Fisheries and Aquaculture
February 12, 2009Province Disappointed by Results
of Vote on Seafood Marketing Council
The Provincial Government is expressing disappointment at the result
of the vote by the seafood processing sector on the proposal for a
provincial seafood marketing council. The Department of Fisheries and
Aquaculture offered the seafood processing sector the opportunity to
vote on the proposal and they have voted against establishing a council.
A provincial seafood marketing council was a key recommendation of the
Fishing Industry Renewal Strategy, which was developed after extensive
series of consultations with industry. This was an opportunity for
processors to enhance their marketing capability and support their sales
efforts.
The province committed to provide up to $5.4 million in financial
support to initiate such a council for a trial period of three years. In
addition, the Provincial Government had already initiated discussions
seeking a comparable level of financial support from the Federal
Government.
�I�m at a loss to understand why the industry would vote against
something that has been a very positive initiative in other seafood
producing regions such as Norway and Alaska,� said the Honourable Tom
Hedderson, Minister of Fisheries and Aquaculture. �Our competitors have
developed a successful marketing campaign for their seafood products in
the global marketplace and I am now going to talk further with the
industry as to why our processing sector would not want to do the same.�
On January 19 of this year, voting packages and ballots were mailed out
to all seafood processing companies that are licensed in the province.
Grant Thornton LLP was hired as an independent auditor by the Provincial
Government to review and tabulate the votes. The votes were returned to
the auditor and a report was submitted to the Department of Fisheries
and Aquaculture on February 10.
There were two tests to be met in calculating the ballots. A simple
majority of more than 50 per cent of those voting was required. As well,
yes votes from plants that represent more than the half the production
value of seafood in the province were required. Exactly 50 per cent of
those voting supported having a provincial seafood marketing council.
However, those voting yes represented less than 48 per cent of the
production value of seafood in the province.
�Our government had no plan to be either restrictive or prescriptive in
the set up or governance of the proposed seafood marketing council,�
said Minister Hedderson. �When we consulted with seafood processors last
December, we confirmed that the setup of the council would be controlled
by industry. It�s our view that the industry had nothing to lose in
pursing a three year pilot project to establish and evaluate a
provincial seafood marketing council, particularly since it was to be
funded by government.�
In 2006, the Provincial Government offered to finance the purchase of
the marketing arm of Fishery Products International (FPI) Limited to
assist with the marketing of Newfoundland and Labrador seafood products.
This offer was also turned down by the processing sector.
In 2007, the Department of Fisheries and Aquaculture established the
Seafood Marketing Review Panel. It was chaired by Alexander (Sandy)
Roche who is one of the most respected experts on seafood marketing in
the province as a former Executive Vice President of Marketing with FPI
Limited and High Liner Foods Incorporated. The review panel also
included representatives from the Association of Seafood Producers,
Seafood Producers of Newfoundland and Labrador and Fish, Food and Allied
Workers. The industry was engaged in this initiative from the very early
stages.
The Roche report was distributed to the industry and public, and
followed up with further consultation with the processing sector. It
recommended the province proceed with a seafood marketing council, only
with the support of the industry. The report also determined that there
is a lack of capacity in seafood marketing in the province right now.
�Certainly our government is disappointed with this result,� said
Minister Hedderson. �I now intend to talk with industry and explore
further their views as to how we can more effectively market our seafood
products.�
A copy of the report may be found at
www.fishaq.gov.nl.ca/publications.
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Media contact:
Lori Lee Oates
Director of Communications
Department of Fisheries and Aquaculture
709-729-3733, 690-8403
oatesll@gov.nl.ca
2008 02 12
2:00 p.m.