August 30, 1999
(Executive Council)

$10-million announced for fisheries diversification

George Baker, Minister of Veterans Affairs and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA), and Premier Brian Tobin today announced a $10 million Fisheries Diversification Program for the province. The program is part of the $81.25 million Economic Development Component of the Fisheries Adjustment and Restructuring Initiative announced earlier this month.

The main thrust of the Fisheries Diversification Program will be on industry-wide research and development and demonstration initiatives which will reflect the strategic economic development priorities and plans of many regional economic development boards throughout the province. Boards have recommended that governments address fisheries diversification as a key area of opportunity for long-term economic growth, particularly in rural areas. The program will focus on a number of non-traditional species that are considered to be key to offering the province the greatest industry diversification opportunities. Species include shrimp, seaweed, sea urchins, sea cucumber, whelk, new crab species and seals.

"This program is designed to help strengthen rural economies through fisheries diversification and assisting with the growth of emerging fisheries opportunities," said Mr. Baker. "This program is designed to cultivate long-term, sustainable employment for rural Newfoundland and Labrador and we are looking forward to seeing a diverse range of projects through this program."

Premier Tobin said: "Rural communities have been hit hard as a result of the downturn of the groundfish industry and this program will allow them to focus on new fisheries resource opportunities. This funding will act as an economic development mechanism whereby rural communities can work towards becoming self-reliant and participate in fishery initiatives that will create economic growth for the long term."

Four key components in the program include: Emerging Fisheries Development; Productivity and Product Enhancement; Market Intelligence and Trade Development; and Environmental Awareness and Conservation Technology. All of these program components respond to the directions advocated by the REDBs and other key stakeholders in the industry.

In delivering the Fisheries Diversification Program, the Department of Fisheries and Aquaculture, ACOA and the Department of Fisheries and Oceans, will work in partnership with the fishing industry and regional economic development boards to identify economic development opportunities for the province. Eligibility criteria for the program are currently being finalized and will be announced in the near future.

Media contact:

Victoria Etchegary
ACOA
(709) 772-2984

Heidi Bonnell
Premier's Office
(709) 729-3960

Sonia B. Glover-Sullivan
Department of Fisheries and Aquaculture
(709) 729-3733

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CANADA/NEWFOUNDLAND AGREEMENT FOR THE ECONOMIC DEVELOPMENT COMPONENT
OF THE CANADIAN FISHERIES ADJUSTMENT AND RESTRUCTURING INITIATIVE
FISHERIES DIVERSIFICATION PROGRAM
BACKGROUNDER

With the end of TAGS, the Government of Canada and the Government of Newfoundland and Labrador have responded with new programming in support of the transition of rural fishing communities from dependency to self-reliance. The result has been the Canadian Fisheries Adjustment and Restructuring Initiatives - a series of program measures to help affected individuals and communities to adjust to their changing economic circumstances.

OBJECTIVES OF THE FISHERIES DIVERSIFICATION PROGRAM

The Fisheries Diversification Program falls under the Resource Sector Development Element of the agreement. The objective of the Element is to pursue initiatives recognized by both governments as strategic in focus and offering the best potential for economic growth in rural areas. Resource sector initiatives which lever significant additional public and private sector funding will be given priority.

In keeping with provincial and federal policies, the fundamental objectives of the Fisheries Diversification Program will be to diversify the province's fisheries resource base in an environmentally sustainable manner and to maximize its value to the provincial economy.

PROGRAM COMPONENTS

To achieve its objectives, the FDP will be focused on four distinct components - each integral to the overall diversification strategy.

COMPONENT #1 - EMERGING FISHERIES DEVELOPMENT

• This component will serve as a catalyst for industry diversification by advancing key economic growth opportunities identified within the various emerging fisheries.

• Species targeted for funding consideration will include, but not be limited to, shrimp, crab, sea urchins, seals, seaweed, sea cucumber, whelks, and other clams.

• Funding will also be provided to ensure a renewed emphasis on the full utilization of currently discarded raw material, such as male capelin, for high quality meal or other by-products.

• Projects that pursue either education, quality assurance, or marketing initiatives as a means of maximizing the return on traditional discards are welcomed.

• This component will also provide funding for the grow-out of wild fish and marine plant species, such as elvers, sea urchins, and seaweed, where potential commercial viability can be demonstrated.

COMPONENT #2 - PRODUCTIVITY AND PRODUCT ENHANCEMENT

To advance the concept of full utilization, this component will support the following:

• Quality enhancement activities, particularly as they relate to product handling and quality maintenance for fish harvesters, processors, and plant workers;

• Value added initiatives, such as production techniques to aid the growth of the secondary processing sector; and

• Productivity enhancements for processors, such as technical expertise to enhance product quality, yield and production efficiency.

COMPONENT #3 - MARKET INTELLIGENCE AND TRADE DEVELOPMENT

• Recognizing the challenge of being competitive in a fast-paced world seafood market, this component focuses on developing strong marketing linkages and identifying resource development opportunities.

COMPONENT #4 - ENVIRONMENTAL AWARENESS AND CONSERVATION TECHNOLOGY

Many diversification initiatives involving marine plants, underutilized crabs, sea urchins, inshore shrimp, etc. occur in areas where traditional species have been harvested for years. This component will fund efforts to enhance awareness of the environmental/ecosystem impacts of new fisheries, and thereby reduce the possibility of conflicts between emerging and traditional fisheries.

Conservation technology is a relatively new area of investigation which is receiving increasing international attention. The Marine Institute, in establishing the Responsible Fishing Technology Network, is already beginning to build a reputation as a leader in this area. This component will pursue opportunities to solve harvesting problems in the Newfoundland and Labrador fishery and avail of research in conservation technology ongoing both nationally and internationally.

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BACKGROUNDER
WOODMAN'S SEA PRODUCTS LTD.

• Woodman's Sea Products Limited is a family-owned enterprise which has operated a fresh and frozen processing plant at New Harbour, Trinity Bay since 1973. This company has been a leader in the industry and an innovator in the fish processing business throughout this period. The company was founded in 1973 by Fred Woodman, Sr. and led by him until 1987 when Fred Woodman, Jr. and Geoff Woodman began managing the company. Since 1973, the company consolidated the processing capacity of the Trinity South region through the acquisition of the Fur Farmer's Co-op, Newfoundland Quick Freeze, and more recently, Higdon's Seafoods Ltd..

• Woodman's Sea Products Limited has been successful in maintaining its facility and operation since the cod moratorium was initiated on July 2, 1992. The company diversified its operations to maintain viability without its historical source of raw material. The plant has been restructured through innovative practices in resource utilization and through sourcing materials, primarily Barents Sea cod, from the international marketplace for processing in New Harbour.

• Woodman's Sea Products Limited maintains a core status licence and operates a multi-species plant. Through diversification, the company processes over 20 species of fish and is in operation year round, after being devastated by the closure of the cod fishery in 1992 and 1993. The company, which employs approximately 300 people at its three fish plants, is presently processing snow crab; as well, they are pursuing the production of secondary processed shrimp, mussels, rock crab, toad crab, and Atlantic king crab.

• The Woodman facilities have diversified through re-investing in their facilities and expanding product lines. At the time of the moratorium, the facilities were one of the most technologically advanced groundfish facilities in Newfoundland. The company is recognized for its leadership and innovation and has been a model for other participants in the industry. Highlights of the company's achievements include:

• Excellent QMP rating - the company was one of the first to implement the QMP system.

• Goals toward total utilization where all of the raw materials are fully utilized.

• Leader in development of markets for male capelin.

• Leader in the development of markets for other underutilized species.

• Participant/investor in leading edge aquaculture initiatives including a halibut aquaculture joint venture.

• Initiated the development of the company's own marketing company and brand name in the United States market.

1999 08 30         10:50 a.m.