January, 2006 Edition

                                          What's Happening at the FCC

Endangered Species – Cod, Cusk, Interior Fraser Coho, Bocaccio

The Minister of the Environment submitted recommendations to Cabinet in December regarding Atlantic cod, cusk, Interior Fraser Coho, Boccaccio and 6 other aquatic species. COSEWIC, the endangered species’ science body, had recommended the species to be listed as endangered, threatened, or of special concern. The Minister is recommending that 3 species be listed, 6 sent back to COSEWIC for further consideration, and the 3 cod species not be listed.

FCC is working with its Oceans Use/Endangered Species Committee to submit formal comments on the recommendations pertaining to the cod stocks, cusk, Interior Fraser Coho, and Bocaccio. In summary, the FCC supports the Minister’s recommendations except the recommendation concerning Interior Fraser Coho. The Minister recommended listing Interior Fraser Coho as endangered. The FCC believes that the recorded improvement of the population over the past four years plus other measures now in place would lead COSEWIC to not recommend listing if COSEWIC was to assess the status of the population today. As such, we shall request that Interior Fraser Coho be returned to COSEWIC for further consideration.

With respect to the cod stocks and cusk, our submission will follow the talking points the FCC presented to Environment Minister Dion and Fisheries Minister Regan when the Ocean Use/Endangered Species Committee met with them separately early in 2005 on the issue. Regarding Bocaccio, the submission will focus on the scientific inadequacies of the 2002 COSEWIC assessment of the 2002.

2006 FCC Conference &AGM

Four hotel properties in Downtown Toronto were reviewed as potential hosts for the 2006 FCC Conference and AGM. Negotiations are proceeding with one of the hotels to finalize a contract. The prospective dates are October 17 – 19. The Maple Leafs, the Raptors, and the Argos should all be in operation. And with the Blue Jays spending money this year, who knows, World Series fever may return to Toronto. As well, it looks like the tall ship Kajama, as seen on the Amazing Race, will be available for an evening cruise and dinner around Toronto harbour and through the Toronto Islands.

So, tentatively mark your calendars for October in Toronto.

USA COOL – Live Lobsters

As reported in FCC’s November newsletter US Country of Origin rules allow retailers to have signs for live lobster tanks to state “Wild Lobsters: Product of US and Canada” when the tank contains a mixture of US and Canadian lobsters. However, USDA has raised concerns about this signage when the tank contains only US or only Canadian lobsters. In response, the FCC approached USDA with two possible alternatives: “Wild Lobsters: Product of US and/or Canada”; “Wild Lobsters: May Contain Product of US and/or Canada”.

Both suggestions were rejected by USDA. It was pointed out that the “May Contain” phrase is reserved for commingled products that have been further processed in the US. The Food Marketing Institute in the US is advising US retailers to get their Canadian suppliers to put red rubber bands on the lobsters printed with “Product of Canada” and their US suppliers to put blue rubber bands printed with “Product of US.”

Key Meetings – January

Workshop on Protecting Marine Biodiversity Beyond National Jurisdiction – Halifax, NS

In preparation for a February meeting at the United Nations, Foreign Affairs Canada, Environment Canada, and DFO have contracted Dalhousie University to hold an informal workshop to get input to help the departments to develop positions that Canada can adopt at the UN meeting. Patrick McGuinness has been invited to be a “Lead Commentator” regarding the fishing industry’s interests, concerns, etc.

                                                Inspection/Technical

Changes in Senior Ranks of the Canadian Food Inspection Agency (CFIA)

François Guimont, appointed President of CFIA in September 2005, has made some changes in the senior ranks of CFIA – both involving individuals who have worked with our industry in seafood inspection. Cameron Prince becomes Vice President, Operations. Cameron is well known to the industry having headed up seafood inspection in Toronto, Ottawa, and food inspection for the Atlantic region. Krista Mountjoy becomes Vice President, Programs. Krista has previously been in charge of seafood inspection in Toronto and food inspection for BC.

With the creation of CFIA and its absorption of fish inspection from the Department of Fisheries and Oceans, the FCC has complained that seafood issue were being lost in CFIA’s food inspection empire. With these appointments, we are confident that our issues, concerns, etc. will, at least, be understood by CFIA’s executive ranks.

                                              Market / Economic Issues

2006 Trends

IntraFish offers the following insights into what they believe are the 10 most significant trends in 2006:

  • More consolidation. Several Big players are on the block, including Holland based shrimp supplier Heiploeg, Swedish frozen seafood firm Findus, Unilever and Heinz. Expect for buyers to be named sometime in the first half of 2006. Several other major seafood industry players - including American Seafoods and Youngs’s Bluecrest have said they’re looking at opportunities that pass across their desk.

  • Price relief. Both on the raw material front, and on big seafood buyers finally budging, the seafood industry should expect a little breathing room on price.

  • Asian uptick. Vietnam and China both are ramping up their aquaculture and secondary processed seafood production. With companies like Navico and Pacific Andes scheduled to open up huge new processing plans, the volume is set to grow.

  • Sustainability. This work was on a lot of lips in 2005; expect it to be the buzzword in 2006.

  • Efficiency drives. Higher costs mean a push towards efficiency. Expect to see major investments in seafood processing automation, particularly in the Western world.

  • Fuel pain. The world isn’t making any more oil, so expect the price of this commodity to stay high.

  • Health focus. With experts touting the benefits in new studies all the time, expect the industry to take a health tack in much of its marketing.

  • The rise and rise of aquaculture. Wild fish is still the dominant supplier of searfood. Next year will sea the major species take bigger and bigger steps, an dmay see some traditionally wild fish companies get into farming.

  • Big business. More and More professional investors are looking at the seafood industry as a decent place to put their money.

  • More seafood consumption. From fresh to frozen, shrimp to salmon, consumers across the world are eating more seafood. People know seafood is healthy, and the industry is finally providing convenient ways to eat this stuff.

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