Small to medium-size Processors want to present their case in NL Restructuring

The Seafood Processors of Newfoundland and Labrador Inc., (SPONL), an organization representing 25 processing facilities in the Province say they are disappointed with government’s exclusion of small processors in the Province.

SPONL’s Executive Director, George Joyce said that small processors will be meeting with Minister Clyde Jackman on January 26 to outline its plan for restructuring and marketing of fish products for species other than crab and shrimp. According to Joyce, recent media reports leave the impression that the only companies involved in the Industry are members of the Association of Seafood Processors (ASP). In fact approximately 40 small to medium size processing facilities operating in small communities are not members of ASP and have been left out of consultation completely. Moreover, the recent ASP proposal for restructuring and marketing only relates to the species crab and shrimp. Joyce stated there are approximately 40 processing facilities operating in small communities that rely on the other 15 species for survival. Joyce indicated in 2009, 30 crab and 11shrimp licenses were controlled by 10 players and accounted for approximately 55% of all fish landings. .

According to Joyce, the Newfoundland Government has committed to providing significant financial support for “a new sales approach” to a select group of ASP crab and shrimp producers. He said large companies will benefit from this unfair advantage and will reap the benefit of government money by having the cash to secure raw material from harvesters who have traditionally sold to small companies in small communities. Joyce stated should this policy direction unfold, Government will, in essence, turn the restructuring over to the big companies. Joyce states that Government should stay out of Industry financing and let the Industry restructure or provide the same financing to all companies on an equal basis.