LobsterstoDollars:TheEconomicImpactoftheLobsterDistribution

SupplyChaininMaine

MaineFishermen’sForum– Friday,March2,2018

AnnieTselikis,ExecutiveDirectorMaineLobsterDealers’Association

MichaelDonihue,ProfessorofEconomicsColbyCollege

WHATISALOBSTERDEALER?

MaineLobsterDealers• “Dealers”takelobsterandmoveitintoandthroughthesupplychain.• Thoseactivitiesmayinvolve:• Buyinglobsterfromharvestersorwharves• Trucking• Aggregatinganddistributingproduct• Longtermholding• Gradinglobsterforqualityandquantity• Addingvalueviagradingorthroughprocessing• Marketing,promotion,andsales

WHATISTHESUPPLYCHAIN?

ITISCOMPLICATED

• Whathappenswhenlobstermencomeinfromfishing?• Whatdoesthewharforco-opdowiththeproduct?• HowdoesliveboatrunlobsterbecomeA-gradequartersorB-gradehalves?Frozen4oz tailsorfreshTCKmeat?• Howdoesanyofthisproductgettocustomersandconsumersaroundtheworld?

FOCUSOFTHISSTUDY

• EconomicimpactofthewholesaledistributionsupplychaininMaine• Lobsterdealersspendbillionsofdollarseachyearpurchasinglobsters• Fromfishermen• Fromeachother

• Distributionsupplychainbeginsatthepointoflandingandendsatthecustomer

UNDERSTANDINGECONOMICIMPACT• Directeffects– allspendingandincomebythedealers(e.g.,wages&salaries,cratepurchases,spendingonbait,utilities,maintenance,andpackaging).• Indirectmultipliereffects– successiveroundsofeconomicactivityresultingfrombusiness-to-businesstransactionsrelatedtoadealer’soperations.• Inducedmultipliereffects– successiveroundsofeconomicactivityresultingfromearnedincomespendingbyadealer’semployees.• Economicoutput– valueaddedtotheMaineeconomyviathewholesaledistributionoflobsterspurchasedbydealers.• Jobssupported– thenumberofworkerswhosejobsareimpactedbythedirectspendingandrelatedmultipliereffectsofthedealernetworkinMaine.

WHATDIDWEMEASURE?

• Employmentcostsandtraining(TSA,HACCP,MSC,BRC)• Utilities(heat,fuel,water,energy,phones)• Operatingexpenses(insurance,legal,gear,equipment,marketing,taxesandfees,officeexpenses)• Contractedservices(trucking,subcontractors,etc)• Lobsterpurchases

DistributionofLobstersinMaine

• Wholesaledistributionoflobsters,likethesupplychainforjustaboutanyproduct,islargelyinvisibletocustomersandpolicymakers• Theiractivitiesinvolvegrading,packaging,processingandshipping• Nopubliclyavailabledataontheiractivities

LobstersPurchased(lbs) 120.2million Jobs

DirectEffects $187 million 740

IndirectEffects $36 million 393InducedEffects $20.6million 173

TotalImpact $244 million 1,306

• Economicfootprinthasneverbeenstudied

• 21dealersparticipatedinadetailedstudyoftheirspendingandincomefor2016

• ResultisanestimateofthetotalimpactoftheiroperationsontheMaineeconomy

EconomicImpactoftheLobsterDealerNetwork

• Anannualcontributionof$1billiontotheMaineeconomy• Supporting4,000jobsannually

LobstersPurchased(lbs) 120.2million Jobs

DirectEffects $187 million 740

IndirectEffects $36 million 393InducedEffects $20.6million 173

TotalImpact $244 million 1,306

IMPACTANALYSIS:

PARTICIPATINGMAINELOBSTERDEALERS:A.C.Inc.AtwoodLobsterBeanMaineLobsterD.B.RiceFisheriesLTDEasternTradersGarboLobsterGouldsboroEnterprisesGreenheadLobsterInlandLobsterIslandSeafood

J.P.'sShellfishMaineCoastMaineLobsterOutletMaineSeafoodVenturesReadySeafoodRockyCoastMaineLLCSeaSaltLobsterSeaviewLobsterStoningtonLobsterCo-opTaylorLobsterCompanyVinalhaven Fishermen'sCo-op

THANKYOUFUNDINGPROVIDEDBY: RESEARCHANDPROGRAM

ADMINISTRATIONBY:LobsterResearch,EducationandDevelopmentFund

LEARNMORE:Visitourwebsitewww.colby.edu/lobsters2dollars