The Newfoundland and Labrador fishing industry is faced with a number of marketing challenges, many of which are beyond the industry�s control. In recent years, the industry has had to contend with external factors such as a strong Canadian dollar, trade barriers, increased competition from low-cost producers in under-developed and developing countries, increased purchasing power of retail and food service buyers, and distress selling particularly by undercapitalized firms.

The competitive nature of the processing sector has been a limiting factor in marketing collaboration. The competition in securing raw material for processing is often fierce and permeates all the way through the supply chain, where international buyers play one company against another to obtain lower prices.

There is a need to bring collaborative marketing to this industry. Seafood companies must work more closely together to market their products worldwide. Although a fair amount of cooperation already exists within the industry, there is considerable room for increased collaborative efforts in the marketing of Newfoundland and Labrador seafood.

The main objective in implementing enhanced seafood marketing efforts is to help increase the economic value of our fish resources to the province.

A necessary initial step to achieve market stability and to maximize the market returns is to establish a Newfoundland and Labrador Seafood Marketing Council (NLSMC). The NLSMC will foster the enhanced marketing of NL seafood and provide advice to government and industry on marketing issues, including input into the DFO Integrated Fisheries Management Plan (IFMP) process.

In partnership with the Province, NLSMC will develop and implement a long-term marketing strategy for the NL seafood industry including: research and intelligence; promotional campaigns; and the promotion of collaborative marketing efforts within the industry. The council will also be mandated to prepare proposals for collaborative marketing initiatives with industry partners and the federal government.

Industry must be supportive and play an active role in the establishment of the NLSMC including sharing in the funding of the organization. The structure and cost sharing of the NLSMC will be subject to further industry consultation.

The Department of Fisheries and Aquaculture will continue to provide support to industry by coordinating the collection and dissemination of market intelligence information to industry stakeholders. It is crucial that our industry has access to the most accurate and detailed information and intelligence on global seafood markets in order to develop and implement effective collaborative marketing strategies.

The council in developing their strategy will seek to leverage additional funding from both levels of government.

Three-year budget - $3,000,000

Funded by the Government of Newfoundland and Labrador

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