This season's crab industry in Newfoundland and Labrador started late, following an impasse over prices. (CBC)

A respected U.S. seafood analyst says a controversial price in the Newfoundland and Labrador crab industry is probably not sustainable, and that market prices are bound to drop.

Newfoundland and Labrador processors say this season's price of $1.35 per pound, established in March by a government-appointed panel, is too high, and that prices in the U.S. market will drop.

John Sackton, who publishes the seafood.com website from Massachusetts and whose market evaluations are closely followed in the Atlantic Canadian seafood industry, said the processors' expectations are likely right.

"The crab market is not excited this year," he said.

"There's been a lot of reluctance on the part of buyers to stock up on crab because they continue to feel there's a lot of market uncertainty."

After an impasse that lasted for more than a month, the crab fishery in Newfoundland and Labrador finally launched late last week, when processors agreed to cover the fee set by the price-setting panel.

However, the Association of Seafood Producers said their problems will only worsen as the season continues.

Sackton said historically the prices that processors can fetch for crab have dropped as the weather warms up.

"If you look back at the last 10 or 12 years in the crab fishery, every year the price at the end of May is lower in the market than it is at the beginning of May or the end of April," Sackton said.

"As you crank up the volume in the fishery and there's a pressure to sell crab ... the prices go down."