Crab processors accept $1.35

Finally, on April 30 an obviously furious Derek Butler said processors have no choice but to buy crab for $ 1.35 per pound.

Butler, executive director of the Association of Seafood Producers (ASP), said without any other options, processors will have to buy crab at the price the province's standing price-setting panel reinforced Friday, even if it bankrupts the industry.

"The panel simply doesn't get it. They don't understand economics. They don't understand markets and currency," Butler said. "If the goal here is to see our crab produced in China, then we are well on the way, thanks to this panel."

Fish Food and Allied Workers' ( FFAW) president Earle McCurdy cautiously applauded the panel's decision, but said fishermen are not going to be making much money either at $1.35 per pound.

"We're not breaking out the champagne bottles; $1.35 is a marginal price for harvesters. Our industry is still on pretty thin financial ice," he said.

"We're looking forward to getting people on the water and getting some paycheques moving in the province."

The ASP initially boycotted the price-setting panel during talks earlier this spring; the panel settled on $1.35 per pound for the 2010 season.

The crab fishery opened April 1, but the province's processors refused to buy product at the established price.

Over the past month, the two sides have negotiated, proposing alternate pricing schemes without arriving at an agreement.

As a last-ditch move, the ASP approached the panel on April 28, made its case and asked it to reduce the price.

Friday, April 30, the panel came back saying the price would remain at $1.35.

"I'm pleased that we have a price and that the season can get underway for everyone," Fisheries Minister Clyde Jackman said. " I hope that market prices will hold."

However, Jackman said with the season starting a month late, it was a clear sign the province has "a system that definitely does not work."

He said he'll be working to make sure they find solutions so the same drama doesn't play out next year.

McCurdy said he was hopeful the recent negotiations and discussions would help spark serious, structural change in the fishery.

"The discussions we had over the past 10 days with the processors - we touched on some very significant ground," he said. " It could provide the sort of spark for improving how we do some of these things."

Getting ready for those discussions, Butler said the processors would open their financial books at the end of the season to show how economically untenable the crab fishery is.

"I think the fishery is likely to collapse," he said. " I hope I'm wrong."