While there were minor declines in global trade with lobsters during the first half of 2022 compared to 2021, imports into the European Union were up by a solid 23.5 percent. The supply situation is fairly good, although the dispute relating to protection of right whales on the US east coast continues to worry lobster fishers in the region.

Supplies

The dispute between lobster harvesters and interests seeking to protect the North Atlantic right whale continues. A US federal judge ruled against the Maine lobster fishers in the court case in which the Maine Lobstermen’s Association (MLA) and the State of Maine claimed that the trap-related regulations issued by the National Marine Fisheries Service (NMFS) to protect the right whales from getting entangled in lines were unlawful because the agency did not rely on the best available science.

The dispute over the protection of the right whales has also resulted in red-listing Maine lobsters by the Monterey Bay Aquarium Watch. Apparently, some food chains stopped carrying Maine lobster, while others denied that they followed the red-listing. Instead, one major food chain stated that they continue to sell lobster from US fisheries that are certified as sustainable by the Marine Stewardship Council (MSC). This includes the Gulf of Maine lobster fishery, which is MSC-certified.

New Brunswick lobster harvesters went on a one-day strike in August. They refused to go fishing in what they called “inadequate prices” for their catch. Lobster prices in Lobster Fishing Area 25 (LFA 25), which is in the southern Gulf of Saint Lawrence between the provinces of Prince Edward Island and New Brunswick, have fallen by 40 percent compared to the same period in 2021. LFA 25 produces about 10 percent, or 9 259 tonnes, of Canada’s total lobster production, which in 2020 amounted to 95 928 tonnes.

Maine lobster harvesters have been asked by processors to reduce their catch efforts due to declining prices. In August lobsters are fairly abundant in New England, and this is also the case this year. In July, lobster harvesters obtained about USD 4.00 per pound, but in August the price had dropped to USD 3.30 per pound, less than half of what they received in July 2021.

Due to low prices and reduced processing capacity, many harvesters are now hauling their traps once a week, while normally, they would haul twice of three times a week. By going out less frequently they also save on operating costs. Fuel prices have doubled since last year, and bait prices are up by 20–40 percent.

It is estimated that hurricane Ian has caused massive damage to the Florida lobster industry. As many as 15 000 lobster traps are believed to have been lost or heavily damaged. The result will undoubtedly be a significant reduction in the Florida production of spiny lobsters this year. Consequently, prices are expected to increase sharply.

In 2021, lobster harvesters in Florida landed 2 132 tonnes worth USD 42.4 million. The catch in 2022 could be considerably less. The hurricane hit during the worst time for lobster harvesters. The first three months of the lobster season, which starts in late July or early August and ends in March or April, usually result in the highest volumes.

Markets and trade

Global lobster trade declined slightly during the first half of 2022 compared to the first half of 2021. Total imports were down by 2.8 percent to 72 715 tonnes. The two largest importers, the United States of America and China, were down by 8.8 and 4.6 percent, respectively, while imports into Spain were up by 66.2 percent.

US imports during this period fell, from 30 504 tonnes in 2021 to 27 809 tonnes in 2022. All of 88.7 percent of US imports came from Canada. On the other hand, US exports increased from 6 850 tonnes in the first half of 2021 to 7 477 tonnes in the same period in 2022. China was the dominating market and took some 45 percent of US lobster exports during this period.

Chinese imports dropped by 4.6 percent during the first half of 2022 compared to the same period in 2021. However, there were some major shifts among the largest suppliers. Imports from Canada fell by 17.3 percent to 9 314 tonnes, while imports from Viet Nam skyrocketed, from 365 tonnes in the first half of 2021 to 4 099 tonnes in the same period in 2022. Imports from the United States of America fell by almost 40 percent, to just 1 764 tonnes.

The largest exporter of lobster, Canada, saw a decline of 2.8 percent in their exports during the first half of the year. Canada’s exports of live lobster to China are picking up again after the COVID-19 pandemic. Demand in China has improved, especially with the lifting of COVID restrictions in Beijing and Shanghai but exporting into China has become a bit more cumbersome. There are new labelling requirements that need to be strictly adhered to, as well as tracing requirements. In addition, competition from European and Asian suppliers is also stronger.

During the first half of 2022, Canada shipped 9 800 tonnes of live lobsters to China, compared to the 15 100 tonnes shipped into the United States of America. It appears that prices paid by Chinese importers were lower than those paid by US importers, even though the total value of exports to China was higher (USD 61 million) than the value of exports to the United States of America (USD 35.7 million). The differences could stem from how freight is reported, and currency fluctuations might also distort the picture.

While imports into the major markets (United States of America and China) were just slightly lower during this period, imports into the European Union jumped by 23.5 percent, from 9 203 tonnes in 2021 to 11 365 tonnes in 2022. One reason for this may be that Europe lifted COVID restrictions earlier, while restrictions in the United States of America and especially in China are still in force. This is influencing dining in restaurants, and consequently consumption of lobster.

Outlook

Lobster supplies are somewhat uncertain but supplies from New England have been reasonably good. Consequently, prices to harvesters have been falling a bit and processors have seen their capacity reduced. However, the supply of rock lobsters from Florida has been seriously reduced as a result of hurricane Ian.

While demand in China was expected to be quite good, COVID-19 restrictions have had a negative effect. Because of the restrictions still in force, eating out is still limited in China, impacting demand for lobster.

The outlook seems to be mixed, with relatively stable demand in China and the United States of America but growing demand in Europe. Overall prices show increases in Europe, albeit with its ups and downs. With life returning to near-normal in most markets, one might expect demand to increase again. However, the world economic outlook might have a negative effect on the demand for luxury items such as lobster.

Prices for American lobsters on the European market continued their upward trend into the end of 2020, although there was a drop from early to mid-2021. Since then, import prices for US lobsters in Europe have been high and stable. Inflation in many European countries is rampant and may dampen sales somewhat. Prices can be expected to remain high, and lower supplies during the early months of 2022 mean that they could well rise further.