Maine steamers are a New England staple here at Pangea, and if you've been eating or buying steamers this summer, you've probably noticed the price tag. We've heard whistles and utter shock after telling customers the market price of the day, and as of July, steamer pricing hit an all-time high, breaking the record set last year and the year before that. Steamer prices continue to rise each year, and historically (as you will see below), once they go up, they never seem to go back down. So what's driving the price on steamers? And what's going to happen next season?
The steamer market is a textbook example of Economics 101 -- prices go up because demand outpaces supply, and this season, it was no different. However, a number of key market changes put more pressure on supply than usual, which drove prices abnormally higher than expected.
The Age of Information and Competitive Prices
“Back in the day, the diggers didn’t know what you could get for a bushel a few towns over unless they drove there to find out, but now with technology, a digger can easily check from miles away and create some competition.”
Before the days of the internet and smart phones, wholesale buyers in Maine would physically display what they would pay for a bushel of steamers. Diggers would then try to find the local buyer with the highest price. If buyers from a few towns over paid better, it was hard for diggers to know unless they traveled there, but there was always the risk of wasting time and gas. These days, technology has made information exchange easy and fast. Diggers can quickly find out prices in neighboring towns, which gives them the power to choose who they supply. Local wholesalers need to be competitive to keep diggers coming, but offering these higher prices means passing the cost on through the supply chain, and ultimately to the consumer.
More Players, More Demand
The farm-to-table movement has become very popular with restaurants, but many grocery chains are also getting on board, especially with sourcing local seafood. This applies to the steamer market, too. In Maine, steamer wholesalers are not only competing with each other, but also grocery chains that have now set up buying stations to buy directly from diggers. Since the grocery chains are selling direct-to-consumer, they have more room to offer diggers better prices. Steamer production has been fairly normal, even up, in the Downeast region for the past few years, but as more buyers and bigger players enter the market increasing demand, supply just cannot keep up.
Demand Is Greatest When Supply Is Toughest
It's hard to dissociate seafood from summer. It's the season when people go on vacation or go to the beach to enjoy local seafood fare. Demand typically peaks Mid-July through August. Kids are out of summer school and families are squeezing in last-minute vacations. Unfortunately, summer is the most difficult time for shellfish. Like oysters, steamers also spawn during the warmer months. The energy expended in spawning makes the steamers weak. Yet, there are also other reasons why Maine supply is strapped during those months:
“Rakers earn piece rate wages, and the going rate is $2.25-$3.50 per box. A box of blueberries contains 23 pounds of fruit, and according to Rabinowitz, workers may earn $200 per day or more.”
— Bangor Daily News
Typically, steamer prices will drop throughout the fall barring any bad weather and holiday demand spikes. We plotted historical prices over the last three years below.
As you can tell, prices are pretty volatile, but fluctuations aside, one thing is clear -- steamer prices continue to peak every summer. So, if history is any indication, we can expect to see a new record price for next year's July 4th and Labor Day holidays, again.
So when is the best time to buy steamers?
"In the spring," our suppliers explain. "The clams are in good shape before they begin to spawn, and it's cheaper because there's less demand." So if you love clams, especially year-round, be a savvy buyer and get them while they're at their best AND at the best price!
Huge thanks to our Maine steamer suppliers for contributing to the research of this piece.