Rising Fuel Costs Squeeze Nova Scotia Lobster Fishers Despite Record Harvests
Lobster fishers in Southwestern Nova Scotia face mounting financial pressure as marine fuel prices nearly double. Industry leaders are calling for federal relief, warning that global competition prevents harvesters from passing increased costs to consumers.
Lobster fishers in Southwestern Nova Scotia are confronting severe financial strain as the cost of marine fuel has jumped from approximately $1.26 per litre last year to $2.30 per litre currently. Rising fuel and equipment costs are squeezing profits across the industry, putting stress on what is considered a backbone of the province's coastal economy.
Michael Larkin, president of the Brazil Rock Lobster Association, estimates his fuel expenses will rise from approximately $30,000 last year to around $55,000 this year for the six-month season. To cope with the escalating expenses, some boats may need to change their approach and reduce how often they head out to pull traps. Harvesters currently face no guarantee of recovering the cost of getting out on the water.
The financial pressure comes despite strong production figures. Harvesting in Lobster Fishing Areas (LFA) 33 and 34 resulted in nearly $487 million worth of lobster landed last year, totaling nearly 22 tonnes. However, experts warn that high global competition prevents harvesters from passing these increased operational costs onto consumers.
Wilf Swartz, a marine affairs professor at Dalhousie University, states that consumers can shift to other protein sources like tuna or shrimp if lobster prices become too high, preventing harvesters from passing on costs. Geoff Irvine, executive director of the Lobster Council of Canada, notes that despite high costs for harvesters and plants, the global market does not accommodate these increased expenses.
In response to the mounting economic risks, fishery leaders are calling for federal relief. Michael Larkin is requesting a federal fuel rebate to help deal with the financial shock caused by rising operational costs.