Torngat Fish Producers Co-op and Labrador Shrimp Company Featured at University Symposium
Above: Panel members Ray Andrews, Gilbert Linstead, Nicole Helwig and Ron Johnson.
It may surprise some to learn that one of the most modern fisheries in Atlantic Canada is carried out in Labrador.
It may surprise even more to know that one of the two dominant companies is a cooperative (co-op) and the other, a much larger company, is owned by local fishermen and managed with strong social policies similar to cooperative principles.
Both the Torngat Fish Producers Co-op and the Labrador Shrimp Company got their start 40 years ago. On April 3, Memorial University’s Harris Centre, along with the Centre for Social Enterprise, held a public forum to talk about the success of both the Co-op and the Shrimp Company.
Representatives from both organizations attended, along with several people who were instrumental in getting governmental and other agencies in place to lay the groundwork to develop successful fisheries operations on the Labrador coast. It made for a lively and at times, passionate discussion.
In the mid to late 1970s, there was evidence of healthy shrimp stocks off Labrador and after the implementation of the 200-mile limit in 1977, Canada suddenly had a much greater say in managing marine resources adjacent to its coastlines.
The timing was good. Romeo LeBlanc was Federal Minister of Fisheries and he saw shrimp as an opportunity to improve the standards of Labrador coastal people.
Ray Andrews clearly remembers a meeting in Labrador that was attended by the Minister. Andrews was DFO area manager for the region and he says LeBlanc was very certain about what he wanted.
“Andrews,” he said, “if there is a good shrimp resource off Labrador, the benefits must go directly to the coastal people — not to the big companies.”
LeBlanc, from rural New Brunswick, knew that large corporate interests from many areas would be intensely vying for Labrador shrimp and he wasn’t going to let that happen. Andrews got the Minister’s message loudly and clearly and he also understood that LeBlanc was depending on him to provide DFO leadership and coordination to make it happen.
On June 2, 1978, LeBlanc announced a total allowable shrimp catch of 7,100 tonnes with 6,600 tonnes of that allocated to Labrador. Three shrimp licenses were held in reserve while wheels were set in motion to create two processing companies.
Torngat was established in 1981 to service northern Labrador and its primarily Inuit population with fishing operations in six communities; Rigolet, Makkovik, Postville, Hopedale, Nain and Davis Inlet. All but Davis Inlet remain. Torngat was given one of the three shrimp licenses.
Prior to 1981, the fishing industry was rudimentary on the northern Labrador coast. Sparsely populated communities and great distances between them with no road connection was just one of the obstacles in forming a single company to service all.
The Canadian Saltfish Corporation and businesses affiliated with the CSC did all the marketing of cod, turbot, salmon and a few other species. The concept of operating a business that would market its own product was daunting, not to mention arranging large offshore fishing vessels to catch their shrimp quota was difficult to even comprehend. But there was a strong will to persevere and they did.
Torngat has a large, modern plant in Makkovik, along with another medium-sized plant in Nain. While progress has been significant, Keith Watts, Torngat’s general manager, says the Co-op is still in a development stage in many ways.
He said the loss of the cod fishery in 1992 was devastating and his members have still not fully recovered, however, on the other side of the coin, the development of a crab fishery has been positive.
Watts says it’s not only the ever-evolving resource availability that keeps changing. He says they have also been affected by recent developments to their political landscape. He said the creation of Nunatsiavut, an Inuit regional government, brought some challenges, as well as some positive attributes.
The establishment of Nunatsiavut confused some people. He said many people and agencies, including provincial government groups, were bypassing Torngat and dealing with the Nunatsiavut officials and that has provided complications for Torngat.
Torngat has about 500 members and despite geographical and other challenges, they know that the Co-op beats the alternative.
The two remaining shrimp licenses went to the Labrador Fishermen’s Union Shrimp Company. Incorporated in January 1979, the Shrimp Company is much larger than Torngat and services southern Labrador communities from Cartwright to L’Anse au Clair.
The Fishermen’s Union (FFAW) played a significant role in founding the Shrimp Company and although it is not a co-op and has no affiliation with the FFAW, the word “Union” is still in the name.
The company’s general manager admits that having “Union” in the name of the company causes concern among some business executives they do business with, but he says it is still in their name for nostalgic reasons.
Gilbert Linstead continues to explain that although the Shrimp Company’s shareholders are 240 fishermen, it is not a co-op either but follows strong social guidelines with all profits going back into the corporation.
The Shrimp Company has approximately 500 employees and services 700 fishermen on the southern Labrador coast through their plants in L’Anse au Loup, Mary’s Harbour, Pinsent’s Arm, Charlottetown and Cartwright. The company owns two fixed-gear vessels. The Nain Banker and Belle Isle Banker are mid-distance vessels. But, the crown jewel of the Labrador Shrimp Company is the new shrimp vessel Northern Osprey III.
The Shrimp Company has had a business relationship with M.V. Osprey Limited for years and is now a 50 per cent shareholder of the company. The Northern Osprey III is one of the largest and most modern vessels in the Atlantic Canadian fishing fleet. Built in 2017, the vessel was designed and built specifically for the Shrimp Company’s requirements. The ice-strengthened ship is 80.25m x 17m (263ft x 56ft).
It is painted blue and white but is a “green” ship meaning that all waste is recycled and nothing is dumped overboard. The ship has a crew capacity of 38 and boasts a media room (mostly movies), a gymnasium and a sauna.
Linstead says one of the captains and a first-mate come from Labrador, adding that they are making efforts to increase that number. Overall, the Shrimp Company appoints two thirds of the crew.
The Labrador Shrimp Company’s products are marketed worldwide primarily through Sirena A/S, a Danish company and Whitecap International based in St. John’s.
It is difficult to overstate the importance of the Shrimp Company to southern coastal Labrador. In 2018 alone, the corporation pumped more than $65,000,000 into the local economy.
“The growth of the company has been phenomenal over the past 25–30 years,” says Linstead, pointing to a chart that shows annual sales and assets both in the range of $80–$90 million. Moving to the next chart he shows what is called proportional consolidated revenue. That chart includes the Shrimp Company’s revenue share of M.V. Osprey Limited that boosts sales to almost $120,000,000 a year — a major player by any standards.
The Labrador Shrimp Company is unique in many ways.
The company’s exponential growth over the past few decades is the envy of many corporations in Atlantic Canada. But perhaps what will surprise many people is that despite the amazing growth, it occurred by staying true to left leaning social enterprise principles that highlight considerations for everyone not just shareholders.
It was interesting to see Linstead outline eight reasons for the company’s success that included “support of communities, a loyal and happy workforce, respect of the Labrador people and improved skills and education in the workforce.”
Both Linstead and Watts, along with Ron Johnson, assistant manager of Torngat, talked about current demographics, as young people are moving from the Labrador coast to live in Newfoundland (island) or mainland Canada.
Linstead and Johnson said they have mitigated that issue by becoming more automated, thus requiring a smaller labour force. However, Linstead pointed out that they will always need people and management and local governments must do a better job in educating high school students and other young people that the old stigma of a fish plant that offers only a couple months work, low-paying jobs and an uncomfortable work environment is not the way they operate today.
He said the crab plant in Mary’s Harbour is a state-of-the-art plant comparable to any plant in Atlantic Canada. He said they are still optimistic that cod will make a comeback and when it does, the new cod plant currently under construction will be among the most modern in the world.
The Torngat Co-op and Labrador Shrimp Company’s story is not just about success, it is also heart warming and as someone said, a story that should be told more often to educate the rest of Newfoundland and Labrador about an area that is far more progressive than many other parts of the province.
