May, 2006 Edition

                                          What's Happening at the FCC

FCC Spring Board of Directors Meeting

The FCC’s Board of Directors met in Ottawa at the end of April. Fisheries & Oceans’ Deputy Minister, Larry Murray, and senior officials joined the Board in the afternoon to review a number of issues. An evening reception and dinner was held wherein the Board and the DFO officials were joined by Minister Hearn and his staff and Randy Kamp, the Parliamentary Secretary, and his staff.

Main items reviewed at the meeting included cooked & peeled shrimp tariff developments in the European Union and the initiative with St. Pierre & Miquelon; the WTO trade negotiations; Minister Hearn’s intent to revise the Fisheries Act; the owner/operator – trust agreements issue; the endangered species legislation and the upcoming DFO/COSEWIC/FCC workshop on a number of issues as well as a roundtable meeting with the Minister of the Environment; an FCC communications document regarding the current economic challenges and the viability of the industry; sensitive areas and the bottom impact gear sector policy initiative; and a re-visit of the “Canadianization” policy.

The main action items emanating from the meeting were (i) organize a meeting with DFO and a FCC Fisheries Act working group; (ii) organize a meeting with DFO and a FCC bottom impact working group to finalize a sensitive areas/fishing impact policy and to develop a protocol regarding fishing in data poor areas; and (iii) finalize the FCC economic challenge/industry viability communication document.

Health Benefits of Fish & Seafood

Click Here for Information on Essential Research in Seafood and Heath!

The FCC has posted on its web site concise summaries of the top ten scientific research studies that detail the health benefits of fish & seafood. The summaries also include the key health benefit message resulting from the study. These messages may help you with your customers and consumers. Check it out – Current Issues – Essential Research in Seafood and Health.

Malachite Green – Lessons Learned

The recent experience with Malachite Green is an example of an emerging and potentially intractable problem unless new approaches are accepted regarding food safety, the continuously increasing capabilities of detection technology, and risk analysis.

Malachite Green (MG) is a non-permitted anti-fungal agent for food fish. A number of countries had established precision standards for their detection technology: US - 1ppb; EU – 2ppb; Japan-5ppb. In Canada, the position was zero tolerance without any precision standard.

In the fall, CFIA began specific testing for MG and found a wide range of detections. However, a considerable number of the detections were at very low levels: .43ppb; Building A Fishery That Works: Ottawa Update May 2006 .26ppb; .12ppb; etc. It was generally recognized that these levels of detection were not the result of deliberate use of MG. Nevertheless, the shipments were rejected because MG was, in fact, detected. After considerable discussion with Health Canada and CFIA, Canada recognized the minimum health risk of consumption of fish products with trace amounts of MG and introduced a 1ppb acceptance level.

The concern is that we will experience increasing instances of inspection technology identifying trace amounts of contaminants that are naturally occurring in the environment. There is a need for Health Canada and CFIA to develop an appropriate policy framework regarding the detection of trace amounts of non approved/banned substances and food safety so that food products are not unnecessarily pulled from the market, undermining consumers confidence in food safety.

FCC has begun discussions with other food associations regarding the issue to determine whether an approach to Health Canada & CFIA is warranted. As well, the FCC has tabled discussion on the issue with the International Association of Fish Inspectors (IAFI).

Fisheries Management/Economics

Minister Hearn’s Office Gets Staff

Fisheries & Oceans Minister, Loyola Hearn, has completed some key staffing positions:

Chief of Staff – Scott Tessier. - Scott is on leave of absence from DFO where he was Executive Adviser, Office of the Senior Associate Deputy Minister. Scott worked with the Minister on behalf of the Department during the early transition days. Scott is from St. John’s

Senior Policy Adviser – Lorne Wheeler – Lorne was retired prior to accepting this position. He was Deputy Minister of Newfoundland & Labrador’s Ministry of Education when Mr. Hearn was Minister of Education in the mid/late 1980s.

Senior Special Assistant, BC & Yukon – John Duncan – John previously represented a large riding on Vancouver Island, where numerous aquaculture farms are located. He was not re-elected in the last election.

Atlantic Assistant – Herb Davis - Herb operated a St. John’s fish trading company in the late 1980s, selling Canadian fish products to the old East Bloc countries. He was also involved with a St. John’s technical company supplying electronic equipment to vessels. More recently, he was an assistant to Senator DiNino in the Senator’s capacity as Chair of the Friends of Tibet Committee.

Director of Communications – Steve Outhouse is on leave of absence from DFO where he was a Communications Advisor. Steve also worked with the Minister on behalf of DFO during the early days of transition.

2006 Budget – Capital Gains Exemption for Fish Harvesters

The May 2nd Federal Budget extended to fish harvesters the same $500,000 lifetime capital gains exemption provided to farmers and small business owners when transferring fishing property to their children. Previously the exemption was $100,000.

International Fisheries

Canada-France (St. Pierre & Miquelon) – Fisheries Agreement

The 1994 Canada-France Fisheries Agreement is slated to expire in April 2007. If Canada wants to re-negotiate the agreement, Canada has to advise France by mid October 2006.

France has already advised that it prefers that the agreement be allowed to automatically roll-over for another 5 years. The issue for Canada is that the demise of the Icelandic scallop resource has rendered the terms of the agreement unbalanced. A government/industry meeting was held in St. John’s in April. It was decided that (i) Canada should advise France at an upcoming meeting in May that there are significant issues regarding the future of the agreement that Canada must explore with the affected provinces and industry; and (ii) a formal federal/provincial/industry consultation committee be established to further review the issue.

Environment

Protect Don’t Ban

In response to calls by environment groups regarding the banning of bottom impact fishing gear, Decima Research was commissioned to conduct a national telephone survey. When offered options, 87% of opinions supported protecting sensitive areas as a preferred approach to banning the harvesting activity.

Decima polled 2023 Canadians, yielding results with an error interval of 2.2%

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. The Minister recommended that (i) Interior Fraser Coho be listed; (ii) Atlantic cod not be listed; and (ii) Artic cod, cusk, bocaccio and 3 other species be returned to COSEWIC for further information. FCC filed a submission supporting the recommendations of the Minister except the recommendation concerning Interior Fraser Coho. We recommended that this stock should also be returned to COSEWIC for further information. Based on current developments, the FCC suggested the species would no longer be considered threatened. Like the FCC, Cabinet recently decided to support the Minister’s recommendations except the Interior Fraser Coho recommendation. Cabinet decided it will not be listed.

Market Issues

Irish Herring Roe

Production of Herring roe in Ireland has been extremely slow since before the end of the year. The roe herring fishery has been on the decline due to a number of factors. In all, the Japanese have only purchased about 100 tons of frozen roe from the fishery this year. Ireland is only expected to ship about 100 tons of frozen roe to Japan this year, down from the 600 tons purchased last year. A major reduction from the 3,000 tons of herring roe produced at the peak of the fishery several years ago. The 100 tons actually produced has created a slight shortage for the Japanese flavoured roe processors. This will help reduce the carry over inventory of eastern Canadian roe.

Bill Atkinson

The FCC was saddened to learn of the recent death of Bill Atkinson. Bill provided comprehensive fish and seafood market news on developments in Japan. Many of the items were of particular importance to the Canadian industry. He and his reports will be missed. Many of us got to know him better when he made a presentation to the FCC annual conference in the early 1990s.

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