Nova Scotia lobster industry facing headwinds after Clearwater exit from live shipping
The seafood processing and shipping industry in Nova Scotia was taken by surprise when Clearwater Seafoods made the decision to exit the live lobster business. This move has sparked a sense of urgency among industry players to find ways to stabilize the economics of the industry.
Stewart Lamont, the managing director of Tangier Lobster Company, a competitor to Clearwater, acknowledged the significance of Clearwater’s decision. He emphasized the need for individual businesses to reassess their models and adapt to the changing landscape. Despite Clearwater’s exit, there is still a strong demand for Nova Scotia lobster in international markets, particularly in Europe, Asia, and the Middle East.
Clearwater Seafoods, a pioneer in the overseas live lobster market, employs approximately 1,100 people in Nova Scotia across fishing boats and processing facilities. The recent closure of its holding plant in Arichat and the elimination of the lobster processing line in Lockeport resulted in layoffs for around 150 workers. The company plans to shift its focus to processing and freezing shellfish and other seafood on ships at sea.
The live lobster business is facing several challenges, including lower-quality catches, logistical issues with keeping lobsters alive during long-distance flights, and intense price competition among processors and shippers. Lamont highlighted the difficulty of achieving a return on investment in the live lobster sector in recent years due to declining margins and increased risks associated with shipping lower-quality lobsters.
Allan MacLean, the chief operating officer for Louisbourg Seafoods and president of the Nova Scotia Seafood Alliance, emphasized the uncertainty in world markets and the potential impact of tariffs on the industry. He stressed the need for industry players to come together and address the pricing challenges collectively, rather than relying on government intervention.
Despite Clearwater’s decision to exit the live lobster business, MacLean believes that there are still opportunities for other operators to succeed in the market. However, he cautioned that significant investments and a strategic approach are essential in navigating the current economic landscape.
In conclusion, the seafood industry in Nova Scotia is at a critical juncture, and the exit of Clearwater Seafoods from the live lobster business serves as a wake-up call for industry players to adapt and innovate to ensure long-term sustainability. Collaboration, smart business decisions, and a focus on reducing risks are key to overcoming the challenges facing the industry.
