Aquaculture

Revenues from Canada's aquaculture industry declined last year in the wake of lower production and tumbling exports of farmed salmon.

The industry reported operating revenues of $731.5 million in 2003, down 3.0% from the peak of $754.4 million in 2002.

Sales of finfish fell 3.3% to $643.6 million, driven by declining revenue from salmon, which dominates the industry. The decline occurred as production fell 12.9% and exports declined.

Three other factors also had an affect on total revenue: low prices for farmed salmon, a strengthening Canadian dollar and outbreaks of disease. Although salmon prices improved modestly in 2003, they have been weak since 2000, partially because rising international competition resulted in an increased supply to the United States.

The value of aquaculture exports plunged 23.5% to $490.8 million last year, as shipments of Atlantic salmon fell. The United States is Canada's most important customer when it comes to salmon, representing 95.0% of the international market.

Not surprisingly, the country's two largest aquaculture producing provinces generated lower sales of finfish in 2003. Finfish sales in British Columbia were down 3.3% to $317.7 million, while sales in New Brunswick (-4.4%) struggled to reach $263.0 million. Lower production and exports, weak prices and outbreaks of disease adversely affected both provinces.

Meanwhile, revenue from molluscs rose 7.4% to $66.9 million. Mollusc sales in Prince Edward Island more than recovered from the declines posted in 2002, advancing 13.2% to $30.0 million, to account for 44.8% of the Canadian total.

Nationally, product expenses (the cost of products and services purchased from other businesses, excluding capital and labour costs) fell 4.9% to $511.0 million last year.

Purchases of fish and eggs along with transportation and storage costs dropped notably in 2003. However, feed costs, which accounted for 45.7% of all product expenses for finfish producers, declined marginally to $233.3 million. Labour costs were also down.

The aquaculture industry produced a gross output (including sales, subsidies and inventory change) of $722.8 million in 2003, down $34.0 million from a year earlier.

The gross value added by the industry to the economy, or the difference between gross output and total product expenses, fell 1.8% from 2002 to $216.1 million.

Available on CANSIM: tables 003-0001 and 003-0003.

Definitions, data sources and methods: survey numbers, including related surveys, 2927, 3479 and 4701.

Aquaculture Statistics, 2003 (23-222-XIE, free) is now available online. From the Our products and service page, under Browse our Internet publications, choose Free, then Agriculture.

For general information, contact client services (1-800-465-1991). To enquire about the concepts, methods or data quality of this release, please contact Debbie Dupuis (613-951-2553; debbie.dupuis@statcan.ca) or Bernadette Alain (902-893-7251; bernadette.alain@statcan.ca).