The price of lobster and crab is sinking

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The price of lobster and crab is sinking

The prices of lobster and snow crab have fallen sharply this year on the American market (archives).

The price of two crustaceans that occupy a central place in the fishing industry of the Atlantic provinces has fallen sharply this year as consumers feel the effects of inflation.

The price of snow crab plunged at least 60% and that of lobster fell about 35%.

Senior US analyst John Sackton, President of Seafood Datasearch Market Consulting, presented data this week in Halifax showing a collapse in demand for these products.

It's like a tide in the Bay of Fundy going out completely. We see lobster and crab sales being the worst of any product in supermarkets, Sackton said in an interview this week at an annual trade show hosted by the Department of Fisheries and Aquaculture. Nova Scotia.

Demand for crab and lobster in the United States had peaked during the pandemic. The industry in Nova Scotia reported record revenues of $2.5 billion in 2021 led by sales of these crustaceans. The other Atlantic provinces also experienced simultaneous growth.

According to John Sackton, an American seafood market analyst, prices for lobster and snow crab in the United States have collapsed, partly because consumers are forgoing high-priced products in the context of inflation.

According to John Sackton, demand has collapsed this year because consumers are avoiding high-priced products in the face of inflation, rising commodity prices fuels and concern about a lack of economic support.

They give up snow crab, lobster, frozen seafood. This is what drives this change in prices and market value, Sackton points out.

John Sackton adds that farmed Atlantic salmon, the ;Oyster, mussel, northern shrimp, halibut and frozen groundfish escape the slowdown in demand for lobster and snow crab.

He pointed out during the conference that Nova Scotia scallop producers are experiencing excellent sales in European and American markets, and that the oyster market is booming.

Lobster processors are feeling the brunt of these changes, according to Geoff Irvine, Director of the Lobster Council of Canada.

Diversify target markets and consistently deliver a premium, certified product sustainability are ways for businesses to lessen the impact of any recession, Irvine believes.

He explains that 2021 was a completely exceptional year. So we come back down to earth a bit, he says.

Attendees at a marine products trade show in Halifax this week received bad news about the export to the United States of the Atlantic fishing industry's two most valuable crustaceans.

< p class="e-p">On the lobster side, those in southwestern Nova Scotia received a record price of $17 a pound for their catch earlier this year. Prices then fell sharply to around $5.50 per pound during the summer for lobster from the Gulf of St. Lawrence.

According to John Sackton, expect a lower price for lobster from Southwest Nova Scotia when this fishing season opens this fall.

Peter Norsworthy of Pisces Consulting believes for its part that prices will return to what they were before the COVID-19 pandemic and then gradually rise again. According to him, the time it will take for this will depend on the severity and duration of a possible economic recession.

Based on a report by Paul Withers, of CBC

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