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Victoria's lobster industry is bracing for economic pain just a fortnight before its peak fishing season begins as tonnes of the live crustaceans wait to clear customs in China.

Industry groups and the federal government were scrambling on Monday to determine the cause of the hold up amid fears it may be the latest development in an ongoing trade feud with China.

Markus Nolle president of the Victorian Rock Lobster Association. Credit:Justin McManus

The impasse has prompted calls for domestic consumers to embrace locally caught lobster and shell out for the gourmet seafood in order to support the Victorian industry.

November to March is the peak season for catching Victorian rock lobster, which ties in neatly with the dates for Chinese New Year, when the product is in high demand.

Victorian Rock Lobster Association president Markus Nolle said the local industry was among the first to be impacted by the pandemic this year.

"We had our export market pretty much closed on the January 26," he said. "Fishermen were tying up their boats from that point onwards."

Australian lobsters might not make it to restaurants and markets after being held up at Chinese airports. Credit:JOE ARMAO

He said Victoria's wholesale market was worth about $26 million, with 95 per cent of lobsters exported to China.

Further delays could mean the lobsters may not survive in time to reach shops and restaurants. But there were some promising signs on Monday.

The Seafood Trade Advisory Group said China had introduced new inspection processes and the industry was working to understand the new measures.

"There are positive signs today, with the Chinese authorities undertaking additional testing over the weekend and confirmation that delayed consignments are starting to clear customs," the group said in a statement on Monday.

Markus Nolle wants Victorians to embrace locally caught lobster to support the industry. Credit:Justin McManus

Earlier this year the local price of lobsters fell dramatically after fishers were unable to export their catches to China.

But Mr Nolle said retail prices were unlikely to drop this time because fishers would dock their boats rather than lose money by catching lobsters they could not sell.

Mr Nolle, who is based in Apollo Bay, said an education campaign was needed to explain to Victorians how they could get the best value from lobsters. Too often, he said, buyers ate only the tail meat and discarded the rest.

Mr Nolle said seafood caught locally also met high environmental standards.

"If people buy local seafood you know it's been fished responsibly."

Renee Pearce, who owns The Fish Shoppe outlets in South Melbourne and Collingwood, said her business stocked rock lobster during periods of high demand, including Christmas, Easter and Mother's Day.

When exports to China stopped this year, lobster prices dropped to $85 a kilogram but then quickly rebounded to about $140 a kilogram as trade resumed.

Consumer demand is growing for local lobsters, Ms Pearce said.

"We’ve found with COVID that because people couldn't dine out, there were a lot more people buying lobster," she said.

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