Price variation in the Caribbean spiny lobster fishery: Incentives for ongrowing wild-caught lobsters in Florida Fisheries Research

The Caribbean spiny lobster, Panulirus argus, is historically one of Florida’s most valuable commercial fisheries. The creation of a live export market in the 2010s increased the value of this fishery despite declines in total landings and potentially provides an economic opportunity to enhance the value of the fishery. However, the market potential may be limited by a misalignment between fishery production and market demand, as both landings and price have high seasonal variation. We explore the economic incentives for aligning fishery landings with market demand by estimating a hedonic price function to examine the effects of seasonality and product characteristics on the ex-vessel price of spiny lobster. Seasonality and product grade were the most important factors explaining variation in ex-vessel price. The monthly price premiums increased as the season progressed, with the largest increases in price in January and February, with 61% and 63% premiums compared to the price in August when most lobsters are harvested. In addition, live grade lobsters received a 34% premium to whole grade lobsters. The results call attention to the significant potential to increase the revenue of the fishery if changes in management shifted lobster harvest from August and September to January and February, or if aquaculture-based live storage or ongrowing of lobsters could be used to sell lobsters live and later in the season. Grant no. NA23NMF4270268