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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