8/9/2013 6:15 PM ET|
Lobster lovers, rejoice: Prices are falling
Thank booming populations due to global warming and strong Canadian production. Maine fishermen, however, aren't exactly happy.
The price of the crustaceous delicacy is feeling downward pressure because of two trends: global warming and more hauls from Canadian fishermen, notes Quartz.
Warming seas resulted in an explosion of lobsters, the site notes. (It's also creating lobster cannibalism -- scientists say the rising population has lobsters looking at each other as food.) Volumes have surged about 80% since 2008, the Financial Times notes.
With the bigger hauls in Maine and Canada leading to lower prices, that means trouble for Maine lobstermen.
"Overall profitability of the industry is suffering," Patrice McCarron, executive director of the Maine Lobstermen's Association, told the FT. "So we're in a situation where we're trying to move an ever-increasing supply chain into a weak market."
Prices paid to lobstermen fell to $2.69 per pound last year, from a peak of $4.63 in 2005. The break-even price for the fishermen is about $4 per pound, Quartz notes.
That's prompting some low-end restaurants to add the high-end food to their menus. McDonald's (MCD), for instance, offers the McLobster sandwich in some Northeast locations, and this year even expanded it to Ontario.
Canada processes the majority of Maine lobsters, which is also putting pressure on the U.S. lobster industry, according to Quartz. That's spurring Maine Governor Paul Le Page to push for the construction of new processing plants in his state.
Another issue for Maine lobster is the debate over hard shell versus soft shell. Maine fishermen tend to catch soft-shelled creatures, while Canadians harvest the hard-shelled variety, which they successfully market as superior, Quartz notes.
Regardless of which type you prefer, the fact is that lobster prices aren't likely to rebound anytime soon, given the continuing rise in ocean temperatures.
Follow Aimee Picchi on Twitter at @aimeepicchi.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market continued its strong start to the week with a broad-based Tuesday rally that sent the S&P 500 higher by 0.5%. Nine of ten sectors registered gains while the benchmark index extended its week-to-date advance to 1.4%.
Equities received an opening boost from a pair of economic data points that crossed the wires this morning. An in-line CPI report suggested inflationary pressures remain contained, while a better than expected Housing Starts report ... More
More Market News
Excitement is growing about the company's new iPhone, expected this fall.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'