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The Economy 2002 - Newfoundland and Labrador

Crab, shrimp and cod accounted for 81% of total landed value in 2001
	Credit: Department of Fisheries and Aquaculture Aquaculture grow-out pen at St. Alban’s Bay

Industry Performance Weaker markets resulted in a reduction in fish landings and landed value in 2001, however, fishing industry performance remained relatively strong compared to recent history. While the landed volume of 249,000 tonnes was down by 7% from 2000, landings remained on par with the average of the previous four years. Similarly, the landed value of $489 million was down by 14% from 2000, but was the third highest ever recorded and was well above the average of $400 million in the late 1990s.   Outlook For 2002 Fish landings are projected to increase to 262,000 tonnes, led by a recovery in shrimp landings. Market conditions are expected to remain on par with 2001. Employment is expected to stay around 15,000. Aquaculture production is projected to grow by 40% to 7,500 tonnes, and production value is expected to top $30 million. Conversion of a processing facility at Twillingate to process shrimp is expected to be completed.

Fisheries employment averaged 14,600 in 2001, down from 15,200 in 2000 and well below the employment of 20,800 prior to the 1992 cod moratorium. Fish harvesting employment accounted for the decline in 2001, dropping by 1,400 to 7,400 person years. This was offset somewhat by an increase in fish processing employment of 800 person years to 7,200. The decline in industry employment over the 1990s is largely the result of a shift to a more capital intensive shellfish fishery from the relatively labour intensive groundfish fishery. This shift impacted both the harvesting sector (which requires fewer vessels and fewer fishers) and the processing sector (the number of licensed facilities is now one-half that of 1992). Employment levels were also impacted by labour adjustment measures (e.g., licence and early retirement programs) funded through fishery compensation programs. Shellfish Crab and shrimp are now the two most important species in the industry, accounting for about one-half of landed volume and 75% of landed value last year. Crab landings grew by 2% in 2001 to 57,420 tonnes, the second highest level ever recorded (record landings of 69,300 tonnes were recorded in 1999). The landed value of crab, impacted by weak export markets, declined by 17% to $218.9 million. In 2001, the market price for crab sections in the U.S. declined by 14% from 2000 and is now at its lowest level in four years.

The Economy 2002 - Newfoundland and Labrador

Fishery: top  |  page 2

Shrimp landings in 2001 totalled 69,900 tonnes, down by almost 10% from record landings in 2000. This decline was due to weak market conditions which resulted in the closure of the inshore northern shrimp fishery for close to three months. While the offshore and Gulf shrimp fisheries have been in place for many years, the inshore northern fishery is relatively new (having begun in 1997) and is experiencing strong growth. Since 1997, the number of harvesting licences increased from 47 to 380, the number of processing plants increased from two to 12, and private sector investment in the industry totalled $200 million. The landed value of shrimp in 2001 was $142.5 million, a decline of 16% from 2000. Shrimp value declined by a greater degree than volume mainly as a result of a 22% decrease in the price of small shrimp.  Newfoundland and Labrador is now the largest producer of cold-water cooked and peeled shrimp in the world. The European market for cold-water shrimp is large. The United Kingdom, for example, represents about half the market for cooked and peeled shrimp in the world. While Europe is the major market for Canadian shrimp (followed by the U.S.), exports to that market are subject to a 20% import tariff. This effectively constrains Canadian producers’ access to that market while other countries, such as Iceland, Norway, Greenland and the Faroe Islands, have preferred market access and face little or no tariff. Provincial shrimp producers and trade officials are negotiating with European countries to reduce this tariff. Cod Cod landings in 2001 were 21,200 tonnes, down from 30,400 tonnes in 2000. This decline was due, in large part, to the lower commercial quota for NAFO area 3Ps. In terms of landed value, however, cod remains the third largest fishery in the province. The landed value was $32.7 million, or 7% of total landed value. Processing Sector Structure Technological advancement has been ongoing within the processing sector. Prior to 1992, there were 240 licensed fish processing facilities, with the ten largest companies controlling over 60% of the total production. By 2001, there were 124 licensed facilities, and the ten largest companies controlled over 75% of the production. Among current processors in the province, Fishery Products International maintains the largest production volume, followed by the Barry/Seafreeze Group, the Quinlan Group, and Daley Brothers.

Landings and Landed Value Source: Department of Fisheries and Aquaculture; Economics and Statistics Branch, Department of Finance   Aquaculture Production in the aquaculture sector is experiencing rapid growth. Up to 1995, less than 1,000 tonnes were produced annually, whereas in 2001, production was almost 5,400 tonnes. Production value in 2001 was $20 million, up from $18 million in 1999. There are approximately 500 people employed in aquaculture, and the focus of production is currently on blue mussels, Atlantic salmon, steelhead trout, and cod. Secondary, or value-added, processing of aquaculture products is increasing. Currently, for example, about 70% of all farmed mussels undergo secondary processing.   Aquaculture Production  Growing Rapidly Source: Department of Fisheries and Aquaculture

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This information was current as of March 11, 2002.
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