BEHIND THE CARAPACE

When you live in Maine, chances are strong you’ll eat lobster more than once a month. My favorites are a lobster roll at the Clam Shack, unmatchable lobster stew at Hurricane or steaming hot pound-and-a-halfers at Alissons — all available here in the Kennebunks at indoor and outdoor venues.

But other than occasionally seeing a lobster boat bobbing offshore while walking the beach or watching a lobsterman row his dingy out to the “Sarah Anne” in the morning mist, I haven’t thought much about the actual work entailed of being in the lobster industry. I just eat and enjoy them. 

However, recent news caught my attention. The lobster industry here in Maine accounts for about 80% U.S. lobster exports. Two years ago, key cogs in the industry took a howitzer hit when China slapped a 25% tax on our lobsters that amounted to approximately $2 a pound. The Trump administration retaliated by placing tariffs on various Chinese goods coming into the country. But effectively, that trade war nearly decimated the lobster industry here. 

“The lobster tariff quickly changed the fortunes of an industry that had seen Chinese exports grow steadily over most of the decade,” noted a recent article in the PORTLAND PRESS HERALD. “In the first six months of 2019, when tariffs rose to 35%, American lobster exports to China dropped to 2.2 million pounds, down from 12 million pounds during the same period in 2018.”

To understand and learn more about this, I visited The Lobster Company on Route 1 in Arundel, one of only a dozen lobster distributors throughout the United States. Owners Mike Marceau and Stephanie Nadeau didn’t hold back on what they’ve experienced over the past two years. 

Mike told me, “That tax was disastrous for us. When we lost China, we lost half our sales. We were accustomed to selling five million pounds of lobster a year to China. Suddenly, we’re less than two million.”

Stephanie reminded me that “catching and selling lobster are two different jobs,” and that a distributor’s role is to “keep the lobsters alive and arrange transport.” Their busiest months are traditionally September through Chinese New Year, during which they ship thousands of cartons daily to their one distributor in China who then delivers them to Beijing, Shenzhou City, Shanghai, Hong Kong and Guangzhou (Canton). (They also ship to Europe but China is the major market.)

Mike said, “China is the largest lobster market in the world and suddenly they weren’t buying from us. Many Maine lobstermen were okay during this time because they were able to sell their catch to Canada which didn’t have that excessive tax. But as distributors, we were really hurting.” 

The tariff was eased last March. Did things improve, I asked.

“Remember last March? China was in the midst of COVID,” Mike said. “And there were very few planes available. So it’s been a slow climb back. Our orders are growing, we’re now exporting about three million pounds but we’re hardly back to where we were.”

I asked Stephanie about the $50 million rebate to Maine lobstermen, along with harvesters of tuna, salmon and crab, that the Department of Agriculture just announced. According to preliminary federal rules, the maximum payment per lobsterman would be $250,000 and they could begin applying for that rebate September 14. 

“Of course those guys are happy because they’ll be getting the equivalent of 50 cents per pound for what they caught in 2019,” Stephanie said. “We’re glad about that, but there’s no money coming to the distributors and exporters.”  The PORTLAND PRESS HERALD added, “It’s the lobster supply chain businesses who have been forced to eat the cost of the retaliatory tariffs, not the fishing sector.”

I offer this as food for thought while you’re ripping into a deletable shedder at Nunan’s Lobster Hut or sitting in New Jersey just dreaming of downing a lobster roll. There’s a lot going on behind the carapace.