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Statement by
Honourable John Efford
Minister of Fisheries and Aquaculture
November 24, 1997


Mr. Speaker:

As Honourable Members are aware, I recently led a delegation to Japan to investigate, among other things, our competitive market position for snow crab. With me were Alastair O'Rielly of the Fisheries Association of Newfoundland and Labrador, Reg Anstey of the Fish, Food and Allied Workers Union, and David Vardy, Chair of the Task Force that is reviewing the way fish prices are negotiated.

Beyond the work of the Task Force, development of market opportunities is vital to the future of the fishing industry if we are to derive maximum benefit from our seafood. Product quality is a critical factor in developing these opportunities. Both Government and industry have strengthened our quality assurance measures. Collectively we have made progress.

In Japan, we met with senior officials of 15 major companies, including the largest crab importers. A few did acknowledge that there was some improvement in crab they imported from us this year, compared to our 1996 product.

However, Mr. Speaker, every one of them told us in no uncertain terms that we still have a long way to go. There is much that must be done if we are to meet the exacting demands of Japanese importers and consumers for premium product. Just to give some idea of how demanding their quality standards are, a person hired to sell seafood in a supermarket is not permitted to have contact with customers until after he or she undergoes many months of study and training.

Japan is the most lucrative seafood market in the world. The country imports about $25 billion in seafood every year, with just $1 billion of that from Canada. This also makes it one of the most competitive marketplaces in the world. Newfoundland and Labrador is but a small competitor relative to some others for a share of that lucrative market.

Mr. Speaker, this province has long been supplying some seafood products to Japan. However, we only became a supplier of snow crab in 1994, and only then because Alaska, their main supplier, was having a crab resource crisis. In 1996, the province sold 11,000 metric tonnes of finished product to Japan -- the equivalent of 17,500 tonnes, or 39 million pounds, of raw material.

We have not been retained that business. This year, the province is supplying only 5,000 of the 90,000 tonnes of crab Japan is importing. The decline is due in part to the fact that Alaskan crab is not only back on the market, but its quota doubled in 1997 and will double again in 1998. Another reason is that crab from this province lacks the freshness and quality of Alaskan crab.

Japanese officials made it clear to us, Mr. Speaker, that if we do not meet their stringent standards for quality, we put at risk not only our current share of the market, but any opportunity to increase that share.

They identified for us what issues must be addressed if we are to meeting their exacting standards. There has to be better on-board handling, fewer landing sites, improvements in dockside procedures, and a reduction in trucking time. As well, stricter attention must be given to product temperature at all stages -- at sea, in transit, and in processing plants. Officials recommended that landings be spread out over several months, instead of a situation where vessels rush to land in a short time frame.

The Japanese also told us that harvesting must begin earlier, in April or May, so as to avoid soft shell and temperature problems. To do this, there must be an earlier settlement of prices by industry players so that the industry is positioned to negotiate with Japanese buyers in a timely fashion. Price disputes that delay harvesting, as was the case in 1997, have a negative impact on acquiring markets in Japan because consistency of supply can not be guaranteed in such cases.

Having said that, however, we do have certain strengths. Our snow crab, for instance, Japanese prefer the sweeter taste of our snow crab to that of our competitors. As well, buyers like 3K crab because its size gives it a good meat yield. They also like the colour of 3L crab, but while the colour is acceptable, its smaller size is a limiting factor in penetrating the Japanese market for crab sections. With the prime consumption period for crab in Japan being the November to March period, this also gives us a competitive edge over Alaskan crab.

Clearly, we do have certain strengths, but we also have many challenges. I must emphasize that this issue is bigger than just crab. It is one that has implications for all our seafood products. Collectively, Government and industry must overcome these challenges for the future benefit of our industry and the people who depend on it.

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