The FFAW and ASP negotiated a minimum price of $3.00 per pound for snow crab in 2016. The $3.00 minimum price applies to crab with >4” carapace, while crab with <4” carapace have a minimum price of $2.70 per pound.
The minimum price is subject to a currency provision negotiated between the parties and may change during the snow crab season.
How the Currency Provision is Applied
In 2016, the currency provision will be applied on a going forward basis. What this means is that harvesters will know the exact minimum price at the beginning of the week in which they are fishing.
- Harvester X is fishing the week of April 17th (Sunday) to the 23rd(Saturday).
- By noon, Monday, April 18th, the US-CAD exchange rate will be set by the FFAW and ASP using the average exchange rate of the previous week. The average exchange rate for the week of April 10-16 will set the minimum price for April 17-23.
Any changes to the US-CAD exchange rate during a particular week would not apply to the minimum price for crab caught during that week. Those changes would be reflected in the minimum snow crab price for the following week. This was requested from harvesters who felt it far better to know the minimum price before landing their catch.
However, any crab landed on a Sunday will be paid according to the minimum price set by noon on Monday, the next day.
How the Currency Provision is Calculated
The minimum snow crab price can fluctuate according to changes in the US-CAD exchange rate. The exchange rate is calculated on a weekly basis, with the week composing of Sunday to Saturday.
The average exchange for a week (e.g. April 10-16) is applied to the following week (April 17-23).
The minimum price will change either up or down by 7 cents for every 2.5 cent shift in the baseline US-CAD exchange rage.
The baseline US-CAD exchange rate will be set by noon on Monday April 4th by using the average exchange rate for the week of March 27-April 2.