Deputy Premier Tom Rideout
Speaking Notes
International Coldwater Prawn Forum
- Good afternoon. Thank you for the
opportunity to speak here today. Congratulations to the organizers
for putting together such a successful event.
- It is extremely important that we in
the industry have the opportunity to come together and talk about
the issues that impact us collectively.
- It is always a pleasure to visit
London. My own province of Newfoundland and Labrador has a strong
English and Irish heritage. Like many areas of the world we started
out as a colony of Great Britain.
- For centuries, the British fished
our shores used the land to create frontier fishing villages. Truly
we owe a great deal of our heritage to the United Kingdom.
- Today, I would like to take a few
moments to talk about where the global shrimp fishery is going and
the constraints that currently face us as an industry.
- Everyone in this room is aware that
we have seen an increase in the global supply of shrimp from 3
million metric tons to 6 million.
- There are many and varied reasons
why this is the case. However, it has mostly been due to an increase
in the production of warm water farmed shrimp.
- During the same period we have seen
an increase in the production of cold water shrimp from 300,000 to
450,000 metric tons.
- In truth, we have seen an avalanche
of shrimp arrive on the global market and therein lies our
collective challenge. We are all fighting to retain our individual
share of a market place that has seen incredible increases in
production.
- 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 growing competition.
- While there are certain advantages
associated with farmed warm water shrimp, the product simply doesn�t
have the natural advantages of coldwater wild shrimp.
- Everyone in this room knows that
North Atlantic coldwater shrimp is the best tasting shrimp in the
world. Now we need to let the rest of the world know that.
- 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.
- Our government has supported our
industry in 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.
- North Atlantic coldwater shrimp
offers many benefits to the consumer. We provide quality inspection
programs which lead to a high level of product traceability, food
safety and stringent quality control.
- The question now becomes one of
positioning. Where do we want to position ourselves in terms of
distribution channels, customers and usage of our product?
- There is no doubt that warm water
aquaculture products have become a fierce competitor for us.
However, there is much more that can be done to position the cold
water product.
- Opportunities abound, not the least
of which are in the very important US marketplace. China, the
Russian Federation and other emerging economies also represent huge
potential markets.
- There are certainly opportunities
for more proactive marketing and more collaboration between producer
regions.
- In fact, there is a joint marketing
initiative already taking place. Shell-on shrimp producers from
Canada, Norway and Denmark have come together to promote their
product in China. Indeed, the launch of the campaign at the seafood
show in Qindao (Shin-dow) two weeks ago was very well received.
- This is the type of cooperation that
can position the coldwater shrimp sector to achieve better prices
and better overall results.
- We all have a need to move forward
and right now we have the opportunity to do that collectively. Of
course, we all know that there are issues that undermine our common
interests and divide us.
- 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. And if
we can have the tariff removed, surely we can find a way to work
together to communicate to the world�s shrimp consumers the positive
attributes of what is unquestionably the best shrimp product in the
world.
- Many of you know that we are now
effectively at the end of the DOHA round of world trade
negotiations. You also know that it was hoped that the DOHA round
would solve a lot of the problems facing us in the global trade
environment. This hasn�t happened and it not likely to happen. We
must now find a way to look past DOHA and seek out other solutions.
- Now that we know that we are not
going to achieve the results hoped for under DOHA, there is no
longer any need to defer addressing shrimp tariff issues. We need to
get serious about finding real solutions that will bring real
results for the shrimp sector.
- We as producer nations must operate
on a level playing field in the global marketplace. Otherwise, all
the marketing in the world will be for naught.
- Ladies and gentlemen, now is the
time to ask ourselves some hard questions. We are at a turning point
in the world of seafood. The only question for us is will we seize
the opportunity of let it pass us by?
- There has been a dramatic increase
in the world supply of shrimp. What have we done as a sector to role
with the changes that have come our way? What have we done to take
advantage of these changes?
- One thing is clear. None of us can
afford to stand by and continue to chase each other to the bottom
price. Are we satisfied to continue fighting between ourselves for
an ever decreasing share of the pie?
- The Government of Newfoundland and
Labrador is not content to see this situation continue.
- Furthermore, I am confident that the
Canadian shrimp sector will receive public sector support for
marketing campaigns for North Atlantic cooked and peeled shrimp that
involve other producing nations.
- We have a product to be marketed. 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.
- Before I close, I want to thank the
organizers again for the opportunity to speak here today. It has
truly been a wonderful and important event.
- Thank you again.
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