May, 2008 Edition

                                          What's Happening at the FCC

FCC Board of Directors Meeting

The FCC Board of Directors met in mid-April. Issues reviewed by the Board include: the on-going WTO trade negotiations; FCC’s communication with the European Commission regarding the introduction of import tariff quotas for herring and yellowtail flounder; the proposed EU catch certificate for imports; Greenpeace and its initiative in the USA and Canada surveying seafood retailers regarding their seafood sustainability purchasing policies; the DFO-industry science partnership program; DFO’s sustainable fisheries development framework initiative; Bill C-32.

The Board was joined by Ms. Sandra Wing, Vice President, Policy, the Canadian Food Inspection Agency (CFIA) and senior colleagues from CFIA. Issues covered with CFIA included: the upcoming audit by Russian inspection officials; the export certification re-design initiative; the import inspection modernization proposal; and the aquatic animal health program and its possible impact on the import of seafood for further processing and plant effluents.

Senior official of DFO also joined the Board to review the department’s priorities for 2008/09 and discuss some of the issues reviewed by the Board earlier in the day.

For 2008/09, DFO has established the following priorities: Fisheries Renewal; passage of Bill C-32, the Fisheries Act; the Northern Strategy ($720 million was allocated to the strategy in the February Federal Budget); Small Craft Harbours/Nunavut (funds coming from the Northern Strategy); International Fisheries Governance (NAFO, IUU fishing, Budget provided permanent funding of DFO, International Coordination Directorate, Policy, etc); Aquaculture Governance; Health of the Ocean (Budget allocated $61.5 million over 5 years); Science Renewal; Coast Guard Renovation (funds coming from the Northern Strategy); Habitat Management; Species at Risk Management; and Small Craft Harbours.

New Funding for Fishing Industry Research and Development Projects

In the 2008 Federal Budget, the Natural Sciences and Engineering Research Council of Canada (NSERC) received $37 million to support projects in the manufacturing, automotive, forestry, and fisheries sectors. The FCC has been in preliminary discussions with NSERC and DFO, Science regarding the initiative. NSERC confirms that funds have been set aside for the fisheries to support projects over the next three years.

NSERC wants industry driven projects involving university researchers that are linked to DFO, Science’s area of knowledge as DFO, Science would be called upon by NSERC to evaluate/score the proposals. As well, the project proposals should fit under an over-arching thematic or strategic umbrella. These are projects developed by industry and university researchers and implemented by the researchers. The projects would be fully funded by NSERC. However, the nature of the project may call upon in-kind contributions of industry.

Discussions to-date are leading to an overall theme entitled “Resource and Ecosystem Sustainability”. The feeling is that this would allow a broad range of activity. As examples; (i) those sectors that obtain MSC certification generally undertake an obligation to report within 5 years the impact of the fishing on the ecosystem community structure and function, as well as other analysis concerning by-catches, etc; (ii) with respect to the Aquatic Animal Health initiative, industry may want research regarding the pathogens, if any, in processing plant effluents and whether they do or do not have the ability to affect the health of the surrounding aquatic species; (iii) etc.

A meeting is being scheduled for mid-May to bring together NSERC/DFO Science/Industry/Academe to reach consensus on an over-arching strategic theme for the initiative; the types of projects that could fit within the theme; the modalities of getting projects funded; etc.

EU Catch Certificate: Update

The Canadian government met with the European Commission (EC) recently regarding the proposed catch certificate requirement for imported seafood products.

The Commission reported that the proposal is getting some criticism. The UK, Germany, and France have requested out-right exemptions from the legislation, noting that the legislation would cause massive bottle necks in the main ports of imports.

There were discussions on the Article 19 regarding the “cooperative arrangement” provision. EC noted that the legislation is not aimed at countries like Canada but major suppliers of seafood to the EU market, such as China & Russia, that don’t seem to have national controls whether the harvested fish is legally fished. As such, the “cooperative arrangement” provision is aimed at major suppliers of seafood to the EU, like Canada, that can demonstrate administrative controls that meet the requirements. However, the EC warned that it’s “not a free ride”. The proposals will be carefully scrutinized.

The EC reported that the proposal is scheduled for discussion/decision at the next EU Fisheries Ministers Council meeting in June. Canada reminded the EU that as the proposed measures are border measures, the EU has the obligation to notify any new import requirements to the WTO. (This process normally results in three scenarios – (i) countries are allowed one-year to make necessary adjustments in order to comply with the new import requirement; (ii) countries can request GATT Article XXII consultations regarding the new measures to reach a bilateral solution; and (iii) WTO dispute settlement.

The FCC is in dialogue with AIPCE, the EU processors organization, and Europêche, the EU’s fishing vessel owners association. AIPCE is opposing this import initiative as their members rely heavily on imported seafood for further processing in the EU. Europêche submitted its comments regarding the proposed companion legislation directed at EU fishing vessels. Europêche suggests the proposed legislations are contradictory and inspections/controls should be inspections controls at sea. Rigorous inspections at landings will only create bottle necks. As well, the FCC is encouraging its association colleagues in the International Coalition of Fisheries Associations (ICFA) to get their governments to raise concerns with the EU.

FCC’s Buyers Guide – Check It Out

Naylor (Canada) Inc has converted the FCC’s Seafood Products and Services Directory to an on-line Buyers Guide. It’s on the FCC’s home page at www.fisheriescouncil.org Check it out. If your company’s presentation needs updating contact ritortoam@fisheriescouncil.org.

Glitner Bank: Trends Reshaping Seafood Industry

Below are 13 trends Glitnir Bank sees as reshaping the seafood industry:
1.   Growing emphasis on scientific research and sustainable management
2.   Environmental and social responsibility issues increasingly important issues
3.   Demand for protein and emphasis on health benefits, both growing
4.   Seafood consumption increasing globally
5.   Increased health focus leads to growing demand for seafood
6.   Consumption growth based on aquaculture
7.   Growth industries most attractive for investors
8.   Market development calling for consolidation, yielding investment opportunities
10. Ecological and social responsibility increase investment need
11. Customers demand safe, steady and secure supply, increases costs
12. Increased food safety and product development are costly
13. Marine ingredients for food additives and pharmaceutical industry

Australian Study: Trawl Fishing Increases Biodiversity

A four year, 337 page study completed by the Fisheries Research Division, Western Australian Fisheries & Research Laboratories concludes that there is no major difference between the biodiversity abundance in heavily trawled, lightly trawled and never trawled areas of the Shark Bay prawn fishery. In fact, fish that thrive in soft sediment habitats are more widespread and abundant in trawled areas than non-trawled areas.

The prawn fishery in Australia’s World Heritage listed Shark Bay has always been tightly controlled with permanently closed areas, and specific spatial limits. The full paper is at: www.fish.wa.gov.au/docs/frr/index.php?0706. Report #FRR 160.

FCC 2008 Conference, Quebec City, October 21-23

Great location, knowledgeable/informative presentations (2008 market review and 2009 outlook; US food safety initiatives regarding imported seafood; seafood perspective from Europe; world tuna industry’s sustainable fisheries initiative; Minister of Fisheries & Oceans; DFO interactive panel); great food and networking opportunities.

Save the dates. Program information and registration forms will be mailed shortly and soon up on our web-site.