November, 2008 Edition

                                          What's Happening at the FCC

FCC Annual Conference: Quebec City

A successful FCC Conference was held in Quebec City. Industry, federal and provincial government delegates from across Canada as well as delegates from the USA attended. The presentations provided by John Sackton and Richard Gutting are posted on our website.

FCC Board of Directors Meeting

The FCC Board of Directors met on the margins of the Annual Conference. The Board reviewed a wide range of issues regarding market access/trade policy; fisheries management/economics; and inspection. Some of the key directions the Board gave the FCC over the coming months include:

(i) European Union – New Import Quota Regime
With the current import quota regime scheduled to end in 2009, it was decided that the FCC should ramp up its lobby in the EU and Brussels in order to get improved access in the next regime. Targets include:
• cooked & peeled shrimp – duty free quota for 28,000mt;
• herring – 10,000mt duty free quota for flaps, fillets and dressed herring plus a decrease in the eligible herring flap to 50g;
• yellowtail flounder – get yellowtail flounder included in the sole quota and get the quota increased to 7,000mt;
• new products - get the EU to introduce new quotas for mackerel and freshwater species (lake whitefish, northern pike, pickerel.

(ii) Fishing Licence Review
Establish a FCC working group to see if a FCC consensus position can be developed.

(iii) Fuel Conversion
Pursue with Transport Canada, Environment Canada, and Fisheries & Oceans Canada the possibility of establishing an incentive program to assist the industry to convert fishing vessel engines to less costly fuel e.g. heavy oil.

(iii) Economic Integrity
Pursue with the Departments of Justice, Industry (Weights & Measures), and CFIA the possibility of establishing significant fines in order to combat the increasing problem of imported short-weight products destined for the food service market.

Exports to Russia

The negotiations have been completed and a new regime will be implemented as of January 1, 2009. Russia has accepted to approve for import products from the 178 Canadian plants that had indicated to CFIA that they have an interest in exporting to Russia. The approved Canadian plants will be posted on the Russian food inspection web-site. However, imbedded in Russia’s food safety regulations is a requirement that approved foreign plants must have been “visited” by a Russian food inspector. As such, Russian inspectors will return to Canada in 2009 and 2011 to “visit” the plants on the list.

The Russian authorities want to approve only those plants that are actively exporting to Russia or negotiating with a Russian importer regarding a possible sale. As such, it is envisaged that the list of 178 will decrease over time. CFIA will have the authority to submit new entries to be added to the list if the Canadian company can demonstrate it is in negotiations with a Russian importer.

A new export certificate has been agreed upon. It has 12 entries; 9 to be filled in by CFIA; 3 by the exporter relating to the shipping vessel, schedule of delivery, etc.

Lobster Roundtable Meeting

With funding from the Atlantic Canada Opportunities Agency (ACOA), DFO, and Agriculture & Agri-Food Canada, an Atlantic Canada Lobster Roundtable has been formed with funds committed for three meetings. The Canadian Centre for Fisheries Innovation (CCFI) has been appointed to chair the Roundtable. The first meeting was held on October 15th in Halifax.

The purpose of the Roundtable is to provide a forum to develop and implement joint action plans for the sector over the medium to longer term. The agenda for the first meeting was focused on (i) generic marketing and (ii) MSC certification. The Roundtable requested the CCFI to obtain funding to (i) interview stakeholders regarding interest, suggestions, etc concerning a generic marketing initiative; (ii) report on costs, possible approaches concerning certification by the Marine Stewardship Council (MSC).

NSERC Projects

As part of the federal government’s 2008 Budget, about $12 million over three years was allocated to the Natural Sciences and Engineering Research Council (NSERC) to work with the fisheries and aquaculture sectors to undertake projects regarding (i) operational efficiency and technological development and (ii) strategic issues in resource and ecosystem sustainability. Thirty-six projects were submitted. A selection committee from academe, government, and industry has been formed. Industry members on the committee are Christina Burridge (BC Seafood Alliance), Ruth Salmon (Canadian Aquaculture Industry Alliance), Marc Allain (Canadian Council of Professional Fish Harvesters), and Patrick McGuinness (FCC). The committee is scheduled to make its decisions by the end of February 2009.

Cooked & Peeled Shrimp – Generic Promotion

With funding from ACOA, the fisheries departments of Newfoundland and Labrador, New Brunswick, and Nova Scotia and in-kind contribution from Quebec, interviews were completed with the Atlantic and Quebec cooked and peeled industry. A meeting was held in Quebec City to review the study and determine next steps if any.

The meeting participants supported moving forward with the concept of a generic marketing program for Canadian cooked and peeled shrimp. Key items were discussed in terms of the focus and scope of such a program:

- A clear objective of the program would have to be an increase in the price of product in the marketplace.
- The program would require a minimum commitment of three years to be effective.
- Costs involved would have to be manageable for industry in light of other financial demands.
- Full industry participation in the program would be highly desirable (essential, according to some producers).
- The program should focus on highlighting the positive attributes of coldwater shrimp i.e. wild, sustainable, coldwater, etc.

During the meeting considerable discussion took place with respect to further work that could be undertaken to strengthen this proposal and to assist in gaining further support from the Canadian C&P sector. A consensus was reached to undertake the following additional tasks:

A survey of major retail and foodservice users of Canadian cooked and peeled shrimp, to determine their interest in and recommendations for a generic marketing campaign. Upon completion of the survey and integration of the results with the industry survey a final report would be presented at a full industry stakeholder meeting to be scheduled in St. John’s in early December.

Wood Packaging

Currently, wood packaging in shipments imported into Canada or exported from Canada except for shipments from or to the USA must be heat-treated or fumigated and marked to indicate that it has been treated. These measures are designed to prevent the introduction and spread of forest pests of quarantine concern. The US government is proposing that the USA-Canada exemption be terminated with a 32 month stepped phase-in approach. The FCC has objected to the proposed termination of the exemption arguing that the current Continental USA- Canada perimeter safeguard approach make sense and is effective. Diverting limited monitoring and inspection resourses to the massive volume of trade between the US and Canada could have unfortunate consequences regarding shipments from outside Canada and the continental USA. In fish and seafood alone, this trade amounts to about 500,000 tons a year, valued at about $3.2 million annually. The FCC also pointed out the European Union takes a perimeter safeguard approach, exempting shipments between EU member countries.

Norway – Traceability Info Mandatory from 2010

Norway’s Ministry of Fisheries and Coastal Affairs has notified that all fish and seafood sold in retail outlets must identify the date of catch/slaughter beginning January 1, 2010.