Province Calling for Fairer Trade Practices in Crab Fishery

AGRICULTURE/FISHERIES--Province Calling for Fairer Trade Practices in Crab Fishery

Nova Scotia's minister of agriculture and fisheries is calling on the other Atlantic provinces to even the playing field for competition in the crab fishery.

Ernest Fage is asking for consistency with trade rules and crab seasons in Atlantic Canada and looking for co-operation from local processors and buyers to help keep plants along the Eastern Shore and in Cape Breton operating.

"Nova Scotia fishermen and processors can compete with the best in Atlantic Canada, but they're being paralyzed by unfair trade practices," said Mr. Fage. "It's time for the other provinces, the federal government and industry to come together to find solutions."

Since the opening of Nova Scotia's snow crab season about three weeks ago, more than half of the unprocessed crab has been shipped to processing plants in other provinces. Nova Scotia processors cannot purchase crab from these same provinces. Many are operating at well below capacity and expecting to close their doors early.

Nova Scotia is also disadvantaged by harvest seasons and price. Newfoundland plants operated in the spring and were the only bidders for Newfoundland snow crab because it is a protected trade environment. They paid $1.70-$1.90 per pound to their fishermen. Plants in New Brunswick and Quebec have operated since late April, when crab seasons in those provinces opened. With many of their bills paid and profits made, these plants can now operate at very low margins, increase their market share and ensure that their employees qualify for Employment Insurance.

Prices for Nova Scotia product are currently $2.25-$2.85 per pound, making it extremely difficult or impossible for plants in eastern Nova Scotia, which are just getting started, to compete.

"Fair competition in the crab fishery is what we want," said the minister, who said he is confident that with a level playing field, Nova Scotia plants could compete with any in Atlantic Canada.

Mr. Fage has asked his counterparts in Newfoundland, New Brunswick and Quebec to lift their trade restrictions to protect jobs and the processing industry in eastern Nova Scotia.

"Unfair trade practices are creating a one-way door for unprocessed snow crab and jeopardizing 1,000 jobs in some of Nova Scotia's most sensitive areas," Mr. Fage stated. "I strongly encourage other provincial governments to rethink their position on how they are handling interprovincial trade of fish."

"These high prices are great for Nova Scotia fishermen, however, plant workers are facing lay-offs and the processing facilities may be forced out of business," Mr. Fage said. He would like to see local processors allowed to acquire crab from other provinces in the spring to compete equally during the Nova Scotia season.

As well, repeated requests by the province to the Department of Fisheries and Oceans to co-ordinate the Nova Scotia snow crab seasons with those in other parts of Atlantic Canada have been largely ignored.

The season discrepancy allows plants in other provinces to have a two-month head start on operators in Nova Scotia. Mr. Fage suggests that when this is factored in with restricted export policies in other jurisdictions, Nova Scotia plants don't have a chance.

The minister added that if the local processing industry is forced out of business, it will not be long before lower prices will be the only option on Nova Scotia shores.

"Nova Scotia believes in free trade and we have always been a free trader in the fishing business," Mr. Fage said. "Free trade must work both ways, and I will be exploring all options at my disposal to protect the crab processing industry in this province."

The minister has called an emergency meeting with independent buyers and buyer-processors early this week to outline the department's position and to seek their input on possible solutions to the problem.

The snow crab fishery is currently the largest fishery in eastern Nova Scotia. The landed value for over 300 licensed fishermen and temporary participants is about $70 million per year. The processing sector employs more than 1,000 workers and doubles the value of this resource for Canso, Aulds Cove and coastal communities in Cape Breton.