Figure 31
Raw Material Cost vs. Wholesale: The Processor Squeeze
Monthly UB NL 5-8 oz Low Quotation vs. Dock Cost in USD (68% yield) • April 2012 through March 2026
UB Wholesale ($/lb)
Raw Material Cost USD ($/lb sections)
Incl. after-season premium (2025–26)
Gross Margin
The monthly view shows the full seasonal rhythm of the processor margin. Raw material cost is fixed at season open while wholesale prices fluctuate with market conditions, creating a margin that expands mid-season as wholesale rises and compresses when wholesale softens. The 2025–26 season opened with a dock price of $4.97 CAD — the highest since 2021 — but strong wholesale prices through the year kept margins positive. The dashed line shows the additional cost of the $0.28 CAD/lb after-season premium paid to harvesters, which narrows the margin by approximately $0.30/lb on a sections basis.
Source: Seafood Datasearch from Urner Barry NL 5-8 oz Low Quotation and FFAW/DFO landed price data • Raw material cost = FFAW dock price (CAD/lb raw) × 1.4706 yield factor (68% recovery: 1 lb sections requires 1.4706 lbs raw) ÷ monthly CAD/USD exchange rate (FRED DEXCAUS) • 2025–26 after-season premium: $0.28 CAD/lb raw = $0.41 CAD/lb sections