Economics of Lobster Fishing

How much does it cost to start a lobstering business?

To start a lobstering business, one needs the necessary equipment. Some of the main lobster fishing equipment are a boat, lobster traps, sonar and radar devices for the boat, and a hydraulic lift. Boats can vary on prices, and lobster traps can cost from $40-70 depending on the quality. Sonar and radar devices are also expensive and so is the hydraulic lift. These cost probably around a couple hundred thousand dollars, not including the price of diesel fuel which rises and lowers.

What is the average profit of lobstering?

Although the salary of lobster fishermen vary on how much lobster is caught during the season, the average salary is $48,000 according to simplyhired.com.

How is the pricing of lobster decided?

The pricing of the lobster is determined by the pound and by its quality. It is also heavily dependent on the amount of supply and demand. The market price is already determined monthly by the National Marine Fishery Service Office of Science & Technology, so the restaurants cannot change the price of lobster.


How does an economic recession affect the price of lobster?
Unemployment and household income have an inverse relation. As unemployment increased, income decreases. Now as this household income decreases, foods such as lobster, that can be expensive, is not bought as often. Therefore the price of lobster is decreased and the supply exceeds the demand. The recession is not good for the lobster fishing business and for the lobster fishermen.

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Cross, Vanessa. "How to Start a Lobster Business." EHow. Demand Media, 05 Feb. 2010. Web. 04 Mar. 2013.

Jack. "Lobster Fishing: How Much Does a Lobster Fisherman Make?" Web log post. Lobster Fishing: How Much Does a Lobster Fisherman Make? N.p., 10 July 2008. Web. 04 Mar. 2013.

"Simply Salary." Lobster Fishing Salaries. N.p., n.d. Web. 04 Mar. 2013.