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Lump Roe Prices 2010

Retroactive Price Adjustment

The final price for lump roe for 2010 was $4.15 per pound.

The minimum starting price was $1.50 per pound, so the rebate owed by the processors to fish harvesters is $2.658 per pound.

Harvesters are encouraged to contact their buyer for payment immediately and to request an amended Record of Employment since the rebate may impact their EI benefits.

News Release issued November 2, 2010

ST. JOHN’S — Lump-roe harvesters in Newfoundland and Labrador will be paid an extra $2.658 per pound for product, on top of the amount already received at the wharf, they sold as part of this year’s fishery.

Harvesters had already received a minimum price of $1.50 at for product this year. The $2.658 rebate will be added to that minimum price, putting the total price for harvesters at just over $4.15 per pound.

The rebate is based on a pricing market formula that has been negotiated in the lump-roe fishery. The formula has been in place for the past number of years and results in a final price that is determined by actual sale in the marketplace. That basically means if market prices go up during the season, harvesters retroactively receive a price per pound rebate proportionate to the market price increase.

FFAW/CAW President Earle McCurdy said the Union feels this approach could work effectively in the crab fishery as well.

There had been some discussion to that effect in spring meetings between the Union and the Association of Seafood Producers (ASP), but Mr. McCurdy said ASP was looking for, “too low a starting price.”

The Union wrote ASP in late July suggesting early bargaining for 2011 crab prices with a view to implementing a system similar to the lump roe pricing system, but ASP has not responded.

“That offer is still open,” Mr. McCurdy said. “Our crab fishery is too important to leave it to the last minute to see whether the fishery will take place.”

Three straight years of increases in lump roe prices

The price paid to harvesters after the rebate this year represents three straight years in which the overall price for lump-roe in this province has seen an increase. In 2007 harvesters were paid a minimum price of $1.20 and the rebate at season’s end was .83 cents ($2.03 total). In 2008 they received $1.50 and a subsequent rebate of $2.25 ($3.75 total). In 2009 harvesters received $1.50 at the wharf and $2.49 after the season ended for a total of $3.99.

On the downside, one of the issues driving lump-roe prices has been the low number of landings and shortage of product in the marketplace.

Although this year’s 1,000 barrel lump-roe harvest was better than 2009 — a season in which only about 500 barrels were harvested province-wide — but still well below traditional landings.

Approximately 2,300 barrels were harvested in 2008 and 3,200 in 2007.

“Although the lower landings are a concern, the lump roe fishery in this province this year was worth about $1.3 million once the rebate was calculated — obviously that comes as good news to some of the approximately 2,000 small-boat harvesters involved in this fishery,” said FFAW Secretary-Treasurer David Decker.

Harvesters are encouraged to contact their buyer for payment immediately and to request an amended Record of Employment since the rebate may impact their EI benefits.

2010 Price Schedule – Lumproe

The prices and related terms and conditions for lumproe for 2010 are as follows:

1. At market prices up to $900 Cdn CIF Europe, fish harvesters will be paid $1.50 per pound for lumproe.

2. If the market price as outlined in paragraph 3 below exceeds $900 per barrel, prices to fish harvesters will be increased retroactively based on sales and shipments up to November 30, 2010. Retroactive payments will be due and payable no later than December 10, 2010. The raw material price will be increased at a rate of $.01/lb for each $4 per barrel market price increment in excess of $900 per barrel. (For example, at $1,000 per barrel the raw material price would be $1.75 per pound).

3. Confirmation of average market prices received will be based on sales reports up to and including November 30, 2010 showing volumes and weighted average prices received per barrel (Cdn$ CIF Europe) from Ocean Choice International (OCI), Beothic Fish Processors and Icewater Fisheries. Verification through independent audit or prices received is at the discretion and cost of FFAW.

4. There will be no deductions from these prices for ice and/or water.

5. The parties agree to a three-week lump season in each area. The parties agree to variable seasons by area, provided that no individual licence holder can fish in more than one three-week season. A committee of the FFAW, ASP and Icewater will be established to monitor landings during the first two weeks with a view to increasing/shortening the season should there be a perceived shortfall/oversupply.

6. Temperatures must be controlled by icing and landed roe must be free of foreign material and excess water.