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November 24, 1998
(Forest Resources and Agrifoods)


The following statement was issued today by Kevin Aylward, Minister of Forest Resources and Agrifoods. It was also read in the House of Assembly:

In June of 1998, our government announced a co-operative initiative under the Canada-Newfoundland Safety Net Agreement to develop the cranberry industry in the province. So far, $500,000 has been spent to do site development and road access.

It is well known that there is an abundance of edible wild fruits growing throughout the province. Three such native fruits are members of the cranberry family and they are partridgeberry, marsh berry and cranberry. It is from the large cranberry that today's hybrid crosses, used in the North American commercial cranberry, were derived.

The craze for juice blends along with recent medical research concerning the benefits of cranberry juice, especially as it relates to urinary tract infections, has propelled this berry into the "limelight". This increase in consumption has led to higher grower prices and in some cases a shortage of supply. This has triggered a major response in the industry towards expansion. Most analyses of the industry has revealed that demand for cranberry products, particularly in the last decade, has out paced supply. Overall, based on historical trends and review of industry studies, data and analyses by industry experts, the long-term demand for cranberries should be strong and opportunities should be available to supply berries to existing handlers and processors in the United States and to tap into niche markets domestically and abroad.

I would like to inform the members of the House of Assembly of the progress made thus far. This initiative is designed to establish the basic infrastructure for cranberry production. It will also assist us in adapting technology for cranberries to this province's climatic and geographic conditions.

I am pleased to announce that three of the four selected sites are now under construction and will be available for planting in 1999.

Hopefully, work will commence at the fourth site before the onset of winter. The following is a breakdown on the development status on each of the five acres sites.

In Frenchman's Cove on the Burin Peninsula, road access has been completed to the site and construction is nearing completion.

In the Stephenville area on Route 490, road access to the site has been completed and construction of the cranberry beds and infrastructure is approximately three-quarters completed.

In Deadman's Cove, tenders have been called for the construction of the access road and the first stage of construction has commenced.

In the Terra Nova area the site design is nearing completion and the access road has been completed.

Parallelling the physical development of the site is the continuation of the plant propagation program at the department's tree nursery at Wooddale.

It is here, that we are multiplying plant numbers of seven commercial varieties which will be planted at the approximate rate of 50,000 plants per acre. To date, approximately 200,000 plants have been produced at the nursery, an anticipated plant population of 1.2 million will be realized by the summer of 1999.

In June 1998, we received 12 proposals from the private sector in response to our request for expressions of interest. The department is currently evaluating these submissions and the selection of operators will be announced as soon as possible.

As you can see, we are making progress and hopefully by early next summer Newfoundland will be establishing its first commercial planting of cranberries. Cranberry markets look good for the future. I feel confident that this initiative will help strengthen the agrifoods industry and the rural economy in general.

1998 11 24 2:15 p.m.


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