A federally sponsored report in Canada said fisherman could take greater control of the supply side of the lobster market.
The $400,000 report prepared by economists at Gardner Pinfold and presented to the Lobster Council of Canada said the industry could control the number of traps set or impose quotas for fisherman to regulate an industry that sees supplies flush and prices low early in the six-month lobster season.
When supply is high, the price drops. That means lobstermen are caught in a self-defeating cycle, because more trips means both higher costs for
fisherman and smaller returns based on supply that outpaces demand.
The lobster market "is the most purely supply and demand thing I've ever seen," said the council's executive director Geoff Irvine, the Halifax, Nova
Scotia, Chronicle-Herald reported Wednesday.
Council Chairman Ian Wentzell said the report would not be packed on ice.
"Overall, it's for the lobster council and the industry to read this and determine what path (to take)."
"Our customers want a consistent product at a consistent price and a consistent quality. Well, it's hard to give them a consistent price when the
shore price fluctuates," Irvine said.
The report said Canada's east coast lobster industry accounts for 55 percent of the world's supply of 170,000 tons per year.