Fisheries and Aquaculture
February 20, 2008

Provincial Government Releases 2007 Seafood Industry Year in Review Report

The production value of the Newfoundland and Labrador seafood industry exceeded $1 billion in 2007 and progress was made in providing stability for the fishery and aquaculture sector well into the future.

The Honourable Tom Rideout, Minister of Fisheries and Aquaculture, today released the department�s 2007 Seafood Industry Year in Review Report. He says despite the prominent challenges of such factors as low-cost producers, high tariffs and exchange rates, the provincial seafood sector continues to experience many successes.

"A key highlight of 2007 was the tremendous success of our snow crab fishery," said Minister Rideout. "This fishery experienced significant increases in landings and landed value over and above that recorded in 2006. Snow crab is a crucially important species for our provincial fishing industry and it is certainly positive news for all involved in the industry that this fishery experienced such a remarkable year in 2007."

The landed value for snow crab increased to $171.2 million in 2007, an increase of 70 per cent from the $100.7 million recorded in the previous year. The landed value for shrimp, another important species to Newfoundland and Labrador, also increased from $135 million in 2006 to $155.1 million in 2007. This represented an increase of 14.9 per cent.

While overall landings were down by 6.5 per cent to 332,592 tonnes from 355,527 tonnes in 2006, the overall landed value was up by 8.4 per cent to $478.7 million from $441.6 million. Consequently, the landed values of snow crab and shrimp more than offset the lower landed values recorded for groundfish, pelagics and seals.

Minister Rideout also noted that the Provincial Government undertook many initiatives in 2007 to ensure the seafood industry remains economically viable and internationally competitive. These include the provincial elements of the Fishing Industry Renewal Strategy, such as initiatives to enhance marketing and strengthen research and development. Binding agreements were also concluded in 2007 related to the sale of the assets of FPI. These agreements will ensure stability in communities where FPI formerly operated.

Since 2005, the budget for the Department of Fisheries and Aquaculture has tripled. The Year in Review Report noted some of the Provincial Government�s substantial investments in the seafood sector in 2007. These included:

  • $15 million invested directly into renewal initiatives; plus an estimated $25 million for the new capital gains measures announced by the Federal Government.  The Provincial Government is also assuming a potential liability of $100 million under the Fisheries Loan Guarantee Program as a result of changes to harvesting policies announced by the Federal Government.
  • $1.2 million toward the establishment of a new Aquatic Veterinary Diagnostic Facility in St. Alban�s in support of the aquaculture industry. The total cost of the building will be $4.3 million to be completed in 2008;
  • $1.9 million for wastewater treatment equipment for the aquaculture industry;
  • $340,000 to continue to address trade and market barriers that hinder our fishing industry.
  • "While we indeed continue to face numerous challenges, we have many reasons to remain optimistic," said Minister Rideout. "The outlook for 2008 is promising, with fish landings expected to rise and market prices expected to remain on par with those from 2007. Furthermore, aquaculture production will increase due to substantially higher harvests of salmonids and a moderate rise in mussel production. Certainly, the fishery continues to be a major contributor to the provincial economy and a most important employer to rural communities."

    The 2007 Seafood Industry Year in Review is available online at //www.fishaq.gov.nl.ca/publications/archives/yir_2008.pdf

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

    2008 02 20                                                   4:10 p.m.


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