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Canada's Atlantic Fisheries
- 1. Canada’s Atlantic Fisheries Abig business for small communities
- 2. $1.8 billion inlanded value 2011 Pelagics 5% Other shellfish 9% Lobster 34% Groundfish 10% Shrimp 17% Crab 25% Big three = $1.4 billion or 76 %
- 3.
- 4. Why do owner-operatorshave so much of the value? Groundfish ? Pelagics ? Other shellfish ? Lobster 99% Shrimp 60% Crab 100%
- 5. It wasn’t always this way. Pelagics 10% Other shellfish 10% Groundfish 42% Lobster 25% Crab 5% Shrimp 8% Big Three = 38% of total value in 1990
- 6. Who are theowner-operators?
- 7. Not the sameeverywhere Setting day Newfoundland • Region ’s largest private sector employer • 10,000 individual enterprises • Employing 20,000 crew • Almost entirely rural based • All independently owned & operated Setting day Sou’West Nova
- 8. Common policy framework Commonpolicy framework Owner-Operator: have to fish licences personally Fleet seperation: processors can’t hold o-o licences
- 9. Main threats Weak policyenforcement • Corporate predation High investment costs for new entrants • licences and quotas Low return on investments • increasing operating costs (fuel, bait, management) • weak markets 4,000 3,500 3,000 2,500 Ind Core 2,000 Core 1,500 DFO promoting concentration 1,000 500 0 NS NB PEI QC NL
- 10. Age profile 2004 40% 35% Atlantic 30% Pacific 25% 20% 15% 10% 5% 0% <35 35 - 39 40 - 49 50 - 59 60 +
- 11. New entrants facehigher investment costs Profits at least 25% lower for new entrants Low profitability • Drives out fishermen • Requires higher efficiency…. builds pressure for concentration & vertical integration 1973-1983 1989-1998 2005-2011
- 12. Fleets opposed tovertical integration Reduces dock-side competition & owner-operator bargaining power – Lower prices paid to independent harvesters – Reduced resources to other processors / wholesalers – Leads to concentration Results in lower employment – Less jobs in some communities – Conflicts between communities – Conflicts between provinces
- 13. Today’s Globe and Mail Productivity overrated as a key to growth “…focussing on efficiency at the expense of jobs and hours worked could lead to ‘greater unemployment, income loss and reduced wellbeing’.” - Andrew Sharpe, Editor International Productivity Monitor
- 14. Fleets seeking alternatives Major fleet managed buybacks in last 2 years Looking at fleet managed initiatives to facilitate intergenerational transfers Exploring marketing and branding to increase revenues/incomes
- 15. Can social financehelp?