that the catch per unit of effort would drop 28 percent 
due to the increased pressure on the stocks. 
The Federal Government is presently assisting in allaying 
the financial burdens of the displaced spiny lobster fisher- 
men. The Government has authorized $2.3 million in financial 
assistance which is being used to help fishermen convert 
into other economically viable fisheries and to help families 
make general economic adjustments. The program is for 1 year, 
and its success will not be known for some time. Three spiny 
lobster vessels have been converted for shark fishing but the 
success of this venture will not be known for a while. 
Negotiations have been held with the Bahamian Government 
but the efforts to regain access for U.S. fishermen to these 
foreign waters have not been successful. A solution to this 
problem will be difficult if Bahama refuses to further 
discuss the issue. 
Product development and processing 
There are no major obstacles to product development or 
processing of the American lobster. However, processors 
stated that because most of the lobsters are sold alive, 
improper handling, particularly while they are in transit 
to markets, can be a problem. High temperatures, high 
humidity and rough treatment can increase lobster mortality. 
There are no obstacles related to product development or 
processing of the spiny lobster. 
Market development 
Demand for American lobsters in domestic markets is strong. 
Lobsters are highly valued as a food item. Expansion of the 
market is, however, limited by the availability of lobster 
resources which can be improved by better management. 
Continuing market equilibrium for the spiny lobster could 
be threatened if the fishermen who have been displaced from 
the shelf grounds off Bahama crowd into the Florida grounds. 
These grounds are already under heavy fishing pressure as 
indicated by a decreasing catch per unit of effort; and 
additional effort could further erode the catch per unit of 
effort across the board for all fishermen. The end result 
could be to increase the cost of harvesting each lobster and 
to increase the retail price of lobster, which could lead to 
a transfer of consumer demand to imported lobster or sub- 
stitutes and to idling of more lobster fishermen. 
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