Government-appointed panel has refused to bend to processors demanding lower prices for crab. This has increased the concern of Newfoundland and Labrador’s key fishing industry as the indsutry is already fighting the current economic crisis. According to the panel it would not adjust a setting of $1.40 per pound for crab — a decision that upsets both the union representing fishermen and the processors who buy their catch. It is said that panel has already lowered the price from $1.55, but processors demanded a further cut, while most refused to buy any product until the price dropped.
Derek Butler, executive director of the Association of Seafood Producers, opined that the harvesters must understand that the recession in North America has made crab a luxury item. About 70 percent of the crab caught off Newfoundland is shipped to the U.S. Butler also said that consumers are making the choice to walk past crab, as they have the prerogative to do in difficult times, and they’re picking up bread, milk and rice.
Butler admits that a sagging market and a rebounding Canadian dollar are bleeding the industry. He said the realistic price in the marketplace should be about $1.12 per pound. The union has blasted the processors for using the economic troubles to make heavy demands in pricing.
