May 25, 2018
PRINCE EDWARD ISLAND FISHERMEN'S ASSOCIATION
News Release
for immediate release Friday May 25, 2018
PEI Harvesters
Confused and Frustrated by Spring lobster prices.
With the
Spring lobster season almost 50% complete, the harvesters of Prince Edward
Island are experiencing a season that is both confusing and frustrating in
terms of the price being paid to harvesters at the wharf.
Since 2013
the lobster industry on PEI has experienced positive change in a number of
areas.
Historical factors
such as the US dollar exchange rate, economic performance in Europe and the
United States, surplus product inventories and the lack of short term storage
have all been factors in impacting the shore price of lobster, many times in a
negative way.
As of Spring
2018 we find a US dollar exchange rate that is favourable to Canadian exports.
The economies of the United States, Europe and Asia are all performing well. Spring 2018 also marks the start of lower tariffs
on lobster in the European Economic Union (EU) which will progressively eliminate
all existing tariffs on lobster over the next 5 to 7 years.
2017 catches
in Maine decreased by over 30 million pounds and steady consumer demand in a
number of countries have contributed to low product inventories. In addition
live holding capacity on PEI has increased by 80% since 2013.
Unfortunately,
the current prices paid to harvesters are comparable to prices paid in 2002.
A recent
canvas of 5 retail operations on Prince Edward Island show live prices charged
to consumers are up to double what is
being received by the harvesters at the wharf.
Currently
the harvesting sector on PEI is spending over 300k annually in promoting PEI
lobster. This promotion is in the absence of sector participation by Nova
Scotia and New Brunswick in a marketing levy that would promote Canadian lobster.
The
harvesting sector on PEI has worked diligently since 2013 to improve the
lobster industry. Many harvesters are upgrading on board storage and purchasing
other equipment to keep our lobster in top condition. This is under a program
that is funded by the Federal government, the Province of PEI and PEIFA
members.
The current trends
that are developing in 2018 are a concern to harvesters and to date no
reasonable explanations have been provided as to the price decreases.
All sectors
of the supply chain require a fair return on capital. The current price
differential is conservatively estimated to decrease direct spending on Prince
Edward Island by over 60 million dollars.
The facts
have been presented and it is now time for the other sectors of the lobster
industry to assist in stemming the current tide of decreasing price. The
lobster industry and the economies of Atlantic Canada can ill afford to return
to the boom and bust cycles of the past.
Contacts
PEIFA President Bobby Jenkins (902) 969-8995 or PEIFA Executive Director Ian
MacPherson at (902) 566-4050 ext. 5
(end)
Telephone: (902) 566-4050
Fax: 902-368-3748
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