January, 2008 Edition

                                          What's Happening at the FCC

Fisheries Act: Bill- C-32

Minister Hearn’s proposed revised Fisheries Act (Bill C-32) progress in Parliament is stalled. The House of Commons’ Fisheries Committee voted to request Parliament to have the Bill go to the Committee immediately for review and comment before Parliament reviews the Bill at Second Reading. (A Committee has wider latitude for suggesting changes to a Bill if it goes to Committee prior to the Bill receiving approval at Second Reading). The House of Commons’ debate on the Committee’s request descended into partisan posturing and the debate was adjourned without a decision.

Parliament reconvenes on January 23. The motion to have Bill C-32 submitted to the Committee before Second Reading must be re-submitted for debate within 10 sitting days after Parliament resumes sitting.

Finance Minister Flaherty Considering Assistance Regarding Strong Canadian Dollar.

In December, Finance Minister Flaherty made speeches in Ontario and Quebec indicating that the government was considering introducing measures early in 2008 to assist the manufacturing and forestry sectors which have been hard hit by the strong Canadian dollar.

In response, the Fisheries Council of Canada reminded Minister Flaherty that the Canadian fishing industry, as an export industry, is one of the industries hardest hit by the strong Canadian dollar/weak US dollar. 85% of what we produce is exported. 50% of what we produce is exported to the US. In addition, a significant portion of the remaining exports are to countries whose currency is tied to the USD (e.g. China, Russia, etc). Furthermore, the wild fishery is fuel intensive. Since 2002, both the value of the Canadian dollar and fuel costs have increased exponentially over these years. In essence, the industry’s revenues from the marketplace have decreased substantially and its costs of harvesting have increased substantially.

In summary, we requested that any measures brought forward to assist “manufacturing” should include seafood processing.

Russia – Possible Trouble in the Spring

Late in 2007, a delegation from Russia’s Federal Service for Veterinary and Phytosanitory Control met with CFIA’s Fish and Fish Production Division. The meeting went badly with the Russian officials threatening an immediate ban on the import of seafood products from Canada.

The major concerned of the Russians seemed to be to get Canadian officials to establish measures to stop the import into Canada of Russian king crab that has been harvested in Russian waters by Russian vessels that do not have permits to harvest the crab. Discussions on this issue have been conducted by Russia with Japan and the USA. Japan is taking port monitoring actions regarding Russian vessels landing in Japanese ports. USA officials are investigating the application of its Lacey Act which imposes severe penalties on US importers who import products into the US in contravention with the exporting country’s laws. In an effort to encourage the fleet to land in Russia, Russia has reduced the landing tax to 10% from 100% of the value of the landing and imposed a 100% tax on exports.

In Canada’s case, the FCC believes Russia used the threat of an import ban to bring high level attention in Canada to this issue. CFIA Fish and Fish Production Division will be meeting with the Russian officials in February to further the discussions on CFIA’s food safety regime and the Russian’s concern regarding illegally harvested Russian crab entering the Canadian market. Russian officials will then return to Canada in April to make decisions regarding Canadian seafood imports into the Russian market.

The FCC has alerted the Ministers responsible for CFIA, the Department of Foreign Affairs and International Trade, the Department of Fisheries & Oceans, and the Canada Border Services Agency of the issue, noting that the path forward will be difficult and require coordination of senior officials in the respective agencies and Departments.

Mackerel – Bulgaria & Romania

With Bulgaria, Romania and other Eastern European countries joining the EU, the health authorities are slowly adopting the EU’s food safety regime. Difficulties are to be expected. Recently a number of shipments of frozen mackerel from Canada were rejected by Bulgaria and Romania because of a misinterpretation of an EU regulation regarding parasites. Fortunately, the EU’s food safety authority, SANCO, was very helpful. SANCO advised Bulgaria and Romania that mackerel and herring are to be “examined” for parasites visually in the meat portion of the fish to ensure that they are not “obviously contaminated”. The Eastern European authorities undertook destructive inspection and found evidence of parasite tissues in the intestines, etc. The authorities have recognized the error and have removed the detentions on the shipments and the EU has taken action to remove the exporters from the Rapid Alert System.

EU – Dioxin Level for Fish Liver

The EU’s Food Safety Authority has established a maximum level of 25 pg/g wet weight for the sum of dioxins and dioxin-like PCBs in fish liver.

Canadian Federation of Agriculture – “Grown in Canada” Label

In response to confusion in the market place regarding the “Product of Canada” descriptor, the Canadian Federation of Agriculture has embarked on consultations regarding the merits of developing and promoting a “Grown in Canada” label. The intent would be to create a voluntary label program with Canadian ingredient requirements.

Chinese Seafood Consumption Soaring.

FAO reports that in 1973, China’s per capita consumption of seafood was 8 kg when the global average was12kg. To-day it’s 28kg when the global average is 15kg.

UK Retail Sales Diversifying

AC Nielsen figures show increasing diversity in UK retail sales for the first 10 months of 2007. The traditional favourites are still performing well – salmon is #1 at $1 billion with cod and haddock close behind at a combined $1.2 billion. All three species show a healthy single digit growth.

However, sales of new species are skyrocketing – squid (56%); tilapia (64%); sea bass (71%); and barramundi (301%). The species that showed the greatest growth is pollock – up 900%. However, this is mainly because industry is finally labeling the product as pollock rather than the generic term “whiting”.

Key Meetings – January