A Recent Account of Canada’s Atlantic Cod Fishery

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Cod stocks in the northwest Atlantic Ocean are divided into eleven different stock areas designated by Northwest Atlantic Fisheries Organization (NAFO) divisions:

1.  West Greenland (NAFO divisions 1A-1F)
2.  Northern Labrador (NAFO divisions 2G + 2H)
3.  Southern Labrador-Eastern Newfoundland (NAFO divisions 2J+ 3K + 3L)
4.  Southern Grand Bank (NAFO divisions 3N + 30)
5.  Flemish Cap (NAFO division 3M)
6.  St. Pierre Bank (NAFO sub-division 3Ps)
7.  Northern Gulf of St. Lawrence (NAFO divisions 3Pn + 4R + 4S)
8.  Southern Gulf of St. Lawrence (NAFO divisions 4T + 4Vn)
9.  Northern Scotian Shelf (NAFO divisions 4Vs + 4W)
10.  Southern Scotian Shelf (NAFO division 4X) and Gulf of Maine (NAFO division 5Y)
11.  Georges Bank (NAFO division 5Z)

This document will focus on the Canadian-managed cod stocks found in 2J3KL (a combination of NAFO divisions: 2J, 3K, and 3L); 3Pn4RS (a combination of NAFO divisions: 3Ps, 4R, and 4S); and 4TVn (a combination of NAFO divisions 4T and 4Vn). References will also be made to cod stocks found in NAFO sub-division 3Ps (St. Pierre Bank off the south coast of Newfoundland) and in three NAFO divisions of the Nova Scotian Shelf: 4X, 4W, and 4Vs.

Fisheries and Oceans Canada (DFO) manages 9 distinct cod stocks in Atlantic Canada. Three of these stocks generate a great deal of debate – northern cod off the eastern coast of Newfoundland and the southern coast of Labrador (2J3KL on map above), the northern Gulf of St. Lawrence cod (3Pn4RS on map above), and the southern Gulf of St. Lawrence cod (4TVn on map above). Many Canadians have an opinion about the fish and ocean management measures applied in these three areas, including commercial fish harvesters, recreational anglers, scientists, academics, citizens engaged in current events, and politicians at the federal, provincial, and municipal levels. While conservation and protection, and the rebuilding of cod stocks, remain paramount for interested parties, there are different points of view on how to best achieve these goals.

This document contains an historical account of the state of Canada’s Atlantic cod fishery over the past decade, particularly since the first moratorium was announced in 1992. This account seeks to provide information about the numerous conservation measures and other decisions taken by the Government of Canada to rebuild cod stocks and to assist fishers and fishery workers affected by cod closures. It also strives to identify recent developments in the study and analysis of various cod stocks, which ultimately resulted in additional cod closures in 2003.

Pre-Moratorium

The cod fishery of the past provided a foundation for the social and economic structure in Atlantic Canada, especially in Newfoundland and Labrador, where harvesting began in the 1500s. In the 1800s, annual cod landings in Canada ranged between 150,000 and 400,000 tonnes (t).

Traditionally, the inshore cod fishery used a variety of gears to land their catches: cod traps, line trawl, longline, gillnet, handline, jigger, and the cod seine. Offshore schooners used primarily line trawls to land their catches. Steam trawler and otter trawls were introduced in the 20th century, as well as automated floating fish factories to process and freeze the catch at sea. These and other new technologies led to increasingly larger annual landings of cod, reaching a peak during the 1960s of almost two million tonnes. Cod landings declined dramatically during the 1970s to below 500,000 t in 1977, but from 1981 to 1990, the cod fishery still "made up 59 per cent of the northwest coast landings by value…"¹

Concerns regarding the abundance of cod stocks in 2J3KL, 3Pn4RS, and 4TVn began in the late 1980s. Between 1984 and 1992, total landings of northern cod stocks and northern gulf cod stocks declined from 38,648 to 11,828 t.²

To address these concerns, DFO introduced several management measures. The Department made regulatory changes, increased surveillance and monitoring, raised licence fees slightly, and closed some areas to the mobile fleet (boats which tow otter trawls (nets) through the water to harvest fish). Unfortunately, these measures did little to reduce pressures on these three cod stocks. Ecological factors, fishing pressures, and uncertainties surrounding the assessment of stocks, in addition to claims of foreign over-fishing, illegal activity, and seal predation, only elevated concerns throughout 1991 and 1992. As the size and abundance of cod harvests continued to shrink, speculation grew about whether DFO would reduce or close the fishery.

Northern Cod Moratorium Announcement and Income Adjustment Measures

On July 2, 1992, the Fisheries Minister (John Crosbie) announced a two-year moratorium on cod fishing in 2J3KL to allow "the spawning biomass to recover quickly to its long-term average." The two-year time period was also chosen to allow sufficient time for the Department and stakeholders to consider the steps necessary to achieve a self-sustaining fishery in this area.

The Minister recognized that commercial cod harvesters and workers in the fish processing sector were not going to make any money from the 2J3KL cod fishery during the two-year closure. He therefore announced emergency assistance payments of $225 per week for 10 weeks to approximately 19,000 Canadians who had either exhausted their Unemployment Insurance (UI) benefits or who did not have enough working weeks to qualify for UI.

At the same time, a comprehensive plan was developed to address income replacement and adjustment, as well as industry restructuring measures over the longer-term:

A Task Force on Incomes and Adjustment in the Atlantic Fishery was established to examine the income structure in Canada’s groundfish fishery and to recommend a long-term program of income supplementation and stabilization to Human Resources Development Canada (HRDC) and DFO. Richard Cashin, the head of the Fishermen, Food and Allied Workers Union (FFAW) was selected to chair this Task Force.

A two-year Northern Cod Compensation Adjustment and Recovery Program (NCARP) was announced on July 17, 1992, comprising income replacement benefits, skills training, professionalization and certification, and options for harvesters to voluntarily take early retirement or to voluntarily retire their fishing licences. NCARP also provided for the costs pertaining to vessel tie-ups, selective fishing techniques, and the development of new fisheries to maintain land-based processing.

Conservation and Enforcement Measures for Other Cod Stocks

Harvesting restrictions for cod stocks in other areas were announced in the 1993 Atlantic Groundfish Management Plan on December 18, 1992. A significant reduction was made to the Total Allowable Catch (TAC) of cod in many areas³, the winter cod fishery in 4VsW was closed to all gear types, and the December 4Vn cod fishery was shut down. Strict conservation and enforcement measures were also put in place to signify that these restrictions were part of a long-term building strategy for Atlantic cod stocks.

In 1993 the Minister also announced the creation of an independent advisory body called the Fisheries Resource Conservation Council (FRCC), to replace the Canadian Atlantic Fisheries Scientific Advisory Council and the Atlantic Groundfish Advisory Committee. The FRCC was asked to review stock assessments on all groundfish stocks and the views of stakeholders obtained during public consultations, to provide written recommendations on conservation measures to DFO’s Minister on an annual basis.

Adjustment Programs for Cod Harvesters

Cod harvesters affected by the 1993 TAC reductions and other restrictions were able to participate in the Atlantic Fisheries Adjustment Program and similar adjustment programs provided by Employment and Immigration Canada.

On April 23, 1993, affected fishers and plant workers were also able to access a joint DFO-Employment and Immigration Canada initiative called the Atlantic Groundfish Adjustment Program (AGAP). This $191-million, transitional adjustment package emphasized training programs, job development projects, income adjustment, community development, economic diversification, improvements to harvesting plans, and federal/provincial co-operation. The long-term goal of AGAP was to achieve a viable and sustainable fishing industry in Atlantic Canada.

Additional Management Measures for Atlantic Groundfish in 1993

Despite DFO’s actions in 1992 to recover Atlantic cod, findings from the NAFO Scientific Council revealed that the 2J3KL stock continued to decline due to harsh climatic conditions and high mortality rates. The Council said that a significant recovery of these stocks was also not expected before the late 1990s. Released on June 18, 1993, these findings foreshadowed FRCC recommendations for Atlantic groundfish stocks to the new Minister (Ross Reid) on August 23, 1993. In its recommendations for cod, haddock, and pollock stocks, the FRCC called for the immediate closure of directed harvesting on six stocks, significant quota cuts on three stocks, and additional conservation measures on four stocks.

The Minister responded to the FRCC recommendations on August 31, 1993, by announcing additional management measures for the remainder of the 1993 fishing season. Cod fisheries in some areas⁴ were totally closed and quota reductions were imposed on some cod stocks⁵. To ensure that harvesters affected by the new changes could access income adjustment programs, the Minister also announced modifications to AGAP and the extension of the Transitional Fisheries Adjustment Allowance.

Charting a New Course: Toward the Fishery of the Future⁶ and the Pledge to Rebuild from 1993 to 1997

In November 1993, the Task Force on Incomes and Adjustment in the Atlantic Fishery presented its final report (referred to as the Cashin Report) to the Ministers of DFO (Brian Tobin) and HRDC (Lloyd Axworthy). Entitled, Charting a New Course: Toward the Fishery of the Future, the report blamed three fundamental problems for the predicament of the Atlantic groundfish fishery: over-dependence, too much fishing pressure on the resource, and an over-capacity in harvesting and processing. Simply put, there were too many fishers and boats in the cod fishery, and not enough fish to catch.

The report offered 42 recommendations to address these problems, nine of which focused on UI revisions for fishers. The remaining recommendations targeted specific improvement measures, such as policy and management improvements; reductions in the capacity of harvesting and processing sectors; income and training adjustments; and industry diversification.

The Fisheries Minister (Brian Tobin) responded directly to the Cashin Report on November 16, 1993, by pledging to rebuild the Atlantic fishing industry and fishing communities using four key strategies. He promised to create a partnership between the fisheries minister and the fishing industry and to restore reliability and confidence in conservation and management decisions. He also vowed to create a viable fishing industry and to restore the economic base of fishing communities. Shortly after issuing his response, the Minister received a bleak report from the FRCC regarding Atlantic groundfish stocks. However, he maintained his readiness to take the necessary stringent measures to restore groundfish stocks, and his continued commitment to "not turn his back on those displaced by the downturn in the fishery."

On December 20, 1993, the Fisheries Minister announced that all major cod fisheries would be suspended and that quotas for other groundfish species would be sharply restricted in 1994. The moratorium was maintained indefinitely beyond its May 15, 1994 scheduled termination, and additional conservation measures (harvest planning, gear selectivity, limited by-catch allocations, a daily-bag limit, and seasonal closures in the recreational fishery) were imposed. There was also a commitment to conduct a comprehensive review of licencing and interim steps were taken to freeze entry into the groundfish fishery. In the announcement, the only directed cod fisheries were southeast of Nova Scotia in 4X and 5Ze.

It was estimated at this time that up to 35,000 fishers and plant workers would be out of work in 1994, as a result of closures and restrictions since 1991. In keeping with his commitment to these Canadians, the Minister eased AGAP eligibility rules as a "matter of basic fairness." The amendments ensured that the income support measures were more consistent for individuals, regardless of their province of residence.

The Atlantic Groundfish Strategy (TAGS)

On April 19, 1994, the Ministers of DFO (Brian Tobin) and HRDC (Lloyd Axworthy) announced a 5-year, $1.9-billion program, called The Atlantic Groundfish Strategy (TAGS), in conjunction with the Atlantic Canada Opportunities Agency (ACOA) and the Canada Economic Development Agency for the Regions of Quebec (CED-Q). Effective May, 16, 1994, TAGS replaced NCARP and AGAP.

TAGS had two main components: income adjustment measures and measures to achieve a 50 per cent capacity reduction and industry renewal. Emphasizing labour adjustment measures, TAGS was also designed to help individuals to access new career training and job opportunities outside the fishery.

From 1994 to 1997, DFO and its provincial and sector partners began the complex task of implementing TAGS. Four Harvesting Adjustment Boards were established across the Atlantic region and regular meetings between the Ministers of DFO and HRDC were held to discuss the progress and effectiveness of TAGS.

Limited Cod Fishery Reopenings and Limited Index and Sentinel Surveys

In its 1997 annual report to the Fisheries Minister (Fred Mifflin), the FRCC recommended limited re-openings of the cod fisheries in 3Pn4RS and 3Ps, believing stocks in these areas had sufficiently recovered to allow modest levels of commercial fishing. In response to these recommendations, the Minister set TACs of 6,000 t in 3Pn4RS and 10,000 t in 3Ps. He also set a 2,000 t TAC for by-catch harvest to complete sentinel surveys and gear experiments in 4TVn, but the area was not reopened to directed fishing. At the same time, strict controls were put in place to ensure that conservation goals were being met, including comprehensive harvest plans, and enhanced dock-side and at-sea monitoring and enforcement measures.

However, stock assessments conducted by DFO presented a bleak outlook for the Atlantic cod fishery overall. When the Fisheries Minister (David Anderson) announced 1998 Atlantic Groundfish Management Measures for Gulf of St. Lawrence stocks on May 27, 1998, he expressed serious concern "that despite several years of moratoria, there [were] few signs of stock recovery, other than in 3Ps." Fishing in most cod areas⁷ was closed again to directed commercial harvests, although the TAC for 3Ps was raised to 20,000 t.

Exceptions were made to support the FRCC recommendation for index and sentinel fisheries in three areas to collect scientific data for an accurate "snap-shot" of stocks. TACs of 3,000 t in both 4TVn and 3Pn4RS, and 4,000 t in 2J3KL, were allocated to these fisheries.

The Canadian Fisheries Adjustment and Recovery Plan

On June 18, 1998, the Ministers of DFO, ACOA, and HRDC announced a 5-year, $730-million program called the Canadian Fisheries Adjustment and Recovery Plan (CFAR) to address the permanent downsizing of the Atlantic groundfish fishery. Specifically, CFAR was designed to "assist individuals and coastal communities to adjust to opportunities outside the fishery, and to lay the foundation for an economically and environmentally viable, self-reliant fishery."

CFAR was divided into five elements: $250 million for licence retirement; $180 million for TAGS clients; $135 million for income adjustment measures, and training and counselling services; up to $100 million for ACOA and CED-Q community and regional economic development initiatives; and, up to $65 million for an early retirement program. (Funding set aside for TAGS clients was a final, lump-sum payment which replaced monies clients would have received if the program had continued for its fifth and final year.)

During the CFAR announcement, the Fisheries Minister noted that Atlantic groundfish stocks could take many years (possibly decades) to rebuild, and that even then, the industry would not be able to support the same number of fishers and fishery workers. He admitted that restructuring would be difficult, but stressed that the options were stark. "Either we have sustainable fisheries, or we have no fishery," he said. He also informed cod fishery participants that this would be the last opportunity for fishers to leave the cod fishery with government assistance.

Cautious Optimism from 1999 to 2001

While a "conservation first" attitude prevailed from 1999 to 2001, there was cause for optimism when the FRCC reported slight improvements in some cod stocks and recommended reopening limited, directed commercial fisheries in 1999 for 2J3KL, 3Pn4RS, and 4TVn. DFO responded to these recommendations by setting a combined TAC of 20,000 t for these three areas in 2000. The TAC for 3Ps was raised to 30,000 t in 1999, but then lowered to 20,000 t in 2000, and further reduced in 2001 and 2002 to 15,000 t.

Consistent with the limited fishery reopenings, strict management measures including surveillance, gear selection, and catch monitoring were applied in all Atlantic groundfish fisheries from 1999 to 2001. Sentinel fisheries continued to provide valuable information concerning stock abundance. Tighter controls introduced in the recreational food fishery (licences, tags, and log books) served to control harvests and provided DFO with an estimate of how much cod was being harvested annually through this sector.

A Transformed Fishery

Between 1992 and 2001, the Government of Canada spent $3.9 billion on income support, industry adjustment measures, and economic development assistance programs for the Atlantic fishing industry. A total of 1,769 fishers opted for early retirement during this time, and 3,686 licences were retired through the four economic assistance programs which began in the 1990s.

There were 17,200 Atlantic groundfish licence holders in 1992 and 10,372 in 2002, representing a decline of roughly 35 per cent. In fact, of the 6,380 groundfish licence holders entitled to fish 2J3KL, 3Pn4RS, and 4TVn cod in 2000, only 3,882 actually fished for cod – mostly in small quantities – and almost half relied on cod for less than 10 per cent of their total fishing income. Of the 288 licence holders (7 per cent) who relied on cod for their entire fishing income, earnings for each were reported at less than $10,000.

Recent Developments

In April 2002, the FRCC presented a report to the Fisheries Minister (Robert Thibault) which revealed that groundfish stocks in the Gulf, including cod, had not shown any real signs of improvement. Stock status reports for 3Pn4RS and 4TVn cod also indicated that there was little to no expectation for growth in the short term.

Although he accepted the FRCC recommendation to maintain existing TAC levels for 2002, the Minister warned industry on June 17, 2002 that, "major reductions [would] be required unless there [was] evidence that declines ha[d] been reversed and rebuilding [was] occurring." He also urged industry to begin working with DFO officials to develop a multi-year, groundfish rebuilding strategy.

Widespread public speculation that the 2J3KL, 3Pn4RS, and 4TVn cod fisheries would be totally closed continued to grow through the fall of 2002. The Minister informed his federal caucus colleagues in November 2002, that Atlantic cod stocks were in such poor shape that he might have to close the fisheries for an undetermined length of time.

In February 2003, DFO scientists, fisheries managers, industry representatives, and national and international academia participated in a Zonal Advisory Process (ZAP) to review DFO’s scientific assessment of Atlantic cod stocks⁸. The ZAP provided a formal, peer-review of research surveys conducted by DFO Science on cod stocks and their ecosystems, and data collected from the groundfish sentinel program and index commercial fisheries. At the end of the process, stock status reports were then developed on each assessed stock and sent to FRCC for review and consultations with industry and communities.

Following consultations, the FRCC reported to the Minister on March 24, 2003, indicating that the slight improvement or cautious optimism regarding stock improvement in the late 1990s had reversed. The Council reported that stocks were at historically low levels and were not showing signs of imminent recovery, although they continued to recommend a fishery. Reports concerning the future of the fishery were also sent to the Minister by the Newfoundland and Labrador All-Party Committee and Le groupe de défense des intérêts du Québec. Information and recommendations contained in all three reports, as well as DFO analysis, were carefully considered before a decision to close the cod fishery was reached.

Cod Closures in 2003

On April 24, 2003, the Minister of Fisheries and Oceans announced the closure of the cod fisheries in 2J3KL, 3Pn4RS, and 4TVn. At the same time, the Minister and his colleagues from ACOA and CED-Q outlined a $50-million, four-part action plan to assist individuals and communities that would be most affected by the closure and to expand scientific research into the serious decline of these stocks, including:

• Community-based economic development assistance. A two-year, $44-million investment through ACOA and CED-Q to provide assistance for short-term job creation;
• Increasing the sustainability of local economies;
• Conservation measures, including the creation of seal exclusion zones, no trawling zones, the closure of the recreational cod fishery in the Gulf of St. Lawrence and northeast of Newfoundland and Labrador, and, for the next three years, a 40 per cent reduction in the capelin TAC; and,
• Scientific research. A two-year, $6-million program to expand on current activities to evaluate and assess the impact of seals on fish stocks.

Temporary financial assistance was also made available to affected fishers and plant workers while the short-term job creation projects were being implemented, through the $27-million Temporary Fishers Income Program (TFIP), which was announced by the Minister of Human Resources and Development on June 3, 2003.

Suggested Reading List and Web Sites

Integrated Fisheries Management Plan: Atlantic Groundfish 1999. Communications Directorate. Ottawa, 1999. (Revised annually)

Palmer, Craig and Peter Sinclair. When the Fish are Gone: Ecological Disaster and Fishers in Northwest Newfoundland. Fernwood Publishing. Halifax, 1997.

Task Force on Incomes and Adjustment in the Atlantic Fishery. Charting a New Course: Towards the Fishery of the Future. Minister of Supply and Services Canada. Ottawa, 1993.

Web sites

CBC News Online – Newfoundland fishery's up, but the cod ain't coming back

Fisheries and Oceans Canada – Media Room

Government of Canada – Cod Closure Announcement on April 24, 2003

To the Last Fish: The Codless Sea

Underwater World – Atlantic Cod

1.  Fisheries and Oceans Canada statistics in Palmer, Graig and Peter Sinclair.  When the Fish are Gone. Ecological Disaster and Fishers in Northwest Newfoundland.  Fernwood Publishing. Halifax, 1997: page 33. [ back ]
2.  Palmer and Sinclair, page 37. [ back ]
3.  3Pn4RS, 4TVn (January - April), 4VsW, and 3Ps. [ back ]
4.  3Ps. 4VsW. 4TVn (January - April), and 4Vn (May - December). [ back ]
5.  3Pn4Rs and 4X. [ back ]
6.  Report published by Minister of Supply and Services Canada.  Ottawa, 1993. [ back ]
7.  2GH, 2J3KL, 3Pn4RS, 4TVn, and 4VsW. [ back ]
8.  2J3KL, 3Pn4RS, 4TVn, 4X and 4VsW. [ back ]

Last updated : 2004-08-18

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