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The Economic Review, November 2003
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Fishery

The fishing industry recorded a solid performance in 2003. Landings, which were projected to remain on par with 2002 in the March forecast, should exceed earlier expectations. The value of landings is also expected to increase and is likely to exceed $500 million.

Landings
 
Higher landings of clam, shrimp, flatfish, turbot, capelin and mackerel are expected to more than offset a significant reduction in cod landings this year. Both the Northern and Gulf cod fisheries were closed during the year by the federal Minister of Fisheries and Oceans. Total fish landings are expected to be around 6% to 7% higher than the 262,000 tonnes recorded in 2002. As of September, more than 90% of this year's anticipated landings had been realized.

Increased landings, in combination with higher prices for some species (e.g., crab), are expected to result in landed values in excess of $500 million this year. It is estimated that the total value of all species, including seals, will reach close to $525 million, marking the fourth time in the past five years that the $500 million level will have been surpassed.

Share of National Fishery
 
The province's share of the national fishery has increased significantly in recent years. In terms of volume, the share of total landings ranged between 30% and 40% throughout the late 1970s and 1980s, a period when groundfish was the main species harvested and landings, at times, exceeded 500,000 tonnes. This share dipped to a low of 13.4% following the collapse of the groundfish fishery and has been slowly regaining ground with diversification into other species. In 2002, the province accounted for 26.0% of commercial seafood landings in Canada.

In terms of value, however, the story has been quite different. In 1988, when the province's fishery was mainly concentrated on groundfish and pelagics, the province only accounted for 18.8% of the value of seafood landed in Canada. Over the last six years, this situation has changed as shellfish, generally a higher valued product, has become the primary source of industry revenue. In 2002, the province accounted for 25.3% of seafood landed value in Canada.

Provincial Landings as a % of Total Canadian Landings

Department of Fisheries and Oceans Canada

 
Employment

Fishery related employment is expected to be down in 2003 due to lower processing activity. Labour Force Survey data indicates that, on a monthly average basis, processing employment was 6,500 for the January to October period, down 2,000 from the same time last year. Lower employment was a reflection of decreased harvests of cod, increased efficiencies and shifts in product mix (i.e., a stronger emphasis on sections versus meat) at crab facilities. Harvesting employment averaged 8,900 for the period, up 2% from 2002. Combined, harvesting and processing employment is expected to average about 15,000 person years in 2003.

Fisheries employment fell dramatically in the early 1990s when groundfish stocks collapsed. Total employment in the provincial fishery, including both harvesting and processing, fell to an all-time low of 12,100 person years in 1995, in contrast to annual average employment of more than 24,000 in the late 1980s. The restructuring of the industry throughout the 1990s saw the employment situation improve but fisheries employment remains lower than it was in the late 1980s.
 

Fishing Industry Empolyment

Statistics Canada

 
While overall employment levels in the fishery today are lower, the number of active harvesters working in the industry is about the same. Because of the seasonal nature of the fishing industry, Employment Insurance (EI) statistics provide a reasonable indication of the number of people deriving income from the fishery in any given year. According to this data, 13,900 harvesters registered for EI in 1992. This figure dropped to a low of 8,700 in 1995 before gradually increasing to 13,700 in 2002.

The fact that fish harvesting related EI claims have recovered to levels recorded in 1992 is attributable to several factors. EI regulations for harvesters have changed considerably over the past years and have become more accommodating to their needs. Furthermore, with the diversification into high-valued shellfish, revenue to harvesters has increased considerably. This has further accommodated harvesters whose EI is based on landed value. Finally, with the collapse of the groundfish fishery, many full-year offshore harvesting jobs were replaced with employment in nearshore fishing enterprises.

Compared to a decade ago, however, there are fewer processing workers in the industry today. In 2002, approximately 8,200 people in the processing industry registered for EI compared to about 16,600 in 1992. The reason for the drop in the number of processing workers is two-fold. The quantity of fish landed today is less than that landed prior to the groundfish collapse in the 1990s. Furthermore, the products manufactured (i.e., mostly shellfish products) by the industry today are generally less labour intensive than those produced a decade ago. As a result, the number of jobs in processing has failed to recover to the same extent as in harvesting.

Exports

Changing circumstances in world seafood markets have implications for the province's fishing industry. While the US is still by far the largest market for the province's sea-food products, China is now the second largest customer. In 1993, the province exported less than $3 million in seafood to China. By 2002, this situation had changed dramatically with China importing about $140 million in fish products from this province. This trend of increased exports to China is part of that country's bid to become a major supplier of seafood products in the global market. Trade data, for the first nine months of 2003, suggests that China continues to be a major importer of the province's fish products.


Seafood Exports Non-US Markets

Industry Canada Note: Excludes exports to the United States

 
For periodic updates on fish landings:

 
Fishery Products International's new trawler, Newfoundland Marten
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This information was current as of November 14, 2003.
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