Backgrounder
Newfoundland and Labrador Fishing Industry Renewal Strategy
Element: Implementation of Fish Auctions

Rationale:

A fish auction system has been recommended in a number of studies over the years. Auctions tend to provide for a more efficient operation of price setting in fisheries and typically provide a stronger link for harvesters to the marketplace. Auctions are used in most major fisheries around the world. This concept was raised in fishing industry renewal consultations by harvesters and independent processors.

A fish auction system would bring market forces to bear on issues related to price and economic efficiency. The auction is seen as one method of unlocking some of the value lost in this fishery. The current system does not pay for product based on its inherent or resultant quality.

The FFAW and some processors are supportive of implementing an auction on a pilot project basis. The province is reviewing a proposal submitted by the Fish Harvesters Resource Centre. Further discussions are required with the processing sector to gauge their interest, and to identify the requirements for a successful pilot project.

Objective:

The objectives of establishing a fish auction are to:

  • Improve product quality;
  • Provide higher prices to harvesters who land higher quality product;
  • Improve operational efficiency at both the harvesting and processing levels in the industry; and
  • Provide a market driven economic incentive that will reduce seasonal landing gluts and extend the season.

Description:

As part of the NL Fishing Industry Renewal Strategy a voluntary auction will be implemented on a pilot project basis for the South Coast small-boat groundfish fishery. The auction will be pursued with the cooperation of harvesters and processors.

This auction pilot project will be developed in time for this year�s South Coast fishery with the details to be developed in consultation with industry. Processors would bid on fish landed based on reported catches by harvesters. It is anticipated it will involve a limited number of ports during the initial start-up. The Province is prepared to underwrite a portion of the cost of operating the auction for a three-year period.

Consideration may be given to expanding the initiative to include shrimp at the request of the harvesters and processors.

Three-year budget - $1,500,000

Funded by the Government of Newfoundland and Labrador

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Media contact:
Danny Pond
Communications Specialist
Department of Fisheries and Aquaculture
709-729-6076, 685-3415
dannypond@gov.nl.ca

 


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