from lobster buyers as to how there can exist a $1.25 to $2 differential between “market size” lobster prices being paid in NB / PEI fisheries when compared to prices paid to harvesters for an identical product in Quebec, Gulf Nova Scotia, South West Nova Scotia and Newfoundland fisheries. The MFU and PEIFA harvester organizations fail to understand how prices can be so consistently incoherent and blatantly unfair for their harvesters and want buyers – small and large - to respond publicly and in great detail.

Fish harvesters in NB and PEI were in shock when prices were communicated to harvesters this week. While prices are obviously well below lobster business viability levels and are unacceptable given low landings in Atlantic Canada when compared to last year, something more flagrant got their mutual attention: the huge gap of $1.25 to $2 in some cases between prices for their market sized lobster versus prices paid to fleets in other neighbouring Provinces.

In fact, recent prices for the same two-clawed, well looked after lobster was set in Newfoundland at $4.60, in Quebec at $5, in South West Nova Scotia at $5, on the Nova Scotia Eastern Shore, and, closer to home, in the Gulf of Nova Scotia at $4.50 to $4.75.

How can this be? How can this be justified? Harvesters want to know and in great details.

The MFU and PEIFA both agree that buyers in New Brunswick and in PEI have been left off the hook for too long and are happily set in their ways of public silence. Harvesters wish to therefore encourage journalists and the public to support their request to have these buyers explain in great details just how these enormous gaps can come to happen and exactly how prices are determined in NB and PEI. The following questions require an immediate response:

1- How can prices remain so low when Atlantic Canadian landings are relatively slower than last year and inventories were relatively low?

2- What reasons justify such a large gap in prices for an identical “market size” lobster harvested in PEI / NB when compared to one harvested in other Atlantic Provinces and Quebec?

3- Why can’t our buyers in NB and PEI be flexible and adjust to benefit from best lobster markets every year for our “market size” live lobster? Are our buyers too dependant on foreign brokers/retailers to make these choices or is there another explanation? Or maybe they are set in their comfortable ways and don’t need to look for better prices?

4- What exactly is the market situation for NB and PEI buyers of lobster and what is the overall analysis offered for the price offered to harvesters?

5- Why are buyers so silent year after year and why do they rarely make any public comments? Why are harvester organizations forced to explain market situation year after year while they are not directly involved in the sale or purchase of lobster?

PEIFA Executive Director Ian MacPherson explains that: “How can you have such a price gap for lobster harvested in neighbouring waters? How is it possible that a lobster with the same characteristics merit a difference of $2 per pound? Enough with these games. We are tired of trying to analyse something that makes no sense. We want the buyers and processors to justify their actions for a change.”

MFU Executive Secretary Christian Brun adds that: “Price-setting for NB and PEI buyers no longer employ the practicalities of logic. In fact, our harvesters, experts and our own institutional analysis no longer understand how the price system for lobster works. Because of this, we want to implore NB lobster buyers, or their brokers, to explain it all in great detail. I think harvesters and the public are fed up with these yearly games and deserve to know what lies behind these inconsistencies. I think it’s time we have lobster business owners take their full responsibility and speak up.”

On another note, both organizations no longer believe that their respective Provincial governments should be sitting idle to observe what is happening without intervention. It is clear that there exists an imbalance in negotiating powers between harvesters, processing plants and foreign brokers. This cannot be rectified with the current model in place.

The MFU and PEIFA both believe the Provincial government has an extensive role to play in re-establishing a level playing field for this industry.

For more information:

Ian MacPherson
PEIFA Executive Director
Tel: 902) 566- 4050
Email:

Christian Brun
MFU Executive Secretary
Tel: (506) 532-9783 or (506) 531-5399
Email: Christian@mfu-upm.com