March, 2009 Edition

                                          What's Happening at the FCC

Short Weight

Representatives from Export Packers, High Liner, Aqua Star and Bay Point Trading joined Ron Doering, FCC’s legal advisor, and Patrick McGuinness at a meeting with CFIA in Ottawa on Friday, February 27 regarding the growing incidence of short weight products in the Canadian seafood market. Cameron Prince, Vice President, Operations Branch, and Vance McEachern, Executive Director, Operations Strategy and Delivery Directorate, represented CFIA.

We reported that the incidence of economic fraud regarding weight labeling is rampant in the North American seafood market. The FCC and the US National Fisheries Institute (NFI) agree that both organizations and the respective inspection agencies must take action to eliminate the practice so that (i) honest companies can compete on a level playing field; and (ii) both industry and government can report action on the issue in the event it becomes a media issue.

Our presentation was very direct. We need CFIA to initiate an enhanced, targeted inspection and enforcement regime to eliminate short weight fish and seafood products in Canada. To be successful, the enforcement actions must be substantive – seizures, injunctions, criminal charges, fines, cancellation of import licences. We noted that the timing is opportune for such an initiative as information sessions are scheduled for basic importers in the coming weeks and the QMPI program is undergoing revisions.

In response, Mr. Prince agreed it was a serious issue and agreed to form a team under Vance McEachern to investigate the situation and propose a draft course of action for CFIA.

Next Steps
1. A Short Weight communiqué will be distributed at upcoming information sessions with the basic importer community.
2. Mr. McEachern will assemble a small team to investigate the situation and develop a proposed CFIA course of action.
3. Mr. McEachern and team will meet with Mr. McGuinness the week of March 9 to review the CFIA proposal;
4. Mr. McGuinness will distribute the proposal to the FCC working group for its assessment of the effectiveness of the proposal and to determine whether further FCC/CFIA discussions/meetings are needed.

Lobster Promotion

Agriculture & Agri-Food Canada (AAFC) through the CAFI program and the provinces of Nova Scotia, PEI, and New Brunswick have entered a contribution agreement with the Fisheries Council of Canada to undertake a lobster market promotion/market initiative project to be completed by March 31, 2009. AAFC’s contribution is $328,750 and the three provinces contributing $126,250 (i.e. $42,083 each). The components of the project will be implemented by the marketing arms of the provinces - Estelle Bryant (NS); Lee Brammer (PEI) & Louis Arsenault (NB).

The FCC was approached by DFO to be the industry component to the contribution agreement. The Canadian Centre for Fisheries Innovation (CCFI) will administer the project.

The project has to be completed by March 31, 2009. Main elements of the project are:
• market research/market intelligence in EU, Russia, Mexico;
• produce videos on the value chain and a training video for chefs;
• activities for the Boston and preliminary work for the European seafood trade shows;
• develop a lobster promotion booth;
• web site enhancement;
• media lunches in Europe;
• preliminary work for the promotion of frozen lobster in Beijing, Hong Kong, &Shanghai;
• preliminary work for a chef’s seminar and lobster event in Dubai
• advertisements and the production of promotional material.

NSERC Fishing Industry Research Network

The FCC, the Canadian Council of Professional Fish Harvesters, and Ottawa University have received funding from NSERC to hold a workshop to see if there is interest among industry, academe, and DFO to establish a Fishing Industry Research Network. If so, NSERC is prepared to contribute $1.5 million annually for five years to establish and support the network.

The two day workshop will be held in Ottawa, April 6&7

Frozen Whole Round Mackerel: Romania & Bulgaria

Discussions continue within the EU to get the Romanian & Bulgaria approach to the inspection of frozen whole round mackerel consistent with EU’s long standing practice. In the interim the following approaches have been adopted.

Romania
Inspection/sampling is done in on-site laboratories at the Border Inspection Points;
• Sampling is done at levels consistent with Codex and EU standards;
• Inspectors make an angle cut through the dorsal part of the fish;
• If parasites are found in the muscle (dead or alive) or alive in the viscera, the fish will be rejected for human consumption;
• If dead parasites are found in the viscera (abdominal cavity) the fish will be sent for evisceration at an approved plant. Intestines are not dissected to find parasites. The eviscerated fish can then be sold for purposes such as smoking or canning.

Bulgaria
Mackerel detected with a single or few parasites (9 or less) would be allowed for direct sale to consumers in the Bulgarian market but retail packaging would have to indicate that fish were only to be consumed after evisceration. For bulk food sales common in public markets, the warning label affixed to the wholesale box by the importer would have to be torn off and posted next to the display of fish.

Ukraine – 13% duty Increase on Prepared & Preserved Crustaceans, Molluscs, Etc

In response to its troubled economic situation the Ukraine has imposed a 13% temporary duty increase on a wide range of imported food products. With respect to seafood, the increase affects tariff chapter 1605 items. In 2008, Canada did not export any 1605 seafood products to the Ukraine. In 2007, we exported $51,000 of cooked & peeled shrimp.

Sea Salt

The Canadian fishing industry may get side swiped by a competition battle between Sysco Salt and Windsor Salt. Somehow recently, CFIA has determined that sea salt is not acceptable and safe for food use. As such, CFIA has advised that when current inventories of sea salt supply are exhausted processors will have switch to refined mined salt. Sea salt currently sells for about $5.70 for a 34kg bag. Refined, mined salt sells for about $18.70 a bag.

The FCC is working with the Nova Scotia Fish Packers Association and Argentia Freezers & Terminals to get the matter straightened out. Sea salt is used by the fishing industry world wide. There has never been a food safety incidence related to the use of sea salt in the salting of fish or being used in the brine. The decision would unnecessarily weaken the competitive position of the Canadian industry.

New DFO Deputy Minister – Claire Dansereau

Claire Dansereau, DFO’s current Associate Deputy Minister has been promoted to its Deputy Minister. Ms. Dansereau has an extensive career with the federal and British Columbia governments. She has held senior executive positions with Indian & Northern Affairs and CIDA. With BC, she was the Deputy Minister of the Ministry of Transportation & Highways and Vice President, Operations, Forest Renewal, BC. Claire has worked in the non-profit sector as the Executive Director, CUSO and with IWA-Canada. In addition, she headed up her own forestry consulting firm.