Marine Patrol Chief Col. Joseph Fessenden told the Lobster Advisory Council, July 18, that rumors of illegal activities among lobstermen, in the aftermath of a price drop and resulting tie-up, had been mostly unfounded. He said officers investigated every complaint and that only one, in Casco Bay, had a basis in fact.
“Most of the guys are back fishing, and that’s good news,” Fessenden said.
The LAC met in Hallowell to discuss an agenda that included ways to deal with fluctuations in the seasonal supply of lobsters. The price to be paid to lobstermen at the dock dropped sharply in July after the earlier than expected arrival of soft shell lobsters combined with record yields and larger than anticipated harvests in Canada.
Up to 70 percent of Maine’s lobster harvest is processed in Canada.
Zone E representative Andrew Hawke, of Boothbay Harbor, said lobstermen in his region do not catch as many lobsters as are harvested in other zones. Zone E has enacted a voluntary 600-trap limit per license holder, while most of the other zones have an 800-trap limit. Monhegan Plantation has a new 400-trap limit and Swans Island has a 475-trap limit.
The discussion centered around the creation of a sub-committee to discuss profitability and lobster quality.
The LAC includes one member from each of Maine’s seven lobster zone councils, three non-zone lobstermen, two dealers and one member of the public. Department of Marine Resources Commissioner Patrick Keliher sits in on meetings of the group, which advises DMR on issues relating to the lobster industry.
Council members agreed the crisis encountered this season may have been a unique event. They considered ways to prepare for such events, without locking themselves into any particular action that might not be appropriate at another time.
Chairman Robert Baines, of South Thomaston, called on colleagues to consider all options.
“What is the best method to slow production at the beginning of the summer?” he asked. He said the council needed to develop proposals that would enable the industry to act quickly in a situation similar to the one that led to lobstermen up and down the coast tying up to wharves and moorings for a week or more earlier this month, after the price they received dropped below $2 per pound in some places. Baines said it was important that all zones participate in the decisions.
Keliher said he would identify industry dealers, scientists, representatives of DMR’s law enforcement and policy branches, and marketing experts to be on the new panel, as well as someone with an understanding of the Canadian influence in Maine’s industry. He said he expected the commission to have approximately 30 members.
“I hate touchy-feely facilitated meetings,” Keliher said. He said the final recommendation should come from the LAC, and that his office should not have authority over the group that would propose “changes for the benefit of the entire industry.”
“You have to get out to the public and the press,” said Peter McAleney, a Portland dealer representing the western part of the coast. He said some news stories fed a sense of panic.
“The problem started three weeks before Father’s Day and we couldn’t believe it,” he said. “Dealers expected hard shells. You can’t sell soft shell lobsters on Father’s Day.” He asked lobstermen if there was a trade-off between high-volume harvests at a low price, and a smaller catch with a higher price per pound.
Eastern dealer representative Dana Rice, of Birch Harbor, reminded the council that processors are an important part of their business.
Council Vice-chairman John Drouin, a lobsterman from Machias, said the unexpected events of this summer could be repeated.
“You need something in place,” he said. “We’re working with the unknown.” Drouin said a hard winter could prevent the early shed that happened this year.
Lobsterman Jeff Putnam, of Chebeague Island, asked Keliher if a minimum price could be set, as is done for milk and other commodities. The commissioner said DMR would explore the possibility.
Baines said an oversupply, in the face of weak demand, was at the core of the problem and that the council needed to work with processors and dealers to maintain a supply while improving product quality.
The LAC will hold a meeting to further discuss supply issues on Thurs., Aug. 16 at 4 p.m. at the Natural Resources Service Center in Hallowell.
They agreed to recommend a funding mechanism and recommendations as to the composition and structure of the group to the Marine Resources Committee of the Legislature.
While there was consensus that lobstermen do not want to pay additional fees, Baines showed the council a chart demonstrating that annual fees to support the marketing entity, based on the type of license a harvester holds, would be less than $600 per year for the most active lobstermen, and lower for others. Costs would be split, with 75 percent coming from harvesters and 25 percent from distributors. Dealers would pay between $2000 and $4000, annually and processors would pay between $10,000 and $15,000, under the current proposal.
Within three years, these revenue sources would provide $3,000,000 per year, compared to slightly more than $375,000 collected from lobstermen, last year, to fund the current Lobster Promotion Council.
The recommendation also calls for evaluation throughout the tenure of the new entity. At the end of five years, the Legislature would review the new entity’s progress to see if it should continue.
A board of directors would oversee the staff and keep lobstermen apprised of marketing activities. Baines said many in the industry feel they do not know what the current promotion council does.
“We want to make sure this new entity does let the industry know what they’re doing,” Baines said.
Council members discussed alternative methods of calculating lobstermen’s contribution to the cost, with the majority favoring a flat fee for all harvesters, regardless of how many pounds they bring to market. Members of the Marine Resources Committee, in the audience, told the council that the tiered method Baines described seemed fairer and that only a plan viewed as fair would pass in the Legislature.
Maine Lobstermen’s Association Executive Director Patrice McCarron called for flexibility in the fee structure, to prevent delays in legislative approval for the change.
“You need to make it as proportional as you can,” MLA president Dave Cousens said.
Fees would be phased in over a three-year period, building to an annual budget of $3 million. There was a call to have the statute include a mechanism to increase or reduce the budget to reflect changes in the annual harvest.
John Carter, of Hulls Cove asked if the new marketing effort could receive a portion of the 7.5-percent lodging tax. The Maine Office of Tourism currently receives a portion of that tax revenue.
Keliher said Gov. Paul LePage is examining ways to unify Maine’s tourism promotion.
“There is a lot of interest in this administration to simplify things,” Keliher said. He said the lobster marketing plan would be tied to a number of other such efforts, as the bill makes its way through the legislative process.
The board’s composition would be similar to that of the LAC, with one representative from each of the seven lobster zones, as well as two dealers and two at-large members who are not tied to any geographic area. McCarron suggested inviting representatives from the Dept. of Economic and Community Development and the tourism office, to serve as non-voting members. Keliher would also be a non-voting participant.
Annual progress would be reported to the LAC, the Marine Resources Committee and at a public meeting, such as the Maine Fishermen’s Forum, for lobstermen and other interested parties.
Maine Lobster Promotion Council Chairman Emily Lane and Vice-chairman Cathy Billings told the LAC that their group supports the creation of this new entity. Billings said they would help present the bill to the legislature.
According to the website at msc.org, “The MSC ecolabel can only be applied to product from certified fisheries.”
MSC uses the ecolabel and fishery certification program to recognize and reward sustainable fishing practices, influence the choices people make when buying seafood, and work with partners to transform the seafood market to a sustainable basis.