Fisheries and Aquaculture
August 27, 2010
Investment of $8 Million Supports
With a commitment of $8 million, the Provincial Government is
supporting Northern Harvest Sea Farms Ltd. to carry out a $23.5 million
expansion of their operations in this province. In addition to expanding
their marine cage farming operations in the Coast of Bays region, this
expansion will include the construction of a salmon smolt hatchery in
Stephenville. The Honourable Clyde Jackman, Minister of Fisheries and
Aquaculture, made the announcement today at a news conference in
Stephenville. The minister was joined by Larry Ingalls, owner of
Northern Harvest Sea Farms Ltd., and Tony Cornect, MHA for Port au Port.
"This project will enable the province’s aquaculture industry to
achieve the critical mass necessary to attract further private sector
investment in the province," said Minister Jackman. "The new hatchery,
in particular, is an important component of growing the province’s
aquaculture industry to the next level. Completion of the hatchery will
ensure security of smolt supply for the provincial industry, provide for
greater biosecurity in the transport of smolt and provide the
opportunity for our industry to take advantage of the full growing
season. It will reduce overall costs for smolt, provide greater
flexibility in stocking fish and increase the competitiveness of the
To assist the company with setting up operations in the province, the
Government of Newfoundland and Labrador will provide 50 per cent of the
cost of setting up the hatchery and 25 per cent of the cost of expanding
the marine farming sites. This funding will be provided through the
Aquaculture Capital Equity Investment Program and will be based on a
matching investment from the company. In return, the Provincial
Government will have an equity position in the expanded company until
the development is completed and the provincial investment is repaid in
"Our company is looking forward to expanding operations in
this province," said Mr. Ingalls. "We look forward to working with the
Provincial Government and in particular we are pleased to be able to
establish a salmon smolt hatchery in the Stephenville area."
It is anticipated that by 2013, Northern Harvest Sea Farms Ltd. will
create approximately 600 jobs in the province. It is expected that 150
of these jobs will be directly on aquaculture sites or at the hatchery.
Approximately 450 of these jobs are expected to be created in processing
and service sectors within the aquaculture industry. The company’s major
operations will be located at Harbour Breton and Pool’s Cove. The
hatchery will create a number of professional positions for highly
skilled workers in the Stephenville area and produce 4.5 million salmon
"This project demonstrates that the aquaculture industry is helping
to diversify the economy throughout the province," said the Honourable
Joan Burke, MHA for St. George’s-Stephenville East. "Our government
committed to the people of Stephenville that we would bring new
employment to the region and we are pleased to see the arrival of the
aquaculture industry to the area."
The Aquaculture Capital Equity Program was created in 2006 to
leverage investment from private sector companies and the Federal
Government for aquaculture development in the province. Over the past
four years, an estimated $105 million in investment has been leveraged
for aquaculture development, most of which is from outside of
Newfoundland and Labrador.
"This project will certainly have a positive impact on our local
economy and skilled workforce as we work to diversify our economy," said
Port au Port MHA Tony Cornect. "Aquaculture continues to grow and play
a vital role in today’s economy, and projects such as this will
encourage future investments in the region."
In 2009, the Newfoundland and Labrador aquaculture industry reached
record levels of production and market value. The 2009 market value for
provincial aquaculture increased to $92 million, representing a rise of
45.9 per cent over 2008.
"The aquaculture industry has been growing significantly under the
leadership of the Williams Government, providing rural Newfoundland and
Labrador with new, sustainable opportunities for economic growth and
employment," said Tracey Perry, MHA for Fortune Bay-Cape La Hune. "I am
delighted with the expansion by Northern Harvest Sea Farms Ltd. to
produce smolt here in the province and to increase their grow-out
operations in the Coast of Bays. I look forward to continued growth and
opportunities for employment all across this great province as we
continue to develop this industry."
"We look forward to the growth of our industry and the associated
economic benefits that these investments will bring," said Minister
Jackman. "Our government has invested a lot to foster growth and
development of the province’s aquaculture industry and we are reaping
the rewards of that investment. It continues to be a top priority for
Northern Harvest Sea Farms Ltd. Expansion
The new $11 million hatchery will provide Northern Harvest Sea Farms
Ltd. with control of its smolt production and decrease biosecurity risks
for the company and for the province’s aquaculture industry overall. The
new hatchery will also expand production capability.
Smolt produced in this province will be larger and more robust, thus
increasing the survival rate and resistance to disease. As well, the
industry will be able to stock farm sites at more opportune intervals.
Self-sufficiency in smolt production is a key objective for both the
company and provincial aquaculture industry. Currently, the provincial
industry imports most of its smolt from outside the province. At
present, the only active salmonid hatchery in the province is located at
For the provincial aquaculture industry, the greatest challenge to
continued growth and profitability is the lack of hatcheries located
within the province. The new Northern Sea Farms Newfoundland Ltd.
hatchery will enable the company to expand from the current level of 1.4
million fish produced per year to 4.5 million. The expanded production
will generate over 11 metric tonnes of fish by 2013, at a total value of
Northern Harvest Sea Farms Newfoundland Ltd. was formed in 2007 by
Northern Harvest Sea Farms Ltd. to establish a salmon aquaculture
business in Newfoundland and Labrador. In 2008, Northern Harvest Sea
Farms Newfoundland Ltd. acquired the assets of Nature Sea Farms Inc. in
this province. Since its formation, the company’s production has reached
3,500 metric tonnes of salmon valued at $26 million in 2009.
Northern Harvest Sea Farms Ltd. of New Brunswick has operated
successfully in salmon farming in that province for the last 25 years.
The primary principals of the company are the Ingalls family of New
Brunswick and the Stavis family of Boston, Massachusetts.
The Ingalls family has a combined 74 years of experience in the
aquaculture industry as owners and operators of fish farms in Canada and
Chile. North Coast Aquafoods LLC is equally owned by Norm and Jim Stavis,
who are also owners of North Coast Seafoods, a major seafood wholesaler
in the United States.
The company plans to develop an $11 million salmon smolt hatchery in
Stephenville, in conjunction with a $12.5 million capital investment to
expand its sea cage operations over the next three years. These expanded
marine farm sites will be used to grow the additional smolt being
produced at the hatchery. At peak production, the company anticipates
the hatchery will supply their farm sites with 4.5 million smolt per
year. Northern Harvest Sea Farms Ltd. operates farm sites in the Coast
of Bays Region, with sites located in Fortune Bay, Harbour Breton Bay,
Great Bay de l’Eau and Hermitage Bay.
As part of Northern Harvest Sea Farms Ltd.’s strong commitment to
biosecurity, the project will include a $300,000 water treatment system
to dispose of waste water from the project.
2010 08 27 11:25 a.m.