The Atlantic lobster industry will get almost $2.2 million to develop new processing technology and lobster products, federal Fisheries Minister Gail Shea announced Thursday in Charlottetown.

The money is part of an effort to find long-term solutions to industry problems, Shea said on behalf of National Revenue Minister Ashfield, who is also responsible for the Atlantic Canada Opportunities Agency and the Atlantic Gateway.

"This is all in an effort to improve the bottom line to all the stakeholders in the industry — right from the harvesters, to the buyers, to the seafood processors," she said.

"We all know that we have to get the price for lobster up and so by trying to open new markets … invest in new technology, which will allow processors to be more viable. Right down to the harvesters, the buyers and the processors, we have to improve their bottom line."

Lobster prices in the region dipped to below $3 a pound last season, a 20-year low.

Shea already announced $417,000 for Atlantic Canada's lobster industry to develop a comprehensive marketing strategy.

The latest money will go to the PEI Seafood Processors Association to invest in projects to.

• Develop four to six new lobster products over the next year.
• Come up with new processing techniques and equipment to help lower production costs and increase labour productivity.

The Food Technology Centre and Holland College will help carry out the work.

The federal government is contributing $1.6 million, while the P.E.I. government will provide $500,000. The PEI Atlantic Shrimp Corporation is contributing $95,000.

The lobster industry employs about 50,000 people in Atlantic Canada.