Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comKey Contacts
Back
Businesses 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.
- Practices: Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders
Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]
Author: Nicholas Wall
Navigating Disputes: Hire a Partnership Dispute Lawyer
A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]
Author: Jay McDaniel
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know
When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]
Author: John D. Giampolo
Zoning Laws Explained: What You Need to Know Before Buying Property
Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]
Author: Wendy Rubinstein Quiroga
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
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.