Lobster supply stable, but prices on the increase

World landings of all species of lobster are currently stable at around 165,000 tonnes per year, with American lobster accounting for around 80,000 tonnes, European for 5,000 tonnes, spiny lobster for 70,000 tonnes and rock lobster for some 10,000 tonnes.

East coast Canada currently provides more than half of the world's supply of live and processed American Lobster, with landings generally exceeding 50,000 tonnes, while the US lands and processes around 30,000 tonnes per year.

Live and frozen Canadian lobster products find a ready market in the US, France, Belgium, Germany, Italy, Japan and Hong Kong, while Spain, Italy and France are the major markets for US-caught lobster. The bulk of frozen Canadian green lobster tails find their way to the US. Whole cooked lobster is sold in 10 pound bulk packs to the upmarket restaurant, casino and cruise line trade, while frozen lobster meat, consisting mostly of claw and arm, is sold mostly to food service outlets.

During the first half of 2005, the market demand for Canadian east coast lobster continued its long-standing trend for shell-on products. This includes frozen whole cooked lobster in brine (popsicles), which are mostly destined for Europe. An increase in the value of the Euro against the Canadian dollar increased the price to the producer by 2 dollars per kilo, from $CAN 18 up to $CAN 20.

Unofficial reports for the period put overall Canadian catch figures down about 10% on last year, while Maine in the US reports a poorer than usual summer catch of soft shell lobster, the majority of which goes to Canada for processing.

According to a Canadian source, the lobster market is fast becoming a ‘crazy business’, with smaller processing companies failing to make money due to increasing competition and higher prices for raw material. Several large companies are reportedly trying to corner the market, and stockpiling frozen product for the busy Christmas holiday period.

A further worry is the ongoing effect that Hurricane Katrina will have on the industry, as the many casinos in New Orleans and surrounding area were important customers for Canadian lobster processors.


US corners Italian market

In the past few years, annual Italian imports of lobster (all species) have varied between 4,500 and 5 000 tonnes, with live Homarus species accounting for roughly two-thirds of total volume sales. Seventy-five percent of these come from the United States, and have a value of around €65 million.

While the US is by far the largest supplier to Italy, other key suppliers include Canada and Spain and these three countries accounted for more than 80% of total Italian lobster imports during 2003.

In early 2005, Italian imports of live lobster (Homarus) were broadly in line with the previous year, up just 1% in total volume, but 8% in unit price, with imports from Canada reducing by –5%, while increasing by 6% in unit price. Total imports from January – April 2005 were 830 tonnes.

The picture for frozen lobster (Homarus) is significantly different, with imports reducing by -74% overall, from 53 tonnes to 14 tonnes. Imports from Canada fell by –67% and from France by –82%. The unit price went up considerably during this period, rising +23% from 11.52 to 14.11 €/kg for Canadian imports, and +85% from 6.47 to 12.00 €/kg for French imports. This increase appears to be largely due to a drop in Canadian landings.

It is notable that the US is not an active supplier of frozen lobsters and indeed, there are only a few US lobster companies that provide frozen product to the Italian market. While the Italian frozen lobster market is only a fraction of the value of the fresh market, many buyers indicate that because it is less perishable and easier to handle and distribute, they would prefer to import a frozen product.

In Italy there is a gradual broadening of the market for high end frozen products including lobster, into restaurants and into the retail sector and it is in these sectors that notable market opportunities exist.

Crawfish (spiny and rock lobster) imports into Italy increased by +5% in volume from January – April 2005 over the previous year, but were down –6% overall in unit price.

Spain supplied half of Italy’s requirements for frozen crawfish during the period, although imports were down by –20% from 154 tonnes to 123 tonnes. This coincided with a unit price increase of +6% from 12.79/kg to 13.56/kg. Of a number of other countries exporting frozen crawfish to the country, Ghana accounted for 8% of imports, supplying 17 tonnes, down from 18 tonnes in January - April 2004.

More than 100 tonnes of live, fresh and chilled crawfish were imported, 62% from South Africa, and 19% from France. Overall imports in this sector were down –1% in volume and –10% in unit value. Imports from France increased by +16%, but showed a –40% drop in unit value, down from 19.32 €/kg to 11.50 €/kg.

Nicki Holmyard
© 2005 EUROFISH