May 12, 2013
PEIFA KEY CONCERN AREAS AND ACTIONS PLANNED - May 12th, 2013
Today's meeting with the processors/buyers resulted in no movement on price. Many areas of concern were discussed. The PEIFA will continue to raised key areas of concerns with all parties and focus on actions planned for the betterment of the industry. We will continue to update the memmbership as information becomes available.
1) Communication:
The model is non existent or broken between harvesters, processors, buyers and government.
Action: A new model in PEI was established today where 3rd party facilitation will be used to help build a communication model moving forward. We need this model going forward and much work is to be done here.
Reliance on the traditional methods of price communication has not worked and these methods have fallen apart in Spring 2013.
2) Distribution and Price:
The largest area of concern is lack of accurate inventory information exchange due to competitive forces among processing and brokering businesses and the harvesting community.
Action: A functional degree of trust can only be achieved through meetings that are attended by both parties commencing well before the season start and / or an agreed upon minimum shore price formula.
This area will require much discussion over the next number of months as to what would work best on PEI. There must be support and buy in from both sides. The Province may need to develop legislation to support a program like this.
3) Supply and Industry Wide Issues:
This is much more than a PEI issue as it is a North South issue also. This involves the entire North Atlantic region.
Action: Minister Shea has committed to lobby Minister Ashfield on organizing and supporting North / South meetings to address the industry issues among the two regions. The PEIFA will participate in such efforts.
Potential solutions include supply management methods that are fisher driven not government driven such as those voted on earlier this year in SW Nova Scotia.
4) Additional Developments:
Action: There are immediate meetings planned with the Province to discuss relief programs for the fishers that are facing economic hardship due to pricing in the Spring 2013 season.
Action: Efforts will be increased on having more rationalization funds being made available so that fleets can be bought out and traps retired. This will include both Provincial and Federal levels of government. This has recently been discussed with Minsters Shea, Deputy Minister Hardy and Minister Ashfield. The PEIFA has presented a unique funding model that would provide core funding on an annual basis to buy out and / or retire lobster and other species licenses.
Action: A model will be looked at where more PEI fleets can be pooled for group selling.
Action: A proposal is going to Provincial cabinet this week to develop a premium PEI lobster brand for the international marketplace. This requires Provincial cabinet support. This initiative is predicated on the basis of having a Fair Trade component for Harvesters. A fair and sustainable return must be returned to the harvesting sector in order for this to be supported and work.
Action: The joint Harvester / Processor initiatives such as maintaining 72 mm carapace size and the proposed boat chiller system study will continue.
Action: Harvester involvement and support for MSC certification will be under reviewed by fishing organizations in Atlantic Canada.
Action: Provincial marketing efforts regarding the promotion of lobster must be reviewed and assessed for current impact and funding commitments.
Telephone: (902) 566-4050
Fax: 902-368-3748
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