COVID-19 had a significant impact on the lobster industry. The virus caused a sharp decrease in lobster demand, resulting in higher prices and fewer jobs. Lobster fisherman near Acadia National Park in Maine. Photo: Ed Lallo/Gulf Seafood News
Editors Note: Since 2020 COVID-19 has significantly impacted the entire U.S seafood industry. In the Gulf of Mexico oyster, shrimp and finfish fishermen were just a few of the hardest hit. In Maine, the lobster fishery suffered a similar fate. It is important to realize Gulf fishermen are not alone in their struggles to recover.
by Kevin Fagan, LobsterAnywhere.com Inc.
COVID-19 had a significant impact on the lobster industry. The virus caused a sharp decrease in lobster demand, resulting in higher prices and fewer jobs.
In 2019, the Maine lobster industry had a value of around $490 million, and by the end of 2020, the value had dropped to $412 million. The value has gone up massively since then, and the Maine lobster industry stood at a whopping $730 million by the end of the fiscal year of 2021.
Even though the lobster industry is booming now, during the pandemic fewer lobsters were caught; prices increased dramatically; fewer workers were available. In the first month of the pandemic, Maine’s lobster industry lost $300 million in revenue. During that same period, the state lost over 15% of jobs.
Even though the lobster industry is booming now, during the pandemic fewer lobsters were caught; prices increased dramatically; fewer workers were available. Lobsters served on the dock in Boothsbay Harbor, Maine. Photo: Ed Lallo/Gulf Seafood News
According to the National Oceanic and Atmospheric Administration (NOAA), when COVID-19 was issued in March 2020, protective measures were instituted that resulted in declines in the U.S. fishing and seafood sector from 19% in March to 45% in July when compared to the five years previous.
Revenues declined due to restaurant closures and social distancing protocols that also impacted other sectors of the seafood economy. Harvesting, processing, and shipping disruptions also negatively affected international markets. During this time period the country’s exports fell by 18%.
From the beginning of the pandemic, it was clear that the virus would harm crustaceans, especially lobsters. As a result many commercial fisheries have been completely shut down, and those that remained open saw a dramatic decrease in their catches.
Several factors contribute to the decline in lobster populations. First, there is a direct effect of COVID-19 on lobsters themselves: the virus kills them within 24 hours of infection.
From the beginning of the pandemic, it was clear that the virus would harm crustaceans, especially lobsters. As a result many commercial fisheries have been completely shut down, and those that remained open saw a dramatic decrease in their catches. Lobster fisherman unloads his catch in Bootsbay Harbor, Maine. Photo: Ed Lallo/Gulf Seafood News
Second, there are indirect effects of human behavior during the crisis: people eat more seafood than ever, including crustaceans like lobsters. But because so many fisheries had been closed or severely limited by the pandemic, there was not enough supply to meet the demand.
Thirdly, climate change has impacted the availability of lobsters through changes in ocean temperatures and current. Higher temperatures mean the different species of lobsters survive in the colder waters that are now greater distances from the shore, making it harder for fishermen to catch.
The lobster industry relies heavily on the warm waters of southern California where lobsters breed and grow to maturity before returning to their cold-water habitats in Maine, Canada, and New England. But with climate change causing rising temperatures and COVID-19, these populations are being pushed further north by hundreds of miles. It has led to decreases in the number of mature male lobsters caught per pound during recent years—and this trend will likely continue into 2022 as well.
The virus has made it nearly impossible for restaurants across the U.S to stay afloat. Many started closing their doors for good due to increased prices and decreased supply for ingredients like lobster. Los Angeles was no exception.
Craig Schwartz of Cary, NC enjoys a lobster on the dock at Boothsbay Harbor, Maine. Photo: Ed Lallo/Gulf Seafood News
Maine lobsters are shipped to Los Angeles mainly for customers at seafood restaurants. Many establishments stopped serving the seafood because of the fear of contracting COVID-19 from lobsters, causing a considerable decline in revenue for the lobster industry. Data provided by the Lobster Institute at the University of Maine shows the decline in sales due to customers being afraid of eating out during the health pandemic.
The most significant impact of COVID-19 has been on small-scale fishermen who depend on lobsters for their livelihoods. Many have had no choice but to close up shop and sell their boats because they can no longer afford fuel or bait for their vessels.
For larger companies owning fishing licenses the pandemic has been somewhat of a blessing. They have been able to buy from smaller fishermen at a lower price and sell at market rates without having to do much work. But this has not helped those who have lost their jobs or businesses.
A number of Maine lobster fishermen lost their licenses during the 2019 season because they could not get their catch to shore because of the weather conditions and sanctions set by the government. The loss of licenses is caused by failure to deliver catches within 48 hours after capture.
Necessary Service
Food processing has long been regarded as a necessary service because it gives local populations access to food and employment. Social restrictions and the shutdown of processing facilities have prevented some fishermen from working. With restaurants closed or offering only take-out and delivery, those that can work sell their fish to a depressed market.
In June of this year, Janet Mills, Governor of Maine, announced she would dedicate more than $15 million in federal COVID-19 relief funds to the lobster and aquaculture industries. Photo: Ed Lallo/Gulf Seafood News
In June of this year, Janet Mills, Governor of Maine, announced she would dedicate more than $15 million in federal COVID-19 relief funds to the lobster and aquaculture industries. Maine’s lobstermen have been dealing with inflation and supply-chain problems, as well as falling prices for bait and boat fuel. With 2022 shaping up to be another challenging year for the state’s signature industry, many in the coastal communities are concerned about the future of their livelihoods.
The $15 million funding will be distributed among 107 seafood dealers and processors throughout the state. It will be used to increase Maine-harvested seafood supplies, strengthen the ability of businesses to deliver seafood to markets, and create jobs in the seafood industry. Half of the awards were given to coastal companies, with some receiving more than $115,000.
The Seafood Dealer and Processor COVID-19 Response and Resilience Program, created by the governor as part of her “Jobs and Recovery Plan,” offered $10 million in competitive awards. The program received $850,000 from the USDA Seafood Processors Pandemic Response and Safety Block Grant Program and $5 million from the federal Consolidated Appropriations Act. The Maine Department of Marine Resources delegated program management to the Maine Technology Institute.
The government has provided multiple bailouts during this trying time, enabling fisherman to continue their business without the worry of going bankrupt.
Both politicians and consumers have expressed opposition to the government bailouts. Many people think that because other industries are failing, they shouldn’t be the only ones allowed to obtain subsidies. Others think this is essential since it will keep fisherman working during this challenging time.
NOAA claims during the first year of the epidemic the value and catch volume of the country’s commercial fishing industry declined by 10% and 15%, respectively. Lobsters fresh off the boat are put into holding tanks at Boothsbay Harbor. Photo: Ed Lallo/Gulf Seafood News
To help lobster farmers with some of the costs associated with the disease, the US government has established a program providing subsidies for individuals who require further assistance as well as loans to lobster fishermen who are struggling as a result of COVID-19. A recent trip by a Maine lobster delegation to Washington, D.C., resulted in the acquisition of $14 million to support the lobster industry.
NOAA claims during the first year of the COVID-19 epidemic the value and catch volume of the country’s commercial fishing industry declined by 10% and 15%, respectively. Fish caught in 2020 weighed 8.4 billion pounds and were worth $4.8 billion. NOAA officials further asserted that the U.S. fishing industry, which has survived commercially despite the challenging year, faced significant difficulties in the early months of the pandemic.
The Canadian lobster industry has faired much better. Canada has maintained its lobster supply by importing it from abroad. In contrast, American lobstermen have been unable to purchase enough live lobsters from other countries because of trade sanctions against China, which produces most of the world’s lobsters.
The Canadian government has also implemented programs designed to help lobstermen transition into other industries such as aquaculture, fisheries management and tourism. It has also provided financial assistance for struggling businesses through its Strategic Innovation Fund program, which provides loans and grants for new business ventures or expansion projects for existing businesses.
Lobsters Shipped Worldwide
Maine lobsters are shipped around the world, including China where the deadly virus first started. China’s tightly controlled media even tried to suggest the COVID-19 virus first arrived in the country in 2019 via a shipment of lobster from the U.S. state of Maine.
Things are looking up for the industry in the coming year. Landings have increased by 11% since 2021. Prices have risen steadily throughout 2022 and continue to grow as demand increases. A lobster is prepared to be boiled on the dock at Boothsbay Harbor. Photo: Ed Lallo/Gulf Seafood News
Approximately 80 percent of Maine’s lobsters are exported to China. During the pandemic Chinese officials did not allow the import of Maine lobster due to fears it may spread the virus, a problem for the Maine Lobstermen’s Association (MLA) that represents approximately 4,000 workers on more than 1,000 vessels in the state
The trend of sanctions came to an end by the start of 2022 as the Chinese New Year approached. The demand for lobsters increase significantly during the New Year celebration where it is traditionally served. Maine Lobster exporters seized that opportunity to recover from the impact of the pandemic on their businesses. The total lobster exports stood at $509 million in of this year.
Things are looking up for the industry in the coming year. Landings have increased by 11% since 2021. Prices have risen steadily throughout 2022 and continue to grow as demand increases. The rise in prices has allowed some previously closed processing to reopen their doors and employ more workers than at any time since COVID-19 first hit the U.S. Things are on track for an even brighter future for Maine’s lobster industry.
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