ATLANTIC CANADA SEAFOOD SECTOR EXPORT DEVELOPMENT PLAN

JANUARY 2018

“A new all-inclusive, pan-Atlantic, whole-of-government approach…will harness the region's assets to:

identify shared economic priorities and collaborate on the design and implementation of actions

emphasize region-wide measures

align actions with national and provincial priorities

engage and consult with the region's stakeholders, entrepreneurs, as well as Indigenous, community

and industry leaders

monitor progress and report publicly on results

Together, the federal and provincial governments are playing the long game - sustainable prosperity in

Atlantic Canada for generations to come”.

SOURCE: http://www.acoa-apeca.gc.ca/ags-sca/Eng/atlantic-growth.html

THE ATLANTIC GROWTH STRATEGY

“THE PATH TO PROSPERITY” CANADIAN ADVISORY COUNCIL ON ECONOMIC GROWTH

In 2016, the Minister of Finance convened the Advisory Council on Economic Growth.

THE MISSION: to examine long-term prospects for the economy, make bold recommendations to drive inclusive growth and help the government put ideas into action.

DETAILED RECOMMENDATIONS 06 FEBRUARY 2017:

1. Unlock innovation to drive scale and growth

2. Build a skilled and resilient workforce with a FutureSkills Lab

3. Unleash the growth potential of key sectors

…..”We have highlighted the agriculture and food sector as one example where Canada has the potential for

substantial growth and export improvement and the opportunity to become the trusted global leader in safe,

nutritious, and sustainable food for the 21st century. The Council recommends piloting this new approach to

sectoral development in agfood, and then replicating it in five to seven other high-potential sectors”……….

SOURCE : https://www.budget.gc.ca/aceg-ccce/pdf/summary-resume-2-eng.pdf

OBJECTIVES SEAFOOD SECTOR EXPORT TEAM

OBJECTIVES

The Seafood Sector Export Team will create the Priority Plan for:

Increasing the VALUE (doubling?) of Atlantic Canada Seafood Exports

Increasing Atlantic Exports and their VALUE through Market Diversification;

Increase Capital Investments in Atlantic Canada.

ATLANTIC SEAFOOD EXPORTS PROFILE VOLUME & VALUE

-

50,000

100,000

150,000

200,000

250,000

1990 1995 2000 2005 2010 2012 2014 2015 2016

Atlantic Provincial Seafood Exports 1990 - 2016 MT

NL NS PE NB

Source: Statistics Canada International Trade Division - http://www.inter.dfo-mpo.gc.ca/NSR/Report?report_by=4

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

1990 1995 2000 2005 2010 2012 2014 2015 2016

Atlantic Provincial Seafood Exports 1990 - 2016 $C Million

NL NS PE NB

Source: Statistics Canada International Trade Division - http://www.inter.dfo-mpo.gc.ca/NSR/Report?report_by=4

EXPORT MARKETS WHAT DO WE EXPORT?

Atlantic Canada Top Seafood Exports 2016 - $C Million

NEWFOUNDLAND &

LABRADOR

NOVA SCOTIA PRINCE EDWARD ISLAND NEW BRUNSWICK

Species Value Species Value Species Value Species Value

Snow Crab $ 415 Lobster $ 953 Lobster $ 222 Lobster $ 806

Salmon $ 263 Crab $ 225 Mussels $ 43 Salmon $ 425

Shrimp $ 227 Scallops $ 141 Snow Crab $ 16 Crab $ 161

Turbot $ 60 Shrimp $ 113 Oysters $ 13 Herring $ 72

Capelin $ 35 Halibut $ 81 Sardine $ 20

Cod $ 21 Fish NES $ 72 Scallop $ 17

Mussels $ 14 Cod $ 31 Shrimp $ 11

Herring $ 13 Molluscs $ 31 Marine Plants $ 8

Eel $ 23 Sea Urchin $ 5

Swordfish $ 20 Oyster $5

Source: Statistics Canada, CATSNET Analytics, Provincial Reports

0

500

1,000

1,500

2,000

2,500

Lobster Atl Salmon Snow/QueenCrab

Shrimp/Prawn Crab (Other) Scallop Herring Clam GrnlandHalibut

Hake

2100

967

810

465

285 179 163

103 97 90

Canada’s Top 10 Fish & Seafood Exports 2016 - $C Million

SOURCE: DFO, Stats Canada, AAFC

EXPORT MARKETS WHERE DO WE EXPORT?

Source: http://www.inter.dfo-mpo.gc.ca/NSR/Home

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1990 1995 2000 2005 2010 2012 2014 2015 2016

Canadian Seafood Exports By Major Markets 1990 - 2016 - $C M

C. & S. America EU Japan Other EU South Korea Hong Kong China USA

Source: http://www.inter.dfo-mpo.gc.ca/NSR/Home

$0

$500

$1,000

$1,500

$2,000

$2,500

1990 1995 2000 2005 2010 2012 2014 2015 2016

Canadian Seafood Exports 1990 - 2016 Excluding USA - $C M

C. & S. America EU Japan Other EU South Korea Hong Kong China

ATLANTIC SEAFOOD INDUSTRY

SURVEY & INTERVIEW RESULTS

0

5

10

15

20

25

30

35

40

45

ASSOCIATION FARMER HARVESTER MARKETER /SELLER / BROKER

PROCESSOR SHIPPER PHARMACEUTICAL CONSULTANT(PROCUREMENT)

3

6

11

35

42

25

2 1

WHAT SEAFOOD SECTOR DO YOU REPRESENT?

0

5

10

15

20

25

30

35

40

1 - 25% 25 - 50% 50 - 75% 75 - 100%

5 5

14

38

WHAT PERCENTAGE (%) OF YOUR SALES ARE INTERNATIONAL EXPORTS?

0 5 10 15 20 25 30 35 40 45 50

Website

Online Sales

Social Media

E-Newsletters

Webinars

MKT'ING Materials (Dir, Broch..)

Access Market Res & Intel

Enhanced Export Trade Training

Targeted Country Missions

Trade Shows

Export Cafes

Inbound Missions

Foodservice Promotions

Retail Promotions

Chefs Promotions / Events

News / Media Releases

Trade Comm Services

Translation Services

WHAT TOOLS / TACTICS HAVE YOU FOUND BENEFICIAL TO YOUR CURRENT EXPORT PROGRAM?

IMPORTANT VERY IMPORTANT CRITICALLY IMPORTANT

0 5 10 15 20 25 30

NOT APPLICABLE TO OUR COMPANY

Access Market Res & Intel

Local Knowledge (the business/market)

Local Partner(s) (political, legal &…

Local Staff (business, culture, social)

Access to Product Volumes

Access to Product Types

Access to Production Technology

Knowledge of Distribution Channels

Knowledge of Potential Customers

Knowledge of Competitors

Costs of Market Access & Servicing

Product Pricing Knowledge (In Market)

Certification & Sustainability Issues

Lack of Internal Mgmt / Sales Expertise

Access External Export Know-how &…

Access to Operating / Production Labour

Export Trade Training

Lack of Financial Resources

Lack of a Growth Strategy

Policy & Regulatory Issues

WHAT IS LIMITING YOUR ABILITY TO INCREASE EXPORTS?

VERY LIMITING CRITICALLY LIMITING

CANADIAN TRADE COMMISSIONERS

SURVEY & INTERVIEW RESULTS

0 2 4 6 8 10 12 14 16 18

FTA Knowledge

Website

Online Sales

Social Media

E-Newsletters

Webinars

Mkt'ing Material (Dir/Broch)

Access Market Res & Intel

Enhanced Exp Trade Training

Targeted Country Missions

Trade Shows

Export Cafes

Inbound Missions

Foodservice Promotions

Retail Promotions

Chefs Promotions / Events

News / MEDIA Releases

Trade Comm Services

Translation Services

WHAT TOOLS / TACTICS ARE NEEDED BY CANADIAN SEAFOOD COMPANY'S TO INCREASE THEIR EXPORTS?

VERY IMPORTANT CRITICALLY IMPORTANT

Export Market Opportunities

Global Fish & Seafood

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

Top 20 Seafood Importing Countries By Value 2016 - $US 000

SOURCE: UN / WTO International Trade Centre http://www.trademap.org/Country_SelProduct_TS.aspx?nvpm=1|||||03|||2|1|1|1|2|1|2|1|1

Source: Brookings Institute, The World Bank, International Money Fund

Global Middle Class Growth

ASIA 28%

EUROPE 36%

NORTH AMERICA

18%

MIDDLE EAST & AFRICA

8%

LATIN AMERICA

10%

2009

ASIA 66%

EUROPE 14%

NORTH AMERICA

7%

MIDDLE EAST & AFRICA

7%

LATIN AMERICA

6%

2030

European Seafood Market

• CONSUMERS: 510 Million Consumers.

• IMPORTS: $C 36.2 Billion In 2016 - World’s Largest Importer Of Seafood.

27% Of The World’s Total Fish And Seafood Imports.

• CONSUMPTION: Imports Account For 52.5% Of Total EU Seafood Consumption.

• PER CAPITA: Per Capita Average Annual Consumption Of 25.6 Kg (2015).

• OPPORTUNITY: Increase Canadian Seafood Exports Of $C 555 Million (2016).

Increase Current Share, 1.5% Of $C 36.2B EU Seafood Market.

Source: ACFFA & https://www.eumofa.eu/documents/20178/77960/The+EU+fish+market+-+2016+Edition.pdf

China Seafood Market

• CONSUMERS: 1.4 Billion Consumers.

• IMPORTS: $C 11.2 Billion Global Imports In 2015.

• CONSUMPTION: Imports 9% Of Total Seafood Consumption.

• PER CAPITA: Per Capita Average Annual Consumption Of 37.9 Kg (2013).

• OPPORTUNITY: Increase Canadian Seafood Exports Of $C 716 Million (2015).

Increase Current 6.4% Share Of $C11.2 Billion Seafood Market.

Source: FAO http://www.fao.org/3/a-i5555e.pdf & http://www.agr.gc.ca/eng/industry-markets-and-trade/foreign-market-information-by-region/asia/market-intelligence/sector-trend-analysis-fish-and-seafood-trends-in-china/?id=1488986648630#b,

USA Seafood Market

• CONSUMERS: 325 Million Consumers

• IMPORTS: $C 24 Billion Global Imports (2015)

• CONSUMPTION: Imports 90 % Of Total Seafood Consumption

• PER CAPITA: Per Capita Average Annual Consumption 14.9 lbs (2016)

• OPPORTUNITY: Increase Canadian Seafood Exports Of $C 4.2 Billion (2016)

Increase Current 17% Share Of $C 24 Billion Market.

- 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000

2016

2017

2018

2019

2020

2021

2,073,000

2,135,190

2,199,246

2,265,223

2,333,180

2,403,175

2,560,000

2,636,800

2,715,904

2,797,381

2,881,303

2,967,742

Source: Kontali, Statistics Canada

Global Salmon Market Growth 2017 - 2021 - Supply & Demand MT

Demand 3% Growth Supply 3% Growth