HOW THE PANDEMIC IMPACTED THE LOBSTER INDUSTRY

How the Pandemic Impacted the Lobster Industry. The state of Maine is synonymous with lobster. For many, the idea of eating lobster is a luxurious treat, something to be savoured on special occasions. For those who live in Maine, lobster is a way of life and a staple in their nutritional diet.

However, this way of life has been affected greatly by the introduction of the coronavirus, a deadly pandemic that originated in Wuhan, China. COVID-19 protective measures implemented in March 2020 across the United States and worldwide immediately impacted the seafood sector. The lobster industry is among the severely impacted.

It’s no secret that the pandemic has taken a toll on businesses across US and UK. While some industries were able to adapt and even thrive in the new normal, the lobster industry has been hit significantly harder.

The virus outbreak led to a sharp decline in lobster demand when restaurants were forced to close their doors. Lobster is notoriously difficult to ship and store. Much of the catch is sold fresh to restaurants. Maine’s fishers were left with few options with no one to buy their lobsters.

Many turned to the wholesale market, but prices were also plummeting as the demand for lobster dropped. Some fishermen decided to give up and leave the industry altogether because of the rock-bottom prices and the uncertainty of the pandemic.

Dealing with the consequences of Covid-19 was the most critical priority in the seafood, fisheries, and processing industry. Cases of Covid-19 infection have been piling up, as reported by seafood processing plants.

The virus caused a significant decrease in the labour available to work in these plants. Some plants have had to shut down completely to prevent the further spread of the virus. Furthermore, restaurants and hotels have closed their doors, and tourists have cancelled their vacations due to the lockdown. Decreased demand also means decreased value. As a result, Maine lobsters were at their lowest price points in history, reducing to a demeaning $2-$4 per pound instead of their original $45 price tag. Many fishers struggled to make ends meet.

Restaurants and hotel closures were not the only negative impacts on the lobster industry during the pandemic. The price of lobster meat is also affected by logistics. The pandemic has disrupted global supply chains, making it difficult for lobster exporters to get their products to international markets. The pandemic also made it very difficult for lobster farms to get access to feed due to low stocking and limited input supply. As a result, most farms reported struggles to keep up with lobster raising when there is no demand to justify the high costs of input supply.

China, one of the biggest importers of Maine lobster, halted imports in early 2020 due to the pandemic. This fact led to a surplus of lobster in Maine and created an oversupply in the market. Restaurants could not benefit from an unethical $4 per pound of lobster because they were not allowed to be in operation.

The lobster trade relies on international travel, with lobster being flown in from all over the world. The Winter Olympics in China, as well as the 2022 Chinese New Year, were expected to provide a boost in sales, but supply chain difficulties have proven otherwise. New Year exports were hampered by flight delays, cargo handling difficulties, and labour and material shortages.

Thankfully, the pandemic has finally come to an end. After the negative effects of the Covid-19 storm, the lobster industry finally made a big comeback. The industry’s revenue is expected to increase from $7.3 billion to $7.9 billion in 2022 with the help of federal aid and increased demand from China. The total revenue represents a 7% increase from 2021, one year after the pandemic. Maine’s Department of Marine Resources released figures for the state’s lobster industry on February 14, revealing a massive 75 per cent increase over 2020 and by far the most significant jump ever recorded.

One good news for the lobster industry is that the demand has increased exponentially after the pandemic due to new restaurant openings and the return of social gatherings. As ports around the world reopen international trading and accept imports, countries like China begin to show a huge interest in lobsters again. With no sign of slowing down, American exporters sent more than 13.2 million pounds of lobster to China during the first 11 months of 2021.

Realising the potential of the lobster industry in reviving the country’s economy, state officials are closely monitoring the health of the lobster population and avoiding over-fishing to ensure the increased demand is met properly.

In recent years, the lobster industry has been threatened by various challenges, including climate change and diseases. Thankfully, the industry is now back on its feet and thriving. Lobstermen are turning on their boats and sailing out to the ocean with the renewed joy that lobster is once again in demand. As demand continues to rise, Maine lobster fishers are more prepared than ever, in case another pandemic ever happens.