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Another tie-up could have serious implications for crab fishery, seafood analyst warns

As the dispute between unionized workers and processors continues, Boston seafood analyst John Sackton tells CBC News he doesn't see any economic benefit in prolonging the struggle — but he's optimistic work being done heading into the season will lead to success.

FFAW harvesters remain committed to not fishing with current pricing formula

A man holding a megaphone as others crowd around.
Crab harvesters in Newfoundland, seen here during the protests outside Confederation Building in March, are refusing to fish under the current pricing formula for snow crab. (Darrell Roberts/CBC)

A seafood industry analyst says he doesn't see any immediate financial benefit for Newfoundland and Labrador's fishery by delaying another crab season but the ongoing dispute could pay off in the future. 

Crab harvesters in the province remain committed to not fishing under a pricing formula set at a minimum of $2.60 per pound. In a press release Tuesday, the Fish, Food & Allied Workers union said its members cannot fish under that price formula, chosen by the province's price-setting panel. 

The crab season is set to begin in some areas on Saturday.

But as the situation remains in limbo, Boston seafood analyst John Sackton told CBC News a delay to this year's season will likely take away from both harvesters and processors in the province while inflating the fishery in the Gulf of St. Lawrence.

"That price is going to shoot up, beyond what the market can take, and buyers are going to lock in product," Sackton said Thursday.

"Then when they turn around and the Newfoundland product is being offered to them, they're going to say, 'We don't need it,' and so that price is going to go down."

But there are some possible bright spots for the future, and the groundwork happening now could lead to success down the line, Sackton said.

WATCH | One tie-up was costly. Another could have longer-lasting impacts, says this industry insider:

Another crab tie-up will hurt N.L.’s reputation in the marketplace, warns analyst

9 months ago
Duration 1:28
Seafood analyst John Sackton says there was a cost to the weeks-long tie-up last year that saw N.L. crab fishermen refuse to take their boats out on the water in protest. He tells the CBC’s Peter Cowan another similar protest will show buyers that the N.L. market cannot be counted on.

"There's been a lot of turmoil in Newfoundland, but I think what's emerging in the crab industry is something that's actually going to move things forward," he said.

"Just the fact that there's a standoff right now over two formulas isn't terrible in my mind. I mean, I think the most important thing is that the province and the parties will agree that they have to have a price formula going forward in the future."

Long-term view

Sackton expects smooth sailing between harvesters and processors to take more than one season before both sides will reach a formula they can agree on. 

In his past experience, working on a formula for processors and harvesters in Alaska, he said it took three to four years of work before a positively received formula was reached that was "untouchable for 15 or 20 years."

He said the most important work to come will be addressing the level of suspicion felt by fish harvesters that's leading them to mistrust the prices they receive from processors.

"I think that as the formula evolves over the next couple years, the proposals that the FFAW put forward have some of those elements. Like an audited price report, for example, those things can actually build trust," he said.

"You end up with all parties, the harvesters and the processors, working to get the best market advantage they can."

Harvesters now have a provincial government commitment to allow them to sell their catch to buyers outside the province, but Sackton said it won't mean much if the prices are low.

It could lead to more prosperity for harvesters when prices are higher, he added, but it would also risk harvesters hurting their relationships with local buyers.

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With files from The Broadcast

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