High lobster prices could be a sign of things to come for P.E.I.'s spring fishery
Low supply, high demand push retail cost of crustaceans as high as $26 a pound
Islanders looking to sink their claws into a lobster feast right now might have to fish up some extra cash.
The cost of the crustaceans in most stores is higher than normal for this time of year, running anywhere from $20 to $26 per pound.
Most of the lobster caught last year and stored on the Island has already been sold, and fewer boats take part in the winter fishing season in nearby New Brunswick and Nova Scotia.
Charlie McGeoghegan, chair of the Lobster Fishers of P.E.I. Marketing Board, said there are only 2,500 boats on the water in Canada right now, compared to 7,000-plus during the spring season.
"There's less boats on the water and the catches are lower this time of year so the demand is high for the amount of catch that's coming in," he said.
"We're seeing prices quite high in the stores, between $20 and $25 or $26 a pound. That's a little higher than normal at this time.
"The boat prices are anywhere from $16.50 to $17.25 — [that's] what we're hearing."
Prices could remain high in the spring
From the marketing board's perspective, it could be a good sign that lobster prices will stay above what they were during a slow start to the spring season last May.
During the 2023 season, fishermen were paid between $6.50 and $8 per pound of lobster.
"It's always our goal to get the best price we can for our fishers, and buyers are obviously trying to buy it as low as they can, so there's always an argument back and forth on that," McGeoghegan said.
"Demand is very high right now and supply levels are low, so that should mean a very high price this spring."
A pricing 'tipping point'?
While continuing high prices would be good news for P.E.I.'s lobster fishermen, they could lead to some tough choices for some restaurants.
The Water Prince Corner Shop in Charlottetown will open for the year in early April, before the spring fishery begins on the Island, so the restaurant will have to buy at least some of its lobster from Nova Scotia fishers.
Owner Coady Campbell said he's not considering taking lobster off the shop's menu if prices remain high, but it could be a concern for some other restaurants on the Island.
"There's a tipping point for anything in terms of pricing. I don't know what that number will be, but once you get to that upper limit, people just aren't going to buy it," he said.
"In the spring, once tourism comes back full tilt, higher lobster prices will be more problematic then and that's when you kind of have to get creative. But hopefully it doesn't get to that point. Once our season's open, hopefully things will level out a bit."
Fishing costs more than ever before
McGeoghegan said P.E.I. is now exporting lobster to more than two dozen countries, which is helping with demand.
But he said the cost of setting up a boat to fish is also going up, with licences alone costing well over $1 million, and the marketing board hopes to see this year's prices reflect that.
"[Processors are] reaping the benefits of being able to sell it now and having it in their freezers, so we just want them to share that profit with us, regardless of the time of year," he said.
"We just want a better sharing model going forward. It costs more to go fishing now than it ever has before."
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With files from Sheehan Desjardins