By Andy Walker
A carapace size of 72 millimeters seems to be a good fit for the Island’s lobster industry, John Sackton told the recent annual meeting of the P.E.I. Fishermen’s Association.
The minimum carapace size in the province’s three fishing areas is 70 millimeters and the editor and publisher of Seafood.com said there is little opposition to moving to a large size. He was asked by the association to study the economic impact of a size increase.
Sackton said there is very little live product exported from P.E.I. and the live market is weak at this time of year due to high inventories. He said close to 70 per cent of landings in Area 24 (the largest of the three fishing zone in the province) are canners – 70-80 millimeters.
Last year, he said 89 per cent of lobster imports were based on canners – 53 per cent whole cooks and tails; 16 per cent popsicle and 20 per cent meat. He said the whole cooked market would not be significantly impacted since sufficient 0.75 to one pound lobsters would be landed with a 72 millimeter size.
“In transition years, the volume of whole cooked lobsters might be slightly reduced and there would be less under 0.75 pounds but volumes will recover,” he said.
A 10 per cent, reduction would cost processors $5.4 million if prices remained static. However, he predicted the reduced volumes should lead to a price increase and said the loss would likely be in the range of $2 million.
For popsicles, the 275-300 gram size would become harder to supply and this would impact customers in France who favour the smaller size. However, he predicted most of the lost sales could be recouped selling popsicles at 300-325 gram packs at a higher price.
“In the current strengthening market environment, a higher price can be absorbed, so the net impact on popsicles may be close to zero, except for some transitional loss of volume,” he told the meeting.
For harvesters, during the transition there would be a slight reduction in revenue, partly offset by higher prices due to lower volume.
Sackton said lobsters in the 70-72 mm represent about five per cent of landings. He said a transition period should put the lost at less than one per cent until the new size is established. In 2009, one per cent of dockside canner value was about $500,000.
However, he said Island canners are a unique product and there are several market opportunities that can be explored further. He explained the whole cooks in the 0.75 to one pound range are best lobster for buffets, casinos and cruise lines.
“Popsicles at 300 gram are a popular price leader – can be advertised as a low price lobster,” he said. “No other lobster producing area has any volume of 3-4 oz tails, which makes this the least expensive lobster tail available.”
He said the higher carapace size can help brand Island canners as a unique product. He said the industry must move towards eco-certification to take full advantage of the markets both at home and around the world.
“Market the attributes of smaller size that no one else can match: getting a high quality lobster experience for a lower price,” he advised. “Give customers greater range and flexibility in how they use lobster by providing a wide range of products and prices.”
He said the economic benefits outweigh the costs of going from a 70-72 millimeter size adding it sets the stage for new canner products: blanched lobster, live lobster to Europe, Asia.
However, he warns going beyond 72 millimeters would be a disaster for the Island industry since 90 per cent of PEI’s export value comes from the canner market. He said canners provide a unique product and going above 72 mm would threaten to weaken the two primary canner products: whole cooks and popsicles.
