St. John’s, NL, May 30, 2022 — The Association of Seafood Producers (ASP), representing the majority of Newfoundland and Labrador based snow crab producers, issued a media release today, saying the industry is compelled to respond to the 2022 market uncertainty.
ASP says it has serious concerns that the snow crab market is not functioning in a normal manner, and that US and Japanese buyers have been reluctant to place orders for snow crab or have slowed their crab purchases week after week in the hopes of finding the bottom of the market.
Newfoundland and Labrador has to date landed and produced over 60% of the crab, well ahead of previous years given this year’s quota increase.
“There are real market challenges all through this process for my members,” says Derek Butler, Executive Director of ASP. “The market simply is not operating as usual.”
Butler says in order to support a stable business and the functionality of the market place – not only in 2022 but for 2023 as well – companies in the province will be limiting their production. Butler says the industry is cognizant of the impacts on workers and communities, but status quo can not continue.
“Producers can not continue normal production in this uncertain environment. Some members will be taking corporate decisions to limit production over the balance of the season,” says Butler. “There is a clear necessity to support the market and stabilize pricing, by limiting supply.”
Butler says the full picture will become apparent in the coming days.