Nova Scotia lobster industry facing headwinds after Clearwater exit from live shipping
CBC
Those who work in the seafood processing and shipping industry in Nova Scotia say they were surprised by Clearwater Seafoods' decision to exit the live lobster business.
But they also say it's a sign from a giant that those remaining in the industry need to figure out how to stabilize the economics of it.
"It's a bit of a wake-up call for arguably the leading company to exit lobster, but it will also mean we can individually look at things and tweak many aspects of our business model," said Stewart Lamont, managing director of Tangier Lobster Company, a competitor to Clearwater.
"Fortunately, we still have a captive international audience. Clients in Europe and Asia and the Middle East want to buy our lobster."
Clearwater is widely considered a pioneer in the overseas live lobster market and employs about 1,100 people in Nova Scotia on fishing boats and in four holding and processing facilities.
On Wednesday, the company shut down its holding plant in Arichat, Cape Breton, and eliminated the lobster processing line at its processing plant in Lockeport in southwestern Nova Scotia.
That resulted in layoffs for an estimated 150 workers.
The company says it intends to focus its efforts on processing and freezing shellfish and other seafood on ships at sea.
The live lobster business is facing strong headwinds, including lower-quality catches, logistical challenges with keeping the shellfish alive during transatlantic flights and stiff price competition among processors and shippers, Lamont said.
He said while Clearwater's decision came out of the blue, it's understandable.
"In one respect it surprises me, but in many other respects it's not surprising at all," he said.
"[Live lobster] has been an excruciatingly difficult part of the seafood sector to achieve return on investment in the last few years."
Lower-quality lobsters have a higher mortality rate, making them risky to ship around the world, Lamont said.
And the industry itself has driven down margins.
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