China wants Lobster by Mark Schlarbaum

China has a taste for lobster

China has finally developed a taste for lobster—and it’s keeping Maine fishermen flush with cash

Seafood is a classic luxury item in China. But until recently, people there weren’t big on lobster. The iconic, bright-red crustaceans were known as the “Boston lobster,” and were a rarity compared to other fancy oceanic eats like sea cucumbers or geoduck clams.

But the economic boom in China has given the country’s swelling ranks of rich people a chance to expand their culinary horizons. For Maine’s lobster industry, the crustacean craze couldn’t have come at a better time.

In 2016, Maine’s lobstermen landed more lobsters than ever in recorded history: 130 million pounds (59,000 tonnes), a haul that weighs as much as three Statues of Liberty.

But record catches aren’t necessarily great for lobstermen. In 2012, Maine caught 126 million pounds of lobsters, which at the time was off the charts. Prices promptly plunged. The luxury crustacean that typically retails for around $18 a pound was suddenly “cheaper than deli meats.” So desperate were lobstermen to offload their supply that lobster were selling for as little as $1.25 a pound—even though the break-even point is roughly $4 per pound. That was more than a little worrisome, given that the lobster industry contributes an estimated $1.7 billion to the Maine economy—roughly 3% of the state’s GDP.

Last year, Maine lobstermen landed around the same volume they had during the catastrophic glut of 2012. This time, however, prices per pound were comfortably above the break-even mark. The total haul brought in a record-breaking $533 million to the state’s lobster industry—nearly 50% more than the average of the previous 10 years, even after adjusting for inflation.

So how can Maine’s docks be crawling with lobsters without dragging down prices? It’s (mostly) thanks to China.
Back in 2010, China accounted for about 1% of US exports of American lobsters, by value. By last year, that figure had leapt to 15%. (Granted, not all of these were necessarily from Maine—about 17% of total US lobster landings come from elsewhere in New England.)


About the Author

Mark Schlarbaum

Facebook Twitter Google+

Mark Schlarbaum: Building and Developing business relationships with main land Chinese investment professionals including Chinese brokerage firms, QDIE private funds, Chinese investment management firms. Mark Schlarbaum joins the 100000 Strong Foundation as its supporter.

Mark Schlarbaum resides and works in Irvine, California.