The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian fishermen were yesterday said to be confronting “a bad situation all around’ with increasing costs and a “low-end” lobster price set to impose a profits squeeze just one week before crawfish season starts.

Paul Maillis, the National Fisheries Association’s (NFA) secretary, told Tribune Business that the sector was facing a “drastic decrease” in lobster prices with wholesale buyers indicating that they may slump by more than 50 percent compared to just two years ago.

With diesel prices still over $6 per gallon, and up to “ten-fold” increases in boat registration fees have yet to be adjusted, he argued that “additional cost pressures” might drive some fishermen to reconsider “whether to go out at all” this crawfish season or switch to catching fish.

“Right now, going into the season, I would say lobster fishermen are a bit concerned because of the overall increase in the cost of business at the moment, coupled with the boat registration fees being increased, and the fact that pretty much all of the fees across the commercial fishing sector have been increased,” Mr Maillis told this newspaper.

“That’s going to add additional cost pressures for fishermen trying to get a trip off the dock, coupled with the fact the lobster prices we were looking for don’t seem to be there. We’re getting reports from some of the buyers that they have a lot of lobster still in stock, and the expected price going into the season is anywhere from $8-$89 a pound, which is on the low end of the spectrum.

“That has a lot of fishermen considering whether to go out at all this year, or just stay in port or focus on catching fish rather than lobster. It’s very unfortunate. At the same time as we’re being hit with high fuel costs and rising boat registration fees, the price of lobster is not where it needs to be from a profitability standpoint.”

Mr Maillis conceded that 2022’s crawfish season “was not that really great” either, with lobster fetching between $10-$12 per pound. However, this year’s projected $8-$9 price represents a more-than 50 percent drop from the up to $20 per pound that fishermen obtained just two years ago as the Bahamian economy and the world emerged from the COVID-19 pandemic.

The NFA secretary described this as “a drastic decrease across the board”, but added that fisheries processors, wholesalers and exporters were unlikely to be happy either. If they are only prepared to pay $8-$9 per pound for lobster, he added, these companies are unlikely to achieve the price they are seeking in the international markets.

And, if the same firms are saddled with large lobster inventories they bought at higher prices, which they are unable to recover through sales, then their profitability and margins will also be squeezed. “It’s a bad situation all around. It’s a challenging situation for everyone,” Mr Maillis told Tribune Business.

He added that multiple factors were likely driving the depressed lobster prices, and market in general, including the emergence of new supply sources such as Honduras and Belize who are “happy to sell lobster at a low price” and undercut other producers.

Keith Carroll, the National Fisheries Association’s (NFA) president, confirmed to Tribune Business that the industry is “very concerned” about initial indications of relatively low prices this crawfish season. “According to the wholesalers, it sounds like it’s not good,” he said. “They’re saying sales are down and they have too much inventory. I don’t know what were going to get. I have no idea what it’s going to be.

“It sounds like it’s not going to be good this year. It sounds like it will be the worst year for a very long time. We’re still hoping for the best but, right now, the signs are not good. I haven’t taken out any traps yet. Normally they’re all set, but I’ve not taken one out. There’s no sense setting them; there’s no encouragement. We’re hoping for the best but it doesn’t sound so.”

Mr Maillis, meanwhile, also voiced disappointment that international buyers in markets such as the US, Europe and Canada appear to be “overlooking” The Bahamas’ Marine Stewardship Council (MSC) certification, which highlights this nation’s status as a country committed to the sustainability of its lobster and wider fisheries industries.

“Buyers across the world can look at The Bahamas and say it’s a sustainable source of spiny lobster tails,” the NFA secretary explained. “What must be happening is that buyers are overlooking that and choosing to go with the lowest price rather than sustainable price. It’s quite frustrating for us.

“With MSC certification there were certain expectations that it would be a buffer, but the reality is proving not to be the case. It’s still a positive to have that certification, and we cannot escape the fact our country’s operating costs are higher than our competitor countries who have cheaper labour and cheaper raw materials.”

Crawfish season is due to open on August 1, and Mr Maillis said the cost of doing business has an even greater effect on Family Island fishermen. “On the Family Islands, diesel fuel is already over $6 and close to $7 per gallon,” he added. “The fishermen in Family Islands pay a higher price for fuel, pay a higher price for supplies and get a lower price for lobster. It’s very difficult for fishermen on the Family Islands to survive.

“This constant rise in prices and uncertainty with lobster prices, it’s a difficult business. When it’s good, it’s extremely profitable and financially worthwhile, and when it’s bad you see a lot of people suffer.”