Posted by Jennifer Nelson at 12:00 am on Nov 27, 2005 Comments Off on The Market Worked–We’ve got CRAB!
At first blush, the Great Crab Strike of November 2005 might
sound like another organized labor stunt. But a quick review of the
facts reveals a far more entrepreneurial story.
Although the season opened on Nov. 15, Bay Area crab fisherman
have left their boats tied up while they haggled over prices with
the largest company that processes their catch. In a great
example of market forces at work, the independent crab fisherman,
represented by the Crab Boat Owners Assocation of San Francisco,
refused to catch any Dungeness crab until the processor, Pacific
Seafood, an Oregon-based company, raised the per pound price it was
willing to pay.
While there are other processors, Pacific Seafood has a
near-monopoly on the market, and is
using (abusing?) it’s power to dictate the price. At the
official start of the season, the two sides were 35 cents apart on
the per pound price of crab. The crab fisherman wanted $1.85
a pound, a dime increase over last year’s price. Pacific
Seafood initially said… Read More