SEAFOODNEWS.COM by John Sackton – December 12, 2014 — Live lobster prices have spiked 25% upward in the past ten days, a jump of $1.75 in the wholesale price of chix 1 1/8 lbs lobsters, to $6.75.
This has occured as the boat run price in Nova Scotia rises to well over $6.00.
Over the long term, there is a price rise of around $.85 cents in the live market as holiday demand kicks in.
This year, the jump is double that, and may go higher.
One factor behind this price rise include a series of storms that has cut landings and delayed the start of the season.
A second factor is that given this shortage, processors are scrambling to build inventory for live sales in the next few weeks, and the tube storage sites are mostly empty. So in addition to meeting current sales demand for live, dealers are trying to build inventory as well.
Reports from dealers this week suggest that most pounding sites are full, but that tube storage is a problem. Tube storage allows for the long term holding of healthy, prime hardshell lobsters that can be shipped around the world.
The push to build inventory which is straining the market right now is due to the belief that prices will be even higher later in the year and in January – meaning buyers are quick to bid up prices for the available lobsters.
All this live market activity is not affecting the meat and tail market at this time, as $6.00 lobsters are out of range for lobster processors, and go primarily to live shippers.
This story originally appeared on SeafoodNews.com, a subscription site. It has been reprinted with permission.