Good day loyal and dedicated Navigator Magazine readers.
It is once again time to pour yourself a cup of tea, or a beverage of your choice, cozy up in your favourite chair and reflect on the year that was. Alright, we all get it — after the last 12 months, one can only guess what that beverage of choice might be.
Looking back 12 issues, the Navigator’s 2019 year-in-review editorial ended with the following prophetic words:
So, what will transpire in 2020? Let’s insert another deep quote here, this one from American author Melody Beattie, about what’s ahead on the fisheries horizon.
“The new year stands before us, like a chapter in a book, waiting to be written.”
Jump ahead 12 months and some might argue that the analogous chapter previously referred to should be ripped out and tossed into the chronological burning barrel of life.
COVID-19
This whole nightmarish year actually started on December 31, 2019, when the World Health Organization’s (WHO) China Country Office was informed of cases of an unknown strain of pneumonia detected in Wuhan City, Hubei Province of China. From December 31 to January 3, a total of 44 case-patients with pneumonia of unknown etiology were reported to the WHO by the national authorities in China.
On January 11–12, the WHO received further detailed information from the National Health Commission China that the outbreak was associated with exposures in one seafood market in Wuhan City. The Chinese authorities then identified a new type of coronavirus, which was isolated on January 7. Later, after severe outbreaks in Asia, on February 11, the International Committee on Taxonomy of Viruses (ICTV) announced to the world severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) as the name of the new virus. This name was chosen because the virus is genetically related to the coronavirus responsible for the SARS outbreak of 2003.
A month later, on March 11, the WHO officially called the COVID-19 outbreak a global pandemic. And life as we once knew it has pretty much been going sideways ever since.
Easily the biggest news story of 2020 and the 21st century to date, COVID-19 has literally impacted every individual on the planet, not to mention industry. And the fishery was certainly not immune to the first global pandemic in 100 years.
The Nova Scotia lobster industry was the first to be impacted in this region when seafood shipments, mainly lobster, to China from Halifax International hit a snag in late January, with flights into certain Chinese cities cancelled due to the growth of the coronavirus. The loss of the Chinese live lobster market came swiftly and unexpectedly at the end of January, sending the $10.50/pound lobster shore price downwards to $7/pound and leaving a lot of inventory unsold.
As the virus quickly spread across the globe, restaurants, food services, specialty and sporting events, casinos, conventions, cruise ships and other related markets either closed or were cancelled. This initially flattened the demand for seafood, notably N.S. from lobster fishing areas (LFAs) 33/34.
Many were questioning whether that fishery should be cancelled outright and other spring fisheries delayed.
The Lobster Council of Canada (LCC) was even worried that 96-million pounds of lobster could be stranded without a home by the end of 2020.
Despite the Canadian fishing industry being deemed an essential service by the federal government on April 2, uncertainty and delays still plagued both harvesters and processors.
A year ago, the presence of North Atlantic right whales was at the forefront of worries for many in the industry. COVID-19 quickly made the shutdowns caused by the potential whale entanglements seem like a walk in the park.
Lobster fishermen on Prince Edward Island were also facing a sea of uncertainty as they readied to start their spring season.
With the opening delayed until May 15 for LFAs 23, 24 and 26 due to a multitude of issues and concerns that washed ashore for the seafood industry due to COVID-19, it was “a big picture of variables” going into the season, said Ian MacPherson executive director of the P.E.I. Fishermen’s Association (PEIFA).
The shellfish season on P.E.I, which includes oysters, quahogs and softshell clams, was also delayed by several weeks.
Back in SW Nova, prevailing foul weather throughout the spring coupled with a low shore price and little in the traps had many fishermen in LFAs 33 and 34 landing their gear ahead of the May 31 closing date.
“Enough is enough,” said one fisherman as he tied up at the Clark’s Harbour wharf to offload gear on May 28.
As many N.S. fishermen were hauling their traps out of the water, a much-anticipated federal aid program was announced for the fishery.
Under the $267.6-million Fish Harvesters Benefit Program, self-employed fish harvesters and crew members who work on shares and who experienced a 25 per cent drop in income could recoup 75 per cent of losses up to $10,000. The program was meant to address the issue of many fleets not qualifying for the Canada Emergency Wage Subsidy program as their crews were paid through their buyers.
The $201.8-million Fish Harvester Grant program was meant to provide grants to help fish harvesters impacted by the COVID-19 pandemic and who were ineligible for the Canada Emergency Business Account or equivalent measures. The program provided non-repayable support of up to $10,000 to self-employed fish harvesters with a valid fishing licence. The size of the non-repayable support varied depending on the level of fish harvesters’ historic revenue.
Changes were also supposed to be made to employment insurance (EI) that would allow self-employed fish harvesters and sharepersons to access EI benefits on the basis of insurable earnings from previous seasons (winter and summer claims).
While news of $469.4 million in financial aid to help the harvesting sector was welcomed, the timing of the announcement and the contents of the benefit package left a little to be desired, said some industry representatives.
“It is unfortunate that for LFAs (lobster fishing areas) that opened in the spring, that the announcement was made the day that over 2,500 vessels hit the water,” said Ruth Inniss of the Maritime Fishermen’s Union (MFU).
“This negated the opportunity for harvesters to decide whether or not they would fish the season. I had one harvester tell me he felt forced to fish this year because there was no financial aid announced in time to make responsible business decisions.”
Ian MacPherson, executive director of the P.E.I. Fishermen’s Association, said one program “that was requested but not made available was a program that would provide an option for fishers not to fish due to health or market-related conditions before the season start. Having this as an available option could have created a positive impact for those boats that would be fishing.”
The Fish Harvester Benefit was meant to build on the previously announced $62.5-million Canadian Seafood Stabilization Fund to help Canada’s fish and seafood processing sector.
The market impacts of COVID-19 were also blamed for negatively impacting the price of most other valuable commercial species, including snow crab and Northern shrimp.
As of the writing of this editorial, there was still much uncertainly about 2021 seafood prices and markets as the second wave of COVID-19 impacts important Canadian, U.S. and European markets.
Moderate Livelihood Fishery
Along with COVID-19, 2020 will also be known as the year First Nations bands in Nova Scotia launched a self-regulated moderate livelihood lobster fishery.
After 21 years of waiting for the federal government to establish regulations for a moderate livelihood fishery as affirmed by the 1999 Marshall decision, or engage the Mi’kmaq in formal consultation on developing regulations, the Assembly of Nova Scotia Mi’kmaw Chiefs said it was done waiting.
“We know our people are frustrated that they can’t yet earn a moderate livelihood from fishing, despite the Right being affirmed by the highest courts in the country,” said Chief Terrance Paul, Co-Chair and Fisheries Lead for the Assembly of Nova Scotia Mi’kmaw Chiefs in a September press release.
“We are equally frustrated. We have been at the table for years fighting for movement from the federal government so that our people can have access to the waters and resources.”
The Shubenacadie-based Sipekne’katik First Nation launched its moderate livelihood fishery in St. Mary’s Bay in Southwestern Nova Scotia on Sept. 17. The Potlotek First Nation in Cape Breton took to the waters of St. Peter’s Bay on Oct. 1.
Both bands were fishing for lobster in LFAs that were closed to the commercial fishery for conservation reasons.
Since the moderate livelihood fishery started, rallies have been held, violence and property damage has occurred, charges have been laid, a temporary court injunction issued and a federal special representative appointed to facilitate discussions between the commercial lobster industry and Atlantic Canada First Nations. But as of yet, nothing has been resolved.
N.S. Member of Parliament and Federal Fisheries Minister Bernadette Jordan has faced increased criticism from both sides for not resolving the tense dispute.
Jordan reiterated that “conservation and sustainability underpin everything we do at Fisheries and Oceans Canada (DFO). Indigenous and commercial harvesters share this priority, as their livelihoods depend on the health of our oceans and seafood stocks. Our country operated for too long without considering First Nations rights, creating whole systems and institutions without including them. We have made progress since the 1999 Marshall decision, but recognize there is more work to do. As First Nations look to exercise their Treaty Right to pursue a moderate livelihood, I want to underscore that we are working with communities to discuss their fishery plans and move quickly to reach agreements. Together we will ensure that the right is implemented in a way that ensures safe, orderly and sustainable fishing. This Government is firmly committed to advancing reconciliation and implementing Treaty Rights. That has not changed. We need to work out these differences at the table, not on the water. We need to sit down nation-to-nation. We need to do this through respectful, constructive dialogue. It is all our responsibility to protect the shared resource. Our goal is, and always has been to develop a strong, stable and productive fishery for the benefit of everyone involved,” the federal minister noted.
With the commercial lobster fishery now on in LFAs 33/34, many fear this situation might only get worse before it gets better.
Snow Crab
As previously stated, it seemed like almost all commercial species fished by harvesters in Atlantic Canada also took a hit in 2020.
The emergence of COVID-19 was certainly one obstacle that neither harvesters nor processors had factored into the 2020 snow crab fishery. For example, the snow crab fishery in Newfoundland and Labrador opened more than a month later than normal, due to the evolving global response to the novel coronavirus.
As soon as COVID-19 started to impact the global demand for seafood, harvesters in this region began to worry about markets and the price they might receive for their snow crab this year. Processors were obviously worried about the same thing.
Last year was a good year pricewise for harvesters, with the season starting out at $5.38/pound for a four-inch carapace and up and $5.08/pound for legal size under four inches.
But the three groups involved in setting the price for N.L. snow crab, the Association of Seafood Producers (ASP), the FFAW-Unifor and ultimately the N.L. Standing Fish Price-Setting Panel, would agree that negotiations this year would be unprecedented.
After an appeal by the FFAW, the Panel sided with the union recommendation of $3.50/pound for a four-inch carapace and up and $3.20/pound for legal size crab under four inches.
Despite the significant drop in price this year, there was a little good news when quotas were announced by DFO in April.
The 2020 total allowable catch (TAC) for N.L. region in 2020 was set at 29,551 tonnes, an overall quota level increase of 10 per cent from 2019.
Northern Shrimp
The soap opera that was the 2020 Newfoundland and Labrador Northern shrimp fishery continued to be played out on wharves and fish plants across the province.
On July 2, Newfoundland and Labrador’s Standing Fish Price Setting Panel accepted the Fish Food and Allied Workers’ (FFAW-Unifor) price recommendation of $1.18/pound for Northern shrimp landed at the plant and $1.15/pound for trucked shrimp.
Despite siding with the union, the selected price was still a 28.5 per cent reduction from the minimum price in 2019. Last year, fishermen were paid a minimum price of $1.78/pound. At the time, it represented an 18 per cent increase over the 2018 price and the highest minimum price ever for the spring shrimp fishery. The 2018 price was $1.46/pound, up from the 2017 level of $1.25.
The Association of Seafood Producers (ASP), which represented processors at the panel hearing, had offered $0.70/pound, which amounted to a 57.6 per cent reduction from the minimum price in summer 2019.
However, less than two weeks later, the Fish Price Setting Panel announced it had received an application from the ASP, dated July 10, requesting that it reconsider its July 2 decision concerning the price and conditions of sale for summer shrimp in 2020. The application was based on the assertion that current market factors have significantly changed compared to those that were known and anticipated at the time of the initial Panel decision on July 2.
In its decision, the Panel said that “the ASP offer is $0.85/pound, which is a $0.15/pound improvement over their original offer on June 26, 2020. It is also a 48 per cent reduction from the minimum price in 2019.”
In its counteroffer, the FFAW came back with $1.08/pound, which was a $0.10 reduction from its original offer on June 26, 2020. It is also a 34.5 per cent reduction from the minimum price in 2019.
Finally, on July 14, the union won out and the average price for shrimp, based upon 2019 summer size distribution, was set at $1.08/pound for shrimp landed at the plant and $1.05/pound for trucked shrimp
Along with the price reductions, inshore harvesters in shrimp fishing area (SFA) 6 were also up against 2020 quota cuts.
Earlier this year, the Department of Fisheries and Oceans (DFO) announced that the 2020 total allowable catch (TAC) in SFA 6 would be reduced by 7.5 per cent to 8,290 tonnes to maintain a 10 per cent exploitation rate.
Northern Cod
Despite the overall catch limit for the 2020 Northern cod stewardship fishery (12,350 tonnes) staying the same as last year, harvesters did not get the same price as they did in 2019.
In its decision, the Newfoundland and Labrador Standing Fish Price Setting Panel selected the position of the Association of Seafood Processors (ASP), meaning that the 2020 late summer/fall price was set at $0.80/pound for grade “A” cod and the spring/early summer price would be $0.73/pound. The prices for grade “B” ($0.40/pound) and “C” cod ($0.20/pound) remained the same as the 2019 late summer/fall prices.
The FFAW-Unifor, which represented harvesters at the Panel, had been looking for a nine per cent increase in price (i.e. grade A price from $0.90 per pound in 2019 to $0.98 per pound in 2020).
Redfish
While DFO continued to issue caution about the state of some fish stocks in Atlantic Canada, redfish in the Gulf of St. Lawrence continued to amaze.
The biomass of the two redfish species combined accounted for 90 per cent of the total biomass of all captured organisms in the 2019 research survey conducted by federal fisheries scientists in the Estuary and northern Gulf of St. Lawrence.
By comparison, the biomass of the two redfish species combined, averaged 15 per cent in research surveys between 1995 and 2012.
The total biomass of S. mentella is estimated at 4,365,000 tonnes, the highest value observed in the time series since 1984. Of that amount, 3,044,000 tonnes were of fish larger than the 22-cm minimum regulatory size and 497,000 tonnes for fish larger than 25 cm.
- fasciatus continues to be in the cautious zone with a total biomass estimate of 78,000 tonnes in 2019, suggesting a decrease from 2017. Of that amount, 57,000 tonnes were for fish larger than 22 cm and 18,000 tonnes for fish larger than 25 cm.
Processor Purchases
Despite the uncertainty created by the COVID-19 pandemic, several notable business acquisitions took place during 2020.
The biggest was obviously the $1-billion sale of Clearwater Seafoods to FNC Holdings Limited Partnership representing a coalition of Mi’kmaq First Nations and Premium Brands Holdings Corporation of British Columbia.
Clearwater announced on Nov. 9 that it had entered into a definitive arrangement agreement with FNC Holdings and Premium Brands Holdings Corporation to acquire all of the issued and outstanding common shares of Clearwater and the units issued under various equity compensation plans for $8.25 per share.
The Mi’kmaq First Nations Coalition and Premium Brands each acquired 50 per cent ownership in Clearwater, the largest holder of shellfish licenses and quotas in Canada and one of North America’s largest vertically integrated seafood companies.
FNC Holdings is a new legal entity formed for the purpose of the Clearwater investment. FNC Holdings was legally formed by Cape Breton-based Membertou and the Miawpukek First Nation in Newfoundland and Labrador, who have taken a leading role in the transaction.
Another deal of note was the acquisition of the well-known Newfoundland processor Quinlan Brothers Limited by Danish company Royal Greenland, announced this past spring. Quinlan Brothers Limited had a long-standing relationship with QuinSea Fisheries Limited. Both companies shared common ownership for many years until the owners of QuinSea sold their interests to Royal Greenland in 2016.
However, on November 2, Quinlan Brothers issued a press release “to correct recent reports in the local media regarding its proposed business relationship with Royal Greenland.”
Robin Quinlan, president of the Bay de Verde, N.L.-based company, stated he had decided to remain as an owner and invest further by facilitating the retirement of his father, Wayne.
“Royal Greenland has demonstrated its long-term commitment in N.L. through its investment in and growth of Quin-Sea Fisheries. Quin-Sea Fisheries and Quinlan Brothers share a common heritage. Our commitment remains unchanged. Quinlan Brothers will continue to serve its interest as a productive local business with strong local roots in Newfoundland and Labrador. We will continue to secure local employment. And we will continue to develop and maintain the relationships that have served our business for decades, with the people on the sea and the people on the land that have long supported us. Our passion and dedication to our industry is not going to change,” the press release added.
However, the union representing both fish harvesters and fish plant workers was vehemently opposed to the merger.
The Fish, Food and Allied Workers union (FFAW) called for an immediate halt to the acquisition of Quinlan Brothers by Royal Greenland, a fish processing company wholly owned by the Government of Greenland, pending a debate and vote in the House of Assembly on the merger.
But N.L. Fisheries Minister Elvis Loveless said that the vote would not be taking place and that the deal was done.
Loveless added that the decision of the Fish Processing Licensing Board will stand.
2021?
This takes us to the end of another annual Navigator year in review — a year many would wish to forget.
But now the question presents itself: what does 2021 have in store? When will big pharma start rolling out a COVID-19 vaccine? Will people take it? Will it work? Will it start us back down the road to normality? Or will it just enable us to better cope with what has become our new normal?
Hang on to your hats folks, answers to all of these questions and more will unveil themselves over the next 12 months.
So, what pearl of wisdom will we leave you with this year? With fear and trepidation of jinxing 2021, how about some good, old-fashioned advice from author Claire Cook: “If plan A doesn’t work, the alphabet has 25 more letters — 204 if you’re in Japan.”
