Maine Lobster Fishing Supply Chain

06.25.18

A boom in Maine’s lobster production means that there’s more supply than demand for the country’s favorite crustacean. How is the fishing industry responding?

The Fourth of July is just around the corner. For most of us, this means it’s time to heat up the grill and break out all things red, white, and blue.

For lobstermen in Maine, however, July is the kickoff to the state’s high tourist season, when America’s favorite crustacean is in high demand. In recent years, Maine has had a series of record-breaking harvests, and fishermen and processing plants have had to adjust to this oversupply. For restaurants and consumers, this glut has meant lower prices (and more lobster to go around!).

With the Fourth of July upon us, let’s explore the journey of this delicious delicacy from the ocean floor to the lobster shack.

A Booming Business

Maine, of course, is the country’s largest producer of lobsters, accounting for 75 to 80% of all lobsters caught in the United States. According to Quartz, the lobster business in Maine is the only fishery in the entire world that has endured for over a century, and it continues to produce more volume and value with each passing year. In 2014 alone, Maine fishermen hauled in 124 million pounds of lobster worth a whopping $456 million.

Thanks to an efficient fishing and distribution supply chain that keeps lobsters moving seamlessly from the docks to your favorite lobster roll food truck, the total economic impact of the lobster business on the state is estimated to be as much as $1.7 billion. That’s because, for every dollar paid to a lobster fisherman, an additional $3 to $5 is generated for related businesses along the supply chain, such as dealers, processors, and restaurants.

You might be surprised to learn just how many players are involved in the typical lobster harvest: a lobster can change hands up to seven times before it lands on your dinner plate. First, it’s harvested by lobstermen, who sell it to a dealer or a co-op by the pound. The dealer then sorts the lobsters for quality and hardness, sending the lobsters with the hardest shells to retail stores and restaurants and those with molten or soft shells to processing plants where they’re broken down, cleaned, cooked, and frozen (there are often several more middlemen involved at this stage of the process). This processed lobster meat is typically used in grocery store food items like lobster ravioli, or at national restaurant chains like Red Lobster.

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Too Much Lobster?

For the past several years, Maine has been experiencing a lobster boom. This can most likely be attributed to rising temperatures in the Gulf of Maine, since lobsters grow faster in warmer waters. Overfishing and looser regulations on fish like cod and halibut that prey on lobsters could also account for the seemingly unceasing growth.

Although an oversupply of lobster seems like an oxymoron for lobster fans, it’s causing real issues for lobstermen, processing factories, and other parts of the supply chain. While there might be a greater number of lobsters, the quality of these lobsters is sub-par. The warmer temperatures that are causing them to grow faster also make them molt earlier, increasing the output of less desirable soft shell lobsters come harvest time. Because soft shell lobsters are sent to processing plants, rather than the live market, the processing plants are struggling to keep up with this sudden influx.

The surplus of soft shell lobsters also causes a problem for distributors. Lobsters spoil more quickly if their shells have not hardened, so soft shell lobsters cannot easily be shipped long distances. As a result, lobstermen have to sell their products in the local market if they want to turn a profit. As a result, customers in the Midwest or on the West Coast won’t see the same low prices that Maine’s lucky Fourth of July tourists will enjoy when chowing down on their favorite lobster dishes over the holiday.