Guest Column: Marketing Initiatives Promote Maine Lobster Overseas

Although lobster sales to the industry’s major markets outside North America have taken a hit in 2018, the industry remains resilient. Lobster dealers continue to diversify into new markets and to seize new marketing opportunities.

First, seafood companies faced a loss in sales to the European Union (EU) resulting from provisional implementation of CETA (the Comprehensive Economic and Trade Agreement between Canada and the EU) in 2017, which gave Canadian lobster exporters preferential market access. From January through August 2018, U.S. lobster sales to the EU declined by nearly $26 million, or 40%, compared to the same period the year before. From January through May, lobster exports were up 105% to China compared to the same period in 2017, reaching nearly $78 million. Those sales helped to offset losses in Europe, and the lobster industry was on track to have another record-breaking year of sales to China. Exports of lobster to China by Maine companies tripled during the period, and exports of lobster by Massachusetts companies doubled.

But then the second blow to the lobster trade came in July 2018. Lobster was included among the products that would be affected by China’s retaliatory tariffs in response to U.S. tariffs and sales evaporated. For how long the industry will continue to be shut out of China is anybody’s guess, but when the market reopens Food Export-Northeast will implement activities to help lobster exporters regain lost market share.During this foreign market turmoil Food Export-Northeast has been working alongside the lobster industry by remaining committed to traditional markets while continuing to explore new options and marketing opportunities within traditional markets. More lobster companies than ever (a total of seven) exhibited at Seafood Expo Asia in Hong Kong this past September. Immediately after that show, four lobster companies were part of a U.S.-wide seafood trade mission to Vietnam coordinated by Food Export-Northeast. Four lobster companies are exhibiting at the China Fisheries & Seafood Expo in Qingdao in early November, and seven lobster companies are currently registered to exhibit in an enlarged Food Export-Northeast USA pavilion at the 2019 Seafood Expo Global in Brussels next May.

Food Export-Northeast also continues to promote lobster on behalf of the industry. We recently provided a major Chinese social media outlet with requested information about how American lobster is harvested, how the fishery is managed, and what makes U.S. lobster a sought-after seafood product across the globe. Menu promotions in Singapore and retail promotions in Thailand are also being planned. Keeping up trade relations and product awareness remains important and will hopefully help rebuild markets when the trade war ends.As Maine’s lobster processing sector continues to grow, Food Export-Northeast is increasing support it by identifying new market opportunities and conducting promotions to create consumer awareness and demand. Germany, for example, is not traditionally a strong market for live lobster, but it may be a potentially good market for lobster meat.

To test the waters, in September we coordinated a “Lobster Rumble” during Berlin Food Week. The USA was this year’s country of honor, which offered an outstanding opportunity to showcase iconic American foods to German consumers. Our German in-market representative worked with a gourmet hot dog restaurant to choose a lobster roll recipe from the Maine Lobster Marketing Collaborative website. The restaurant prepared a variety of lobster rolls and asked consumers to vote for their favorite. The restaurant used the occasion to test whether lobster rolls could become part of their permanent menu. That decision was reached quickly when over 200 lobster rolls were purchased during the first two hours of the two-day event. In total, about 900 lobster rolls were sold. An estimated 150 journalists from across Germany also sampled the lobster rolls, which resulted in a significant amount of good press across the country. Had the restaurant not run out of lobster meat halfway through the second day, the number of lobster rolls sold would have easily exceeded one thousand. Qualifying lobster exporters are eligible to receive federal cost-share assistance from Food Export-Northeast to conduct their own foreign market promotion activities. Applications are currently being accepted for 2019.

Companies are encouraged to apply now because we anticipate that the money may be fully allocated early in 2019. Through Food Export-Northeast’s “Branded Program” companies can receive a 50% reimbursement of export marketing expenses; companies may only participate in that program for five years, after which they “graduate.” Food Export-Northeast is applying for a special block of funds, part of the $12 billion in aid to farmers announced earlier this year by President Trump, to help those companies negatively impacted by the U.S.-China tariffs or other trade policy issues and who may have also graduated from the Branded Program. More details are forthcoming. Visit www.foodexport.org or contact me at ccoyne@foodexport.org for more information.