Worries are growing thick over southwestern Nova Scotia lobster fishery as the market on both sides of border is melting down. Bill Adler, executive director of the Massachusetts Lobstermen’s Association, informed that the big question down here is will the Canadians hold back rather than start shipping right in at a low price?” He added that if they ship to Boston now, they’re not going to get much of a price.
It is true that no more lobster is needed here and it is not like they are having a bonanza catch. Adler pointed out that among the factors that have contributed to the glut on the American market is that Canadian processors “are not coming down as exuberantly as they were in the past.
Experts said that declining orders and credit problems in a troubled economy has led to the decrease in demand for lobster products. Gerry Amirault, executive director of the Lobster Science Centre at the Atlantic Veterinarian College in P.E.I., opined that there just isn’t the demand in the marketplace to fill orders and processors are not willing to build inventory because they can’t afford the risk.
Amirault also said that the markets are too volatile. All the factors are so extreme that nobody wants to process on speculation. He added due to the credit crunch and lack of available credit it’s too risky for people to process product in hopes somebody needs it. He added that for southwestern Nova Scotia to get $50 to $100 million less into the economy in the next six months…that’s the magnitude of the situation we have to realize. Lockeport dealer Mike Cotter said that dealers and buyers would be meeting prior to the start of the season to see what the overall picture looks like and to get a better idea of the situation.
