Fisheries diversification contributed significantly in recent years to the industry's performance and to the overall performance of the Newfoundland and Labrador economy. The fishery is key to economic growth in most rural areas of our province. Prudent fisheries management measures are critical to sustain this growth. Science is critical to the effective management of the province's marine resources and the conduct of sustainable and viable fisheries.

In 1999:

• value of fish landings was a record $511 million
     
• production/market value was a record $1 billion
        
• volume of landings totaled 274,000 tonnes (580,000 tonnes prior to the 1992 cod moratorium).

Peak employment in the processing sector prior to the groundfish moratoria was approximately 25,000.   In 1999, peak employment was approximately 16,700. On a per-unit basis, the output from the industry has a much higher average value than previously, reflecting market circumstances and product mix.

In 1992, there were:

• 193 licenced primary processing plants
     
• 11 secondary processing plants
     
• 400 buyers' licences in the province

A number of plants have closed experienced very limited operations.

Government's new processing licencing policy is centered on the core (multi-species) plants concept. As a result, 73 plants have been designated as core and have the flexibility to process a variety of species. The total number of active licenced primary plants in 1999 was 126 (63 core plants and 63 non-core).  The number of buyer licences reduced to 73.  There are now 9 secondary processing facilities.

With the introduction of the processing licencing policy in 1997, Government no longer provides public funding for primary processing.  Private sector investment will play a major role in the industries viability and future.

There has been a substantial investment by processors and harvesters over the past three to four years. During this period, more than $125 million has been invested in the industry.

Northern Shrimp Fishery

The province and industry have actively pursued the development of a new inshore Northern shrimp fishery. In 1996, this fishery was non-existent, and by 1999, over 30,000 tonnes were harvested. In 1999, 10 modern plants processed shrimp and approximately 350 inshore vessels and 2,500 people (vessel operators and plant workers) participated in this fishery.

The crab fishery has become a significant contributor to the province's fishing industry.   

Approximately 3,400 inshore enterprises now participate in this fishery and 35 licenced plants were active in 1999, with peak employment of approximately 7,000 workers.

The expansion in the biomass of shrimp and   crab over the past several years can likely be a linked to the sharp decline in the groundfish biomass, particularly along the province's East Coast and Coastal Labrador. From a fisheries management perspective, these stocks must continue to be managed in a prudent manner since their continued health is heavily dependent on sound fishing practices and the recruitment of juveniles. Cyclical fluctuations in biomass levels are a characteristic of both species and it is possible the present cycle of abundance may have peaked. Cod Stocks The slow recovery of groundfish stocks, particularly cod in 2J and 3KL and 4Rs+3Pn, continues to leave a major vacuum for regions and communities having an historical dependence on these stocks. The reopening of the 3Ps cod fishery in 1997, at 10,000 metric tonnes,generated a measure of optimism along the province's south coast. This level of    optimism was further enhanced with the quota increased to 30,000 tonnes in 1999. The quota  for 2000 was set at 20,000 tonnes. New Quality Initiatives

The Department of Fisheries and Aquaculture placed considerable emphasis on identifying new resource opportunities. While new species opportunities have their limitations, their combined impact can have a significant impact on a number of individual enterprises in province. The $10 million Federal/Provincial Fisheries Diversification Program announced in the fall of 1999 will be of considerable benefit in advancing new opportunities for underutilized species.

Over the past several years, the Province has undertaken, in conjunction with industry, a major thrust to improve the quality of fish landed and processed in this province. New regulations have been introduced, enforcement has been increased, and the benefits of delivering a high-quality product has been actively promoted.

The challenge remains to continue to maximize the value of marine resources through the harvesting and production of high-quality products.

Education and training is a key component of industry diversification. The industry and the Marine Institute of Memorial University have been very proactive in developing new courses and training programs. As well, the Professional Fish Harvesters Certification Board has developed educational programs for harvesters.

New Developments
 
Other key developments in the fishery include the new process for settling fish prices. The new fish price settlement mechanism has successfully operated as a pilot for two years and new legislation incorporating the model has been passed.

The establishment of the Professional Fish Harvesters Certification Board has also been a positive development in the industry. 

Professional Fish Harvestors Certification Board

The Board is continuing the process of implementing a new professionalization program, including a Code of Ethics, formal education and training standards, and certification criteria for practicing fishers.

Opportunities & Changes
 
The fishing industry continues to offer opportunities and challenges. Effective resource management measures are essential for the long-term survival of the industry and many rural communities. An effective fisheries management strategy, backed by solid science, must be pursued.

Efforts have to continue to maximize the value of all marine resources through quality assurance initiatives and value-added processing. Continued private-sector investment is required for industry growth and diversification. Capacity management in the processing and harvesting sector is an ongoing issue and a stable labour relations environment is essential for long-term industry stability and development.

The overriding objective is to build on the successes achieved over the past several years to maximize the contribution of the fishing industry to the Province's economy The diversification of the economy to create economic and social stability is another key objective. Continued government and industry partnerships and cooperation will be a critical factor in achieving this objective.