Figure 32
Processor Gross Margin by Pack Year
Volume-Weighted Estimated Gross Margin ($/lb sections) • Pack Years 2015–16 through 2025–26
Below $2.50
$2.50–$3.50
Above $3.50
After-season premium to harvesters
11-year average
The 2025–26 volume-weighted gross margin of $3.06/lb before the after-season premium sits above the 11-year average of $2.98. After deducting the $0.28 CAD/lb harvester premium ($0.30/lb on a sections basis after yield conversion), the effective margin falls to $2.76/lb — modestly below average. The 2024–25 margin of $3.12/lb confirms that processors entered the current season from a strong position. The highest margins in the series (2020–21 at $4.17 and 2021–22 at $4.50) coincided with the post-pandemic demand surge; the lowest (2022–23 at $1.73) reflected the abrupt collapse in wholesale pricing against a dock price negotiated at the peak.
Source: Seafood Datasearch from Urner Barry NL 5-8 oz Low Quotation (wholesale) and FFAW/DFO landed price data (dock cost) • Methodology: Gross margin = volume-weighted monthly UB wholesale price minus raw material cost in USD. Volume weights are derived from US Census Bureau monthly frozen snow crab imports as a proxy for the share of each pack year’s production sold in a given month. Raw material cost per lb of finished sections = FFAW dock price (CAD/lb landed weight) × 1.4706 yield factor (1 lb of sections requires 1/0.68 = 1.4706 lbs of raw crab, reflecting a 68% processing recovery rate) ÷ monthly average CAD/USD exchange rate (Federal Reserve DEXCAUS series). Pack year = April through March following. • 2025–26: Apr 2025 – Jan 2026 actual customs volume (10 months); Feb–Mar 2026 not yet available. After-season premium of $0.28 CAD/lb landed weight = $0.41 CAD/lb sections at 68% yield.