1. The Collapse of the Cod Fishery in
Newfoundland and Labrador
Written by: Kate Hewitt
10053174
For: Andrew McDonough
Resource and Environment Economics
Friday, November 25th
, 2011

2. 2
Table of Contents
Table of Figures……………..…………………………………………………………………………………………….……………………………………Page 3
Abstract…………………………………………………………………………………………………………………………………..………..………………Page 4
Introduction…………………………………..………………………………………………………………………………………………………………….Page 5
The History of NewfoundlandandLabrador’s Cod Fishery…………………………………………….……………………………..….Page 5
WhyCod? - An Economic Standpoint…………………………………………………………………………………..……………………………Page 7
The Cod FisheryCollapse – What Happened..……………………………………………………………………………….………………….Page 8
Environmental Implications………………………………………………………………………………………………………………………..…..Page 11
Where the FisheryStands Today…………………………………………………………………………………………………………………….Page 13
Conclusion……………………………………………………………………………………………………………………………………………………….Page 15
References……………………………………………………………………………………………………………………………………………………….Page 16

3. 3
Table of Figures
Figure 1: A detailedmapof NewfoundlandandLabrador.……………………………………………………….………………………..Page 6
Figure 2: Biomassandtotal cod catch inNewfoundlandandLabrador………………………………………………………………Page 9
Figure 3: A mapof 200-mile exclusionzone……………………………………………………………………………………………………..Page 11
Figure 4: PopulationtrendsinNewfoundlandandLabrador…………………………………………………..……………………….Page 13
Figure 5: The Committee onthe Statusof EndangeredWildlife inCanada’scoddesignation…………………………..Page 14

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Abstract
The collapse of the cod fisheryinNewfoundlandandLabradorinthe late 20th
centuryis consideredone of the
worsteconomicandecological disastersinCanadianhistory.The codfishis a veryimportantfoodstaple andthe
province helpedprovidethe resource bothnationallyandinternationallyforover500 years.Large-scale
industrializationafterWorldWarII, however,isoftenblamedasthe initial cause of the collapse.More sophisticated
machinerynearlydecimatedthe oceanflooraffectingnotonlycod,butothersignificantmarine organisms.The
degradationof the cod stockput over30,000 people outof workand alteredland-useandhumanmigration
patternsacross NewfoundlandandLabrador.Federal governmentfundinghasgiventhe province several billionsof
dollarsincompensationforthe lossof the resource,yetitseemsmostof the damage has beendone.Thispaperwill
explore the variouswaysinwhichthe codfisheryhasaffectedthe economy,the environment,andthe residentsof
NewfoundlandandLabradorandCanada.

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Introduction
The Atlanticcod, Gadusmorhua,isone of the world’smostpopularfoodfishesandhasbeenharvestedoff the
continental shelvesof Europe andNorth Americaforcenturies(HutchingsandMyers,1995). In the westernNorth
Atlantic,the geographicdistributionof the fishrangesfromGreenlandandBaffinIsland,andmayextendasfar
southas NorthCarolina(Ibid,1995) The NewfoundlandandLabradorcod fisherywasonce the largest(McGrath,
1911) andmost productive (Thompson,1943) cod fisheryinthe world,whenthe ‘Northern’codcomponent
constitutedupwardsof 70 per centof all Newfoundlandcatchesafter1954 (HutchingsandMyers,1995). ‘Northern’
cod had beenfishedinthe areasince the late 15th
century,inwhichthe plentifulstockswere expectedtoremain
continuallyplentiful(Quinn,1979).Due to manyfactors suchas international,factory-basedtrawlersandlackof
catch quotas,the resultantover-fishingof Newfoundland’scodstockinevitablyledtoacomplete collapseof the cod
fisheryinthe province.The followingpaperwill examinewhythe codfishwaschoseninaneconomicstandpoint,a
thoroughdescriptionof the collapse of the fishery,andthe environmental implicationsof thisaquaculture business.
Thispaperwill conclude withanoverviewof the fishery’ssuccesstoday,andhow the aforementionedfactors
impactedthe once prosperousfisheryinNewfoundlandandLabrador.
The Historyof NewfoundlandandLabrador’sCodFishery
Since the voyagesof JohnCabotin 1497 and 1498 there hasbeenmajorinternational interestinfishingalong
the coast of Newfoundland(Quinn,1979).Portugal,France,England,andthe SpanishBasquesfishedalongthe east
coast of the province betweenCape Race andCape Bonavista(where JohnCabotfirstlandedinNewfoundland)
(HutchingsandMyers,1995). Spanishand Portuguese fisheriesinNewfoundlandwere short-livedasEnglish
participationincreased(Innis,1931).In the 17th
century,wars betweenthe English,Spanish,andthe Dutchresulted
infewerfishingvessels(Lounsbury,1934).Thisresultedinthe rise of year-roundcodfishers(planters) ascatches
rose from zeroto 37 percent between1610 and 1675 (Ibid,1934). The 1917 Treatyof Utrechtwas signedforthe
War of SpanishSuccession,whichalsoendedthe Frenchfisheryalongthe southcoastof Newfoundland(Hutchings
and Myers,1995). France removeditssettlersfromthe islandinreturn forthe rightto fishwithoutrestrictionson

6. 6
the westand northeastshore betweenPointRiche andCape Bonavista(de LaVillemarqué,1991). See Figure 1 fora
detailedmapof NewfoundlandandLabrador.
In the second-half of the 18th
century,catcheswere splitequallybetweenthe shore andthe bankfisheries
alongthe southcoast of Labrador on the Straitof Belle Isle,whichlaterdiminisheddue tothe SevenYearsWar and
the cedingof Labrador to the BritishCrown(Black,1960). Duringthistime,the inshore fisherybecame more popular
despite offshore expansionintothe GrandBanks(HutchingsandMyers,1995). From 1736 to 1739, an annual
average of 380,000 quintals(1quintal = 112 lbs) of cod were caught byBritishfishersinshore,asopposedto45,000
quintalscaughtoffshore (Lounsbury,1934).Decliningcatchratesoffshore promptedmuchof Newfoundland’s
Figure 1: A detailed map of Newfoundland and Labrador
Encyclopedia Brittanica, 1999

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populationtomove westwardandnorthwardintothe province (HutchingsandMyers,1995). Schoonerswere
eventuallyoutfitted inshore by1798, but the NewfoundlandandLabrador-basedfisherydidnotfirmlybecome
establisheduntil the 1820’s(Gosling,1910, Black,1960, Ryan,1986).
The residentsof Newfoundlandwhowere occupiedwiththe fisherygenerallyfounditmore prosperoustofish
withinthe province thanseasonallytravel toBritain(HutchingsandMyers,1995). Duringthe NapoleonicWarsfrom
1793-1812, FrenchactivityinNewfoundlandwassuspended,andthisgave local residentsmore of anopportunityto
take advantage of the fishstocks(Ibid,1995). The signingof the Treatyof Parisin1814, however,restoredFrench
occupationinNewfoundlandandcatchesexpanded27per cent(Gosling,1910). Between1900 and 1950,
Newfoundland(whichwasasyetnot a part of Canada) andFrance were dominantamongthe six fishingnations,
accountingformore than90 percentof the total cod catch inNewfoundland(ICNAF,1952).The otherparticipating
countrieswere Canada,the U.S.,Portugal,andSpain(Ibid,1952). At thispoint,cod stockswere depletingsorapidly
fromthe combinationof over-fishingandlackof catch quotasthat between1900 and 1935, the Newfoundlandbank
fisherydeclinedinquintal catchby22 per cent(Ibid,1952). However,Newfoundland’sinshorecatchstill exce eded
offshore catchinall countriesuntil the mid-1950s(HutchingsandMyers, 1995).
Why Cod?– AnEconomicStandpoint
WhenJohnCabot firstarrivedinBonavista,Newfoundlandover500 yearsago, it wassaidthat fishers simply
had to diptheirbucketsoverthe sidesof theirschoonersandtheywould come back burstingwithcod(Canadian
Geographic,2011). Inthe year1620, SirRichard Whitbourne,aNewfoundlandexplorerandsettler,stated“…Butthe
chiefe commodityof New-found-land...isthe Cod-fishinguponthatCoast,bywhichour Nationandmany other
Countriesare enricht.”(Ibid,2011).Newfoundland’scodwasa lucrative oceanicfishnotonlyforproviding
sustenance forthe residentsof the province,butalsointrade betweenNorthAmericanandEuropeancountries
(Ibid,2011). The fishisvaluedfor food,liveroil andotherproducts. Codcanbe soldfresh,frozen,salted orsmoked
while some are turnedintosticks,blocksandfilletsandothersare usedinfishmeal andglue production.Codcheeks
and cod tonguesare considereddelicacies insome regions(Ibid,2011).Atlanticcod alsobecame the protein-source
of choice inEurope as populationsrose.Itsfirm, flakyflesh,andlow-fatcontentallowedthe fishtoreadilydry

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outdoorsandstoredoverthe wintermonthsforthe 40 daysof fastingat Lent(Pringler,2011).Lightly-salted,dried
cod was able toresistrot foryears,eveninthe most temperate conditions,makingitideal forlightweight,naval
rations(Ibid,2011).
The Cod FisheryCollapse–What Happened
The industrializationof NewfoundlandandLabradorinthe 20th
centuryhada profoundeffectonthe way
residentsof the province livedandworked.More sophisticatedgearsuchas large trawlersandlonglinersreplaced
less-powerful schooners,dories,andpunts(Higgins,2008).These improvementsallowedfisherstoharvest
unprecedentednumbersof codfishandothermarine resources,andallowedboatstoremainatseafor longer
periodsof time.These changesaffectedsettlementpatternsandalteredthe demographicsof manyfishing
communities.Settlementsclosetocod-processingsitesoftenflourishedwhileothercommunitiesmovedtolarger
urban centres(Ibid,2008).This out-migrationfromrural areasbecame alarge probleminthe 1990’s whenmost
youngpeople movedinordertofindemploymentelsewhere.
FollowingConfederationin1949, the cod fisheryindustrybecame more popularinthe frozenfishsectorthan
infamily-basedsaltfisheries(Higgins,2008).Fishersbegansellingfishdirectlytoprocessingcentresratherthan
tradingwithlocal merchants,andmany fishersbeganworkingincompany-ownedfacilities(Ibid,2008).Long-term
and severe over-fishingledtothe collapse of the codfisheryinthe 1990’s andput over30,000 people outof workin
Newfoundland(Ibid,2008).In 1992, a moratoriumwasdeclaredoninshore andoffshore fishinginthe province
(Myerset al,1997). Cod biomassduringthe collapse haddeclinedto99 percent of previousnumbersoff north-
easternNewfoundlandandLabrador(McGrath, 1911 and Thompson,1943). Referto Figure 2 where the dottedlines
representtotal catchand the solidlinesare the biomassof codfishinnorth-easternNewfoundlandandLabrador.

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Myers, et al, 1997
Figure 2: Biomassandtotal cod catch inNewfoundlandandLabrador

10. 10
The primarycause of the collapse isattributedtothe inabilitytocontrol fishingmortalityasthe targetwasto
maintainsustainable levels(HutchingsandMyers, 1994). Asthe new fishingtechnologybecame more sophisticated,
catch rates grewsteadilyuntil theysurpassedthe cod’sabilitytorebuild(Ibid,2009).Atthe same time,regulations
safeguardingcodstockswere insufficient,andgovernmentsandinternational bodiessometimesassignedquotas
basedon economicfactorsratherthan ecological ones(Higgins,2009).In1968, trawlingbyforeignfleetsmade up
to 80 per centof the total catch for that year(Ibid,2009). Althoughmarine conservationbecame anincreasing
concernafterthe 1960’s, oceanofficialsoftenoverestimatedthe size of codstocksand,therefore,the amountcod
fisherscouldharvestatsustainable levels.Thisresultedinanoverexploitationof northerncod,whichforcedOttawa
to impose amoratorium(Ibid,2009). In the year1970, the International Commissionforthe NorthwestAtlantic
Fisheries(ICNAF) establishedcatchquotas,knownasTotal Allowable Catches(TAC’s) (Ibid,2009).It was believed
that TAC’swouldequal the maximumnumber of fishthatfisherswere permittedtocatch withoutdepletingthe
resource.Unfortunately,the ICNAFoverestimatedthe abundance of codaswell asits stockrate, andTAC’s were too
highto be sustainable (Ibid,2009).Between1962 and 1977, the harvestable biomassof northerncoddropped82
percent, resultinginanearcollapse of the stockand the industry(Ibid,2009). Inthe 1970’s, cod stockdepletionwas
officiallyrecognizedasaconcern.In 1976, Canadadeclareda 200-mile economicexclusionzone (EEZ) torestrict
fishingbyforeigncountries,butsoonafter,Canada’sdomesticcapacitycompensatedforthe codbiomass
international fleetswouldhave caught(HamiltonandButler,2001).In 1977, Canadaextendedits200-mile EEZI in
hopestoregainsome of the lostcod stock(Higgins,2009). Most of the international fishingvesselscame from
NorthAmericaand Europe – primarilythe SovietUnion,Spain,France,andPortugal –althoughsmallernumbers
alsoarrivedfromAsiaand the Caribbean(Ibid,2009).See Figure 3 for a clear understandingof the 200-mile EEZ
aroundNewfoundlandandLabrador. At the same time,state-sponsoredresettlementprogramsencouragedthe
centralizationof NewfoundlandandLabrador’sresidentsindesignatedgrowthcentres(Higgins,2008).Between
1954 and 1975, about24,000 people leftmore than315 rural villagestolive inlarge centralizedcommunities(Ibid,
2008). The province thenhadfewerthan1,000 settlements,eachwithanaverage populationof about500 people.
The federal andprovincial governmenthopedthe programswouldreduce the costsof providingelectricity,roads,
schools,andotherservicestohundredsof remote communities(Ibid,2008).

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Environmental Implications
The over-fishingof Atlanticcodenabledacomplete ecological shiftincludingchangesintrophicsystemsand
foodchains,andland use withinthe province.The oceanecosystemaroundthe GrandBankswas once dominated
by cod fishandotherpredatorygroundfish,butsince the eradicationof mostcod,there isan insurgence of lower-
trophic-level invertebrates(HamiltonandButler,2001).Thischange inthe area’sfoodchain alsoimpactsmarine
animalsandlocal mammals.The populationof smallerfishmaydecrease aslargerpiscivoresbecome more
dominant.Largermammalssuchas sealsand whalesare directlyimpactedbythe lackof foodavailability.Sealsin
the regionhave a dietthat largely consistsof cod,while some whalesfeedonsmallermammalslike seals,which
may be decreasinginpopulation.AsRichardHaedrich,afisheriesscientistatMemorial UniversityinSt.John’s
Newfoundlandhasnoted,“Theymightnevercome back,at leastnot intheirformerabundance.Once youstart
Rose, 2003
Figure 3: A map of 200-mile exclusion zone

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changingthe whole ecosystem,the communitystructuresandsizes,you’ve gotawhole new ball game.”(E
Magazine,2001).
Historically,codandothergroundfishspecieswere consideredthe mostvaluable inthe economicmarket.
However,asthese populationsdeclinedothermarine speciesbecame more popular.The snow crab(Chionoecetes
opilio) and northernshrimp(Pandalusborealis) became muchmore prized,butthese are speciesthatcannot
supportextensive exploitation(HamiltonandButler,2001). The Greenlandhalibut(Reinhardtiushippoglossoides)
was consideredanalternative tocodfora time,butitis a slow-growing,long-livedspeciesthatisalsoonthe verge
of collapse (Ibid,2001).
There isdirectevidence thatthe large trawlersusedforthe masscollectionof codhave decimatedthe entire
seafloorthata plethoraof organismsuse tosurvive (EMagazine,2001). Modernbottomtrawlershave destroyed
the fragile continentalshelf,disturbingsensitive habitatandfoodavailabilityformanyspecies(Ibid,2001). Thisarea
may take centuriestore-establishitself,andthiswouldonlyoccurwithzerotrawling.Trawling’seffectwasonce
likenedtothe effectsof clear-cuttingforests,exceptinanarea150 timesgreater(Ibid,2001).The Grand Banksmay
no longerbe capable of supportinglarge populationsof marine species,whichhasenabledsome opportunistic
speciestoflourish.Insome areas,skatesanddogfishhave takenoverthe cod’splace withinthe ecosystem(Ibid,
2001).
Many of Newfoundland’sresidentsalsochangedthe province’slanduse throughmigrationtoandfrom fishing
ports.As cod stocklevelsstartingdepleting,more residentsmovedawayfromfisheries-dependentregionsand
more towardswesternandnorthernNewfoundlandtofindemploymentelsewhere.RefertoFigure 4 fora visual
representationof populationdecreasesinsome of the largestfishinglocationsinNewfoundland.Thishasplaced
extreme stressonthe environmentaslanduseschange andmore area needstoconvertedtoa liveableand
profitable state tosupportthe outmigrationof residents.

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Where the FisheryStandsToday
In April 1997, the federal governmentallowedatemporaryandlimitedcodcatch off the southerncoastof
Newfoundlandinhonourof JohnCabot’sAtlanticcrossing500 yearsprior(CanadianGeographic,2011). Thisirked
some environmentalists,asthe Committee onthe Statusof EndangeredWildlife inCanada(COSEWIC) hassuggested
that cod be placedon the endangeredspecieslist(Comeau,2011). RefertoFigure 5 to see the determinationof cod
stockson the COSEWIC listineasternCanada.
On April 17th
, Departmentof FisheriesandOcean’sministerFredMifflinannouncedthat6,000 tonnesof cod
couldbe takenfrom the northernGulf of St. Lawrence andoff the westcoastof Newfoundland,and10,000 tonnes
fromthe southerncoast,butthisledto much debate asitappearedthat some scientistsdidnotrealize the extentof
the cod loss(Ibid,2011). Finally,inApril 2003, Federal FisheriesMinisterRobertThibaultannouncedthe complete
closure of the cod fisheryinNewfoundland,the Maritime provinces,andQuebec(CBCNews,2004).In the summer
of 2010, Federal FisheriesMinisterGail Sheaopenedthe recreational groundfishfisheryforthree weeksin
NewfoundlandandLabrador(The Telegram,2010).It insistedadailybaglimitof onlyfive fishandaboat limitof 15
fishwhenthree ormore people are fishing(Ibid,2010).
Figure 4: Population trends in Newfoundland and Labrador
HamiltonandButler, 2001

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Followingthe 2003 moratoriumonfishing,the federalandprovincial governmentsbegandevelopinglong-
termstrategiesforrebuildingcodstocks(FisheriesandOceansCanada,2008). Theydevelopedthe federal based
Canada-NewfoundlandandLabradorActionTeamforCod Rebuilding,ledbythe Departmentof Fisheriesand
Oceans(DFO) andprovinciallybythe NewfoundlandandLabradorDepartmentof FisheriesandAquaculture (DFA)
(Ibid,2008). In September2003, the Canada-QuebecActionTeamwasestablished,followedbyaCanada-Maritimes
Cod ActionTeaminOctoberthat involvedthe governmentsof Canada,New Brunswick,NovaScotia,andPrince
Edward Island(Ibid,2008).Theircommonprinciplesforcodrestockingwere generalpurpose,asharedstewardship,
precautionarymanagementdecision-makingframeworks,andindicators,all designedforlong-termsuccess(Ibid,
2008). These strategiesare continuallymonitoredandresultsare reportedbacktogovernmentofficialsinorderto
ensure success(Ibid,2008).
Some residentsof NewfoundlandandLabradorwhowere previouslyemployed inthe codfisheriessector
qualifiedforfinancial assistance followingthe collapseof the fishery.In1992, Federal FisheriesMinisterJohn
Crosbie announcedthat19,000 Newfoundlandfishermenandplantworkerswouldreceivedupto$406 a weekin
compensation,andtheycouldgetinvolvedwithskillsdevelopmentprogramstoqualifyformaximumbenefitsup
until 1994 (Maclean’s1992). As of 2003, Canadiantax-payershadspentabout$4.2 billionin11 yearsto bailoutthe
Atlanticcodfisheryandhelpcompensate the formeremployeesandprovide skills-trainingprograms(Harris,2003).
Tax-payermoneywasprovidedtothe fishersthroughthe AtlanticGroundfishStrategy(TAGS),butunfortunatelythe
federal governmentactuallylicensedmore fisherswhogotinvolvedwithcrab,shrimp,andalternate speciesfishing,
Figure 5: The Committee on the Status of Endangered Wildlife in Canada’s cod designation
Fisheries andOceans Canada, 2008

15. 15
anotherenvironmental probleminitself (Ibid,2003).About38,000 people qualifiedforthe federal compensation
fundwhichincludedrelicensing,butonly476 licenceswere reissued(Ibid,2003).
Conclusion
The Atlanticcod fisherycollapse,particularlyinNewfoundlandandLabrador,isone of the worsteconomic
and ecological disastersinCanadianhistory.Itwasonce the largestandmost productive aquaculturebusinessinthe
world,withinternational marketsvyingforsharesof the resource.Unfortunately,however,thisbusinessproved
unsustainableandover30,000 people became unemployed.The codfishisanimportantfoodsource formanybut
withoutpropereconomicandecological grounding,it,like manyotherspecies,hasbecome endangered.The
Canadiangovernmentandthe country’sresidentsmaycontinue tofundfishingprojectsineasternCanadaformany
decades,buthopefullythe collapse of the NewfoundlandandLabradorcod fisherywill become apoignantexample
of the importance of sustainablebusinesspractices.

16. 16
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