Seafood industry performs well in 2004, but faces significant challenges in 2005

Newfoundland and Labrador�s seafood industry topped $1 billion in production value in 2004, although it might be difficult to repeat that performance in 2005, according to Trevor Taylor, Minister of Fisheries and Aquaculture.

There were a number of positive developments in the province�s seafood industry in 2004 compared to 2003. Peak employment increased 30 per cent to 30,300; total annual average employment in the fishery increased 16.1 per cent; overall landings were up six per cent; and the overall landed value was up five per cent. All told, the industry recorded a production value of $1.07 billion, the fifth time since 1999 that it has passed the $1 billion benchmark.

These improvements are partially attributable to the higher shrimp quotas and landings. For the first time, the inshore shrimp sector achieved the Total Allowable Catch (TAC) of 144 million pounds, and operated under the first year of a two-year pilot program in raw material sharing. Strong market returns for snow crab (worth $301 million in 2004), the increased availability of capelin, and a productive seal fishery also contributed to the positive performance. The one worrisome area is that in 2004 groundfish landings and values were again down (by 13 per cent and 11 per cent respectively versus 2003).

The aquaculture sector also experienced an improved year, despite tough market conditions including continued strong competition from Chile. The province�s aquaculture industry employed 500 people in 2004 with an export value of $22 million. Production in the salmonid sector increased to $17 million. Both salmonids and mussels attained their highest production levels ever in the province. Salmonid production was up18 per cent, and mussel production up 35 per cent, over the previous highs. The industry also saw new investment from New Brunswick and Norwegian interests.

Minister Taylor believes that the data point to the benefits of timely openings and new approaches. "Generally speaking, our seafood industry had a good year in 2004. The shrimp, crab, capelin, and seals fisheries were particularly positive," said the minister. "These figures are encouraging because they occurred despite a rising Canadian dollar that reduced returns from the U.S. marketplace, crab landings that declined 4.7 per cent due to lower quotas, and the effects of global competition. But these same challenges are likely to be more pronounced in 2005. As well, excess inventory of last year�s snow crab continues to be a matter of concern. Perhaps more than ever, our industry needs to work towards stability and timely openings to ensure a productive season."

Data on the performance of the province�s seafood industry have been compiled in the Department of Fisheries and Aquaculture�s 2004 Seafood Industry Year in Review. A copy of this publication can be obtained by phoning (709) 729-3712 or by visiting the online publications section of www.gov.nl.ca/fishaq.

Media contact: Alex Marland, Communications, (709) 729-3733, 690-6047

2005 03 18                            9:30 a.m.