December, 2007 Edition

                                          What's Happening at the FCC

Cooked & Peeled Shrimp Meeting – Oslo, Norway

A North Atlantic cooked & peeled shrimp industry meeting was held in Oslo, Norway. Industry members from Norway, Greenland, Iceland Denmark, and Canada attended. The purpose was to review plans for the biennial International Coldwater Prawn Forum in the UK; review supply/production figures for 2006, 2007, and 2008; and consider a collaborative promotion campaign in the UK market. The consensus was that production had peaked in 2005 at about 90,000mt; dropped to about 81,000mt in 2006, with further declines projected in 2007 (76,500mt) and 2008 (76,000mt). Canada has emerged as the dominant supplier, increasing its share of production from 35% in 2006 to a forecasted 40% in 2008. The group decided that this gathering of industry should continue on an annual basis and be more formalized, open to companies who become members through a membership structure with annual fees to support a small secretariat. The role of the secretariat would be to organize the biennial International Coldwater Prawn Forum, organize an annual meeting to review market conditions and supply/production forecasts, and oversee any agreed upon projects (e.g. promotion campaign, specific research initiatives, etc). The next meeting of the group will be in St John’s on January 31, following the Shrimp Conference. The purpose of the meeting is to present the proposed North Atlantic Processed Prawn Group and seek membership by Canadian firms.

European Union Provides Enhanced Access for Iceland and Norway Seafood Imports

With Bulgaria and Romania becoming EU member countries, the EU has provided additional duty free import quotas to Norway and Iceland for imports into the EU in compensation for the higher import duties for imports into Bulgarian and Romanian. Canada is in negotiations with the EU regarding compensation for Canadian exporters. Below are the new duty free quotas that impact competing Canadian supplies.

Note:

Norway’s forecasted cooked & peeled production for 2008 is 10, 500 mt. As such, Norwegian exports to the EU in 2008 should all enter duty free. In 2007, 5,500 mt entered at 0% and the rest of the supply entered at 6% for further procession at 7.5%.

Fisheries Act

Minister Hearn presented to Parliament a revised Fisheries Act (Bill C-32). The new Bill replicates Minister Hearn’s previous submission, Bill C-45, with only one change that could qualify as significant. Parliament won’t address the scheduling of the Bill’s review until mid-January.

Canada and Russia Sign a MOU on Fisheries Cooperation

Last week a high level delegation from Russia, led by the Russian Prime Minister including Mr. Krainy, head of Russia’s State Fisheries Committee, met with various Canadian Ministers, including Minister Hearn. Six MOUs regarding Canada-Russia cooperation were signed including a Canada-Russia fisheries agreement. The MOU provides for the establishment of a Committee for Bilateral Cooperation on Fisheries. The Canadian co-chair is the Director General, International Fisheries Directorate, DFO. The Committee will meet once a year to promote the development of technical, scientific, economic, and enforcement cooperation.

Fish Plant Effluents – Update

CFIA and Environment Canada have indicated that they each want to undertake a review of fish plant effluents. CFIA with respect to the risk to the health (i.e. diseases) of aquatic animals in the area of discharge. Environment Canada with respect to the environmental impact (sea floor, water quality).

CFIA’s study is still in the concept stage. Resources are focused on developing amendments to the Animal Health Act regarding CFIA’s responsibility to report notifiable aquatic animal diseases to the OIE, the world body that monitors animal disease outbreaks.

Environment Canada’ (EC) study has been shelved. It did not receive funding support from Environment Canada’s senior management.

USA Seafood Consumption

IntraFish reports that since 1970, USA·

beef consumption is down

Aquaculture Snapshot

The FAO Fisheries Directorate reports the following:
Birds Eye Rebounding in UK Market

TNS Worldpanel statistics show that the frozen seafood category is showing signs of resurgence in the UK market. It’s a $1.5 billion market. For the first time in several years frozen fish volumes are higher than chilled fish volumes. Part of the increase is attributed to the aggressive fight for market share by Young’s and Bird’s Eye.

In the early 2000s, Bird’s Eye, then owned buy Unilever, lost share of the UK market to Young’s while Bird’s Eye struggled to maintain leadership positions in several key European markets. With the November 2006 purchase of Bird’s Eye by the private equity firm Permira, Bird’s Eye has returned focus on the UK market and its main competitor Young’s. Since 2005, retailer Tesco also saw its private-label brand share of market grow.