Saving Seafood

For Maine Lobstermen, a Perfect Storm Threatens the Summer Season

July 6, 2020 — As he pulled alongside one of his lobster pots, marked by a red and yellow buoy on the Penobscot Bay, Mike Hutchings extracted and measured several of the crustaceans that would contribute to his 130-pound catch that day. It was a decent haul but his assessment of the fishing season was grim: “The worst it’s ever been.”

Mr. Hutchings’s catch on the final Saturday in June came as the lobster trade approached its money-making time. With the Fourth of July holiday around the corner, Mr. Hutchings and his fellow lobstermen were supposed to be gearing up for a major payday as out-of-staters, cruise ships, warmer weather and bounties of lobsters, having just molted their shells and been lured into the thousands of traps anchored on the rocky bottom of Maine’s coastal waters, came together in a seasonal windfall.

But like many businesses across the country, the Maine lobster industry, which makes up the bulk of the fishing revenue the state brings in every year, is being battered by the coronavirus, which has crushed the tourism trade that Mr. Hutchings and his fellow fishermen rely on for a living.

Read the full story at the New York Times

Coronavirus in Maine: Lobster Industry Hit Hard Despite Few Cases

July 2, 2020 — Blaine Olsen, a lifelong lobsterman, was navigating his 30-foot boat off the coast of Stonington, Maine, when his sternman, who’s also his wife, yelled above the diesel engine’s din about the pittance the local cooperative was paying harvesters. He shot Ginny a doleful stare for a good five seconds.

“Holy sh-t, man,” he said. “It costs us $600 a day to go out.” The dock price — $2.25 a pound for soft-shell lobsters — was half what it was a year ago, making it virtually impossible to earn a profit.

The novel coronavirus has barely touched the public health of this corner of rural Down East Maine, with Hancock County reporting just 16 cases and one death as of June 30. Its economic health is another matter: The fallout from Covid-19 threatens a historically bad year for the Olsens and the rest of the state’s lobster industry.

Fear of contagion and the near-total shutdown of restaurants and cruise lines, where most consumers eat the crustaceans, have devastated demand. Infection-prevention protocols at processing plants have cut capacity, and the drop in air traffic has snarled the logistics of shipping live creatures. Hopes for a recovery anytime soon are dim because prices already typically fall in July.

Some 80 percent of American lobster, the U.S.’s most valuable marine fishery, comes from Maine. And more so than anywhere else, Maine lobster comes from the waters around Stonington. Lobstermen in this county hauled almost a third of the 101 million pounds (worth $485 million) landed statewide last year.

Read the full story at Bloomberg

Senators Markey and Warren, and Reps. Moulton and Keating Call for Mass. Lobster Industry to be Included in Lobster Tariff Assistance

July 1, 2020 — The following was released by The Office of Senator Ed Markey (D-Mass.):

Senators Edward J. Markey (D-Mass.) and Elizabeth Warren (D-Mass.), and Representatives Seth Moulton (MA-06), and William R. Keating (MA-09) wrote to the Trump administration urging it to fairly include the Massachusetts lobster industry in any discussions or distribution of trade relief assistance provided to the lobster industry and seafood producers in response to China’s retaliatory tariffs. The Trump administration issued a memorandum on June 25, 2020 that instructed Agriculture Secretary Sonny Perdue and U.S. Trade Representative Robert Lighthizer to assess the need for assistance and the impact by the retaliatory tariffs on Maine and other affected states. Massachusetts has the second-largest lobster industry of any state, and since the tariffs were imposed in 2018, national lobster sales to China have fallen by 66 percent – from approximately $138 million in 2018 to $47 million in 2019.  In addition to the impacts of China’s retaliatory tariffs, the lobster industry has been suffering from the impacts of the Canadian-European Union (EU) Comprehensive Economic and Trade Agreement, which provides tariff-free access for Canadian lobster products sold in the EU, and the coronavirus pandemic, which has shuttered restaurants and eliminated a primary source of domestic consumption.

“These challenges create a direct need for assistance to this industry, and we urge you to include Massachusetts lobstermen in your efforts to assess how and whether that aid will be distributed,” write the lawmakers in their letter. “This relief could help many small business owners withstand the ongoing economic crisis and preserve a key part of New England’s cultural identity.”
 
A copy of the letter can be found HERE. 
 
The Massachusetts lawmakers, led by Senator Markey, have championed the swift, equitable, and transparent allocation of financial aid to fishery participants during the coronavirus pandemic and secured a $20 million U.S. Department of Agriculture procurement of Atlantic seafood in May.  Senators Markey and Warren, and Alaska Senators Lisa Murkowski and Dan Sullivan successfully called on Senate leadership to include support for the fishing industry in coronavirus economic relief packages, of which Massachusetts received $28 million. On June 6, Senators Markey and Warren wrote to Senate leadership and asked for an additional $500 million in fisheries assistance in order to make the fishing and seafood industries in Massachusetts whole from the effects of the pandemic.

Lobster prices falling in New England, and they might fall further

June 29, 2020 — Lobster prices are falling in New England as the industry deals with the effects of the coronavirus pandemic, and they could drop even more later this summer, industry officials said.

The American lobster fishing industry, based mostly in Maine, has had to cope with a supply chain that has been disrupted by the pandemic. Wholesale prices were lower than previous years this spring, and consumers started to see lower prices at markets earlier in June.

Members of the industry said prices could likely fall more in July. America’s lobster catch typically picks up in the summer, when lobsters shed their shells and reach legal trapping size. This year, fishers will likely bring lobsters to the docks in a time when restaurants are slowed or shuttered and seafood processors aren’t taking nearly as many of the crustaceans, industry members said.

That could translate to lower prices to consumers, who are already paying less than $6 per pound for lobsters in some Maine markets. Prices around $8 or $9 per pound are typical of this month in Maine.

“The state needs to do something to curb supply, because there is no demand,” said David Cousens, a lobster fisher and former president of the Maine Lobstermen’s Association. “Otherwise we’re going to have a disaster.”

Read the full story from the Associated Press at the Sun Journal

Trump wants to use trade war bailout funds to buoy Maine’s lobster industry

June 26, 2020 — President Donald Trump signed an executive order this week directing the Department of Agriculture (USDA) to provide trade war bailout money to Maine lobstermen, a long-coveted win for the industry, which has been impacted by steep Chinese tariffs since 2018.

The EO instructs Secretary of Agriculture Sonny Perdue to assess trade war damages to the New England seafood industry and distribute aid accordingly, and to include the U.S. seafood producers in future payments.

“It’s good news, definitely, to see the president taking an interest in the lobster industry,” said Sheila Dassatt, executive director of the Downeast Lobstermen’s Association, an organization that advocates for the industry.

Read the full story at The Counter

Trump directs aid to Maine lobster industry crushed by tariffs

June 26, 2020 — President Trump ordered the Department of Agriculture to offer a lifeline to the struggling Maine lobster industry that has been hit hard by his trade policies with China.

Trump’s trade war with China devastated farmers in the Midwest, but it also evaporated Maine’s chief export market as escalating tariffs led China to place a 35 percent markup on lobster.

The late Wednesday order from Trump all but directs the Agriculture Department to extend a $30 billion farm bailout program to Maine’s commercial fishers. The program previously sent cash to corn, soybean, pig and other farmers, primarily in the Midwest, who Trump has courted in his reelection effort.

The move follows years of lobbying by Maine’s congressional delegation, which cited “severe financial difficulties due to unfair retaliatory tariffs” in a joint statement expressing support for the government aid.

“Better late than never,” Sen. Angus King (I-Maine) tweeted.

“We made it clear last year in a letter comparing our lobster industry to the farmers in the Midwest seeing relief in this tariff fallout. The first line was ‘Why not lobsters?’” King added in a statement to The Hill, noting that lobsters were one of the first items hit with Chinese tariffs.

Read the full story at The Hill

Maine’s governor objects to petition requesting vertical-line prohibition

June 26, 2020 — The U.S. state of Maine’s governor, Janet Mills, has written a letter to U.S. Secretary of Commerce Wilbur Ross objecting to a recent petition that aims to prohibit the use of vertical lines in the American lobster and Jonah crab fisheries in four areas off the New England coast.

The petition was submitted by The Pew Charitable Trusts earlier this month, with the intention of protecting the highly endangered North Atlantic right whale. Right whales are one of the most endangered mammal species in the world, and entanglement with vertical lines have led to new regulation that the Maine Lobstermen’s Association has objected to.

Read the full story at Seafood Source

President Trump tweets about Maine lobster, orders financial help for industry

June 25, 2020 — President Donald Trump is directing his administration to explore options to financially help the Maine lobster industry.

According to the Presidential Memo, the Secretary of Agriculture is to “consider including the United States lobster industry and other segments of the United States seafood industry in any future assistance provided to mitigate the effects of China’s retaliatory trade practices.”

The directive is similar to trade offsets to help Midwestern farmers hurt by trade policies, which have added up to approximately $25 billion.

President Trump said retaliatory Chinese tariffs have hit the Maine lobster industry particularly hard.

Read the full story at WGME

Trump signs executive order to support US lobster industry

June 25, 2020 — U.S. President Donald Trump has signed a new order intended to help the country’s lobster industry, stemming from a 5 June press conference in Maine.

The new order will task the United States Trade Representative (USTR) with keeping close track of the progress made by China under the most recent, “Phase One” of a trade deal signed by President Trump. That deal was beneficial for the U.S. lobster sector, which experienced a massive downturn in exports to China in the wake of retaliatory tariffs that the country implemented in July, 2018.

Read the full story at Seafood Source