Fisheries diversification projects will help strengthen the industry

George Baker, Minister of Veterans Affairs and Secretary of State for the Atlantic Canada Opportunities Agency (ACOA), and R. John Efford, Minister of Fisheries and Aquaculture, today announced $724,803 in funding for seven projects under the Fisheries Diversification Program (FDP) that will help strengthen the fishing industry and develop new world markets for Newfoundland and Labrador seafood products.

The Newfoundland Seafood Market Council has implemented a comprehensive marketing program to identify and develop new world markets for Newfoundland and Labrador shrimp. The project - supported with $260,832 in FDP funding- targets markets in the eastern and western United States and in Europe. Major shrimp processing companies in the province are also participating financially in the marketing program.

Fogo Island Co-operative Society of Seldom is undertaking a major initiative - with $104,400 in FDP funding, to develop markets in China for a variety of Newfoundland and Labrador produced seafood. The initiative involves a consortium of five other partners in the seafood industry in the province. The immediate and long-term benefits of this project include additional employment and sales of seafood products.

Aqua Shell Processors Limited of Badgers Quay will receive $100,000 to install a new crab shell processing system that will produce a higher quality product to meet market specifications.

Atlantic Marine Products Incorporated of Catalina has received $81,771 to expand into non-traditional markets for seal skin products. The marketing program will include participation in various fur exhibitions, development of promotional material and advertising in selected publications.

The Department of Fisheries and Aquaculture, in conjunction with Daley Brothers Limited of St. Mary�s and Orion Seafood Group Canada of St. John�s, is conducting exploratory fishing trials for Atlantic King crab stocks off the south and west coast of Newfoundland. The project, expected to be completed by mid-summer, is supported by $79,800 in FDP funding.

Bell Island Ventures Incorporated - in partnership with a Japanese company - received $75,000 in FDP funding for training of its workforce and development of technology for packaging specialized sea urchin roe products.  The product will be sold on the Asian markets.

Cape St. Mary�s Enterprises Limited of Witless Bay has received $23,000 in FDP funding to purchase equipment for its Witless Bay operation to process discarded crab shells for sale to markets in China. The project will also receive a $20,000 contribution from Human Resources Development Canada.

"These initiatives will help expand the new fishery in Newfoundland and Labrador and help strengthen the rural economy of the province. We are looking forward to many other unique projects that are designed to help us achieve the greatest industry diversification for the future fishery, " said Mr. Baker.

Mr. Efford said the projects are good examples of what the Fisheries Diversification Program represents. "Projects like these will help us build on the ongoing revitalization of our fishing industry which last year was worth $1 billion to the province. These initiatives will play an important role in moving our fishery forward and creating long-term economic growth."

The Fisheries Diversification Program is a $10 million component of the $81.25 million Canada-Newfoundland Agreement on the Economic Development Component of the Canadian Fisheries Adjustment and Restructuring Initiative announced last August.

The main thrust of the FDP is on industry-wide research and development and demonstration initiatives which reflect the strategic economic development priorities and plans of many Regional Economic Development Boards throughout the province.

Media contact:

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

Doug Burgess, ACOA, (709) 772-2935.

2000 06 08                                 2:25 p.m.