November 23, 1999
(Forest Resources and Agrifoods)

The following statement was issued today by Kevin Aylward, Minister of Mines and Energy. It was also read in the House of Assembly:

I take this opportunity today to provide further details concerning the development of a cranberry industry in Newfoundland and Labrador. The long-term goal of this development strategy is to have independent operators develop and expand viable operations and to be the catalyst in the creation of a cranberry industry in the province.

In North America, the industry has shown steady growth since 1994 when its value was estimated at $1.1 billion. In the United States alone, cranberry production increased by 20 per cent between 1996 and 1998 to meet the steady increase in demand. In Canada, planted acreage increased from 3,865 acres in 1995 to 5,631 acres in 1998. Newfoundland has 1.3 million hectares of peatlands, measuring 30 hectares or more in size, of which 500,000 hectares are potentially suited for cranberry production.

The Agrifoods Division of my department has taken the lead to develop the cranberry industry in the province for several reasons. First, there is a native cranberry that grows here, but no commercial operations exist. Research trials are under way to determine if there are sufficient heat units to mature the commercial varieties. Secondly, we have unique peatland characteristics and growing conditions, therefore research must be undertaken to determine the best site development and production methods. And thirdly, the department has trained staff and commercial operators in site preparation and plant production methods.

Medical reports concerning the health benefits of cranberries has propelled consumer demand for cranberry juices, juice blends, and countless other cranberry products. This has led to higher demand for the raw product and has triggered a major response in the industry towards expansion.

Four pilot sites are currently being developed across the province, Deadman's Bay, Frenchman's Cove, Route 490 Stephenville and Terra Nova. Initial development on these sites started in August 1998 and will be finished this spring and summer. The Department of Forest Resources and Agrifoods initially developed the sites and the leases will be transferred over to private owners by the end of this year.

To date more that $1.2 million has been expended in the cranberry initiative with funding from existing cost-shared agreements. In addition, the federal government recently announced $780,000 under the Canada-Newfoundland Agreement for the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative to further develop the cranberry industry. I would like to thank the federal government, particularly the Hon. George Baker for supporting this initiative. It is important that I also take time to commend the work done by my department officials in advancing this initiative.

More than $380,000 has already been spent on labour to date. These costs include seasonal employment for greenhouse workers, mechanics, welders, equipment operators, surveyors, agricultural technicians, and students.

It is estimated that each five acre site will create 96 weeks of employment for maintenance and harvesting. As well, each site is expected to expand by an additional five acres annually requiring in excess of 100 weeks of employment to develop and plant. In addition to the on farm labour component, a significant labour contribution will be made to the local economy with the requirements for land surveyors, equipment fabricators, welders, and heavy equipment operators.

The annual long-term employment from a five acre cranberry site creates employment for approximately 16 people. The minimum viable size for a cranberry operation is 30 acres and therefore seasonal labour requirements will increase as the operation expands.

There is also potential for a secondary processing industry within the province to produce juices and an assortment of cranberry products once the industry has expanded to a viable size. I would like to close by stating that we look forward to the development and future growth of a new industry in the agriculture sector.

1999 11 23 2:35 p.m.