The future of the Lobster Industry? (Maine)

[Roger Long]

If you care about lobster and the character of the towns many of us cruise through, you should read this article:

http://www.thebollard.com/bollard/?p=8011

If you are in Portland, Maine, please pick a copy of "The Bollard" (It's free) and support media that digs out stories like this that have been completely ignored by the mainstream news outlets.

 

[All U Get]

Wow Roger,
Sounds like the NH Timber industry of the 1800's. I'll forward this along, just before the holidays, too.
All U Get

 

[Maine Sail]

Sorry Roger that is one of the most slanted and out of balance articles I have read in a long while. Not a surprise when you understand the source... :cussing: Another "the rich are evil" pieces....

So a local guy was going to lose his boat, probably due to bad buisness decisions, and Linda stepped in, bought it allowed him to fish it and continue to earn a living. The only stipulation she had was that he sell his lobsters to her business in return for keeping him in business.

Seems pretty fair seeing as he was going out of business anyway and it cost him nothing but a contract with a specific wholesaler. He STOLE from her by selling to the Co-Op, broke their deal, and she is evil for taking the boat back which she then owned???

Her store in PC is horribly inefficient and heating costs outweigh profits so she moves the winter counter to Tenants Harbor and is evil because some folks lost their winter jobs. So because she is "RICH" she should simply fund a business at a seasonal LOSS and keep those people employed under what? Linda's own personal welfare program?? Oh she's rich and can afford it...?? Businesses close non-profitable ventures every day. Tim Horton's is a "profitable company" should they continue to fund the 35+ stores hemorrhaging money and losing millions each year just because they are still a "wealthy" or "profitable" company???

The PC general store went out of business for a reason PROFIT and maintenance & heating costs were a big part of it. Linda is trying to run it as a profitable business but in Maine apparently that is an evil thing to do now..

Junk journalism IMHO

BS like this is a JOKE:

"An examination of town records shows that Bean appears to have grossly overpaid for at least two properties. One was valued at $280,000; Bean bought it for $795,000."

Having sat on our towns reevaluation committee I understand coastal Maine valuations and the process to a rather deep level. These types of sales are NOT uncommon when you have a real estate boom, which is when Linda bought much of that property. There were MANY coastal towns who's town taxable values were WAY out of line with fair market value. By state law the entire town needs to be at a certain % of FMV but many towns fall below quickly when a boom hits. We had to re-value multiple times in this decade just to keep up with state law. Of course St. George is rural/coastal so even with waterfront properties being out of line by as much as 20% of FMV the entire town may still be at or close to the 80% rule.

Do a fair market evaluation based on the TIME when she bought the property and I doubt you'd find her sale out of range by any more than +/- 5% at best. Though it is easier for a hack reporter to simply quote a tax books value vs. a sale value with no qualifiers. When the PC General Store was for sale and my wife and I looked at it. The asking price was WAY more than the town had it valued at. It needed perhaps 400-600k of work and we strongly decided against it..

My neighbors house was valued by Cumberland at $233k and it sold for $789....... But yeah Linda, all by herself, drove the real estate values on St. George through the roof.. Bunk!

 

[Ross]

I think that there are still some anti-trust laws in this country and Bean seems to be brushing up against them.

 

[woodster]

based on the artical....it is the same old story of money and dreams that never pan out for some people and not others .....but it is a shame that there is always carnage in the wake of thoses dreams......seems mankind has or never will learn from theres or others mistakes......all i can say is when it boils down to there only being 1000 wealthy people left on this earth there will be a bitter cold environment for those 1000 wealthy IMHO........

regards

woody

obtw good read Rodger

 

[KD3PC]

From the article - "comment about Bean on condition of anonymity"..

this seems to be happening more and more in the media...what a shame...if you feel that strongly about Ms Bean, have the confidence to ask for a meeting, sit down with her and tell her what you think...

Media has no business citing all these "anonymous sources"...to demean someone or to make the story...the story should stand on it's own..

+1 to Maine's comments..

BTW, Ross what is she doing that would suggest anti-trust issues?? Collusion ? - With who...no one likes her unless she is buying your gear...seems to me the fishing industry has some skeletons in it's closet....was this not the part of the country where the GOv't bought out people's fishing licenses and gear...only to find out those same fisherman bought another license and gear and continued to fish...talking out both sides of their mouth does no one any good..

Kudos to her for monitoring her investments, and it is HER money to do with what she likes...or have we come so far that we should force her to do.....

 

[Ross]

I have read somewhere that the Red Lobster restrurant chain buys large numbers of Maine and other cold water lobsters for its restrurants. At worst Bean seems to have similar aspirations.

 

[KD3PC]

From the Red Lobster Website...

" Where does your seafood come from?
We literally search the world for the highest-quality seafood. We have buyers and total quality inspectors who work with suppliers in over 30 countries to bring you "the best of the sea." We examine and test seafood at every point of our supply chain - all the way to the source - so guests know they are enjoying safe meals in our restaurants. All Red Lobster seafood meets our industry-leading standards which, in turn, meet or exceed all U.S. government requirements."

Like most other seafood ? chains, they buy from where ever the price is the lowest for a given quality they may like...given the price of Maine lobster, I would think a LOT would come from elsewhere

If you have ever worked at a Red Lobster - the overwhelming majority of their food is portion controlled, prepackaged, processed and ready for the heating oven or boiling water...at the one I worked at....NONE was fresh or frozen as caught...all was already prepared in some way...

 

[Tim R.]

This woman is upsetting the cyclical lifespan of local fishing villages. Many businesses spring up, last a few years and fold only to be replaced by another business within a year or two. These are almost always locally owned and operated. I have seen it happening along the Maine coast for many years. Just like she did in politics, she will storm in like a Nor'easter and leave destruction and failure in her wake. Luckily these folks will eventually recover when her little pet project collapses and she leaves town. But not before she does some serious damage to the local economy and tax base.

While I applaud what she is doing to promote the lobster industry, she is upsetting a balance that has existed here for generations.

And the whole video camera thing is just creepy. No more transom showers in Port Clyde or Tennants H.

 

[Maine Sail]

From the Red Lobster Website...

" Where does your seafood come from?
We literally search the world for the highest-quality seafood. We have buyers and total quality inspectors who work with suppliers in over 30 countries to bring you "the best of the sea." We examine and test seafood at every point of our supply chain - all the way to the source - so guests know they are enjoying safe meals in our restaurants. All Red Lobster seafood meets our industry-leading standards which, in turn, meet or exceed all U.S. government requirements."

Like most other seafood ? chains, they buy from where ever the price is the lowest for a given quality they may like...given the price of Maine lobster, I would think a LOT would come from elsewhere

If you have ever worked at a Red Lobster - the overwhelming majority of their food is portion controlled, prepackaged, processed and ready for the heating oven or boiling water...at the one I worked at....NONE was fresh or frozen as caught...all was already prepared in some way...

They rarely buy from Maine wholesalers and the Canadian process factories sell a hell of a lot more to Red Lobster than we ever will. This is what has driven the price down, the processors of raw lobster are growing far faster than people who buy and cook whole lobster. Heck lobster is often less costly than chicken these days but the "perception" is that it is a "treat" because it is too expensive when in fact it is often not....

Having been a commercial fisherman I would have welcomed a smart business person like Linda to the industry in a time when a person like her was in need. I know many local guys who are now out of business. My friend is now doing mooring work on the side because the cost of lobster has gotten so low. She is driving the sale of REAL lobster not PROCESSED junk sold to chain restaurants. She has done a nice job with the PC waterfront and made it a beautiful spot to visit she also saved a classic store. She has easily spent hundreds of thousands of dollars to re-vitalize the PC waterfront from the junk pit it was 15 years ago where you could literally fall through the dock.

I think her lobster rolls suck and don't think her retail lobster roll stores will survive but her wholesale end seems to be going quite strong and the guys I talked to were very happy she brought her "money" to their industry. There will always be sour folks.....

 

[Roger Long]

Sorry Roger that is one of the most slanted and out of balance articles I have read in a long while.

I'm not actually taking a position here or agreeing with the article, just pointing out that something is happening. There are ways that it could be a good thing and probably a lot more that is could go wrong.

The lobster industry, current problems aside and viewed over the long term, is one of the most successful self managed (primarily) fisheries and cultures on the planet. I think this is largely because it has evolved as an ecosystem in a quite organic and natural manner. (I'm talking degrees here; not absolutes.) Whenever a system like this is suddenly disrupted by a major influence like this kind of economic input in the hands of a single person, there is the potential for major harm.

It bears watching. OK, maybe the only one watching now is a wacko, lefty, commie, rag but I think it's still worth pointing out.

I hope you are right and she treads lightly, works herself carefully and respectfully into the system, improves things, and the Maine coast is better for it. There are things in her past that are cause for concern but she's old and people learn.

 

[Benny17441]

I don't know, this girl seems to be getting blamed by the general downturn in the economy. It looks like she mainly overpaid for the properties and she is now has to make some business decisions to compensate for the fixed assets overhead. It seems the previous owners enjoy the best of both worlds, they are still in high regard and walked out with a bundle of cash.

 

[tommays]

I have spent a good deal of time in Maine near Portland at friends as well as Skiing up at Lake Moosehead and camping at Acardia and while the lobster thing is post card quaint i got the general idea most of the population makes a living doing various things pretty much like any other state

We have the Lobster/claming/fishing thing down here and while i always here large dollar figures its sure as hell not supporting many people and when you count the dollars spent keeping a place like Shinecock Inlet open its a net money loser in a big way

 

[alexco38]

If I were her

She was good hearted in this case with the fisherman. Remember it is her money.

What if she wait until the bank took the boat, buy it at auction for a song and hire the fisherman for wages just above welfare. It is sad that you give people a break and they turn around and bite the hand that feed them.

If she didn't close the eatery that cost a bundle to heat in the winter, the Bank would have foreclose it anyway. Who's going to pay the worker when the owner can't make ends meet.

Republican or not, she is not the welfare source of the community.

We used to laugh at the garment industry when they were offshored to 3rd world countries. Many lost their job but some made plenty of money doing that.

We used to say that would never happen to the "knowledge" industry. So we went to school, worked hard and now they offshored our job to India. Whom the media going to write about.

They should consider lucky that someone still think highly of the place and industry to invest their own money in.

 

[All U Get]

The lobster industry, current problems aside and viewed over the long term, is one of the most successful self managed (primarily) fisheries and cultures on the planet. I think this is largely because it has evolved as an ecosystem in a quite organic and natural manner. (I'm talking degrees here; not absolutes.) Whenever a system like this is suddenly disrupted by a major influence like this kind of economic input in the hands of a single person, there is the potential for major harm.

I agree with Roger. If the price of fuel, bait, trucking, and market price are controled by one entity, a free market doesn't exist. These island towns are isolated cultures that have been family owned businesses for generations. Many are living on a thread and won't survive the squeeze especially if they have travel to get competitive prices. This undoubtedly explains why I couldn't buy lobsters on the dock while fueling. Another part of Maine culture slipping by, my heart goes out to those families.
All U Get

 

[Roger Long]

If the price of fuel, bait, trucking, and market price are controled by one entity, a free market doesn't exist.

Even worse will be if she buys up a significant chunk of the industry and either develops another enthusiasm or decides that it isn't working out and dumps it all. She's already admitted that is a possibility and a lot of her previous projects have been viewed by many as erratic. Struggling businesses depend a lot on inertia. With a web of community connections, informal credit, and grit, something like a lobster pound can keep going for years after it could no longer be viably sold to someone who had to operate it as a start up. The result of a large part of the lobster industry infrastructure suddenly being dumped on the market will most likely be for most of it to be bought up for conversion to vacation homes. It's happening slowly and steadily anyway. Her cutting and running could make it a tsunami. Since she's in it now, let's wish her well and hope she sticks with it.

 

[Ross]

As Roger says an existing business can continue where a start-up couldn't get the business off the starting blocks.
When all of your equipment is paid for and you customer base is expecting you to be open everyday you have 90 percent of the success needed for staying open. All you need now is a good product and a reliable supply source.
There is a small chocolate maker here in Harford county. They have a prime location on US Route #1 the building is paid for, as is all of the equipment, they only open from now until Easter each year. Their hired help has been with them for years. The location is probably worth a million dollars and the owner might net $100,000 per year making candy. You couldn't buy the place and make it pay.

 

[KD3PC]

"All you need now is a good product and a reliable supply source."....

and unless it is a business you can run/manage/grow by YOURSELF....you will need honest, reliable and knowledgeable employees....else the best product and the source don't matter

And this lack of capable and willing help is something that is totally absent in today's economy, and has been brewing at least since the 90's. People want to be able to do their thing on the employers nickel, show up, leave and come and go as they please, steal/use/borrow what they want from the employer and still get paid full wages and benefits for full time hours that they "work"

 

[Maine Sail]

. The location is probably worth a million dollars and the owner might net $100,000 per year making candy. You couldn't buy the place and make it pay.

So goes boat yards. I have looked at nearly every boat yard to come up for sale in this area in the last 8 or 10 years. Unless you have money to burn the property values are making them an nonviable business venture. No way to make a go at it with current real estate values & even 20% down. A Falmouth boat yard recently sold for a reported 5 million! Who bought it? A wealthy customer, to keep it going. Probably a tax loss, feel good venture..

A good friend got to 3rd base on a deal of a very well known cruisers destination here in Maine but when all was said and done the owner had a business that was not profitable at the asking price, mostly due to property values.

My neighbor sold his boat yard 6 years ago and retired early. He paid under 170k, barely did anything to it, and sold it for close to 2 million. The buyer was a wealthy wall street type looking for a mid life career change. We kind of depend on the Linda Bean types to keep our working waterfronts "working" cause a regular "working folk" can no longer afford to buy a marine business that is on the waterfront and make it profitable.

It could have easily been a condo developer who bought up Port Clyde leaving the fisherman with NO access, but it was a wealthy "local" who is keeping local customs going.

To complain that Linda Bean laid off some lunch counter folks when her family business, LL Bean, is one of the largest employers in the state and also one of the most philanthropic, and not mention that fact, is pretty laughable!

She also owns her own seafood processing plant in Rockland that created jobs but no one is talking about that. She could have easily opened it in a more tax friendly state but chose to keep the jobs here.

I really dislike slanted, 100% biased, "reporting"...

 

[Ross]

"All you need now is a good product and a reliable supply source."....

and unless it is a business you can run/manage/grow by YOURSELF....you will need honest, reliable and knowledgeable employees....else the best product and the source don't matter

And this lack of capable and willing help is something that is totally absent in today's economy, and has been brewing at least since the 90's. People want to be able to do their thing on the employers nickel, show up, leave and come and go as they please, steal/use/borrow what they want from the employer and still get paid full wages and benefits for full time hours that they "work"

I have talked to the owners of landscaping businesses and asked why all of their hired help was Hispanic. The response is always the same I pay 15 dollar per hour with benefits and no white men or women apply for the jobs.

In the candy shop I asked one woman how long she had been working there and she said 60 years she thought. When I asked how much longer she replied that as long as the doctors keep putting her back together she would keep working.