Overall activity in the fishing industry was bolstered by increased emphasis on previously underutilized species, combined with record levels of aquaculture production and fish imports. Harvesters and processors in the shellfish sector of the fishery, especially the crab sector, experienced one of the best years ever. For those affected by the various groundfish moratoria, however, 1995 marked the passing of almost four years since the first ban on fishing. In light of recent evidence of some groundfish stock recovery, efforts continued to develop a future fisheries conservation strategy focused on sustainable development.
| ACTIVITY IN THE FISHING INDUSTRY NEWFOUNDLAND AND LABRADOR | ||||
| Quantity (tonnes) | ||||
| 1994 | 1995 | % Change | ||
| Groundfish | 31,723 | 16,726 | -47.3 | |
| Pelagics | 26,798 | 31,025 | 15.8 | |
| Shellfish | 78,463 | 88,078 | 12.3 | |
| Total Landings | 136,984 | 135,829 | -0.8 | |
| Imports for Processing | 27,731 | 28,842 | 4.0 | |
| Aquaculture Production | 827 | 1,280 | 54.8 | |
| TOTAL | 165,542 | 165,951 | 0.2 | |
The value of fish landed in the Province reached an all-time high of $330 million last year. Record landings and prices for crab combined with strong showings by other shellfish and pelagic species were the main catalysts. Production gains also accrued as a result of the growing aquaculture sector and higher groundfish imports. Overall, the export value of the Province's seafood products reached an estimated $550 million, up $75 million from the previous year.
Fishery Products International (FPI) recorded a net loss of $3.3 million last year. This loss included, among other things, an inventory write-down totalling $4.5 million. It is expected that approximately 1,800 people will be employed this year in the seven FPI processing facilities scheduled to operate for various periods of time. The Company anticipates an improved performance in 1996.
National Sea Products Limited (NSP) recorded net income of $5.6 million in 1995 compared to $6.8 million in 1994. Sales for the year were up slightly to $254.2 million, due to more value-added processing and increased clam production. The Company currently operates one fish plant in this Province at Arnold's Cove, employing about 130 people on average. Operations are expected to remain steady in 1996 with efforts continuing in new product development.
| Fisheries Development |
| Development of fisheries such as Icelandic scallops on the Grand Banks, offshore clam, and other crab species has accelerated. For example, about 5,000 tonnes of Icelandic scallops were landed by 50 vessels on the nose and tail of the Grand Banks last year. This compares to just 400 tonnes caught in 1993 when this fishery first started. The outlook is encouraging given that recent DFO surveys have identified new commercial concentrations of Icelandic scallops. |
ConPak Seafoods Inc. recorded a profit of nearly $0.5 million last year. This performance reflected a successful crab fishery and strong prices for lumpfish roe. The Company operates nine fish processing facilities and employs in total about 2,000 plant workers in the Province during various times of the year. Operations in 1996 are expected to be on par with last year due to continued emphasis on crab and lumpfish roe as well as further species diversification.
Linked directly to the closure of many groundfish fisheries, TAGS is an income support, training and adjustment program. While about 27,800 people are eligible to receive TAGS benefits, not all depend solely on the program for income. Over 60 percent of eligible clients continue to generate employment earnings, access Unemployment Insurance and use TAGS only to supplement their income. In May of 1996, about nine percent of those eligible will be dropped from the program and continued compensation will be dependent on prior attachment to the fishery. About 45 percent of applicants are eligible until the program expires in May 1999.
After almost four years of various groundfish closures, several recent indicators suggest some recovery of cod stocks in certain areas around the Province. For example, on the Northeast coast, approximately 10,000 tonnes of pre-spawning cod was observed in Smith Sound, Trinity Bay (NAFO division 3L). Furthermore, large by-catches of cod in the Atlantic halibut fisheries in NAFO divisions 3Ps and 3NO this winter resulted in the early closure of these fisheries. Finally, selected sentinel fisheries projects recorded solid catches of larger sized cod, primarily along the South and West coasts of the Province in NAFO divisions 3Pn, 3Ps and 4Rs. While these indicators suggest a limited recovery of cod stocks, it is expected that restricted fishing activity could occur in the near future in selected areas.
The Fisheries Resource Conservation Council (FRCC) is mandated to take a lead role in the design of a conservation strategy to rebuild Atlantic groundfish stocks and maintain a sustainable fishery in the future. For 1996, the FRCC recommended the continued closure of all groundfish fisheries under moratoria, the expansion of the sentinel fisheries on the South and West coasts of the Province, and the implementation of dockside monitoring for all fisheries. All FRCC recommendations were accepted by the Federal Minister and included in the 1996 Groundfish Management Plan.
The settlement of the turbot fishery dispute in April last year between Canada and the European Union (EU) will be instrumental in rebuilding stocks that straddle the 200-mile limit. Both parties agreed to an improved system of conservation and enforcement measures aimed at protecting not only turbot, but also cod, flounder and other stocks in the area. These measures have also been adopted by other Northwest Atlantic Fisheries Organization (NAFO) nations. Among other things, this means that all NAFO vessels fishing on the Nose and Tail of the Grand Banks are now required to have an independent observer on board. As well, quotas and fishing restrictions set by NAFO for this year's fishing season include the continuation of both a 10,000 tonne turbot quota for Canada and an extension of the moratoria on straddling stocks of cod and flounder.
A United Nations agreement on straddling and highly migratory fish stocks expected this year will strengthen global fisheries conservation. This agreement follows ongoing efforts by Canada to establish a permanent and enforceable means to end overfishing outside a nation's coastal 200-mile limit.
Shellfish is expected to dominate the Provincial fishery again in 1996. The volume of fish landed should match or exceed last year's levels, with the possibility of a resumption of the capelin fishery. Value may decline slightly due to downward movement in crab prices, but remain high in historical terms. Aquaculture development and production are both expected to accelerate. Fish imports are expected to be on par with last year. Industry restructuring will proceed as part of the overall development of a future fishery that is based on the principles of conservation and sustainability of the resource.