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Fisheries and the Canadian Food Strategy. Pêches et la Stratégie alimentaire canadienne. Dr. Jean-Charles Le Vallée Senior Research Associate, Centre for Food in Canada 2014 FCC Conference – 8 Oct. 2014. Introduction. Human consumption, health, safety, traceability, and demand.
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Fisheries and the Canadian Food Strategy.Pêcheset la Stratégiealimentairecanadienne. Dr. Jean-Charles Le Vallée • Senior Research Associate, Centre for Food in Canada • 2014 FCC Conference – 8 Oct. 2014
Introduction. • Human consumption, health, safety, traceability, and demand. • Challenges and opportunities in supply. • Environmental sustainability. • Future opportunities to improve sector prosperity and sustainability.
Scope. • Focus on commercial fisheries (and aquaculture). • Includes capture (and farmed) freshwater and marine fisheries - inshore to offshore. • Recreational and aboriginal fisheries not examined. • Fisher and harvester livelihoods, fishing gear and ocean stewardship beyond scope of research.
Consumption and Health. • Fish/seafood = valuable source of nutrients, protein, omega-3, and part of a healthy diet. • Health benefits = reduced risk of chronic disease, healthy growth/development and vitality. • Food guide recommendation = 2 servings/week. • Current consumption = 1 serving/10 days. • Competes with cheaper sources of protein (e.g. poultry). • 2.6% of food household expenditures; rises with income. Willingness to pay premium for locally sourced products.
Demand. • Demand growth largely foreign (less domestically). • Global per capita consumption = 18.4 kg (live weight); • 3.3 kg in Canada (31.9 kg in China). • 16% increase in consumption by 2021 to 19.6 kg. • Price increase by 2021 = 48% (farmed) 43% (capture). • Higher for farmed as more often fresher. • Global trade to expand 25% in next ten years. • Largest Canadian exports: lobster (26%), crab (13%), Atlantic salmon (12%) and shrimp (9%) = $4.1B (2012) • Largest Canadian imports: shrimp (18%), lobster (8%) = $2.7B(2012). NB dependent on imports for processing.
Food Safety. • Demand for food produced, harvested, handled, sold in ways that safeguard health and address sustainability. • Problems often related to raw/undercooked/poorly prepared food. • 2/3 of 4Mfoodborne illness cases in Canada from noroviruspathogen. • 36 cases related to raw oyster (2010). Harvest site closed. • 7 cases of scrombroid poisoning in Vancouver (2011). • 62 cases shellfish poisoning from mussels (2011). • 80% of all marine biotoxin recall cases on west coast (2012).
Food Safety. Continued. • Allergy and mercury contamination challenges. • Shellfish highest food allergy prevalence in Canada (1.6%). • Less common in children, males; more common in urban settings and higher levels of education. • Major source of human exposure to mercury. • Most consumers need not be concerned about exposure.
Mislabelling. • Problematic. • 33% US fish samples nationwide (2013) • Snapper 87%; tuna 59%; salmon 7%. • Sushi restaurants 74%; restaurants 38%; grocery 18%. • In Canada, 20% (2010) and 41% (2011) . • Food safety concern, overpaying for fish (lower value), consuming endangered species. • Call for greater traceability.
Traceability. • Many countries are pushing for traceability on all seafood • US Safety and Fraud Enforcement Act (introduced 2013) • Aussie Fish Names Standard (2007) • Korean Seafood Traceability System (government-led) • EU traceability system (2010, back to vessel and legal) • Not yet a government or industry policy in Canada. • Pilot initiatives in Canada. • ThisFish (market-based voluntary e-traceability system = sustainable + responsible fishing + sourcing).
Supply. • Global supply growth up 15% by 2021 over 2009-11 levels. • 33% for aquaculture, 3% for capture (only 13% wild fish stocks can increase catch). • Canadian sector $7B (capture $2.1B; aquaculture $0.85B; freshwater $0.06B and processing/packaging $3.97B) • 83,000 jobs in 2012 (49,606 capture; 29,745 processing; 3,292 aquaculture) • Landing values largely from capture (70%), aquaculture (28%), freshwater (2%). • Shellfish half of landings but 79% in value terms.
Shrinking Marine Fleet. • 15,984 vessels (2008); 91% inshore ˂ 45 feet. • Mid-offshore 10% but 42% of landing values. • Overcapacity remains; further consolidation expected. • Gains include efficiencies, profitability, ROI. • Small/artisan fishers can look to increase value and prosperity through direct marketing, CSFs, regional hubs. • More labour-intensive models result in employment, social and environmental gains.
Separation Policy Modernization. • Modernizing separation policy should improve coordination, capacity utilization, market opportunities and higher value products. • Requires shared model allowing restrictions to be removed, tendering current licenses for sale and investment, though harvesters would retain control of the licenses. • Would provide needed equity and reduce debt financing. • Shares risks, information. • Support community prosperity. • Possible through pan-sector stakeholder approach and involvement.
Arctic Fisheries. • Commercial fishery largely turbot (67%), shrimp (31%), char, freshwater (17% in Great Lake) (Unfished quota, fisheries undersubscribed.) • Nunavut char brand a hit in US. • Country food. • Greenland commercial fishery experience positive but difficult to emulate.
Freshwater Fisheries. • Top of North American markets. • Freshwater Fish Marketing Corporation (single processing and marketing desk). • Mostly exported (84%) - 2/3 to US; 15% Canada. • Highest value fish: walleye(pickerel) and lake whitefish. • Largest supplier to Finland, France and Russia. • Aging infrastructure, growing debt; modernization needed.
Fisheries Performance Below Potential. • Marine fishery government funds and transfers (GFTs) = $851M (2009); $798M for capture; $43M for aquaculture. • GFT/landed value ratio = 48% and 6% respectively. • Ratios elsewhere = Iceland 3%, Norway 15%, EU 16%, Japan 20%, OECD 22%, NZ 31%, US 47%. • Lower ratios = financial viability. • Higher ratios = overcapacity, low economic returns, economic/social challenges. • Reorient GFTs to market-based support.
Structural Challenges. • The common property and open access nature of the wild fisheries. • A predominantly seasonal sector, especially inshore. • Reliance on employment insurance within the fisheries sector. • Harvesting sectors at overcapacity (which can shorten the season), particularly in the Atlantic region. • Vessel design restrictions and licence buy-back systems limiting capacity (and slow management of overcapacity). • Vertical integration restrictions (in capture fisheries for processing firms).
Structural Challenges. Continued. • Imperfect quota values. • Access to capital or restrictions on financing. • Fragmented and limited marketing, particularly for harvesters. • Missed opportunities to involve fishers in management decisions of fishery resources. • Inadequate monitoring of resources, with gaps in control, surveillance, and enforcement. • Inadequate legislation and policy (e.g., aquaculture). • Sector over-regulation. • Food safety concerns. • High levels of mislabelled fish.
Foster Growth. • Maximize value, not volumes. • Increase value of landed wild-caught fish. • Improve value-based processing. • Increase aquaculture production. • Expand Arctic and freshwater fisheries. Harvest unfished quota. • Brand, develop markets, invest and innovate.
Ecological Challenges. • A mostly mobile resource in wild-capture fisheries. • Depletion of wild fish stocks. • 30% global fish stocks over-exploited. • Large marine-environment shifts and climate change. • Ocean warming, acidification, and pollution. • Declines in biodiversity, habitat health and quality. • Contamination risks. • The lack of a national marine protected areas network.
Reversing Fish Sustainability Performance. • Canada among poorest sustainability performance globally. • Ranked last out of 15 (Marine Trophic Index 2006). • Improving: 88% of 155 major fish stocks harvested at or below removal reference (DFO fishery checklist). • 18 major fish stocks harvested above approved levels (14 stocks are groundfish). • Consider raising limit reference point to 0.5 or 50% of maximum sustainable yield (BMSY); stock depletion measure (below = overfished/overexploited). • Currently 0.4 BMSY lower than other nations including US.
Bycatch. • A common challenge to adequately capture or target right fish. • Most often returned to water with varying survival rates. • 20% of Pacific groundfish bottom trawl harvest discarded (100,000 tonnes; 1/3 non-commercial species). • Bushing in inland fisheries. 1,400 tonnes in Lake Winnipeg (whitefish $1.32/kg thrown out in favour of pickerel $3.96/kg). • Bycatch with quota can be retained and sold. • Various monitoring tools and practices tested and underway. • At-sea observer coverage desirable but difficult to achieve (cost support no longer provided by DFO). • Bycatch diversion to food banks for tax credit in MB.
Sustainability Certification. • Pressure not only to produce and harvest more fish and seafood, but to do so through sustainable, well/responsibly-managed, safe, and traceable practices. • For consumers, MSC, and SeaChoice/OceanWise guides. • MSC, 50% salt water volume, 52% value certified or in full assessment (2011); 24 certifications to Canadian fisheries (2013), 509 products. • Industry receptive; improvements in biodiversity, managerial openness/accountability (though some contested). • Market governance tool in support of public governance. • Global Trust, responsible fisheries/aquaculture management (Iceland/Alaska), ecolabelling.
Individual Transferable Quotas. • DFO management tools include input (quantity, intensity, gear type), output (seasons/dates, total allowable catch) and technical controls (closings, fish size/age). • TACs divided into quotas. • ‘Race to fish’ to reach TAC can lead to poor performance, depressed prices, overcapacity and overcapitalization: thus, barriers to fish. • Market-based rights-based approach to manage fish stocks. ITQs transferable property right bought, sold, leased or traded. • Benefits = reduced bycatch/losses/capital investment, longer seasons, increased productivity, efficiency, safety, prices.
ITQs. Continued. • Can eliminate race to fish. • A more balanced approach needed. • ITQ system expansion welcome, modernization necessary and possible. • Areas for improvement for ITQ fishery management: absentee ownership; high quota lease fees; lack of legal protection when quota reallocated; little improvement in monitoring; greater open quota exchange; ownership caps; in-season adjustments; longer tenures or licenses.
Goals. Objectifs. Prospérité • 1: Le secteur de l’alimentation est viable pour ceux qui œuvrent dans les domaines de la production, de la fabrication, de la transformation, de la distribution, de l’importation et de l’exportation, de la vente au détail et des services alimentaires. • 2: Le secteur de l’alimentation est novateur, compétitif et en pleine croissance. • 3: Des lois et des règlements modernes défendent les intérêts de l’industrie de l’alimentation et des consommateurs. Santé • 4: Le régime alimentaire des Canadiens est plus sain et plus équilibré. • 5: Les Canadiens souffrent peu de maladies chroniques liées à l’alimentation, comme l’obésité, le diabète, les maladies cardiovasculaires et le cancer. Salubrité • 6: Le Canada est le chef de file mondial de la salubrité des aliments. Sécurité • 7: Tous les Canadiens ont un accès physique et économique à des aliments salubres, nourrissants et abordables qui répondent à leurs besoins nutritionnels. Durabilité • 8: Le secteur de l’alimentation est un excellent défenseur de l’environnement qui accroît la durabilité de la production alimentaire.
Contact. Dr. Jean-Charles Le Vallée Senior Research Associate Centre for Food in Canada levallee@conferenceboard.ca conferenceboard.ca/cfic