Provincial lobstermen, goverments come together

First published in Landings, May, 2014.

The Maritime lobster industry came together at a two-day Lobster Value Recovery Summit held in Halifax, Nova Scotia, in March. The focus of the summit was the recommendations of a report on the New Brunswick, Prince Edward Island, and Nova Scotia lobster industry released last November by the Maritime Lobster Panel. In May, 2013, lobstermen in those provinces tied up their boats and refused to fish due to the low price offered by processors for their lobsters. Processors closed their facilities and laid off workers. The economic repercussions of the tie-up drew the attention of fisheries officials in all three provinces who set up the the three-person panel and called for a report.

The panel members issued a total of 33 recommendations focused on making changes to the structure of the Maritime lobster industry. It recommended three major initiatives: establishment of an Independent Maritime Lobster Market Intelligence Institute; development of a Comprehensive Generic Marketing and Promotion Campaign for Canadian lobster to be paid for by a levy on harvesters and processors; and development of a price-setting mechanism within the provinces for determining pre-season lobster prices.

“The meeting was designed to review the recommendations from the report, specifically those applying to generic marketing, the levy, marketing intelligence and the price setting mechanism,” explained Geoff Irvine, executive director of the Lobster Council of Canada. “There was consensus at the meeting on one and two.”

Approximately 160 people attended the summit despite a mid-spring blizzard in Nova Scotia. The tenor of the summit, according to Irvine, was very positive. “Generally there is some friction between processors and harvesters but I think it’s getting better all the time because there’s a lot on the line. The sector went in to the meeting united to show the governments what it wants,” Irvine said.

At the core of the summit was discussion of the penny-a-pound levy proposed on all lobster landed in the three provinces. Both processors and lobstermen would pay one cent on each pound landed. The levy is expected to raise $2.5 million (Canadian) per year. That money would go to fund the marketing and promotion campaign for Canadian lobster, which itself would be overseen by the Lobster Council of Canada. “We had really good agreement about the need to work together, not provincially,” Irvine said.

The next step is for the different provincial governments to create legislation or amend existing laws to enable the levy to be enacted, Irvine continued, which likely will happen later this year. “I think there’s the political will to get legislation to happen. Plus there’s an election coming up in New Brunswick,” Irvine said.

The Council is busy these days. It is coordinating development of Maritime-wide quality grading standards for lobster, the aim of which is to provide an incentive to lobstermen in all three provinces to land lobsters in top condition for a top price. It is also heading up a project to establish a distinct identity for Canadian lobster. The Council contracted with Revolve Branding Inc. late last year to develop a brand identity for Canadian lobster that can be used in future marketing and promotion in domestic and international markets. In addition, it is involved in the Marine Stewardship Council sustainability certification process for the New Brunswick and Nova Scotia inshore lobster industry.

Irvine doesn’t feel any sense of competition toward Maine’s recent success in achieving MSC certification or creating the new Maine Lobster Marketing Collaborative. “The more marketing we do for Homarus americanus, the better it is for all us,” Irvine commented. “More markets, better markets. Competition really isn’t an issue for either country. Together we land 300 million pounds of lobster. Enhanced marketing is better for both of us.”