March 2010 Edition

                                          What's Happening at the FCC

Speech from the Throne – Fisheries Implications

The March 3rd Speech from the Throne contained some initiatives that could directly impact Canada’s fisheries:
• The government “will introduce new legislation to reform Canada’s outdated system of fisheries management”
• The government will implement free trade agreements with Peru and the European Free Trade Association (Norway, Iceland, Switzerland, Liechtenstein) as well as seek ratification from Parliament of new agreements that have been negotiated with Columbia, Jordan, and Panama. In addition, the government committed to continue free trade negotiations with the EU, India, Korea, and the Caribbean Community (Caricom – Haiti, Trinidad & Tobago, etc.)
• Review all departmental spending to “ensure value for money and tangible results”.

2010 Federal Budget

One element of the 2010 Budget that will directly impact seafood processors is the elimination of remaining tariffs on imported machinery and equipment as well as the elimination of tariffs on imported goods for further processing.

IntraFish’s Top 10 Trends to Watch in 2010

1. Foodservice rebound

2. Traceability mania. With the EU’s catch certificate regime now being implemented, more requirements are expected from governments and buyers.

3. Cod is back. Barents Sea cod stocks are healthy; North Sea stocks are showing more positive signs of recovery.

4. Fish feed frenzy. The International Fishmeal & Fish Oil organization started it with its responsible Supply Code to ensure safe and traceable feed products. Tesco put cash to sponsor the project and will, undoubtedly, feature this in its sourcing policies. If the trend catches, a race could be on to supply the greenest, cleanest and most sustainably –caught fish for feed.

5. Eco-label backlash? It started with a report from MRAG ltd. which reported that the current glut of eco-labels on seafood packaging is both confusing for consumers and lacking enough information about the program. Moreover, it noted that the high cost of certification discriminates against developing countries inhibiting their market access regardless of the state of the fishery. As well, some NGOs have attacked MSC and their certifiers regarding the analysis and certification of some fisheries. Expect more rumblings in 2010 as the bubbling enthusiasm over eco-labels gives way to a more pragmatic and critical reception.

6. Virus trouble. The world’s largest shrimp producer (CP Prima) is overhauling its production processes after a year of fighting the spread of the highly infectious IMN virus. IMN is an emerging L. vannamei disease; first detected in Brazil in 2002 and has since spread to Indonesia in 2006.

7. Package from Norway. With Chile’s salmon industry caput, starting in 2007 because of a massive outbreak of ISA virus, Norway has stepped up. Comparing the first 9 months of 2009 to 2008, Norway’s exports to the USA increased from 1,500mt to 13,000mt.

8. Battle for aquaculture eco-hearts and minds. WWF and the Global Aquaculture Alliance (GAA) are emerging as keen competitors for aquaculture certification. WWF is finally on the playing field with the introduction of its dialogue tilapia standard. Pangasius will likely be next with the rest of the species under development completed in 2010. Ultimately, the WWF dialogue certifications will be handled by the recently formed Aquaculture Certification Council (ASC) which will do for aquaculture what MSC does for the wild fishery. The question is whether the WWF initiative is in time or are companies already fully committed to GAA and its Best Aquaculture Practices (BAP).

9. Frozen explosion. With the credit crunch, tighter consumer wallets, and a trend to simple, healthy, and natural products, frozen food is experiencing a renaissance.

10. New decade, fresh start. 2010 seems to be starting with positive vibes. Most firms have “right – sized” themselves and feel they are in shape to make some money.

Food Colouring Ingredient Listing to Change

Currently, Health Canada allows food colours to be declared in the ingredient list by use of the general term “colour” to specify one or more food colours. Health Canada plans to propose regulations to eliminate or amend this option. They are looking at two options:

1. labelling of all food colours by their individual common name or a numerical identifier (e.g. a Colour Identification number)
2. labelling of all synthetic colours that do not occur in nature by the individual common name and the natural colours cochineal, carmine, and annatto (each of which has been associated with allergic or sensitivity responses). All remaining colours could be identified by the generic term “colour” or by the common name.

The FCC is working with its Inspection/Technical Committee to assess the impact of this initiative and to see if there is a consensus of which of the above options is preferred.

Health Canada Sodium Reduction Targets

In response to high levels of sodium in the diets of Canadians, Health Canada will be pressuring the food processing industry to voluntarily reduce sodium content in their products. A working group has assembled data regarding the sodium content in a wide range of foods and is proposing maximum sodium target levels.

For canned seafood, the sodium content averages ranges from 80mg/100g for products with a no added sodium claim (salmon & tuna) to 706.5 mg/100g for canned shrimp products. Health Canada’s suggested maximum for these products is 400mg/100g.

For frozen fish products, the range is 375 mg/100g for shrimp to 551mg/100gfor breaded & battered products. The proposed target is 450mg/100g.

For frozen smoked products, the average is 843.5mg/100g. The proposed target is 840mg/100g.

The FCC will be reviewing the initiative with its Inspection/Technical Committee.

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