A PROMINENT Limestone Coast rock lobster exporter believes market oversupply is impacting the price of Australia’s Southern Rock Lobster, which has fallen well below last year’s average price over the holiday season.
Robe’s Sky Seafoods owner and director Andrew Lawrie said the premium Limestone Coast product had dropped $6 to $8 per kilo since the start of the season, warning the sector was at risk of losing its premium status if its 180 licence holders continue to fish “full steam ahead”.
Almost half of the 1245.7 tonne total allowable commercial catch quota had been caught by the end of November, just two months after the season’s October 1 opening.
“The reason the price is down is because the market is not buying at a price, which actually demands a decreased priced,” Mr Lawrie said.
“There is probably because there are more people fishing then there should be.
“The catching has been good all year, so we have been over supplying the market due to catching the quota too
quickly.”
Mr Lawrie said the Southern Rock Lobster Zone stakeholders had to be careful if the industry continued to oversupply the market.
“Price becomes a big issue and if we are not careful we can endanger our whole zone slipping back like Western Australia, New Zealand and Tasmania have,” he said.
“The possible quota increase for 2020 makes you wonder if it is worthwhile if we are just going to catch our quota in a short period of time again.
“Some people are holding off, but others have been burnt in the past and they just want to catch their quota and be out.”
Gearing up for the Chinese New Year demand next month, Mr Lawrie said the sector was yet to see its best lobster price so far this season.
“The Chinese New Year is the biggest Chinese buying time of the year and we have to have lobster to supply them,” he said.
“During that time, the quota will almost be finished so we would be expect to see a good price around the February season as well.”
His warning comes as Limestone Coast Fishermen’s Co-operative Limited secretary Justin Phillips said around 50pc of the 1245.7 tonne total allowable commercial catch had been caught at the end of November.
“This is pretty well on par with the same time last season, however this season it has been achieved with significantly less landings, or days fished across the fishery,” Mr Phillips said.
“This is a sign the fishery remains in good health from a stock management perspective, which is great for all stakeholders.
“Preliminary indications for the current season are showing strong and improving catch rates and very good numbers of undersized lobsters being seen by fishers across the zone.”
Mr Phillips said a considerable number of fishing days had been missed to date this season as a result of poor weather.
“Under a quota management system, the pressure to fish every day is greatly reduced,” he said.
“Most fishers now aim to target their fishing activity to avoid poor weather and to try and take advantage of peak periods of market demand.”
Mr Phillips said the fishery’s key market was live exports into China.
“Typically we generally see an increase in demand for the product early in our own New Year, but particularly in the lead up to the Chinese New Year falling on January 25,” he said.
“Lobster is renowned and revered in the Chinese market for their premium quality, firm texture and delicious flavour, particularly those caught in the SA Southern Zone.
“Our lobster also has some Chinese cultural significance, often being referred to as the ‘dragon’ or ‘dragon shrimp’ and is frequently seen as a hero dish at Chinese weddings and other significant functions and events.”
Mr Phillips said there was around 11,882 available pots were spread across the Southern Zone fishery area.
“We currently have around 160 active vessels in the fishery,” he said.
“As we see further corporate investment and rationalisation in the fishery, the core driver for the co-operative is to secure a viable future for fishermen and their families, as well as their coastal towns and communities, by ensuring these economic and social benefits are retained in the region.
“The co-operative wants to see the industry’s smaller, family-owned and operated fishing businesses retain their ownership stake in the industry and remain competitive, viable and successful into the future.”
