August, 2006 Edition

                                          What's Happening at the FCC

Lobster Working Group

Agriculture & Agri-Food Canada’s Seafood Value Chain Lobster Working Group met in Moncton in late July. The group identified a number of possible follow-up projects to the Gardner Pinfold Canada-USA benchmarking study. Suggestions tabled were:

  • organize a lobster summit, similar to the haddock conference held in Nova Scotia in January, with participation by processors, harvesters, buyers, exporters, customers, etc.;

  • develop a transparent lobster market intelligence vehicle;

  • conduct a case study/pilot project regarding a lobster auction house to transact sales between harvesters and processors/exporters;

  • case study on the independent buyer component in the industry – how its managed in each province, its size, impact, role;

  • case study of the lobster harvest/marketing model in the Magdalene Islands.

    The working group will have a conference call in mid-August to determine which of the above suggestions deserve further development.

    To read the lobster benchmarking report: Click Benchmarking Study on Canadian Lobster.

    Cooked & Peeled Shrimp – European Union

    In February the EU Fisheries Management Committee approved an import quota increase of 3,000mt for cooked & peeled shrimp for 2006. The hope was to get the paper work completed by the end of July in order to officially open the quota before the August close down of the EU.

    The July target was not met. The Commission’s proposal to adjust the 2006 ATRQ for shrimp and some other products has now been translated into the required EU languages. However, it has not yet been adopted by the College of Commissioners. The next meeting of the College is August 30, which means that there will be no movement at all on the proposal during August. It is also possible that the proposal may be postponed to be adopted at a later meeting of the College. Once adopted by the Commission, it will be considered by the Council working party on customs, probably sometime in September.

    It is reported that the Commission’s proposal provides for retroactive application to 1 January 2006. (It is possible that the Council could change this but not likely if member states agreed with the proposal when it was informally consulted.) The UK industry association has advised its members to retain documentation needed to claim duty reimbursement.

    In summary, the proposal is virtually a done deal, including its retroactive nature. However, the paper work to make it official is cumbersome and time consuming.

    Canada – France/St. Pierre & Miquelon

    The 1994 fisheries agreement between Canada and France regarding the fisheries in area 3Ps is scheduled to expire in 2007. Canada must decide by October this year whether to roll it over for another 5 years or begin to negotiate a new arrangement. France has advised it prefers to roll it over.

    A government - industry advisory group has been struck by DFO to consider the issue. The group has met twice to consider the pros and cons regarding the re-negotiation option. The group has not yet arrived at any conclusion or recommendation.

    DFO Concerned About Viability.

    In view of the struggle being experienced by a number of sectors of the Canadian industry and Minister Hearn’s efforts to “maximize the value of the resource”, DFO Fisheries Management is embarking on a review of its fisheries management approach, policies, etc. to identify possible changes that could benefit the economic viability of the industry. As such, the vessel replacement policy, license fees, the emerging fisheries policy, etc. will be reviewed.

    Imports from China May Slow

    During the past year, the Canadian Food Inspection Agency (CFIA) has been targeting aquaculture imports from China. Consequently, 63 Chinese processing plants are on CFIA Import Alert List (IAL). In July, CFIA’s Vice President, Policy and the Director of CFIA’s seafood division visited China to review the situation and impress upon the Chinese authorities the need to take action to address the problems.

    China’s position is that the Canadian drug/contaminants testing protocols are too severe and are not in keeping with the methodologies of the major markets of the US, the EU, and Japan. Their laboratories are not set up to test to the minute precisions that the Canadian labs are employing.

    China is concerned the high number of their plants on the IAL is undermining the reputation of China’s fish processing industry in its major markets. In view of the impasse, the Beijing authorities issued stern instructions to their regional offices. One region has apparently cancelled the export license (i.e. world-wide) of any company currently on the Canadian IAL for one year. Another region has cancelled the export licenses to Canada until the companyies can demonstrate that the problem has been resolved.

    The issue has spilled over to the US market wherein some US importers have found it difficult to get re-supplied by their Chinese supplier as the company has lost its license to export because it is on the Canadian IAL.

    CFIA and USFDA are in discussion to try and develop a co-coordinated approach to the Chinese authorities on the issue. The plan is to meet with the Beijing authorities on the margins of the CODEX Fish and Fish Products Committee meeting in Beijing mid September.

    Canadian Pavilion, Havana International Fair

    Booths are available in the Canadian Pavilion at the Havana International Fair, October 30-November 4. The Pavilion is managed by Agriculture & Agri-Food Canada. The cost of a booth is C$3,000; C$3,500 for a corner booth. The fair is the most important Cuban trade fair. It is attended by Alimport (central buying agency for agriculture and food products in Cuba) retailers, restauranteurs, brokers, distributors, etc.

    August Meetings

    Lobster Working Group - Conference Call
    The group will have a conference call to prioritize initiatives arising from the July meeting

    Minister of Environment’s Endangered Species Advisory Group – Ottawa
    The group will meet to review recent developments and to comment on plans, agenda, delegates, etc. for the fall Minister of Environment's Endangered Species Stakeholders Roundtable

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