Low prices could force out some snow crab harvesters
Snow crab prices are $2.25 per pound at the wharf in Cape Breton
The snow crab industry in Cape Breton is in a world of trouble this year and a price of $2.25 per pound at the wharf may not be enough for some harvesters to continue.
The industry is blaming inflation, problems in the economy and consumers having less money to spend.
"You have the U.S. market with bank failures and they are close to a recession," said Osborne Burke, general manager of Victoria Cooperative Fishery Ltd., located in Neils Harbour.
"So that's challenging consumers who are trying to survive higher grocery prices, higher interest rates, and they're not rushing out to have a luxury snow crab dinner."
Osborne says it's been 15 years since the at-wharf price was that low.
Factor in the economy issues and very high fuel prices and the number crunching simply isn't working in harvesters favour.
"Overhead, wages, costs, they're all much higher today than they were in 2008," said Burke. "We're just hopeful that it doesn't drop further because it comes to a point where you ask is it feasible to fish or not."
The snow crab season got underway last week in parts of Cape Breton.
For some, heavy ice is making it difficult to get their fishing boats in and out of their local harbours.
The precarious start to the season is suffering a hangover effect from last year. The poor economy, combined with other snow crab from other markets like Norway, meant a lot of snow crab did not sell.
Processors are still trying to figure out what they should do with it.
"Last year when the season started we were paying harvesters as high as $10 [per pound] and then it went down to $8 and eventually by July of last year it was down to $4," said Burke.
"So we now have a lot of expensive product that is still in our inventory and it will have to be sold at a major loss and it's moving slowly and now here we are in a new season."
Some processors are not even buying snow crab right now.
That's keeping some harvesters in some parts of Cape Breton off the water. Burke says he's thankful to be processing at his plant, especially since the facility was heavily damaged in the fall by post-tropical storm Fiona.
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