Canadian snow crab prices have risen significantly, and processing plants are competing for raw materials

Published May 7, 2024

Tridge summary

The Fish and Food Workers Union (FFAW) and the Association of Seafood Producers (ASP) in Canada have agreed to set the minimum dock price for seafood at CAD 3.00/lb, with a provision for adjustment if the U.S. wholesale price rises above $6.50/lb. However, local fishermen report receiving higher prices, with some paying as much as CAD 4.00/lb. This price increase is attributed to a processing plant offering higher prices in a bidding war, as seen with the Daley family factory's expansion rights. UB data shows a rise in snow crab prices in the downstream market, with the average wholesale price in NL now ranging from $6.20-$6.50/lb.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In mid-April, the Fish and Food Workers Union (FFAW), which represents local fishermen, and the Association of Seafood Producers (ASP), which represents processing plants, reached a consensus to set the minimum dock price at CAD 3.00/lb. The agreement also states that if the wholesale price of Urner Barry (UB) 5-8 ounces in the United States exceeds $6.50/lb, the Canadian dock price will also be adjusted accordingly. However, the price increase is faster than everyone expected. Local fisherman Glen Mouland told UCN that the last time he went out to sea, he was paid CAD 3.50/lb. Recently, another buyer called and said he was willing to pay CAD 4.00/lb price. On May 3, there were multiple sources saying that most of the transaction prices at NL terminals were 3.45/lb. As of May 4, NL produced 9,681 tons, with a quota completion rate of 16%; the production in the Gulf of St. Lawrence was 17,919 tons, with a quota completion rate of 77%. Currently, neither FFAW nor ASP has responded. ...

Source: Foodmate