Union president Earle McCurdy says shrimp harvesters are relieved that their price dispute with processors is over. (CBC)

Newfoundland and Labrador's beleaguered shrimp fishery has surmounted an important hurdle, with the announcement that an agreement has been reached on the price that harvesters will receive for this year's catch.

The deal was reached late Friday night in a meeting of harvesters, processors and provincial government representatives, according to the president of the Fish Food and Allied Workers union, Earle McCurdy.

The harvesters had said they needed at least 42 cents a pound in order to make any profit on this year's catch, while processors said they couldn't afford to pay more than 37 cents.

Harvesters will get the 42 cents a pound they were looking for, McCurdy said.

In order to make that happen, 0.6 cents paid on every pound will come from dipping into the Shrimp Development Fund that harvesters pay into on a regular basis. The province will also give the shrimp fishers a processing fee rebate for this season.

A group of shrimp harvesters staged a sit-in at the Fisheries Department office in St. John's in late June to bring attention to their demands and encourage the province to help find a solution.