This component will serve as a catalyst for industry diversification by advancing key economic growth opportunities identified within the various emerging fisheries.  Species targeted for funding consideration will include, but not be limited to, shrimp, crab, sea urchins, seals, seaweed, sea cucumber, whelks and clams.  The emphasis will be placed on developing innovative harvesting equipment and techniques, exploring for commercial quantities of the various species, refining processing methods, and developing new markets for these species.  Projects must be environmentally sustainable and have strong potential for industry-wide benefit.

Funding will also be provided to ensure a renewed emphasis on the full utilization of currently discarded raw materials.  This includes male capelin, for high quality meal or other by-products.  Projects that pursue either education, quality assurance, or marketing initiatives as a means of maximizing the return on discards are also eligible.

This Component will also provide funding for the grow-out of wild fish and marine plant species where potential commercial viability can be demonstrated. 

Productivity and Product Enhancement

The current level of competition in the industry, combined with resource shortages, makes it imperative the industry fully utilize available raw material by converting it into premium quality seafood products as efficiently as possible.  To advance the concept of full utilization, this Component will support the following:

	quality enhancement activities, particularly as they relate to product handling and quality maintenance for fish harvesters, processors, and plant workers;
	value added initiatives, such as production plans to aid the growth of the secondary processing sector; and
	productivity enhancements for processors, such as technical expertise to enhance product quality, yield and production efficiency.

Market Intelligence and Trade Development

Recognizing the challenge of being competitive in a fast-paced world seafood market, this Component focuses on developing strong marketing linkages and identifying development opportunities.  Collective marketing projects aimed at identifying, researching and promoting new market opportunities will be given priority under this Component.  In addition, projects may be government-led where it can be demonstrated that project benefits will accrue to industry stakeholders faster than by having a similar project industry-led.

This Component is not intended to subsidize the marketing operations of small- and medium-sized enterprises, especially in cases where an immediate return on investment is anticipated as a direct result of a marketing initiative.  The emphasis is on minimizing the risk of early-stage marketing development.

Environmental Awareness and Conservation Technology

This Component did fund efforts to enhance awareness of the environmental/ecosystem impacts of fisheries and fishing activities, and thereby reduce the possibility of conflicts between emerging and traditional fisheries.

This Component pursues opportunities to solve harvesting problems in the Newfoundland and Labrador fishery and avail of ongoing research in conservation technology both nationally and internationally.

Funding levels
	Projects initiated by private enterprise and fishers may be funded on a cost-shared basis up to 60 per cent of eligible costs.  However, high risk projects, or projects carried out by public or non-profit organizations may be considered for increased levels of funding where the potential for significant industry-wide benefit exists.
	Direct contributions from other governments sources will result in a proportional reduction in assistance from the FDP.
	The maximum contribution for any one project did not normally exceed $100,000.  Commercial projects in excess of $100,000 in federal government funding will be subject to the federal government's repay ability policy.

Eligible Applicants
	Private companies and proprietorships were eligible up to March 31, 2002, for FDP assistance provided they are either licenced Newfoundland and Labrador fishing enterprises, licenced fish processing establishments, or have access to a licenced processing facility.
	Research and development institutions, regional development groups and public/private partnerships were eligible.
	Eligible public organizations must be involved in some aspect of the harvesting, processing, and marketing of fish products in association with licenced Newfoundland and Labrador fishing enterprises or processing establishments.
	Provincial government departments and agencies may be eligible where they are the most appropriate to initiate and implement an activity.

Eligible Activities

This program was limited to the secondary processing sector, and the developmental primary fish processing and harvesting sector for under-utilized and non-traditional species, but only to the extent that funding does not support the establishment, expansion, or upgrading of primary fish harvesting and processing facilities.  Therefore, eligible activities will include, but not be limited to:   new value-added harvesting and processing technology,

technology transfer,

grow-out of wild species,

test fisheries and commercial surveys,

product development,

productivity enhancement,

export market development,

quality improvement for product and raw material, and

opportunity identification.

Activities NOT Eligible under FDP include:
	traditional groundfish activities (defined as those commercial fish harvesting and manufacturing activities and processes that have historically been carried out in the province of Newfoundland and Labrador);
	traditional aquaculture activities (defined as the culturing of commercial species - salmon, steelhead trout, mussels, and scallops - through their whole life cycle, from egg through to the sale of primary product);
	projects directed at increasing primary harvesting and processing capacity;
	construction of buildings and related structures;
	site improvements;
	purchase of normal plant operating equipment, such as fork lifts, pallets, and wharf boxes;
	undertakings more suitable for funding elsewhere; and
	debt refinancing.