Lobster Bulletin


    In This Edition

  1. U.S./Irish Exchange Gains Momentum

  2. University of PEI/UM Exchane Benefits Both Sides

  3. Lobster Clearinghouse Explored

  4. Choose Another Bulletin

U.S./Irish Exchange Gains Momentum

During the week of April 18-22, a team of researchers from the U.S. and Canada traveled to Galway, Ireland to take part in an international conference on Lobster Biology, Fisheries, Management, Cultivation, and Stock Enhancement. The group included Dave Dow and Bob Bayer, University of Maine (UM); Brian Beal, UM Machias; Diane Cowan, Bates College, Maine; Mike Fogarty, National Marine Fisheries Service, Woods Hole Laboratory, Massachusetts; Rick Wahle, University of Rhode Island; and Canadian representatives Susan Waddy, Department of fisheries and Oceans (DFO), New Brunswick and John Castell, DFO, Nova Scotia.

Researchers gave presentations on the status of the U.S. and Canadian lobster fishery and management strategies, current stock enhancement programs, and an overview of scientific research that is being conducted in the region. They also served on a panel for a lobster training course designed for lobster businesses and research/development personnel involed in lobster cultivation and enhancement.

During the conference, Dow met with Irish lobstermen from around the coast to help form a steering committee to establish an Irish lobstermen's organization. He explained how the Maine and Massachusetts Lobstermen's Associations and the Lobster Institute were organized and offered them support in forming their own industry association.

Due in part to the strong conservation ethic the Maine industry has practiced over the years, resource currently appears to be healthy. The Irish lobster industry, on the other hand, is suffering from greatly depleted stocks and increasing pressure on them. Dow is proposing that six to eight key Irish lobstermen come to Maine in late October as guests of the lobster Institute and the Maine Lobstermen's Association. Irish lobstermen would be hosted by Maine lobstering families and spend eight to ten days fishing, visiting pounds, touring processing plants, and video recording their observations. When they return to Ireland, they would share their experiences in Maine with their local industries.

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University of PEI/UM Exchange Benefits Both Sides

"I'm hoping we can really internationalize lobster research. There's no need for research to stop just because there's a line across the Bay of Fundy," says Rick Cawthorn, a parisitologist at the Atlantic Veterinary College of the Univeristy of Prince Edward Island (UPEI). In Canada, he studies parasitic protozoans of economically important fish, shellfish, and larger crustaceans.

Cawthorn spent three weeks in March at the University of Maine (UM) working with Mike Loughlin, a graduate student in the Animal, Veterinary, and Aquatic Sciences Department, to identify the organism that causes bumper car disease in lobsters. The PEI professor brings to Maine his expertise in using molecular techiniques and is helping researchers in Maine solve problems they have had with staining disease organisms and blood cells. He will soon be an associate graduate faculty member at UM.

In return, Loughlin has been invited to UPEI next January as a post doctoral fellow to share his expertise in lobster biology. While in Canada, Loughlin will learn the necessary molecular techniques to further his own research on infectious disease in lobsters.

According to Cawthorn, one of the probable causes of disease in lobsters is improper handling. When a lobster is handled poorly, it is more highly stressed and therefore more susceptible to certain diseases.

As Cawthorn explains, "From what I understand, the lobster in the trap is a healthy lobster. It's what happens to it before it gets to your plate or mine that determines its quality. One way we're trying to reduce lobster disease in Canada is to educate fishermen to handle lobsters carefully. If a fisherman takes his time, he'll have a better product. The buyer will get a better product and the market will get an even better product. Markets are being turned off by lobsters with tremendous shrinkage problems at the retail level."

At UPEI, researchers are proposing studies to examine how different handling procedures affect lobsters, how stress can be measured, when infectious disease develops in a pound, and how diseases kill lobsters. In Maine, Bob Bayer and his graduate students are looking at ways to control infectious disease in lobsters by using nutrition to modify their immune response and by using medicated feed. As Cawthorn states, "With our compimentary expertise about lobsters, our two universities can put together a nice research package." And the entire North Atlantic lobster industry stands to gain.

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Lobster Clearinghouse Explored

Following a seminar on bad debt at the First International Lobster Congress held in Portland, Maine last October, several participants asked Jim Wilson of the University's Resource Economics & Policy Department to look into methods developed by other industries to deal with this problem. Wilson enlisted the help of Rich Roesing, a graduate student in business administration, to conduct an investigation to find models in other industries.

As Roesing began his research, he had three criteria for bad debt relief mechanisms: either bad debt was completely prevented or defaulters were known to sellers; sellers maintained some personal contact with buyers; and existing mechanisms dealt with a perishable commodity. Roesing found two arrangements - the insurance scheme used by the Norwegian salmon growers and the letter of credit arrangement used by the Portland (Maine) Fish Exchange - that could be modified to accomodate the business arrangements of the lobster industry.

According to Wilson, a clearinghouse modification of the Portland arrangement would probably be the easiest to adapt for the industry. The objectives would be to: minimize or eliminate the bad debt problem and put sellers in the position of having a strong incentive to market the product; put together a self-sustaining arrangement that offers financial incentives beyond protection from bad debt; and maintain the kinds of bi-lateral business arrangements that currently characterize the industry, for purposes of quality control and price stability.

An electronic clearinghouse would act as a financial intermediary between buyer and seller. Buyers would be asked to post a letter of credit with the clearinghouse that would give them 21 days or whatever other arrangement they could work out with their bank. At the time of the sale, both buyer and seller would notify the exchange of the transaction and the terms. The clearinghouse would immediately credit the seller's account and debit the buyer's letter of credit.

The clearinghouse, which would attempt to maintain existing buyer/seller arrangements, could also track defaults and act as an exchange among dealers looking to buy and sell product. The clearinghouse would not handle or take title to any product.

Wilson points out, "If the industry decides to move in this direction, we cannot expect to create a new system overnight. It is a new way of doing business and it may take time for everyone to get comfortable with it."

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The Lobster Bulletin is a periodic newsletter published by the Lobster Institute in cooperation with the Maine/New Hampshire Sea Grant Marine Advisory Program. We welcome your comments and suggestions. For more information please contact us at:
Lobster Institute
5715 Coburn Hall #22
University of Maine, Orono, ME 04469-5715
TEL (207) 581-1448. Editor: Susan White.



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