
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comCounsel
212-286-0747 dbrecher@sh-law.comBusinesses of all sizes and in all industries must contend with the age-old economic principle of supply and demand. Whether your business provides products or services, the competition in the market and the receptiveness of consumers will greatly influence the prices you can charge as well as your profitability.
The powerful interplay between supply and demand was abundantly clear in this summer’s lobster season. Prices for the popular seafood remain near historic lows due to a “glut” of supply in the market.
According to the Maine Department of Marine Resources, the volume of the State’s lobster harvests has risen sharply from about 28 million pounds in 1990 to 126 million pounds in 2012. Lobster sold for a record high of $4.63 per pound in 2005, compared to a record low of $2.69 last year.
Prices were expected to rebound this summer until stored lobster inventory from last year began to hit the market. “Overall profitability of the industry is suffering,” Patrice McCarron, executive director of the Maine Lobstermen’s Association told CNBC. The state’s lobster supply has increased 80 percent since 2008. “So we’re in a situation where we’re trying to move an ever-increasing supply chain into a weak market.”
To deal with the oversupply, Maine, the widely heralded lobster capital of the world, is taking steps to diversify. State officials have opened river damns to increase stocks of sea-run fish, such as Atlantic salmon, cod, and haddock. The Penobscot East Resource Center has also started a permit bank for fisherman without federal access rights.
Of course, supply and demand problems are not limited to the lobster industry. Wheat, corn and other commodities are also subject to the realities of daily living, including weather, disease, population growth, and consumer preferences. And, gold fluctuates with the stability of governments, economies and the status of international relations.
If you have any questions about this post or would like to discuss the legal issues involved, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!