Cod farming results show economic potential

Fisheries and Aquaculture Minister John Efford said today that he is excited about the results of cod grow-out activity in the province for 1999, which saw close to 235,000 lbs of HOG (Head On Gutted) market product produced compared to 70,000 lbs in 1998.

"Results from cod farming last year are very encouraging as we continue to seek new opportunities that will create economic development in areas of our province affected by the downturn in the traditional groundfishery. This emerging industry has made considerable progress over the past couple of years and I�m confident about the future for cod farming in the province."

Mr. Efford said cod farming is providing cod trap harvesters with the opportunity to obtain a better income by growing their cod for a few months, doubling its weight and then market the product when market prices are higher. The total starting weight for cod farmed in the province in 1999 was 153,602 lbs and when the cod was ready for harvest the total weight had climbed to 292,959 lbs.

"Without a doubt, cod farming has proven to be an opportune way to maximize the value of a limited cod resource. By waiting a few months and growing their cod to a desirable weight, cod farmers received an average price of $1.50 lb. for their product in a head on gutted form. This compares with approximately .85 lb for cod if it was marketed right away,"explained Mr. Efford. "In terms of income, if the growers sold their cod at the original weight they would have received about $100,000, but through grow-out that amount increased to over $350,000."

Mr. Efford said: "Growing the cod contributes greatly to a harvester�s income at a time when the groundfishery is still not able to add to the prosperity of their families like it did in the past." He added that his department will continue to work with industry as we move forward in diversifying our fishery through new opportunities like cod farming, adding that the current policy in place for this emerging industry will ensure that it is developed in an orderly fashion.

There are seven active cod farming operations in the province, located in Placentia, Bonavista and Trinity Bays. Twenty-four new applications for 2000 have been received by the Department of Fisheries and Aquaculture and are currently being processed.

Media contact: Sonia Glover-Sullivan, Communications, (709) 729-3733.

2000 01 14                                                     9:45 a.m.