Lobster Prices

[MIGMaster]

Took Mrs. Migs out for lobster yesterday - the traditional Mother's day activity - and the price was $7.00 per lb. cooked !!!  Since the fisherman are only getting $3 -3.50 there is still some good money being made by the middleman !!!!

http://www.cbc.ca/news/canada/nova-scotia/story/2013/05/13/ns-lobster-fishermen-tiedup.html

[Mr. Bigglesworth]

Why does a minister control the price fishermen can get? Especially when fuel prices have gone up over the last few years.

[MIGMaster]

Why does a minister control the price fishermen can get? Especially when fuel prices have gone up over the last few years.

The fisherman are asking the Minister to intervene as the processors won't pay higher rates. The processors are saying there is a glut of lobster on the market and that the price is dictated by the market. The fisherman feel that the processors are screwing them over by offering them less-than-cost for their lobster catches and that there is market demand.

It's really confusing for a simpleton like me. There always seems to be lobster around, but I suspect it may be the exports that will drop. On the other hand, one analyst said that lobster catches have been so good for so long that the bottom has dropped out of the market.

I guess you may want to term it a "clawback"  ;)   

[LongBlade]

Pretty simple economics: supply exceeds demand. Prices fall.

If the lobstermen really think they're getting screwed by the middleman, then it suggests a good opportunity to get into the middleman business. My guess is that it's a bit more complex and less profitable than doubling the price and letting restaurants beat down your door, but that's what the free market is about.

[Mr. Bigglesworth]

Yes, the fisherman's organization should be less about getting political intervention and more about creating a place where they have the marketplace. The Tokyo fish market is probably the biggest in the world. My understanding is that fishermen take their catch to this giant warehouse where everybody comes to bid on the products. Freshness is prized so it turns over almost daily, a lot going to restaurants within hrs of being caught.

If they had their own distribution warehouse they would legitimately keep more of the value.

[MIGMaster]

Some fisherman did start direct sales a coupla years ago, but it never really caught on - that wasn't a pun BTW

[LongBlade]

that wasn't a pun BTW

Thank God!

Some fisherman did start direct sales a coupla years ago, but it never really caught on -

I imagine not. Money usually doesn't grow on trees. It may look like it when you're the guy who is risking life and limb on the open seas and only getting half of full retail for your efforts. But wholesale sales and distribution, while not rocket science, is its own profession. Probably looks easier than it is. They'd have much better luck opening a stand on the pier and having their wives running the store to sell them at retail. But I suspect they've already thought of that, too, and probably didn't produce aforesaid money growing flora.

[bob48]

that wasn't a pun BTW

Thank God!

Some fisherman did start direct sales a coupla years ago, but it never really caught on -

I imagine not. Money usually doesn't grow on trees. It may look like it when you're the guy who is risking life and limb on the open seas and only getting half of full retail for your efforts. But wholesale sales and distribution, while not rocket science, is its own profession. Probably looks easier than it is. They'd have much better luck opening a stand on the pier and having their wives running the store to sell them at retail. But I suspect they've already thought of that, too, and probably didn't produce aforesaid money growing flora.

Well, you nipped that in the bud!

[Mr. Bigglesworth]

No surprise, years ago I looked into bringing fresh harvested coffee to Vancouver. I had a bead on high end stuff which I knew would sell. The growers in Costa Rica, one of the world's best coffees, wanted quite a bit more than the world price for their coffee. I had seen talk on the net about the "coyotes" that take advantage of the farmers. I figured I could get a fair price. No, you work out the cost of commercial rents in Vancouver to figure out what the retailers would want. A good location was $28/sq ft. You have growers that want close to double the world price. You have to ship it 3000km, pay port fees, blah, blah, blah, the farmers were not getting screwed. They see $4 for a coffee at starbucks they get $3 per kg they think what the hell? Try being a mom and pop restaurant with 5000 sq ft at $28 each. Add staff, food, utilities. Suddenly it became clear why everyone was leaving CR coffee for Nicaraguan or Vietnam. Places were blending about 10% good stuff with mostly junk. 

[Greybriar]

The cheapest lobster I ever ate was at a restaurant on the Fisherman's Wharf in Portland, Maine. The luncheon special was two lobsters for $5. The reason they were so cheap was because they were soft shell lobsters and also because that was in 1984 when a dollar was worth a lot more than it is today.

[LongBlade]

Lobsters are common enough in Maine that McDonalds serves lobster rolls (sandwiches) for a few bucks on their menu.

[Toonces]

$7 a pound is pretty cheap for lobster, isn't it?

Also, call me crazy, but that McLobster sandwich looks kind of...tasty!

[MIGMaster]

http://thechronicleherald.ca/novascotia/1129305-lobster-fishermen-end-protest

[LongBlade]

$7 a pound is pretty cheap for lobster, isn't it?

Also, call me crazy, but that McLobster sandwich looks kind of...tasty!

I think $7 sounds pretty good. Especially when you consider how far the dollar has fallen in value.

I never tried a McLobster. We'll have to ask Mirth to take one for the team there.

[MIGMaster]

$7.00 is not bad, last year we got some for $ 5.50.... Hopefully, the Gov't's in the Maritimes won't set up a lobster marketing board system.... Once the politicians get involved things can go sideways really fast!

McLobster is OK, but the purists scoff  ;)