Lobster lovers, rejoice: Prices are falling
Thank booming populations due to global warming and strong Canadian production. Maine fishermen, however, aren't exactly happy.
Here's some good news for would-be Rockefellers. While prices of most luxury items continue to rise, lobster is taking a dive.
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 $4 per pound, Quartz notes.
That's prompting some low-end restaurants to add the high-end food to their menus. McDonald's (MCD), for instance, offers the McLobster sandwich in some Northeast locations, and this year even expanded it to Ontario.
Canada processes the majority of Maine lobsters, which is also putting pressure on the U.S. lobster industry, according to Quartz. That's spurring Maine Governor Paul Le Page to push for the construction of new processing plants in his state.
Another issue for Maine lobster is the debate over hard shell versus soft shell. Maine fishermen tend to catch soft-shelled creatures, while Canadians harvest the hard-shelled variety, which they successfully market as superior, Quartz notes.
Regardless of which type you prefer, the fact is that lobster prices aren't likely to rebound anytime soon, given the continuing rise in ocean temperatures.
Follow Aimee Picchi on Twitter at @aimeepicchi.
I'm so confused... the same researchers who are spouting off about global warming cannot explain why deep water temperatures are going down - not up.
Yet there are more lobsters because global warming is making the water warmer, oh, except where it's getting colder.
I guess I'll worry about it over a lobster dinner.
I prefer Alaskan King Crab, but Lobster's good too.
Think I'll order the Lobster Bisque!
The cheap prices aren't here there still 9$ lb. same as 5 years ago. I asked they said it cost to much to ship from the east to the west so no low prices here in Oregon or Wash. And i love lobster more than steak any day no fat all protein and easy to digest not like beef where it can sit for days in your stomach to digest.
Copyright © 2014 Microsoft. All rights reserved.
[BRIEFING.COM] The stock market ended the Wednesday session on a mixed note with small caps displaying relative strength. The Nasdaq Composite (+0.5%) and Russell 2000 (+0.4%) registered modest gains, while the Dow Jones Industrial Average (-0.2%) and S&P 500 (+0.01%) underperformed.
Despite the mixed finish, the key indices traded higher across the board at the start of the session after the advance reading of second quarter GDP surpassed estimates (4.0% versus Briefing.com ... More
More Market News
Why are stronger numbers considered bad news? Investors are worried about the impact on inflation and interest rates.
MUST-SEE ON MSN
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'