1. Canadian Seafood Industry: Strategic Growth Sector
Vision 2020 Strategic Blue Growth Investment Strategy
Carey Bonnell
Industry Co-Chair
Seafood Value Chain Roundtable
November 2016

2. Outline for Today Seafood Sector Profile & Trends
Global Trends Affecting Canadian Seafood Sector
SVCRT & Its Vision for the Future
Summary

3. Seafood Sector Profile & Trends

4. Industry Snapshot Value of Fish and Seafood Harvest/Production: $3.6 B
- Wild Capture fisheries: $2.8 B
- Aquaculture: $733.4 M
- Freshwater: $63.0 M
Fish/seafood manufacturing shipments: $4.4 B
Canada was the 8th largest seafood exporting nation
(Global Trade Atlas)
Canada is the fourth largest salmon producing country after Norway, Chile and the UK (FAO stats).
Employment:
- Harvesting/Production: ,145 Canadians
- Processing: ,899 Canadians
2014 Data

5. Diverse & Export Oriented Industry
Diverse Structure:
- Wild capture, aquaculture, freshwater
- Finfish, shell fish
- Fresh / processed
Approximately 79% of Canada’s total fish and seafood production is exported
73% of domestic market is imported
Trade (2015):
Exports: $6.0 B
Imports: $3.5 B
Trade Balance: $2.5 B (increase from $1.5 B in 2014)

6. 2015 Record Year for Canadian Seafood
Canadian seafood exports approximately $6 billion CAN
$4.6 billion in 2014
Nearly 65% of exports to US (by value)
Driven by lobster & snow crab
Exports to China grew by 47% over past 2 years
From $441 million in 2013 to $650 million in 2015
Exports to EU valued at $578 million
10% of Canadian export market
Interesting to note that in a period where many other sectors are struggling seafood is contributing significantly to the national economy

7. Canadian Seafood Attributes
Recognized among global leaders in food safety
Positive international image of Canada
Recognized among world leaders in sustainable management of wild capture fisheries and aquaculture
Strong and progressive labour standards
An abundance of fresh and marine water suitable for seafood production

8. Industry Competiveness Issues
Competitiveness
Regulations
Labour
Productivity
Innovation
Access to capital
Seasonality
Market Intelligence

9. Global Trends Affecting CAN Seafood Sector

10. World Population Growth
Global Seafood Consumption
FAO estimates that 40 million tonnes of aquatic food needed by 2030 just to maintain current per capita consumption
Per-capita seafood consumption rose from 9.0 kg/year in 1961 to 19.9 kg/year in 2014
OECD-FAO estimate total consumption to increase to 165 million MT in 2023

11. Growth in Global Seafood Prices
FAO estimates that average price of traded seafood products is expected to grow by 30% by 2022

12. Ecological Shift
Water Temperature
Temperature - Production
Source: Colbourne
Source: G. Rose
Climate Change is significantly impacting both capture fisheries and the aquaculture sector throughout Canada. Adaptive strategies are required to mitigate impacts.

13. Other Global Trends Global Trends Sustainability Trade Agreements
Transforming Technologies
Supply Chain Consolidation
Consumer Awareness
Labour Standards
IUU Requirements
Biodiversity Targets

14. SVCRT & its Vision for the Future

15. SVCRT Vision & Role SVCRT Role SVCRT Vision
The SVCRT provides leadership to the Canadian seafood industry by providing a forum for value chain participants to identify significant industry impediments, collaborate on solutions and innovation, and influence decision makers
SVCRT Vision
A prosperous and competitive Canadian seafood industry that is a world leader and the preferred supplier of high value seafood, domestically and internationally

16. Key Result Areas Market Readiness Social License
Assess opportunities for improved market intelligence to support the market development needs of the Canadian seafood sector;
Consider options for strategic investment in innovation and automation in the Canadian seafood sector;
Continue seafood value chain benchmarking and competitiveness efforts to identify areas of improvement
Articulate key labour retention challenges and identify possible solutions;
Engagement on the subject of science requirements for eco- certification;
Communication with Government to raise awareness that traceability and eco-certification are now considered requirements for global market access;
Develop key sector messages and communications strategies that demonstrate sustainability of the fish and seafood sector;
Coordinate with other Roundtables on “Social License Hub” that shares knowledge/insights on emerging issues related to public trust around food.

17. Seafood Vision 2020 Strategic Plan to Advance Global Competitiveness
Goals
National recognition as a strategic sector of Canadian economy;
Return to a Top 5 position share of global seafood market;
Increased value per kilo of catch;
Increase export market diversity in key emerging/established markets such as the EU, China & South Korea;
The Canadian seafood sector is looking for sustainable, responsible growth into the future;

18. Seafood Vision 2020 Strategic Plan for Global Competitiveness
Strategy
Export & Trade Agenda
CETA, TPP, CAN/Kor, China, etc.
Market intelligence support critical
Globally Competitive Workforce
TFWP, training, technology/automation
Seafood Sustainability
Increased investment in certification and traceability requirements to maintain market access
Innovation & Automation agenda
Investment critical for global competitiveness
Market Friendly regulatory reform
Build upon efforts of regulatory sub-committee

19. Recent Public Policy Considerations
GOC 2015 mandate letters commitment to ocean science, to the protection of our fisheries for future generations - as well as to an economically successful, responsible and environmentally sustainable aquaculture industry
GOC Innovation Agenda with Vision to ’build Canada as a global centre of innovation-one that focuses on strengthening the middle class by creating jobs, driving growth across all industries and improving the lives of all Canadians’
Calgary Statement adopted by Federal-Provincial-Territorial (FTP) Ministers earlier this year
Very strong value proposition for seafood sector investment

20. Seafood – Sector without a Home!
AAFC Growing Forward II Program ( )
$3 billion investment by FPT Governments
AAFC administers $1 billion in AgriInnovation, AgriCompetitiveness & AgriMarketing
Focused on innovation, competitiveness & market development
Seafood support limited to AgriMarketing Program
Approximately $2.5 million per year
Seafood contributes about 3.4% of Canadian Food needs
$1 billion GOC investment in GFII would equal about $34 million to seafood
DFO mandate does not include significant granting (or enabling) programs to support innovation, competitiveness and market development needs of industry
Other federal agencies have programs but are non sector specific
i.e. IRAP, Industry Canada, ACOA, etc.

21. Solution – Seafood Innovation, Competitiveness & Market Development Fund
Position Canada as a global leader in sustainable seafood development
Provide the market readiness tools to support GOC global trade agreements such as TPP, CETA & Canada Korea
Support efforts to address non-tariff trade barriers such as eco- certification standards in the wild and aquaculture sectors
Research and innovation investment critical to global industry competitiveness
Investment is required across the entire value chain for true effectiveness
Program investment requirements comparable to those that already exist under Growing Forward II but largely inaccessible for seafood sector or Growing Forward III to consider support for all food products manufactured in Canada, including seafood

22. Summary
Key global trends present an exciting opportunity for the Canadian seafood sector
Sector is of tremendous importance to Canada but lacks support structures of other food producing sectors
Investment needs consistent with public policy considerations of GOC as outlined in 2016 mandate letters
Investment will have maximum effect in rural, coastal and aboriginal communities impacting thousands of Canadian families, businesses, employees and their communities.