October, 2006 Edition

                                          What's Happening at the FCC

Cooked & Peeled Shrimp - EU

The draft legislation to increase the 7,000 mt EU cooked & peeled import quota to 10,000mt for 2006 has been finalized. It is scheduled to be presented for final approval at an EU Council meeting on October 12.

With respect to 2007 – 2009, the emerging consensus in the EU is to increase the quota to 14,000mt. However, recently the head of the EU fisheries marketing division has raised concerns about the impact on Greenland of such an increase. The Fisheries Council of Canada is working with our EU coalition (UK, Swedish associations and Denmark’s Dansk Fish association) to see what analysis/ comment, etc. the industry can provide that may allay the concern.

At a meeting in August between Fisheries Minister Hearn and the EU Fisheries Commissioner, Borg, on a range of Canada-EU issues, Mr. Borg seemed confident that the 2007-2009 quotas would be higher than 10,000mt. The above more recent comment coming from the EU is somewhat surprising and disconcerting.

Glitnir Bank Iceland – Report on the Canadian Seafood Industry

With its recent opening of a branch in Halifax, Glitner Bank of Iceland published a comprehensive report on the Canadian seafood industry

Main Findings: (Glitnir Seafood Industry Report, page 4)

  • Seafisheries: Newfoundland, Nova Scotia and British Columbia are the three leading provinces by volume and value, with the Atlantic Coast representing 78% of all landed volume and 84% in value.
  • Aquaculture: British Columbia is leading the provinces in harvest volume and value, followed by New Brunswick and Prince Edward Island. Overall aquaculture value has decreased by roughly CAD 60 million from 2002 to 2004.
  • Seafood consumption is growing slowly despite dropping animal protein consumption.
  • Consumer seafood prices are stagnant, while overall food, meat and poultry have risen between 9 – 14%.
  • While people eon the Atlantic coast buy the most fish, people in BC and Ontario actually spend the most on fish.
  • Strong customer base with a strong and consolidated retail market.
  • Herring is today the largest volume fishery, while Lobster, Queen/Snow Crab and Shrimp are the most valuable.
  • The leading exporting province is Nova Scotia with exports of CAD 1 billion, followed closely by BC and Newfoundland.
    The United States continue to be the most important destination for Canada’s seafood exports (CAD 2.7 billion)

    Mercury in Fish

    Health Canada plans to revise its current guidelines and consumer advisory regarding mercury in fish. A major change is a proposed advisory for pregnant women and young children to limit their consumption of canned albacore tuna. Canned tuna is well within the .5ppm guideline. Of the various types of canned tuna, canned albacore tuna has generally the highest level of mercury in the .1 - .3 ppm range. Health Canada believes that because of the high level of consumption of canned tuna, an advisory regarding canned albacore tuna is warranted. The FCC is in discussion with Health Canada opposing this proposal.

    Based on the experience over the past year in the US, the Canadian canned tuna industry is concerned that any revised advisory regarding mercury in fish will generate considerable media attention and, in the end, mercury and canned tuna get linked and consumption declines. As a result, the sector has agreed to make preparations now to be able to respond professionally and timely to media reports, etc. that are misinformed, misleading, etc. As such, the FCC is seeking a proposal from the public relations firm, Fleischman-Hilard Canada (F-H), to handle the communications requirements. F-H is handling the mercury in fish issue in the US for the US Tuna Foundation. The project would be fully funded by the companies. F-H would prepare all the communications material and handle the media relations. The material would be issued under the FCC banner.

    NAFO

    The 2006 NAFO meeting was held in Halifax in September. Three main objectives for Canada were obtained:
    - establishment of a dispute settlement procedure which provides for an independent panel to review and render recommendations regarding objections filed by a member regarding a NAFO decision;
    - vessels caught misreporting their catch will be removed from the fishery for an immediate port inspection. Other serious infringements, including directing for moratorium species and repeat offenses will lead to similar consequences;
    - establishment of sanction guidelines when vessels are caught breaking the rules: countries will be obliged to impose a fine, suspend or withdraw a license or catch quota, or seize gear or the illegal catch.

    US Magnuson - Stevens Act

    The US fisheries management act, the Magnuson-Stevens Act (MSA) is going through Congress to be re-authorized. The final re-authorized Act will set in place a national policy regarding individual transferable fishing quotas (“limited access privilege programs”). Most likely, the quotas will be available to processing companies. Alaskan Senator Stevens has been vocal that he’ll introduce an amendment that only processing companies with 75% US ownership would be eligible to hold the fishing quotas.

    Such an amendment would have immediate impact on a Canadian owned processing plant in Alaska and clam/quahog operation on the US East Coast. As well, it would undermine investment opportunities for Canadian companies if additional US fisheries become ITQ fisheries (e.g. herring, lobster, etc.)

    The FCC has worked with the Pacific Seafood Processors Association (PSPA), Seattle (which has Canadian and Japanese members that have processing plants in Alaska) to get Senator Stevens to reverse his position. The FCC chaired a strategy session at the Canadian embassy in Washington comprised of representatives of International Trade Canada, PSPA, and the Japan Fisheries Association.

    The campaign has been successful in getting a number of letters sent by Alaskan and Washington based organizations and communities, including the Alaskan State Chamber of Commerce, to Senator Stevens opposing his proposed amendment. International Trade Canada has met with the Departments of State, Treasury, and Trade pointing out that while NAFTA does allow for discriminatory provisions regarding fishing vessels, however, under NAFTA, Canadian fish processing operations must receive equal treatment regarding rules, regulations, etc. as US owned plants.

    Recently in a telephone conference call between the Alaskan State Chamber of Commerce and the Congressmen and Senators from Alaska, Senator Stevens, in response to a direct question, replied that he has worked for many years to Americanize the Alaskan industry, especially the harvesting side, but that he does not think it is a good idea to restrict investment in processing. As such, it appears our efforts are gaining ground.

    Lobsters – Walmart: Sustainability/Well Managed

    Wal-Mart had contacted one of the major US importers of Canadian Atlantic lobster requesting the company to document that Canada’s Atlantic lobster fishery is “sustainable and well managed. The FCC worked with DFO, Fisheries Management, which produced a letter on the management of the Canadian lobster fishery signed by the Assistant Deputy Minister, Fisheries Management.

    The FCC is working with the US importer and the National Fisheries Institute (NFI) regarding a presentation to Wal-Mart to get their acceptance of the letter as official confirmation that our lobster fishery is sustainable and well managed.

    Measurement Canada – Review

    Measurement Canada, an Agency of Industry Canada, has commenced an 18 month review of the rules and practices governing the buying and selling of fish, maritime vegetation, and fish products based on measurement. The Agency wants to establish an appropriate level of intervention to ensure accuracy in trade measurement in the industry. The following meetings have been established to provide industry members the opportunity to review the proposals.

  • Vancouver – October 12
  • Halifax/Dartmouth – October 25
  • St. John’s – November 8
  • Toronto –November 26

    To learn more about the initiative and the proposals go to www.mc.ic.gc.ca (click on Sector Review – Fishing and Fish Products – Discussion

    Trade Mission to Turkey

    A Canadian Agri-Food Mission to Turkey is scheduled for November 6-10. The mission will visit Istanbul, Mersin, Ankara and Izmir.

    October Meetings

    FCC Board of Directors, Toronto
    The board will be reviewing some key policy issues, establish a budget for 2006/07, and identify the key objectives for the FCC for 2006/07

    Annual General Meeting, Toronto
    Delegates will establish member assessments for 2006/07 and elect the 2006/07 Board of Directors including the 2006/07 Vice Chairman

    Aquatic Animal Health Committee, Ottawa
    The Committee will review progress by the Canadian Food Inspection Agency and DFO regarding the establishment of a regulatory framework to meet the reporting requirements of the World Organization for Animal Health under its Aquatic Animal Health Code of which Canada is a signatory.



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