Presentation to SFP Fisheries Forum February 25, 2015 Madrid, Spain

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1 Presentation to SFP Fisheries Forum February 25, 2015 Madrid, Spain Bruce Chapman Groundfish Enterprise Allocation Council (GEAC)

2 My Fisheries Background: I entered the Canadian fishing industry in 1977, the same year Canada declared its 200 mile exclusive economic zone (EEZ) Since 1977 I have represented various processing and harvesting sectors in Nova Scotia and Newfoundland, as well as at the Fisheries Council of Canada - the industry s national association 1977 was a time of exuberance; expanding harvesting/processing capacity and increasing quotas in response to scientific projections of increasing groundfish resources I subsequently experienced the collapse of groundfish stocks in the late 1980 s/early 1990 s, with the attending focus on re-adjustment in the industry and a new emphasis on conservation The collapse of groundfish coincided with an explosion of shellfish during the 1990 s/2000 s, which brought its own challenges along with its opportunity I currently contribute towards management of recovering groundfish stocks I directly administer MSC certifications of 4 groundfish fisheries in Atlantic Canada + Canada s northern shrimp fishery I am directly involved with 2 Fishery Improvement Projects (FIPs) for groundfish stocks

3 What is GEAC? GEAC is an organization representing the large fishing vessel enterprises/license holders in Atlantic Canada, many of whom also own/operate shore-based fish processing factories

4 Canada s Fishing Industry - An Overview Landings - 832,000 mt; $1.2 billion (Cdn) Vessels - 16,000 91% inshore less than 45 >45 vessels - only 9% of vessels - 42% of land value Employment - 83,000 Production - $5.5 billion (Cdn) Exports - $4.4 billion (Cdn); 80% of production Summary 7th largest exporter of seafood 4% of world trade: $110 billion Top 20 in quantity of landing

5 Markets Countries/Regions $ Millions(Cdn) USA 2, CANADA 1, CHINA EU JAPAN HONG KONG RUSSIA VIETNAM SOUTH KOREA UKRAINE 40 Note: Cdn-EU Free Trade 2016 Cdn-Korea Free Trade 2015 Trans-Pacific Partnership 2016 Japan, Vietnam

6 Exports to the European Union Major Markets $Millions (Cdn) 2013 United Kingdom 94 Denmark 73 France 57 Netherlands 43 Belgium 33 Other

7 Major Species Exported 2013 $Millions (Cdn) Lobster 1,167 Crab 826 Salmon 662 Shrimp 440 Herring 152 Scallops 150 Clams 112 Other 891 4,400

8 MSC Certified Fisheries in Canada 35 fisheries certified in total - All major species covered Atlantic Northern shrimp Newfoundland/Offshore certified 2008, combined 2011 Northern shrimp Gulf of St. Lawrence/Scotian Shelf certified 2008 and 2014 Snow crab certified Lobster portions certified 2009, 2013, 2014, majority under assessment Scallops - certified 2010 and re-assessment underway Haddock certified 2010 re-assessment underway Yellowtail flounder certified 2010 re-assessment underway Swordfish certified Surf clam certified 2012 Atlantic halibut certified 2013 Herring small portion certified 2014, others under assessment Pacific Pacific halibut certified 2009 Whiting certified 2009 Albacore tuna certified 2010 Salmon Sockeye certified 2010, pink in 2011, chum in 2013» Inland» Waterhen Lake walleye and northern pike certified 2014

9 Canadian Fisheries Under Assessment to be Certified (7) Bay of Fundy, Scotian Shelf & Gulf of St. Lawrence lobster traps 3Ps Cod Gaspésie lobster trap PEI lobster trap Gulf of St. Lawrence full herring gillnet North Atlantic swordfish longline Lake Erie multi-species Summary The combined MSC certified fisheries and fisheries currently in the MSC certification process represent: 80% of landed value 61% of landed quantity

10 Fishery Improvement Project (FIP) Fishery improvement projects (FIPs) are multi-stakeholder efforts to improve problematic fisheries. These projects utilize the incentives of the marketplace to make positive changes toward sustainability in a fishery. Participants in the process may vary depending on the nature of the fishery and the improvement project, and may include stakeholders such as producers, non-governmental organizations, fishery scientists and managers, and participants within the fishery s supply chain. The goal of a fishery improvement project is to improve performance to a level consistent with the MSC standard. To be considered for recognition for moving toward sustainability, FIPs must follow and document a 3-step process: 1. Scoping (MSC Pre-assessment and/or Scoping Document) 2. Work-plan Development (activity list with responsibilities, timelines and budgets, linked to performance indicators and metrics for monitoring) 3. Implementation & Tracking Progress (including progress reporting)

11 Canada s Groundfish FIPs : 3Ps Cod This FIP was launched in February 2011, as an open fishery prosecuted 70% by fixed gear and 30% by mobile gear fishery, with its spawning stock biomass estimated to be in the cautious zone (at or above Blim but below 80% of Bmsy) Support that came from outside the industry and government included WWF (co-chair), Marks & Spencer, US Sustainable Fisheries Fund/Resources Legacy Fund Key outcomes that were facilitated by the FIP included: Targeted research (including acoustic survey and extra tagging) to address identified gaps in scientific information Development of a Conservation & Rebuilding Strategy, including reference points and harvest control rules for TAC-setting Outreach programs resulting in improved catch reporting performance Analysis of by-catch performance, including ETP species (endangered, threatened or protected) Analysis of fishing footprint relative to sensitive areas Currently this fishery is in Full Assessment for MSC Certification, expected to be achieved in 2015

12 Canada s Groundfish FIPs : 3LNO American Plaice This FIP was launched in late 2013; a large vessel mobile gear fishery that has been under moratorium since 1993; American Plaice is retained as bycatch in other directed fisheries (primarily yellowtail and Greenland Halibut fisheries) The estimated spawning stock biomass (SSB) is 37,000t, and is projected to reach 44,000t in The LRP is 50,000t The challenge is that productivity and abundance in two of the three areas (3NO) have largely returned to normal levels. However historically, area 3L contained the greatest proportion of the biomass, and while it is improving, the biomass in 3L continues to remain at relatively low levels.

13 Canada s Groundfish FIPs : 3LNO American Plaice A Scoping Document has been completed and the next meeting will formulate an Action Plan, setting the stage for implementation activities to commence in mid While some work is required to meet various P2 and P3 performance indicators for MSC certification, the challenges are (1) to realize an increase in natural productivity (this is up to Mother Nature), and (2) to contain bycatch levels in 3L (primarily by foreign flag vessels in international waters outside Canada s 200-mile economic zone). Courtesy of Sustainable Fisheries Partnership, this FIP (with background documentation) is registered on SFP s website at:

14 Canada s Groundfish FIPs : 2J3KL (Northern) Cod This FIP process is scheduled to commence in May 2015 The combined fixed and mobile gear fishery averaged 212,000t annual catch between ; a fishing moratorium was implemented in Googling fisheries collapse will bring you to Wikipedia describing the collapse of this largest cod stock in the Northwest Atlantic Ocean. After 1½ decades of being in extremely poor condition (declining to less than 5% of its LRP), the spawning stock biomass started to recover in about 2007, and in 2013 was estimated to have reached about 170,000t or 28% of its LRP of 600,000t. Recovery appears to have taken hold; it remains to be seen how fast it can rebuild, and there seems to be some natural mortality issues with older fish.

15 Canada s Groundfish FIPs : 2J3KL (Northern) Cod This large stock complex, covering a huge geographic area, has a very high limit reference point (LRP) of 600,000 tonnes. Some inshore spawning components appear to have already recovered, but recovering offshore spawning components also migrate to inshore areas during the summer. It is not realistic to maintain a moratorium on all directed fishing activity until the recovering SSB exceeds 600,000 tonnes, especially by small, highly seasonal vessels. Harvest control rules (nearing completion) are likely to permit limited fishing activity (e.g. sentinel, recreational and stewardship fisheries) as long as the recovery trajectory remains strong. It will be a challenge to achieve the LRP within the relatively short 5-year planning horizon for FIPs. In these situations, and provided all other MSC Performance indicators have been achieved, continuation of a biomass rebuilding trajectory would be a better measure of progress than the artificial 5-year deadline that some NGO s endorse.

16 FIPs: Summary There are some fisheries that for a variety of reasons are not ready to receive MSC certification. In some cases, this is because the fishery does not fully meet performance standards for science or management (e.g. 3Ps Cod). In other cases, the major constraint is that the current status of the resource is below the Limit Reference Point (e.g. 3LNO American Plaice and Northern Cod). We have come to understand that FIPs are an effective tool by which market forces help create change toward sustainability in a fishery (positive reinforcement), enabling producers to access markets/buyers who are committed to sustainability, prior to the fishery receiving MSC certification but on the condition that there is a well-developed plan and program to achieve MSC certification. FIPs truly bridge the gap for fisheries that might otherwise be abandoned by segments of the market-place until they are able to achieve MSC certification

17 Major industry supporters of Canada s groundfish FIPs Thank you

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