Eat more… Lobster?

When you think seafood, what comes to mind? All the typical fare—fish, shrimp, oysters, etc. But what about lobster? Most people (including me!) don’t eat too much of this particular crusty critter due to its expensive price tag. However, the recession is hitting people everywhere, and lobster may be more inexpensive than you think.

During times such as these, the demand for all types of luxury goods is down, and that includes lobster. Right now, the price of lobster per pound is cheaper than hot dogs. If you think you read that incorrectly, here it is again: per pound, the current price of lobster ($2.25) is less expensive than hot dogs. Crazy, right? Well consider this: restaurant demand for lobster is down 30-35%. Usually, people only go out for lobster when they have something to celebrate, and people just don’t feel like celebrating right now. Also, the Icelandic banks that have long been lenders to Canadian lobster processors are going under. If no funds are available to the processors, they will not process. This is a big blow to lobstermen, especially in Maine. Canadian processors usually purchase more than half of Maine’s annual lobster catch.

Add this to the fact that the lobster catch this year is bigger than ever, and you have a high supply and a low demand. Enter lower prices! In 2006 at peak price, the price of lobster was $10/pound. Today, it’s $2.25. Of course, buying lobster at a restaurant will cost you more, but purchasing lobster in the store and preparing it at home won’t blow a hole in your budget.

Unfortunately, this news, although good for the lobster connoisseur, is bad for the Maine lobsterman. Not only are they not making the profit on lobster that they used to, but the price of diesel fuel is rising and the price of herring (lobster bait) has doubled since 2007. Lobstermen have actually been losing money on lobster catches.

Some experts predict that the price of lobster will go down even farther as peak lobster season approaches at the end of the summer.

What has to give? Experts say that the industry needs to change the way lobster is marketed and presented to the consumer. One recommendation is offering frozen lobster much like frozen shrimp and salmon instead of making customers buy directly from the tank.

We’re all hoping for an end to the recession, but that doesn’t mean that we can’t enjoy ourselves when something previously thought of as a luxury becomes available at a price we can afford. Instead of eating dinner out, consider preparing lobster on the grill along with corn on the cob, potato salad, and cherry pie—a summer feast! That way, you’ll be able to enjoy yourself by eating something you probably haven’t had for a while, and more lobsters are sold, helping out the lobsterman. It’s a win-win situation… For everyone except the lobster.

Resouces:

http://money.cnn.com/2009/07/17/news/economy/cheap_lobster_bargain.fortune/index.htm?postversion=2009071809