crisis in Maine is tied directly to the collapse of Icelandic banks

Maine lobster industry is reeling from a collapse in demand, and subsequent collapse in the market prices, for the deep-sea crustacean. While supplies are adequate, Canadian seafood processors, who usually grab a significant portion of each day’s catch, have stopped ordering and buying lobsters because their credit lines with Icelandic banks have been frozen.The crisis in Maine is tied directly to the collapse of Icelandic banks which were key lenders to processors in Canada, according to Dane Somers, executive director of the Maine Lobster Promotion Council. Without ready credit from those banks, Canadian processors don’t have the cash to purchase lobster from Maine, Somers said.Lobsters were at $4.99/lb at Augusta Seafood earlier this week. Lobsters off the boat are barely fetching $2.0/lb at some ports. For the typical consumer, lobsters at $4.99/lb. is a tremendous difference from the $12-13 per pound rates earlier in the summer and should make lobster lovers rejoice. However, lobstermen and women can’t make any money at these low prices. Fewer and fewer boats will be departing for the lobster fisheries in the coming weeks; supplies will constrict quickly and prices will rise. The length of this crisis could determine how many lobster boats stay in the business.