Word On The Street

NORTH ATLANTIC LOBSTER COALITION MARKET DEMAND AND SUPPLY UPDATE: MASSACHUSETTS REPORT

WEEK OF APRIL 21, 2014

"DEMAND has dropped back to very light. There was some market activity over the Easter weekend but it wasn’t anything big. The high prices for lobster continue to hamper any demand. Now, with prices starting to fall, potential demand increases will stay light. In a falling price time, no one wants to buy expensive lobsters and then find out that if they waited, they could’ve purchased lobsters at a cheaper price. The market will now wait to see how low the price will fall before buying product.

SUPPLY is adequate for the current demand. There are plenty of lobsters available if one wants to pay the price. Inventories are being maintained by bringing in Canadian or Maine lobsters as needed. With prices dropping, the Boston suppliers are only bringing in what they need. The weather is improving and traps are being set both locally and in Maine. It can be expected that more lobsters will become available even from Canadian areas since more Canadian areas are opening (Eastern Shore of Nova Scotia). Local landings are starting to show up with traps being set and more fishermen starting to fish. The supply of locally caught product is still not a major factor in the overall supply. Just about all lobsters available are now new (fresh) caughts.

QUALITY of the available product is now very good to excellent. This is a shippable issue. Just about everything is now new (fresh) caughts whether from Canada, Maine or local. We are entering a period where the (shippable) quality of most lobsters will be at their peak.

PRICE is becoming unstable and is likely to edge downward. This is because more fishermen will be fishing even though catches, so far, are not heavy. Traps are being set, a little from more fishermen adds up to more lobsters that will be entering the market. Dealers trying to boost and rekindle demand will be trying to lower prices for lobsters in order to be able to move more product. Better weather will allow more fishing time. All this is likely to result in lower boat prices. Also, the major factor in the prices is that the Canadian price is dropping down."