Saving Seafood

Lobster amendment could win industry support for Young’s MSA update

July 16, 2018 — By adopting an amendment submitted by the US state of Maine’s two representatives Bruce Poliquin, a Republican, and Chellie Pingree, a Democrat, proponents of Alaska representative Don Young’s update to the Magnuson-Stevens Act (MSA) may have won over at least one seafood group: the Maine lobster industry.

Young’s bill, HR 200, cleared the House of Representatives by a 222-193 vote on Wednesday after a heated debate that involved both sides displaying lists of commercial fishing industry organizations that they said agreed with them, for and against the measure.

The bill now awaits a Senate companion, a similar circumstance faced by Young’s attempt in 2015 to update MSA. His bill that year, HR 1335, expired when the session ended, as a Senate bill never arrived. Young and others are hoping for a different outcome this time.

The amendment proposed by Poliquin and Pingree would help pave the way for lower federal inspection fees, and wait times, on lobster sales to Europe, the Portland (Maine) Press Herald reports. Though China has been growing as a more important export destination, Europe accounted for 31% of US lobster shipments abroad in 2017, the newspaper notes.

Read the full story at Undercurrent News

It’s Summertime – And New England’s Seafood Shacks Are Now Open

July 16, 2018 — We may be biased, but there is no better destination for summer road trips than the New England coast. The scenery is gorgeous and the seafood is at its prime, so locals and tourists alike pack in cars in search of the quintessential summer shack experience! Take note that reservations and fancy pants aren’t required for this journey, just a little bit of patience (for the inevitable traffic) and a passion for getting your hands on some of the best seafood around.

Below is by no means a comprehensive list, just a little something to get your mouth watering, and your seafood road trips started! So pack up the car – those lobster rolls are waiting for you.

Chauncey Creek Lobster Pier, located in Kittery, will enliven your senses. From the moment you step out of your car and smell the salty air, to when you finally set in to devouring your seafood platter, you feel as if you caught your food yourself and are eating it on a boat floating down the eponymous creek.

The picnic tables -on a deck located directly on Chauncey Creek- offer a variety of seating, from completely covered to full sunshine. And it’s a BYOB establishment, so you’ll often see people tables with coolers full of food and drinks they’ve brought to enjoy in addition to their heaping plates of steamers and lobster.

Read the full story at WGBH

Fishing groups divided over proposed update to fisheries management law

July 13, 2018 — Fishing groups are divided over what a proposed update to the nation’s marine fishery management law would mean for Maine.

Some groups worried the Magnuson-Stevens Act reauthorization approved Wednesday by the U.S. House of Representatives would hurt efforts to rebuild Maine’s cod, haddock and scallop fisheries, while others say giving regional councils flexibility to decide what kinds of science they will use to guide their decisions could help rebounding fisheries and fishermen.

Lobster dealers will be happy with at least one part of this reauthorization bill – an amendment submitted by Rep. Bruce Poliquin, R-2nd District, and Rep. Chellie Pingree, D-1st District, that would help pave the way for lower federal inspection fees, and wait times, on lobster sales to Europe, which despite China’s growing demand still accounted for 31 percent of U.S. lobster shipments abroad in 2017.

This would give lobster dealers a break at a difficult time for the industry, which is facing new trade barriers in Europe. European nations can buy lobster for less from Canada because of a new trade deal and a weak Canadian dollar. Chinese buyers are also turning to Canadian lobster to avoid steep new Chinese import tariffs on U.S. lobster levied as part of the U.S.-China trade war.

Read the full story at the Portland Press Herald

China’s tariffs will hit farm states hard, spare service-heavy states

July 11, 2018 — Whether it’s Iowa soybeans or Alaskan salmon, don’t expect the tariffs China is imposing on the U.S. to fall equally. Some states are at more risk than others.

Farm and seafood-producing states are going to be hit hardest by China’s new tariffs on U.S. goods, according to an analysis by Paul Armstrong-Taylor, resident professor of international economics at the Hopkins-Nanjing Center at Nanjing University in China. States where cars and SUVs are made and shipped to China are on the hook, as well.

The Chinese government imposed $34 billion in new duties on goods exported from the U.S. last week in retaliation for the Trump administration’s round of tariffs aimed at driving better deals on trade. Economists have warned the trade war could risk jobs, industry profits and lead to higher prices for consumers.

“Agricultural states, I think, are being hit the hardest,” said Rodney Ludema, a Georgetown University professor and former senior international economist in the White House Council of Economic Advisers under President Barack Obama. The tariffs spare states “that are heavily service-dependent, like New York.”

In terms of value, some 38 percent of products on the tariff list are agricultural, including soybeans, sorghum, tobacco and meat, said Chad Bown, a senior fellow at the Peterson Institute for International Economics. That’s bad news for farm-belt states, primarily in the Midwest.

Read the full story at USA Today

FLORIDA: China Trade War Hits Keys Lobster Fishermen

July 9, 2018 — On a commercial fishing dock outside of Marathon, a television sat atop a makeshift table allowing a small crew of workers to watch the latest World Cup soccer match while repairing lobster traps and painting buoys.

With lobster season a few weeks away, thousands of traps were waiting to be loaded on boats and dropped in the waters up and down the Florida Keys.

“Gooooooal!,” the play-by-play announcer suddenly blared in Spanish, as Sweden scored the second of three goals on Mexico. The largely Mexican crew stared at the television in disbelief.

Boat captain Gary Nichols wasn’t paying much attention to the game. He was trying to cope with another world event – the growing U.S. trade war with China.

“It’s starting to get a little scary,” said Nichols, a commercial fisherman in the Keys for more than 30 years.

On Friday, the United States imposed $34 billion in tariffs on a variety of Chinese products, including computers, dishwashers and medical devices.

In return, China immediately fired back with $34 billion in tariffs on U.S. goods, such as pork, poultry, soybeans, and corn. And tucked into the list of 545 products getting slapped with a 25 percent tariff by China were Florida lobsters.

“I was really praying that wasn’t going to occur,” Nichols said. “And at this moment I don’t know what is going to happen, we’re all just in limbo.”

Read the full story at CBS Miami

WALL STREET JOURNAL: Trump Boils Maine Lobstermen

July 9, 2018 — Donald Trump has upended global trade relationships, promising that temporary disruption will end in better terms for American businesses. Tell that to the Maine lobster industry that his policies are putting at a major disadvantage in Europe and China.

These should be halcyon days in lobstertown. Maine harvests more lobster than any other U.S. state or Canadian province. Last year it landed nearly 111 million pounds—its fourth-largest annual haul—which it sold for $450 million. The lobster industry accounts for 2% of Maine’s economy.

And China represents a hungry new market. The post-molt lobsters Maine harvests from July through November have softer shells than Canadian lobsters, so they’re lower quality. But they also sell for several dollars less a pound. In the price-sensitive Chinese market, that has given the U.S. industry a competitive advantage over its Canadian counterparts. In 2017 the U.S. exported more than $137 million in lobsters to China, up from $52 million in 2015.

Yet Mr. Trump’s unilateral tariffs are about to erode the price advantage of American lobsters. After the U.S. announced on June 15 plans to impose a 25% tariff on $50 billion in Chinese goods, Beijing retaliated with a new 25% tariff on American seafood, farm products and autos, effective July 6. That’s on top of the 10% to 15% tariffs China already imposes on U.S. and Canadian lobster.

Read the full opinion piece at the Wall Street Journal 

What they’re saying: Local industries react to Trump’s trade war

July 9, 2018 — Local agricultural industries caught in the crossfire of President Trump’s trade disputes with some of the country’s biggest trading partners are increasingly worried that they will suffer from retaliatory tariffs on American goods.

Why it matters: From Florida to Wisconsin to Washington state, Trump risks threatening the very industries he pledged to protect on the campaign trail — and his tariffs could mean a brutal blow for the economy in states that he won in 2016.

What they’re saying:

In the Florida Keys, commercial fishermen are worried about the retaliatory tariffs China slapped Friday on 545 U.S. products, which target Florida lobster:

“At this moment I don’t know what is going to happen, we’re all just in limbo. We’ve been very fortunate over the last several years with the Chinese market.” — Gary Nichols, a lobster fisherman who voted for Trump, told CBS Miami.

Washington’s seed industry could face issues, too. Dave Armstrong, the CEO of Sakata Seed Company, told the Skagit Valley Herald that the company’s top customers are in Asia, Europe, Canada, and Mexico — and a prolonged trade war could cause the company to consider moving its operations elsewhere.

“It’s a global hub of seed movement. The actions being taken and threatened would absolutely add complexity and barriers to our ability to move seed in and out of the U.S.” — Dave Armstrong, the CEO of Sakata Seed Company

Read the full story at Axios

Lobsters caught in global tariff tit-for-tat

July 9, 2018 — Veteran lobsterman Billy Mahoney is already feeling the pinch – and not from the claws of his catch.

Mahoney sells his lobsters to a dealer in Massachusetts who, in turn, sells most of the product to an increasingly lobster-hungry China. The proposed tariffs between the U.S. and the world’s second-largest economy have already lowered the price Mahoney gets for his lobsters by 50 cents a pound.

If the tariffs imposed imposed Friday by the Trump administration hit as hard as expected, Mahoney predicts, “All hell is going to break loose as far as the price.” What’s more, China will turn to Canada for New England’s ocean delicacy, he says.

A Harvard graduate who sets out from Nahant, Mahoney has been trapping Homarus americanus for more than 40 years. At 70, he says he is close to retirement, but he has a brother in the business as well as four cousins who are bound to suffer if the tariffs linger.

Maine and Massachusetts together landed almost $700 million worth of lobster last year, 94 percent of the nation’s total. At the same time, exports from Maine to China increased more than 30 percent, according to the National Oceanic and Atmospheric Administration.

But South Shore lobstermen, already hit hard by extended seasonal closures of their fishing grounds, might largely escape the latest blow to their industry.

Read the full story at The Patriot Ledger

Trade war with China may take a new victim: South Florida lobster fishermen

July 6, 2018 — First Irma, now a trade war.

Less than a year after Hurricane Irma tore through the Florida Keys, lobster fishermen are facing another hit from the trade war with China.

Tariffs set to take effect Friday threaten to bump up prices by 25 percent — an increase that could cool demand in the lucrative Chinese market, say experts.

“This is a major impact on our fishery,” said Jeff Cramer, who fishes out of Conch Key. “And just a year after we got wiped out by the worst hurricane we’ve had in recent memory.”

Before the Chinese market picked up a decade ago, the going rate for a pound of lobster was $3. Today, fishermen can get between $10 to $20 per pound from Chinese buyers, and commercial fishermen like Cramer now send up to 75 percent of their Florida spiny lobsters to China.

“The Chinese market saved the fisherman’s ass,” said Cramer.

But with the boom came a dependence: Cramer’s Chinese buyers say that retailers have no appetite for absorbing the cost of the tariff, meaning he likely will need to lower his prices or risk losing his biggest buyers when the lobster commercial fishing season opens Aug. 6.

When possible, businesses incorporate tariff costs into consumer prices. For example, steel, lumber and aluminum tariffs imposed by the Trump administration in the past year have pushed up building costs, affecting home prices as well. But margins in the lobster trade are already slim, and Cramer worries that competition from Australia and Brazil will toss Florida out of the market if prices go up.

How a 25-year-old turned his ‘passion project’ into a global business with $30 million in sales

July 5, 2018 — When recent college grads Luke Holden and Ben Conniff opened a hole-in-the-wall, 200-square-foot lobster shack in New York City’s East Village in the fall of 2009, they were wholly unprepared.

The economy was still struggling and neither Holden, a 25-year-old banking analyst, nor Conniff, a 24-year-old freelance food writer, had any restaurant-management experience. The two had recently met through Craigslist and gave themselves a two-month timeframe to open their shack, which they dubbed “Luke’s Lobster.”

“We were very naive out of the gate,” Holden, the company’s CEO, recalls. “We were just a couple of inexperienced, hungry, can’t-say-no, going-to-find-the-answer-on-Google-type individuals.”

Holden had graduated from Georgetown University in 2007 and moved to New York City to work in finance. As an analyst at Cohen and Steers Capital Advisors, he eventually earned nearly $150,000 a year in salary and bonuses. At 25, he had an extremely comfortable lifestyle — but something was missing.

“He called me one day,” Holden’s dad, Jeff, tells CNBC Make It, “and said, ‘I’m making great money down here, I’ve got great friends, but I just don’t like what I’m doing.'”

Holden did have an idea he was excited about: a lobster shack. Growing up in the coastal town of Cape Elizabeth, Maine, his childhood revolved around the ocean. Restless with his corporate job and nostalgic for home, Holden decided to return to his family roots. In the summer of 2009 he started searching online for a high-quality, affordable, authentic Maine lobster roll, but was disappointed with the results. They were either too expensive (in the $30 range), poorly frozen, or had too much “mayo-celery,” Holden says.

Read the full story at CNBC