FOR IMMEDIATE RELEASE
February 17, 2026, St. John’s, NL
The FFAW’s statements that processors are responsible for market manipulation in the 2025 price difference between Gulf crab and Newfoundland and Labrador (NL) Snow Crab is an imaginary tale.
The FFAW’s argument that harvesters should receive the same price for NL snow crab as Gulf harvesters has been put to rest by the recently released John Sackton 2026 analytic report on Gulf versus Newfoundland and Labrador Snow Crab Price Differential Report commissioned by Premier Wakeham.
The John Sackton report is a fact-based review of crab pricing from 2025. The analysis is thorough and based on global market data. It determined that market prices received by NL seafood producers are the result of changing market forces (supply and demand) in 2025. As Sackton states “This is not market failure; it is how markets allocate limited supply (Gulf quota) among competing buyers with different preferences.”
A summary of the facts as outlined by Sackton includes the following:
- In 2025, Gulf crab quota only represented 22.1% of total Canadian crab production.
- Quota under 30% is considered limited supply.
- Gulf crab quota is lower creating lower supply and therefore high demand as there are buyers, particularly Japanese buyers, who specifically want Gulf crab due to its deep red colouring and cleaner shell due to the lack of barnacle pitting, and those buyers will pay a premium price for it.
- The Gulf season runs between six to eight weeks. It is essentially concluded by May month.
- In 2025, the timing of Gulf crab production peak landings aligned with the peak timing of the threat of seafood tariffs, which resulted in those buyers paying higher price influenced by tariff fears.
- NL has a longer production season between 12 to 14 weeks, with most crab not reaching peak landing until June and winding down in July or August; by that time tariff fears had lessened and prices had dropped.
One of the biggest issues affecting NL snow crab market pricing is not being able to start the fishery in a timely manner. This has a material negative long-term effect on pricing. The Sackton report confirms that late compressed supply from NL is a significant negative market factor as the industry is not viewed as a dependable supplier.
As long as the Gulf crab supply continues to start before the NL supply, monopolizing markets early in the season, pricing will continue to be suppressed for NL crab.
“Beginning the Newfoundland and Labrador snow crab fishery on time is the single biggest controllable factor that can assist the industry in narrowing the price differential with the Gulf. The Association remains committed to working with harvesters, plant workers, processors, and coastal communities to support the long-term market stability of Newfoundland and Labrador’s snow crab industry.” Lorelei Roberts, Executive Director
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Media Contact:
Association of Seafood Producers
709-726-3730
info@seafoodproducers.org
