August 26, 2016 — SEAFOOD NEWS —  If there was one thing lobster processors were thinking about during the first part of this year’s lobster season, it was lobster meat.

Surging foodservice demand for lobster meat is changing lobster processing patterns, both in Canada and the US.

The government of PEI recently released a summary of the May-June lobster season.  Volume was down 13.5%, to 23.5 million pounds, vs. 27.2 million pounds last year.  But the landed value was $148 million, an increase of 22% from the spring 2015 season.   The average ex-vessel price in Canadian dollars was $6.30, based on these figures.

So the season was characterized by a slower pace of landings and a higher raw material cost.  This combination supported processors’ move to pack lobster meat.

New Brunswick processors say that both CK (claw leg) and CKL (claw leg knuckle) meat is moving as fast as they can produce it.

One packer, when asked what was supporting the strong demand said “we think it really has to do with the US consumer absorbing the increased cost on core volume meat items like lobster rolls while continuing to purchase at a similar rate to last year. Some of the portion sizes may have been reduced (last year’s 6oz roll is now a 4oz) but overall velocity is there. ”

Another processor commented that Chefs are being more creative in using lobster meat as an ingredient, and they have adapted to high prices and are keeping lobster items on the menu due to their popularity.

“Many items made from other proteins (chicken, beef, pork etc) are now being recreated with lobster.  It’s likely that additional meat volume is being absorbed in this category.”

Lobster meat imports to the US have been the highest in years, with each month of 2016 exceeding the volume of any of the past four years.

The warmer temperatures and an early start to the season meant that May lobster meat imports were up ten-fold, from 216,000 pounds in 2015, to 2.23 million pounds in 2016.

However, US market prices have not moderated.

The run up in lobster meat prices that began last summer is showing no signs yet of moderating.  Furthermore, the spread between meat and 4 oz American tail prices has never been higher.

In this situation, it is natural that meat production will surge.  One place it may be coming from is live lobster.  Live lobster imports to the US from Canada were down 50% in June from the prior year, at only 6 million pounds, vs. 13 million the year before.  Some of this is the late season opening last year, but some of it also is likely a switch from live lobster to meat processing.  Canadian live lobster exports to China appear to be higher this year also, so the increased volume is not coming from any slowdown in sales to China.

The same pressures are being felt on the US side of the border, where a significant lobster processing industry has developed.  This week, the Mazzetta Co. announced they were suspending fresh fish production in their Gloucester plant to focus exclusively on lobster.

This story originally appeared on Seafoodnews.com, a subscription site. It is reprinted with permission.