More Cooperation and Better Marketing Needed for Coldwater Shrimp

The Honourable Tom Rideout, Minister of Fisheries and Aquaculture, today addressed the International Coldwater Prawn Forum in London, England. Minister Rideout focused on the need for better marketing of coldwater shrimp and opportunities for collaboration between producer nations.

There has been an increase in the world supply of shrimp from three million to six million metric tons. This has mostly been due to an increase in the production of warm water farmed shrimp. In the same period, there has been an increase in the production of coldwater shrimp from 300,000 to 450,000 metric tons. Minister Rideout told the audience of shrimp producers that the growth in shrimp has created a collective challenge for producers who are all fighting to retain an individual share of a marketplace that has seen incredible increases in production.

�In truth we have seen an avalanche of shrimp arrive on the global market and therein lies our collective challenge. We are fighting to retain our individual share of a marketplace that has seen incredible increases in product,� said the minister. �What we have not been good at doing in the face of this challenge is differentiating our product and working together to achieve the synergies that are so important in the face of global competition.�

�North Atlantic coldwater shrimp is the best tasting shrimp in the world,� said the minister. �By building on the advantages of our product, we have a huge opportunity to build the market for the coldwater product. It is a sustainably-harvested product and this is a strength that the Government of Newfoundland and Labrador believes we can use to our advantage to achieve greater returns.�

The Provincial Government has supported the local industry in its efforts to achieve certification under the Marine Stewardship Council. �To that end, we have provided $50,000 in funding. We view this as one way to help our industry move to the next level in providing an eco-friendly product that the world will want to buy.�

The minister noted that North Atlantic coldwater shrimp offers many benefits to the consumer. These include quality inspection programs which lead to a high level of product traceability, food safety and stringent quality control.

Opportunities for sales growth in wild coldwater shrimp are present in the United States, China, the Russian Federation and other emerging economies. Minister Rideout said, �We all have a need to move forward and right now we have the opportunity to do that collectively. We all know that the tariff regime is a major trade irritant in the European Union and emerging markets such as Russia. We as nations and regions should be working together to have these artificial barriers removed.�

The minister advised the shrimp producers present against continuing on the present course of fighting between ourselves for an ever decreasing share of the pie. Minister Rideout said, �We have a product to market. We have the distribution channels in place to get it to the consumer. We�re already selling it at a good price far below its value. Now we must come together and promote it in an effective manner. This can be done.�

• View Speaking Notes

Media contact:
Lori Lee Oates
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 690-8403
oatesll@gov.nl.ca

2006 11 17                                               2:25 p.m.