Lobster prices rise as catches fall: 'They're all fighting for that product'

The price of lobster is up compared to last year, says the Lobster Fishers of P.E.I. Marketing Board.

Live lobster is selling for as much as $11.50 a pound, said Charlie McGeoghegan, chair of the board — up from $6.50 to $7.50 last year. 

The jump in price is partly because catches are down now for fishers in New England, Nova Scotia and New Brunswick, he said.

"There's more people calling for product than there is product to give," McGeoghegan said in an interview Thursday. 

"There is a lot of demand right now, especially in the Asian market," he said. "The U.S. demand is also strong because of less product for them domestically. So they're coming here to get Canadian lobster."

Catches in New England specifically are down about 16 per cent over the five-year average, he said. 

Processors on the Island are also benefiting from the current market, he said, by selling to large grocery store and restaurant chains in the U.S. 

The Asian market's appetite for processed lobster has grown considerably in recent years, he said. "Which is good, because it makes competition for the other traditional markets, which should help the price go up." 

The more new markets, the better it is.— Charlie McGeoghegan

Dealers and processors have annual orders that come in this time of year, he said. "And they're all fighting for that product and there's less product to go around. That's why we're seeing a very strong price." 

And prices per pound typically increase in the winter, he said. "One year, it went up to $17." 

Strong demand will help use up any P.E.I. product in storage, he said, and could help boost prices for spring lobster. 

Processing capabilities increase 

A few processing plants on P.E.I. are now able to hold a good number of live lobsters, said McGeoghegan. "Five or six years ago they weren't. And now they buy and sell a lot of live lobster." 

Sometimes, plants will hold those lobsters to process after the season, he said, and in some cases they'll sell the live product to higher-priced markets. "It's good that they're diversifying." 

He said China is likely the largest buyer of live lobster, followed by the U.S. And a new player in the market is Dubai, a city in the United Arab Emirates. "We're in talks with them now on how to facilitate getting more products to them. 

"The more new markets, the better it is."