canada's atlantic fisheries
Post on 01-Jul-2015
Embed Size (px)
- 1. Canadas Atlantic Fisheries A big business for small communities
2. $1.8 billion in landed value 2011Pelagics 5%Other shellfish 9%Lobster 34%Groundfish 10%Shrimp 17%Crab 25%Big three = $1.4 billion or 76 % 3. Distribution of landed valueCorporate 25%Owner operators 75% 4. Why do owner-operators have so much of the value? Groundfish ? Pelagics ?Other shellfish ?Lobster 99% Shrimp 60%Crab 100% 5. It wasnt 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 the owner-operators? 7. Not the same everywhere 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 SouWest Nova 8. Common policy frameworkCommon policy frameworkOwner-Operator: have to fish licences personally Fleet seperation: processors cant hold o-o licences 9. Main threats Weak policy enforcement Corporate predation High investment costs for new entrants licences and quotas Low return on investments increasing operating costs (fuel, bait, management) weak markets4,000 3,500 3,000 2,500 Ind Core2,000Core 1,500DFO promoting concentration1,000 500 0 NSNBPEIQCNL 10. Age profile 2004 40%35%Atlantic30%Pacific25% 20% 15% 10% 5% 0%< 3535 - 3940 - 4950 - 5960 + 11. New entrants face higher investment costs Profits at least 25% lower for new entrants Low profitability Drives out fishermen Requires higher efficiency. builds pressure for concentration & vertical integration 1973-19831989-19982005-2011 12. Fleets opposed to vertical integration Reduces dock-side competition & owner-operator bargaining power Lower prices paid to independent harvesters Reduced resources to other processors / wholesalers Leads to concentrationResults in lower employment Less jobs in some communities Conflicts between communities Conflicts between provinces 13. Todays Globe and Mail Productivity overrated as a key to growthfocussing 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 finance help?