7. Not the same everywhere
Setting day Newfoundland
• Region ’s largest private sector employer
• 10,000 individual enterprises
• Employing 20,000 crew
• Almost entirely rural based
• All independently owned & operated
Setting day Sou’West Nova
8. Common policy framework
Common policy framework
Owner-Operator: have to fish licences personally
Fleet seperation: processors can’t hold o-o licences
9. Main threats
Weak policy enforcement
• Corporate predation
High investment costs for new
entrants
• licences and quotas
Low return on investments
• increasing operating costs
(fuel, bait, management)
• weak markets
4,000
3,500
3,000
2,500
Ind Core
2,000
Core
1,500
DFO promoting concentration
1,000
500
0
NS
NB
PEI
QC
NL
11. New entrants face higher investment costs
Profits at least 25% lower for
new entrants
Low profitability
• Drives out fishermen
• Requires higher efficiency….
builds pressure for
concentration & vertical
integration
1973-1983
1989-1998
2005-2011
12. Fleets opposed to vertical integration
Reduces dock-side competition & owner-operator
bargaining power
– Lower prices paid to independent harvesters
– Reduced resources to other processors / wholesalers
– Leads to concentration
Results in lower employment
– Less jobs in some communities
– Conflicts between communities
– Conflicts between provinces
13. Today’s Globe and Mail
Productivity overrated as a key to growth
“…focussing on efficiency at the expense of jobs
and hours worked could lead to ‘greater
unemployment, income loss and reduced wellbeing’.”
- Andrew Sharpe, Editor International Productivity Monitor
14. Fleets seeking alternatives
Major fleet managed buybacks in last 2 years
Looking at fleet managed
initiatives to facilitate
intergenerational transfers
Exploring marketing and
branding to increase
revenues/incomes
