Lobster Market Report

Stronger lobster imports in European markets during 2006

2006 was a buoyant year for lobster (Homarus species) imports in Europe with volumes up 22% in Spain, 16% in Italy and 6% in France following stronger supplies from North America. This trend was no doubt helped by the relative strength of the euro during last year which is reflected in lower import unit values, in euro terms, compared to 2005. Weaker prices meant that import increases were generally lower in value terms, as indicated in the table below.

The lift in overall imports was largely due to increased sales in live lobsters from the USA and to increased frozen sales from Canada. In general, percentage volume increases were strongest in the frozen category although imports were also up for live lobster.

Last year’s increase in lobster imports contrasts with a drop in crawfish imports in both France and Spain and with stable volumes in Italy. Pressure on crawfish supplies in the Caribbean region has been adversely affecting exports to European markets over the past year.

USA increases share of Spanish live imports

The 22% increase in Spanish lobster imports last year resulted from a 12% increase in the key live category along with a 58% increase in frozen imports. The increase in live imports reflected a strong jump in volumes from the USA which more than balanced lower sales from Canada. The US increase further consolidated its number one position in the Spanish market. Its share of imports moved up to almost 60%, from less than half in 2005. Canada’s share, in contrast, fell from just under 30% to less than 22% as a result of a 17% decline in volumes.

Canada accounts for 80% of French frozen lobster imports

Higher US sales of live lobster were also evident in the French market last year with imports up 12%, to 1 900 tonnes, compared to 2005. Imports in value terms were, however, stable at around €22 million pointing to lower average euro prices. The US share of live imports increased from 50 to 55% over the period.

Increases from North America were also registered during 2006 in the frozen category with overall volumes up 20%, to 1 600 tonnes, thanks to a 24% increase in supplies from Canada. The latter increase confirmed Canada’s dominance of this category, accounting for some 80% of total imports. As in the live category, import unit values fell last year, dropping by 14% to an average of €10.11/kg for Canadian product.

Italy doubles frozen lobster imports

A more than doubling of frozen imports, to almost 700 tonnes, helped to boost overall Italian lobster imports by 16% to 4 500 tonnes in 2006. This increase also included an 8% volume increase for live imports, by far the dominant category at 3 800 tonnes. The value of live imports, however, fell slightly last year pointing, as in both Spain and France, to lower average import prices.

In line with the Spanish trend, the USA confirmed its dominant position in the live segment following a 12% volume increase to over 3 000 tonnes. The increase lifted the US share of live imports from 81 to 84%.

Euro prices to remain competitive during 2007

Industry feedback during the first half of 2007 points to weaker frozen lobster (popsicles) demand in Europe, particularly at retail level. Live imports, on the other hand, increased during the early months of the year in both France (+11% for January-March) and Italy (+15% January-February), thanks to stronger volumes from North America. With the continued strength of the euro, import prices in euro markets are likely to remain competitive this year although price indications at the start of the Canadian lobster season point to somewhat higher prices (in Canadian dollars) for frozen product. Catch levels in Canada have been disappointing during the current spring season and the outlook for the full season is for lower volumes, up to 20%, compared to last year. At the same time, the US market appears less attractive for Canadian exporters due to the weak dollar and a corresponding switch to European markets is expected during the course of the year. This trend is likely to add to downward pressure on European import prices.

An increasing focus on value added lobster products is also evident in both Canada and the USA which may impact on supplies, and prices, of frozen round product in the longer term. This focus is reflected in a new lobster meat product from Maine which received a top award in this year’s Prix d’Elite new product competition at the Brussels Seafood Show.