• Bahamian fisherman having to ‘weather the storm’
• Those who bet on prices staying high vulnerable
• Grouper season close limits alternative options
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
Fears were yesterday voiced that some Bahamian fishermen “may not survive the season” as the industry seeks to “weather the storm” created by lobster tail prices plunging by up to 50 percent.
Paul Maillis, the National Fisheries Association’s (NFA) secretary, told Tribune Business that fishermen who invested heavily in their vessels and operations in expectation that last year’s prices “of upwards of $20 per pound” will be maintained are especially vulnerable to the drop-off.
Disclosing that seafood processors are paying fishermen as little as $10 per pound for lobster in some parts of The Bahamas, he attributed the “suppressed prices” to increased supply as rival sources such as South Africa ramp up production back to pre-pandemic levels with the lifting of COVID restrictions.
While catch volumes have held at 2021 levels, Mr Maillis told this newspaper that Family Island communities were being especially hard hit by the price fall-off. Besides having fewer sales outlets outside of processors and exporters, they are also feeling the general squeeze from inflation and cost pressures far more than New Providence.
With “the price of everything going up” bar lobster, he added that some fishermen are now struggling to “pay their bills” and still hoping that the Government can provide some relief on fuel costs - possibly by diversifying supply sources if the US eases sanctions on Venezuela and allows the South American country to resume production in earnest once again.
With one alternative income source cut-off for Bahamian fishermen yesterday through the end of Nassau grouper season, Mr Maillis said fears of an economic recession in major consumer markets such as the US, coupled with China’s ‘zero COVID’ policy, could mean relatively low lobster prices persist for some time to come.
“In terms of production, there’s no noticeable difference between this year and last, but where it’s drastically different this year is in the price of lobster tails being purchased by the processors,” he told Tribune Business. “Last year, processors were paying upwards of $20 a pound in some places for the fish, but now the price has fallen in some parts of the country as low as $10 per pound. In other places, it is $15 a pound.”
Pointing out that market prices were typically around $16-$17 per pound, the Association secretary added: “It’s been a big challenge for fishermen this year. Some of them are really suffering because of the price drop, having anticipated a good year price wise with the elimination of COVID lockdowns and restrictions on the global market. It has not turned out that way.”
Mr Maillis said excess supply was keeping lobster tail prices relatively low, with increased production from rivals such as South Africa and Australia raising market competition as they returned to pre-COVID output. And, having seen how lucrative 2021’s lobster prices were, he added that fishermen from countries in South America and elsewhere had also entered the market and further depressed pricing.
“The supply is very high and suppressed the price,” he confirmed. “It’s been a huge problem for us. A lot of fishermen cannot pay their bills right now because the price of lobster is so low. They set more condos in the off-season, invested more in their vessels, expanded their operations and then this year hit and it was a huge blow.
“When you compare the fact that the price of everything else is going up - the price of gear, the price of fuel - nothing else is decreasing in price apart from the price of lobster. It’s put a lot of fishermen in a very challenging situation, and I wouldn’t be surprised if some fishermen do not survive this season. Fishermen that have massive investments, we’re hoping they’ll weather the storm, but that’s assuming the price improves.”
Mr Maillis said China’s ‘zero COVID’ policy and related lockdowns has caused demand for live lobster exports to plummet, while local seafood exporters were also faced with the problem of selling down inventory they acquired at 2021’s high prices in a depressed market.
“I’m sure there’s losses on all sides right now,” he added, disclosing that many lobster trappers were mulling whether it is more profitable for them to focus on scale fish in the present time. “There’s places in The Bahamas like Long Island and some of the Family Islands where prices are generally lower for fishermen,” Mr Maillis added.
“When you factor in this overall depression in price, the effect for some communities is much worse. In New Providence there’s a lot more demand locally, so people can mitigate their losses by supplying local communities and restaurants. It’s a big challenge. It’s a hard time for lobster fishermen right now.
“As fishermen we weather many storms. Hopefully things will improve. All we can do is hold our end and hope and pray things improve. There’s a lot of fishermen that have been asking for, in times like this because the situation is outside our control, if the Government can initiate policies to reduce the price of fuel to alleviate some of these external burdens. Fuel is our second cost. Labour is number one, but fuel is right up there. Some fishermen want assistance with fuel.”
Pointing out that the impact from “suppressed prices and greater costs” is felt more on the Family Islands than in Nassau, Mr Maillis said the Nassau grouper season’s closure yesterday limits the earning options for fishermen. “Normally this is a time when fishermen are OK with the closure of grouper season because they still have lobster, and lobster is the more profitable product, but with the fall in price they are going to feel the closure of grouper season in a major way,” he added.