Page 10. MAINE COASTAL NEWS December 2008
Waterfront News
SNOWE SEEKS FEDERAL ASSISTANCE FOR LOBSTER INDUSTRY
WASHINGTON D.C. – Ranking Member of unstable foreign credit markets. Coupled tration (SBA), and other Federal agencies neously creating jobs and additional rev-
the Senate Committee on Oceans, Atmo- with the skyrocketing costs of fuel and bait, develop methods to encourage investment enue here at home.
spheres, Fisheries, and Coast Guard U.S. as well as pending regulations on fishing in domestic seafood processing facilities for Throughout the MSRA negotiations, I
Senator Olympia J. Snowe requested sup- gear, the turbulent economy has wreaked fisheries that currently send large percent- insisted on including the above referenced
port from several Federal agencies for havoc on lobster prices, driving prices down ages of their catch overseas to be processed language precisely because I was well aware
Maine’s ailing lobster industry. In letters to to as low as $2 dollars per pound in some and marketed (See MSRA §106(c), 16 U.S.C. that the Federal government must do every-
the Small Business Administration (SBA), areas. 1891). I have been told that representatives thing within its power to help improve the
the U.S. Department of Agriculture (USDA), Senator Snowe included language in the from the SBA will meet with the National economic and social well-being of our
and the Department of Commerce, Senator Magnuson-Stevens Fishery Conservation Marine Fisheries Service and other agencies nation’s fisheries. That includes reducing
Snowe asked for each agency to assist the and Management Reauthorization Act over the next few months, to address this reliance on foreign processors and encour-
fishery as its members struggle with (MSRA) that passed in January 2007 requir- issue. As Ranking Member of both the aging job creation and the growth of new
devastatingly low prices. ing that the Secretary of Commerce, the Small Senate Committee on Small Business and markets here at home. I look forward to the
“Maine’s lobster industry is a funda- Business Administration (SBA), and other Entrepreneurship, and the Senate Commerce results of the appropriate agencies’ meet-
mental part of the state’s economy as well as Federal agencies to establish methods to Subcommittee on Oceans, Atmosphere, ings and to receiving your recommendations
its coastal culture and unique identity,” said promote investment in domestic seafood Fisheries and Coast Guard, I request that you on improving the situation for fishermen,
Senator Snowe, who is also the Ranking processing facilities for fisheries that cur- expedite these meetings and ensure they are processors, and consumers.
Member of the Senate Committee on Small rently send large percentages of their catch carried out as mandated by law.
Business and Entrepreneurship. overseas for processing. Senator Snowe The lobster fishery, a lynchpin of The text of the letter to the U.S. Department
“Lobstermen are battling against a perfect seeks to press the MSRA mandate to the Maine’s coastal economy, has fallen on hard of Agriculture is below:
storm of high fuel and bait costs combined aforementioned Federal agencies and incite times in recent months due to skyrocketing
with prices not seen since the early 1980’s assistance to the lobster industry through costs of fuel and bait, and looming regula- November 3, 2008
just at the peak of the season. With the per increased investment and expanded domes- tions that will require fishermen to replace
pound price of lobster lower than that of tic lobster processing. much of their gear to protect endangered The Honorable Edward Schafer, Secretary
chicken or hamburger in some areas, the The text of the letter to the Small Busi- whales. In recent weeks, the situation has U.S. Department of Agriculture
Federal government must do all in its power ness Administration is below: escalated to crisis levels, as prices for 1400 Independence Avenue, SW
to intervene on behalf of our fishermen as it Maine’s signature seafood have fallen to Washington, DC 20250
does on behalf of farmers in similar times of The Honorable Sandy K. Baruah levels not seen since the 1980s. In some
crisis. One means of assistance for the long Acting Administrator cases prices have dropped to a level of only Dear Secretary Schafer:
term will be to encourage investment in do- Small Business Administration two dollars per pound at the dock. One of the The lobster fishery, a lynchpin of
mestic fisheries, bringing lobster process- 409 3rd Street, SW primary reasons for this sudden decline in Maine’s coastal economy, has fallen on hard
ing, and the jobs that come with it, back to our Washington, DC 20416 price is that although approximately seventy times in recent weeks, as prices f have fallen
shores. More immediately, I have asked the percent of the Maine lobster catch is tradi- to an average of less than three dollars per
Department of Agriculture to work with me to Dear Administrator Baruah: tionally shipped to Canada, where the meat pound—a level not seen since the 1980’s.
determine how it can apply its programs to is processed and sold to global markets, October and November are peak months for
ensure the short-term viability of this indus- In January 2007, President Bush signed Canada has drastically reduced the amount lobster landings, and as such, this is the time
try.” into law the Magnuson-Stevens Fishery of U.S. lobsters it is processing. Increasing of year when most fishermen count on earn-
Currently, 70 percent of Maine’s lobster Conservation and Management Reauthori- our domestic capacity to process lobsters ing the bulk of their income. This situation
catch is sent to processing facilities in zation Act (MSRA). The legislation included would reduce our fishery’s reliance on vola-
Continued on Page 14.
Canada, leaving our domestic lobster indus- a crucial mandate requiring that the Secretary tile foreign credit markets, while simulta-
try reliant on slumping global demand and of Commerce, the Small Business Adminis-
FISHERY IS A FLOAT - MARKET IS S INKING!
Continued from Page 8.
When supply is low, demand will be high
When demand is low, price will be low
fishery so screwed up, we all might as well go When demand is high, price will be high
on food stamps. We may have to! But my So, balance supply to keep demand
pride will not let me quit fighting for an Keep demand, Keep price.
industry that I care about. Oh, I am sure my
phone will ring. They will not be happy calls. As always, I do not mean to insult any-
I do feel that things need to change but it is body with what I write, but sometimes things
not the industry of fishing, but the marketing have to be said in order to clear the way for
of the fishery. That I think back to is my high improvement. Also, these views are of my
school economics class. My teacher had own and not that of my association. Being a
written this saying on the board: commercial fisherman in the state of Maine is
something that we, as fishermen, have al-
ECONOMICS 101 ways been proud of and is a true privilege.
RULE #1 – SUPPLY AND DEMAND Help us to continue to keep it that way.
When supply is great, demand will be low
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