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June 11, 1996
(Forest Resources and Agrifoods)


The following statement was issued today by Beaton Tulk, Minister of Forest Resources and Agrifoods. It was also read in the House of Assembly:

Ministerial Statement - Importance of Agrifood Industry

The importance of the agrifood industry as a valued and productive part of the Newfoundland economy is often underestimated.

In the early 1990's it was estimated there were 300 full- time positions, 450 part-time jobs, 800 casual workers and 1,000 family workers for a total of 2,500 direct on-farm workers. In addition, there were 700 positions associated with the processing and grading in the broiler egg and dairy sectors and an estimated 300 persons involved in of-farm processing of other commodities. This represents 3,500 jobs directly attributable to the industry. With regard to feed suppliers, transporters, manufacturers of packaging material and other related services, there is no reliable data on employment. Nevertheless, it is estimated there are 4,000 - 5,000 jobs directly and indirectly related to the agriculture industry in the province.

These numbers are estimates from the early 1990's. Today the jobs employed in the agrifoods industry would be higher due to increased secondary food processing that has occurred over the past few years. In 1995, sales of manufactured food products (excluding fish) were estimated at $130.5 million, up from 115.2 in 1992, as companies continue to successfully market their products both inside the province and abroad.

There are many examples of successful Newfoundland and Labrador companies involved in the production, distribution and export of various local value-added products. Private sector successes that have contributed to increased economic output include, to name a few, numerous varieties of speciality jams, jellies, relishes and sauces made from local fruits; berries; flowers and other unique items; specialty chocolates; locally roasted coffees; fresh herbal products and beeswax candles.

Markland Cottage Winery has been successfully producing a blueberry wine for the past couple of years and introduced a partridgeberry wine within the last year. Hi Point Peat have been successfully producing an oil absorbent peat product for several years as well as producing peat for the landscape/gardening market.

Newfoundland Farm Products Corporation produces a full range of high quality chicken products, including a rapidly increasing volume of further processed items. Sales of further processed products from NFPC are projected to reach $13 million in 1996/97, up from $2 million of three years ago.

These examples I just mentioned highlight the expansion and diversification that has occurred in the agrifoods industry in the past few years.

It is my pleasure and privilege to announce today the opening of a new agricultural enterprise in Placentia Bay which further highlights the continuing diversity of the industry.

Empress Mushrooms is owned and operated by a well known and respected poultry producer, Mr. Owen Hickey of Whitbourne. Mr. Hickey and his family have worked quite hard over the past year or so establishing a mushroom production complex in Argentia. This facility produced its first fresh locally grown mushrooms on May 8, 1996. Current production is 8,000 pounds per week, with plans to expand soon to 20,000 pounds per week. This production will meet provincial demand; however, the company's long term plans involve expansion into secondary processing.

This company, granted EDGE status in 1995, employs 31 full time and six part-time people. This number will grow as production increases. In addition to the support provided this operation through the EDGE designation, the operation also took advantage of capital loans offered by the Farm Loans Program of Enterprise Newfoundland and Labrador. Total investment, the large majority of which is private, is estimated at $1,5 million.

Not only am I delighted to see such entrepreneurial spirit exist in rural Newfoundland and Labrador, but our local consumers, whom I number myself among will benefit from the high quality product that Empress Mushrooms can supply to the people of this province year round.

1996 06 11 4:45 p.m.

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