Atlantic Canada’s lobster industry stung by low prices and global economic turmoil

Lobster harvesters in Atlantic Canada are facing challenges with the prices they are receiving for their catches. The recent downturn in prices is causing concern among industry experts, as uncertainty looms over the lobster industry.

Typically, prices for lobsters dip in May as the spring lobster season picks up and buyers anticipate an increase in supply. However, this season is different. Bernie Berry, senior fisheries adviser for the Coldwater Lobster Association in Nova Scotia, points to the confusion surrounding tariffs as a major factor contributing to the current situation. With tariffs uncertain, many in the industry are feeling nervous.

The Coldwater Lobster Association represents lobster fishers, primarily in southwestern Nova Scotia, home to some of Canada’s most lucrative lobster fishing areas. As the latest season winds down, live lobsters that were selling for $15 a pound a month ago have now dropped to $8 a pound along Nova Scotia’s Atlantic shore and as low as $6.50 a pound in the Gulf of St. Lawrence and Newfoundland.

The Maritime Fishermen’s Union, representing inshore fish harvesters in New Brunswick and Nova Scotia, has expressed frustration with the current prices, calling them unreasonable and insulting to fishermen. With smaller catches than expected due to cold ocean temperatures, fishers are struggling to cover their costs at the current rates.

The economic turmoil caused by U.S. President Donald Trump and ongoing trade tensions between Canada and China have further complicated the situation. China imposed a 25 percent retaliatory tariff on Canadian seafood in response to Canadian duties on Chinese goods. This has significantly impacted Canada’s seafood trade with China, a key market for live lobster.

Despite some relief from new tariffs announced by Trump, uncertainties remain, impacting the Canadian lobster industry. With American lobster exporters now holding a competitive advantage in Chinese markets, Canadian exporters are feeling the pressure. Stewart Lamont, managing director of Nova Scotia’s Tangier Lobster Company, acknowledges the challenging environment and emphasizes the impact of geopolitics on pricing.

The Nova Scotia Seafood Alliance, representing seafood companies across the province, highlights the global economic headwinds affecting the lobster industry. With instability in the market, stakeholders are facing difficulties in managing inventory and pricing.

In conclusion, the lobster industry in Atlantic Canada is navigating through a period of uncertainty and economic challenges. With tariffs, trade tensions, and global economic factors at play, lobster harvesters, processors, and exporters are working to adapt to a rapidly changing landscape. Despite the current downturn in prices, industry experts remain hopeful for a recovery in the future.