Transcript English - Canadian Centre for Fisheries Innovation

Canadian Seafood Industry:
Strategic Growth Sector
Vision 2020 Strategic Blue Growth
Investment Strategy
Carey Bonnell
Industry Co-Chair
Seafood Value Chain Roundtable
November 2016
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Outline for Today
• Seafood Sector Profile & Trends
• Global Trends Affecting Canadian Seafood
Sector
• SVCRT & Its Vision for the Future
• Summary
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SEAFOOD SECTOR
PROFILE & TRENDS
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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
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).
• Canada
• Employment:
- Harvesting/Production:
- Processing:
2014 Data
44,145 Canadians
31,899 Canadians
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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)
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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
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is contributing significantly to the national economy
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
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Industry Competiveness Issues
Regulations
Market
Intelligence
Labour
Competitiveness
Seasonality
Productivity
Access to
capital
Innovation
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GLOBAL TRENDS
AFFECTING CAN
SEAFOOD SECTOR
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World Population Growth
FAO estimates that 40 million
tonnes of aquatic food needed by
2030 just to maintain current per
capita consumption
Global Seafood 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
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Growth in Global Seafood Prices
FAO estimates that average price of traded seafood products is expected to
grow by 30% by 2022
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Ecological Shift
Water Temperature
Source: Colbourne
Temperature - Production
Source: G. Rose
Climate Change is significantly impacting both capture fisheries and
the aquaculture sector throughout Canada. Adaptive strategies are
required to mitigate impacts.
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Other Global Trends
Sustainability
Biodiversity
Targets
Trade
Agreements
Global
Trends
IUU
Requirements
Labour
Standards
Transforming
Technologies
Supply Chain
Consolidation
Consumer
Awareness
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SVCRT & ITS VISION FOR
THE FUTURE
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SVCRT Vision & Role
SVCRT Role
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
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
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Key Result Areas
Market Readiness
•
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;
Social License
•
Engagement on the subject of
science requirements for ecocertification;
•
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.
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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;
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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
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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
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Seafood – Sector without a Home!
• AAFC Growing Forward II Program (2013-2018)
• $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.
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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 ecocertification 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
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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.
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