N.S. lobster facility temporarily halts processing, blames lower catches

The future of an advanced Nova Scotia lobster processing plant is uncertain.

The Montreal-based owners of Riverside Lobster International at Meteghan, N.S., say the plant will not process lobster this fall and winter, citing lower catches in Maine and the Maritime provinces.

"It's an unfortunate situation, but right now that's about all that we know. We're not running this fall and there's been no decision yet in terms of what's going to happen for the spring," said Rachelle Gagnon, vice-president of people and culture at parent company Champlain Seafood, itself a subsidiary of private equity company Champlain Financial Corporation.

Riverside was one of the first to use a high-pressure processing machine to extract lobster meat and a continuous steam cooker to cook it — adding value through automation.

Its products included whole frozen lobster, frozen lobster tails and frozen lobster meat, both cooked and raw. The operation also sells live lobster.

But the harvest isn't large enough to make it pay, says Gagnon.

'We're seeing lower landings'

"We're seeing lower landings and not necessarily just in this area. We're seeing it from Maine to New Brunswick to Nova Scotia. It's affecting processing facilities and not just not just Riverside." she told CBC News on Thursday.

The shortage has impacted Champlain's lobster operations in New Brunswick — Cape Bald Packers and Captain Dan's Seafood — Gagnon said. Those plants are still processing other species like snow crab.

Champlain's two other plants in Nova Scotia, at Petit de Grat and Chéticamp, only process snow crab and are not affected.

Riverside employs around 150 people at peak times, including temporary foreign workers who were not brought into the province this fall.

Employees who contacted CBC say Riverside stopped processing in July this year.

The decision not to reopen came as a surprise, they said, since the company contacted them in September to confirm their intention to return when the plant resumed operations in the late fall. 

The decision to not reopen leaves about 100 local residents without employment,  CBC was told.

The company announced the processing line will not run just ahead of the season opening of Canada's biggest and most lucrative lobster fishery in southwest Nova Scotia.

Over a thousand boats will take to the water later this month. Last year's landings — although topping 20,000 tonnes — were down from historic highs.

Municipality responds

The Riverside plant is in the Municipality of Clare.

"Certainly there will be both economic and socioeconomic impacts within the Municipality of Clare due to Riverside lobsters' decision to cease part of their operations this fall," spokesperson Anique Dugas, told CBC News.

"The Municipality of Clare is not involved in their day-to-day operations or decisions and we trust that the company made a difficult but cognizant decision. And finally, I'd like to add that we're a resilient community with a vibrant lobster industry," she said.

Riverside has received over $2.6 million in assistance from the Atlantic Canada Opportunities Agency. That included a $1-million loan in 2016 to pay for a high-pressure food processing machine and a continuous steam cooker.