Canada Seafood Market Report

March 2012
Canada Seafood
Market Report
Foreword
Dear Reader,
The seafood industry is a highly fragmented, yet globalized business
that is currently experiencing rapid consolidation as companies work
to balance increasing global demand against sustainability of supply.
Canada represents one of the top exporting nations for seafood and
therefore one of the major players in the global seafood industry.
This report provides an analytical overview of the main driving forces
within the Canadian seafood industry, from fishing and processing to
distribution and marketing to the plates of domestic and international
consumers.
In recent years, Íslandsbanki has maintained its seafood-focused
research work and published numerous well-received research reports
focusing on both markets and species. This report on the Canadian
Seafood Market was prepared by the Seafood Team at Íslandsbanki
in co-operation with Glacier Securities; a New York based strategic
advisory firm, and a wholly owned subsidiary of Íslandsbanki, specializing in providing corporate advisory in the seafood industry.
The report builds upon data from various sources, including the Food
and Agriculture Organization, Fisheries and Oceans Canada, Agriculture and Agri-Food Canada, and others.
The Seafood Team at Íslandsbanki hf.
Key Highlights
The Canadian Seafood Market
•
Canada is the 22nd largest fishing nation in the world
with annual production of 1.1 million MT
•
Newfoundland, Nova Scotia and British Columbia are
the provinces in Canada with the most valuable fishing
resources in terms of value
Total 2011 exports of seafood products in Canada are
valued at $4.1 billion CAD
Commercial landings on the Atlantic Coast of Canada
represent 84% of total landing volume
The most important species in terms of value is lobster,
followed by snow crab (queen crab) and shrimp
Canadian aquaculture is rapidly growing with salmon
farming at the forefront. Canada ranks 4th in the
farming of Atlantic salmon, behind Norway, Chile, and
the U.K.
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For more information, please visit our websites:
www.islandsbanki.is/seafood
[email protected]
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Canada Report
Íslandsbanki
Seafood Industry Team
Íslandsbanki offers comprehensive financial services to individuals,
households, companies, and professional investors. Building on a
tradition of service to the Iceland’s basic industries, Íslandsbanki has
developed expertise in two key economic sectors – seafood and geothermal energy.
Today, loans to seafood industry companies represent the third largest
share of the bank’s loan portfolio, or approximately 13%. This underscores the seafood industry’s great importance to the bank.
Íslandsbanki employs a group of experts who focus on the seafood
industry. The group is part of the corporate banking unit and handles
relations and services for domestic and foreign seafood industry companies, as well as the publication of analyses and reports.
Vilhelm Mar Thorsteinsson
Runar Jonsson
Ragnar Gudjonsson
Managing Director
Corporate Banking
Over 12 years of Corporate
banking experience
Executive Director – Seafood
Over 14 years of seafood
and finance experience
Senior Business Manager
Over 40 years of seafood
experience
Hjortur Thor Steindorsson
Karen B. Johannsdottir
Linda G. Lyngmo
Senior Business Manager
Over 10 years of corporate
banking experience
Credit Manager
Over 3 years of finance
experience
Analyst
Over 3 years of finance
experience
Over the years, many of the largest and leading seafood industry companies in Iceland and many other countries have been customers of
Íslandsbanki and its predecessors.
Íslandsbanki’s loan Portfolio by Industry
Individuals 4% 5% 6% 6% 11% 13% Canada Report
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Real estates 32% Goverment secured customer loans Seafood Commerced and services Finincial ins?tu?on 8% 15% Industrial Investment companies Other Íslandsbanki Seafood Industry Dashboards
Íslandsbanki’s Seafood Industry Dashboard is an international source of
inform­ation designed to make it easier for the industry to follow various data
series on the seafood industry. The information in question is collected from
various databases and widely dispersed websites, but the dashboard permits
this data to be viewed in one place in graphic form. The dashboard is divided
into four parts: Global, United States, Iceland and Stock watch.
Global: International data on the seafood industry, including volume of fish
catches, fish farming, and consumption by countries, as well as daily data on
the prices of various fish products.
United States: Data on the seafood industry in the United States, including
volume of fish catches, fish farming, and consumption. Surveys of the main
seafood products and their prices relative to other sources of protein.
Iceland: Data on the Icelandic seafood industry, including the share of the
seafood industry in national product, volume of fish catches, exports, operations, and profits of seafood industry companies, as well as daily prices of cod,
haddock, and saithe in fish markets.
Stock watch: Share prices for the world’s principal seafood industry com­
panies, as well as three Íslandsbanki Share Price Indices for the seafood
industry. The indices are based on the 15 largest seafood industry companies
in each separate continent.
Íslandsbanki’s Seafood Industry Dashboard is open to all and accessible on the
bank’s seafood industry website: www.islandsbanki.is/seafood-dashboard.
Canada Report
4
Source: Íslandsbanki
Table of Contents
The Global Seafood Market
6
Canadian Seafood Supply
23
Global Supply and Demand
Global Import and Export
Íslandsbanki Seafood Indexes
Íslandsbanki Seafood Americas Index
compared to other Americas Stock Indexes
7
8
9
10
Canada Overview
11
The Canadian Economy
Canadian Provinces
State of the Resource in Canada
Lobster
Snow Crab (Queen Crab)
Shrimp
Scallop
Mackerel
Herring
Aquaculture
Salmon
12
13
14
15
16
17
18
19
20
21
22
Canadian Landings
Landings by Species
Historical landings
Canadian Seafood Exports by Province
Canadian Seafood Exports by Species
Canadian Seafood Exports by Destination
Development of top six Export Destinations
24
25
26
27
28
29
30
Canadian Seafood Demand
31
Protein Consumption
Seafood Consumption
Seafood Consumer Prices
Canadian Seafood Imports
32
33
34
35
Canadian Seafood Companies
36
Selected Seafood Companies
Listed Canadian Seafood Companies
37
38
Disclaimer
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Canada Report
The Global Seafood Market - I
Global Supply and Demand
The Canadian seafood industry produces annually more than 1 million MT while Canadians consume approximately 800 thousand MT, which is about
1% of total annual global seafood consumption.
China is the largest seafood market in the world, both from the perspective of consumption and production.
Total Seafood Consumption by Countries in 2007 in Million MT
China Japan US India Indonesia Philippines Russia South Korea Bangladesh Viet Nam France Thailand Spain Italy Egypt Malaysia Nigeria Brazil Myanmar UK Germany Mexico Canada Source: FAO
7.7 7.4 6.0 5.5 2.9 2.7 2.5 2.4 2.2 2.1 2.1 1.8 1.4 1.3 1.3 1.3 1.3 1.3 1.2 1.2 1.2 0.8 35.4 The world´s Main Seafood Supply Countries in 2009
(Marine Fisheries) in Million MT
China 9.8 Indonesia India 7.8 Peru 7.0 Japan 5.2 5.1 Philippines 4.8 Viet Nam 4.7 US 4.7 Chile 3.9 Russia 3.5 Myanmar 3.5 Norway 3.2 South Korea 3.1 Thailand 2.9 Bangladesh Malaysia 1.9 Mexico 1.8 Brazil 1.2 Morocco 1.2 Spain 1.2 Iceland 1.2 1.1 Canada 60.5 7
Canada Report
Global Import and Export
In 2009, Canada ranked 8th worldwide among seafood exporting countries in terms of value and 14th among seafood importing countries. Canada´s
seafood exports have historically exceeded imports, resulting in annual trade surpluses.
The top ten seafood exporting countries account for about 51% of total exports in the Industry.
Top Eight Exporters of Fish and Fishery Products
(2009) in Billion USD
10.5 China 7.1 Norway 14.0 Canada Report
8
4.6 3.6 2.8 k ar
he
m
UK
De
n
y an
ly rm
Ita
n na
Ch
i
Sp
a
Ja
pa
in
Fr
an
ce
Ge
Ne
t
3.3 US
3.7 2.8 2.7 2.6 2.6 2.0 ea
Sw
ed
en
Ho
ng
K
on
g Ca
na
da
5.1 s 5.1 4.0 Canada 5.6 Ko
r
5.9 nd
4.2 th
US So
u
4.3 rla
Viet Nam Chile 13.5 6.2 Thailand Denmark Top 14 Importers of Fish and Fishery Products
(2009) in Billion USD
Source: FAO
Íslandsbanki Seafood Indexes
Íslandsbanki Seafood Indexes, Jan.2,2009 = 100
350 In January 2009, Íslandsbanki launched three stock
market indexes representing the Americas, Europe, and
Asia/Africa. Further information on stock prices and
index composition can be found on the Islandsbanki
Seafood Dashboard at www.islandsbanki.is/seafooddashboard.
Each index contains fifteen of the largest publicly
traded companie s, taking into consideration market
capitalization and free-float number of shares.
Since January 2009 (index = 100) the Americas index
has increased by 75.5%, which is equivalent to a compounding annual growth rate of 20.6%. The index
peaked in December 2010 when it reached 307.25.
Source: Bloomberg, Capital IQ & Íslandsbanki
300 250 200 150 100 50 0 2009 2010 2011 Asia, Oceania & Africa Company Name
Aquachile SA
Blumar SA
Copeinca ASA
Australis Seafoods SA
Multiexport Foods SA
Pesquera Exalmar SA
CIA Pesquera Camanchaca SA
High Liner Foods Inc
Austral Group SAA
Sociedad Pesquera Coloso
Omega Protein Corp.
Empresa Pesquera Eperva SA
Pesquera Iquique-Guanaye
Clearwater Seafoods Inc
Invertec Pesquera Mar De Chiloe SA
Europe 2012 America Market Cap. Total Enterprise 1-Yr Rtn
in million
USD
970
620
420
415
409
379
355
280
271
179
175
155
128
102
90
Value in million
USD
1,060
766
609
426
499
453
538
378
336
160
156
543
499
389
261
-11.26%
-33.76%
-21.78%
-23.24%
-29.72%
-21.94%
-40.14%
23.82%
-5.96%
-30.93%
-21.84%
-28.51%
28.19%
56.92%
-28.19%
Country
CHILE
CHILE
CHILE
CHILE
CHILE
PERU
CHILE
CANADA
PERU
CHILE
US
CHILE
CHILE
CANADA
CHILE
Data Collected 27.02.2012
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Canada Report
Íslandsbanki Seafood Americas Index compared to other Americas Stock Indexes
The Íslandsbanki Seafood Americas Index is a free-float market
capitaliz­ation weighted index which measures the performance of 15
seafood companies in the America.
The Chile Stock Exchange Index (IGPA) is a free-float market capitaliz­
ation weighted index which includes the majority of the companies
traded on the Santiago Stock Exchange.
The NYSE Composite Index is a free-float market capitalization
weighted index which measures the performance of all common stocks
listed on the New York Stock Exchange. The two largest sectors within
the index are financials and oil & gas.
The Peru Stock Exchange Index (IGBLV) is a market capitalization
weighted index which tracks the performance of the largest and most
actively traded companies on the Lima Stock Exchange. Mining is the
largest single sector within the index.
Stock Market Indexes, Jan.2,2009 = 100
400 350 300 250 200 150 100 50 0 1/2/09 7/21/09 Íslandsbanka Americas Index Canada Report
10
2/6/10 Chile IGPA Index 8/25/10 3/13/11 9/29/11 NYSE Composite Index (^NYA) Peru IGBVL Index Source: Íslandsbanki, Bloomberg, Capital IQ & Ernst & Young
Canada Overview - II
The Canadian Economy
•
Located in North America, Canada borders the North Atlantic Ocean
on the east, North Pacific Ocean on the west, and the Arctic Ocean on
the north. The country is rich in natural resources such as natural gas,
oil, agriculture, and seafood. Since World War II the growth of manufacturing, mining, and the service sectors has transformed the country
into an industrial economy. The country has a substantial trade surplus
with the U.S., its biggest trading partner.
•
Canada’s major banks have emerged from the financial crisis as among
the strongest in the world due to conservative lending practices and
strong capitalization.
•
•
•
•
•
•
•
•
Area: 9,984,670 km2. Second largest country after
Russia and slightly larger than U.S.
Population: 34.3 million
Major Cities: Ottawa (capital)(1.2m), Toronto (5.4m),
Montreal (3.75m), Vancouver (2.2m)
GDP (PPP): US$1.389 trillion
GDP growth (PPP): 2.2%
GDP per capita (PPP): US$40,300
GDP composition by sector: agriculture: 1.9%,
industry: 27.1%, services: 71%
Inflation rate: 2.8%
Unemployment: 7.4%
Trade Balance: export $450.1 billion, import $459.6 billion
Numbers are 2011 estimates
Nominal GDP & Inflation Rate
1.8 5.0% 1.6 1.4 1.0 1.2 1.2 1.3 1.4 1.5 1.6 1.5 1.6 Exchange Rate of the CAD to USD
4.0% 3.0% 0.8 2.0% 0.6 0.4 1.0% 0.2 0.0 2002 2003 2004 2005 Nominal GDP Canada Report
12
2006 2007 2008 2009 2010 0.0% CAD/USD 1.2 1.5 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1.0 0.9 0.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Infla:on Rate Source: Capital IQ and CIA World Factbook
Canadian Provinces
Atlantic Coast
Pacific Coast
Inland
Provinces: Newfoundland & Labrador, Nova
Scotia, Prince Edward Island, Québec and New
Brunswick
Provinces: British Columbia
Provinces: Ontario and Manitoba
Export value 2011: $912 million CAD
Export Value 2011: $145 million CAD
Export value 2011: $3 billion CAD
Main species: hake, salmon, halibut,
clams, and crab
Main species: Freshwater Fisheries is the most
important fishery in Ontario and Manitoba,
representing 88% of overall landed value in
Canada in 2008
Main species: shrimp, herring, crab (queen),
lobster, scallop, Greenland turbot, clams, and
herring
Aquaculture 2010:
Volume: 70,171 MT
Value: $346 million CAD
Source: Fisheries and Oceans Canada
Aquaculture 2010:
Volume: 76,420 MT
Value: $413 million CAD
Aquaculture 2010:
Volume: 4,300 MT
Value: : $17 million CAD
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Canada Report
State of the Resource in Canada
In Canada, federal jurisdiction over “seacoast and inland” fisheries
was established under the British North America Act of 1867 and later incorporated in the Constitution Act in 1982. The mandate of the
Department of Fisheries and Oceans (DFO) is outlined in the Government Organization Act, 1979. The DFO’s mandate has expanded from
simply conserving the wild resources; to an emphasis on managing the
overall socio-economic aspects of the fishery by governing matters
such as fish allocation and licensing.
The main species in terms of volume are
shrimp, herring, snow crab, lobster, scallop
and mackerel.
The DFO determines the Total Allowable Catch (TAC) for each species,
based on the scientific advice from the Canadian Science Advisory
Secretariat and input from the Regional Advisory Process. The
assessment criteria include acoustic surveys, bottom trawl surveys,
gillnetter telephone surveys, and historic catch volumes. As a general
rule, the TAC is normally 20% of the total biomass, without ever
exceeding the Maximum Sustainable Yield.*
Historical Landings (Thousand MT)
700 600 500 400 300 *Maximum Sustainable Yield or MSY is, theoretically,
the largest yield (or catch) that can be taken from a
species’ stock over an indefinite period. MSY is extensively used for fisheries management. MSY has
been refined in most modern fisheries models and
occurs at around 30% of the unexploited population
size. This fraction differs among populations depending on the life history of the species and the agespecific selectivity of the fishing method.
Canada Report
14
200 100 0 2005 Shrimp 2006 Herring 2007 Snow Crab 2008 Lobster 2009 2010 Scallop Mackerel Source: Nova Scotia Agriculture and Fisheries, Fisheries and Oceans Canada,
FAO. Fisheries and Aquaculture Department, Agriculture and Agri-Food Canada
Lobster
Often called the “King of Seafood”, the lobster is found
along the east coast of North America, from North
Carolina in the U.S. to the Labrador region in Canada,
and is most abundant off the coastlines of Maine,
southwest of Nova Scotia, and the Gulf of St. Lawrence.
The Atlantic lobster fishery is unique as it is not managed on the basis of quotas. It is controlled through
minimum sizes, protection of spawning females, limits
on the amount caught and type of fishing gear used,
and closed seasons. There are approximately 30
lobster seasons annually throughout all five Canadian
provinces that border on the Atlantic Ocean. The seasons are staggered over the calendar year to regulate
the supply of lobster to the market. Lobster landings
peak twice a year from April to June across all regions
and from October to December in southwestern Nova
Scotia.
Commercial Landings by Volume (Thousand MT)
51 8 7 55 8 9 8 29 32 26 2005 2006 2007 Nova Sco1a 58 10 10 9 10 33 31 36 2008 2009 2010 49 9 New Brunswick 64 59 Prince Edward Island Quebec 11 11 Newfoundland There are more than 3,200 lobster licenses distributed
in the three provinces that the Gulf region encompasses, namely all of Prince Edward Island, parts of
New Brunswick, and Nova Scotia. The lobster fishery
has been one of the most stable fisheries in the past
decade.
Source: Nova Scotia Agriculture and Fisheries, Fisheries and Oceans Canada, FAO.
Fisheries and Aquaculture Department, Agriculture and Agri-Food Canada
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Canada Report
Snow Crab (Queen Crab)
Canada is the world’s largest producer of snow crab
(often referred to as “Queen Crab”) with total landings
of more than 84,000 MT in 2010.
Snow crabs range from as far north as the Arctic Ocean,
from Newfoundland to Greenland in the Atlantic Ocean,
and across the Pacific Ocean, including the Sea of
Japan, the Bering Sea, the Gulf of Alaska, Norton
Sound, and even as far south as California. However,
in Canada, the snow crab is harvested and processed
mostly throughout Atlantic Canada and Quebec. In
Atlantic Canada, the main fishing areas include the
coasts of Newfoundland, the Labrador region, and
offshore on the Grand Banks. The Canadian snow crab
fishing season runs from April to November.
Snow crabs are caught commercially in traps from sandy
or muddy bottoms in depths ranging between 1 to 470
meters. Male and female crabs are segregated throughout most of the season where males can be found on
muddy bottoms in deep waters and females on sandgravel or rocky bottoms at much shallower levels.
Canada Report
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Commercial Landings by Volume (Thousand MT)
95 90 91 13 12 16 16 15 16 11 11 44 47 2005 2006 16 Newfoundland Nova Sco9a 94 97 15 84 4 11 14 16 16 50 53 53 52 2007 2008 2009 2010 Quebec 11 14 10 New Brunswick Prince Edward Island The snow crab fishery is managed based on annual TAC, minimum size of both crabs
and traps and limitation on seasons and areas. There are approximately 60 different
snow crab management areas in Canada and more than 4,000 licenses issued annually.
Source: Nova Scotia Agriculture and Fisheries, Fisheries and Oceans Canada, FAO.
Fisheries and Aquaculture Department, Agriculture and Agri-Food Canada
Shrimp
The pink cold-water shrimp is considered one of the
most important commercial species of shrimp in the
world. Among other important shrimp species found
in the eastern and northern part of Canada are Aesop
shrimp and northern shrimp. In addition, there are about
85 different varieties of cold-water shrimp found on the
west coast of Vancouver Island from Queen Charlotte
Sound South. In Canada, the shrimp is considered the
largest fish species in terms of volume with annual landings of more than 165 thousand MT in 2010.
the offshore fishery is operated by large processing vessels
capable of cooking and freezing shrimp within minutes of
harvest. Fresh shrimps are usually available from April through
November while frozen shrimps are processed into variety of
different product forms and are available year round.
Commercial Landings by Volume (Thousand MT)
The resource is managed with limits on the number of
licenses, size of vessels used, minimum mesh size, use of
a specified separator grate, TAC, and a mandatory dockside monitoring of all inshore landings. For the offshore
processing vessels, the TAC is divided into enterprise
allocations and individual company quotas. All vessels
in the offshore fishery must also have independent
observers on board at all times.
The shrimp fishery is divided between inshore and
offshore. The inshore boats deliver fresh and frozen
shrimp to shore plants for cooking and peeling while
Source: Nova Scotia Agriculture and Fisheries, Fisheries and Oceans Canada, FAO.
Fisheries and Aquaculture Department, Agriculture and Agri-Food Canada
170 179 188 18 30 167 17 29 19 28 115 123 130 118 2005 2006 2007 2008 Newfoundland Nova Sco8a Quebec 22 21 165 139 22 20 89 2009 New Brunswick 22 23 112 2010 Bri8sh Columbia 17
Canada Report
Scallop
The sea scallop (giant scallop) is one of the most
important commercial shellfish species in Canadian
fisheries with gross landings of 60 thousand MT in
2010. Georges Bank, located off the southwest portion
of Nova Scotia, accounts for about 80% of all offshore
scallops landings. The remaining 20% occurs off the
Atlantic coast of Nova Scotia and off the southern coast
of Newfoundland.
The fishery is managed in six geographical zones called
Scallop Fishing Areas, which range from the St. Pierre
Bank off the south coast of Newfoundland to Georges
Bank off the southern coast of Nova Scotia.
The management measures include meat counts, TAC
for each of the six areas, no new licenses, electronic
vessel monitoring, dockside monitoring, and industrymanaged closures designed to protect juvenile scallop
fishing.
Scallops can live up to 21 years and need at least four to five years to
reach commercial size. Sea scallop are known for their beautiful
distinctive circular-shaped shell that can reach up to
8 inches in size. Sea scallops are found on sandy,
gravel bottoms in depths ranging from 10 to 384
meters. The offshore concentrations are found
in depths between 35 to 120 meters.
Commercial Landings by Volume (Thousand MT)
57 48 2005 Canada Report
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63 65 68 57 61 64 63 60 58 56 2006 Nova Sco1a 2007 2008 New Brunswick 2009 Newfoundland Quebec Prince Edward Island Bri1sh Columbia 2010 Source: Nova Scotia Agriculture and Fisheries, Fisheries and Oceans Canada, FAO.
Fisheries and Aquaculture Department, Agriculture and Agri-Food Canada
Mackerel
In Canada, the Atlantic mackerel fishery is relatively
large in terms of volume but not in terms of value compared to other pelagic species. The Canadian mackerel
fishing area ranges from Newfoundland and Labrador
to Cape Hatteras, North Carolina. The stock is considered to be both competitive and abundant and is not
in immediate danger of being overfished to the extent
the resource experienced in the 1960s and the 1970s.
The main gears used in the mackerel fishery are traps,
gillnets, hand lines, and purse seines. The mackerel is
usually found in shallow levels close to the shore and is
very sensitive to seasonal changes in water temperature.
Global demand for Atlantic mackerel has been increasing as the fish is being sought after for both cooking
and sashimi due to its rich flavor. The fish is very high
in Vitamin B and Omega-3, containing almost twice as
much Omega-3 as salmon.
Commercial Landings by Volume (Thousand MT)
55 54 53 5 4 3 42 39 30 43 44 45 23 2005 Newfoundland Source: Sources: Nova Scotia Agriculture and Fisheries, Fisheries and Oceans Canada, FAO.
Fisheries and Aquaculture Department, Agriculture and Agri-Food Canada
2006 2007 Prince Edward Island 2008 Quebec 34 33 2009 2010 New Brunswick Nova ScoCa 19
Canada Report
Herring
The herring fishery is the largest small pelagic fishery
in eastern Canada with annual landings of almost 160
thousand MT in 2010. Due to its geographic location,
Canadian fisheries have access to both the Pacific and
Atlantic herring species. The Pacific herring can be found
throughout the north Pacific while the Atlantic herring
is widely distributed in the continental shelf waters of
the Northeast Atlantic, from Labrador to Cape Hatteras.
Many different types of management tools have been
applied to the herring fishery, including TAC, ITQ, and
limitation on entry for new companies.
In Canada, herring is fished both inshore and offshore
with many different gear types, the most common
being gillnet, purse seine, and weir. The main products
from the herring fishery include fresh, frozen, smoked,
canned, roe, and by-products such as fishmeal and fishoil. Herring is also an important source of bait for the
lobster and snow crab fisheries.
Canada Report
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Commercial Landings by Volume (Thousand MT)
192 29 183 23 180 12 15 26 14 25 13 23 63 57 69 55 60 60 2005 2006 2007 152 12 168 12 159 14 28 16 26 42 49 51 66 55 2008 2009 2010 13 28 46 Nova Sco2a New Brunswick Newfoundland Prince Edward Island Bri2sh Columbia Quebec Source: Nova Scotia Agriculture and Fisheries, Fisheries and Oceans Canada, FAO.
Fisheries and Aquaculture Department, Agriculture and Agri-Food Canada
Aquaculture
Canada ranks 23rd among world aquaculture producers and
is the fourth largest producer of farmed salmon, behind
Norway, Chile, and the U.K. Other key aquaculture species
are trout, clams, oyster, and mussels.
The aquaculture sector is considered an important economic driver in both rural and coastal areas of Canada. In
2010, Canadian farmed seafood was valued at $926 million
CAD (161,326 MT). This value has almost quintupled since
1990, when it was valued at $196 million CAD (36,462 MT).
It is estimated that the aquaculture sector gene­rates more
than $2 billion CAD in economic value and provides 14,500
Canadians with full time employment.
Canadian aquaculture is divided equally between the Pacific
and Atlantic coasts. British Columbia leads all provinces,
followed by New Brunswick, Prince Edward Island and Newfoundland.
Aquaculture – Value in 2009
Bri,sh Columbia 2% 8% 4% New Brunswick Newfoundland 12% 53% Nova Sco,a PEI 21% Ontario Québec Aquaculture – Volume in 2009
1% 7% 3% Bri,sh Columbia 9% New Brunswick 51% 13% PEI Newfoundland Nova Sco,a 16% Source: Fisheries and Oceans Canada
Ontario Québec 21
Canada Report
Salmon
Salmon accounts for 73% of total aquaculture production in Canada. Production is primarily concentrated
in British Columbia, New Brunswick, Nova Scotia, and
Newfoundland.
In 2010, 101,385 MT of farmed salmon were harvested
in Canada, a slight increase from the year before. Canada
exported 69% of farmed seafood in 2009, of which 97%
was to the U.S.
In Canada, the salmon industry is managed by the DFO
which also manages hatcheries and issues licenses to
farming operations. Additionally, the DFO enforces
regulations and collects statistics on all relevant salmon
species.
Aquaculture - Volume (Thousand MT)
200 150 100 50 0 1991 1993 1995 Salmon 22
Trout 1999 Oysters 2001 2003 Mussels 2005 Clams 2007 2009 Other Aquaculture - Value in Million CAD
900 800 700 600 500 400 300 200 100 0 1991 1993 1995 Salmon Canada Report
1997 1997 Trout 1999 Clams 2001 Oysters 2003 2005 Mussels 2007 2009 Other Source: Nova Scotia Agriculture and Fisheries, Fisheries and Oceans Canada, FAO.
Fisheries and Aquaculture Department, Agriculture and Agri-Food Canada
Canadian Seafood Supply - III
Canadian Landings
Total seafood landings in 2010 were valued at $1.6 billion
CAD, a 5.9% decrease from 2009.
In 2010, 34% of the total volume of commercial fisheries
in Canada was landed in Newfoundland, for a total of $510
million CAD. Nova Scotia followed with 29% of total volume
landed, valued at approximately $487 million CAD.
Overall Commercial Landings in 2010 (MT Live Weight)
38,532 55,434 96,376 Newfoundland & Labarador 324,610 Nova Scota BriAsh columbia 150,861 New Brunswick Québec Commercial landings on the Atlantic Coast represent 84%
of all landed volume in Canada, and 82% of value.
Prince Edward Island 277,087 Overall Commercial Landings in 2010 (Thousand CAD)
Newfoundland & Labarador 103,353 115,856 121,091 510,692 Nova Scota BriAsh columbia New Brunswick 294,212 Québec 487,031 Canada Report
24
Prince Edward Island Source: Fisheries and Oceans Canada
Landings by Species
Canada Landings 2007-2010 – Top 6 Species in Million CAD
Lobster was the most important specie in 2010 in terms of value
followed by queen crab, shrimp, and scallop.
396 507 Lobster 619 629 Of the four major species, lobster, crab and scallop decreased in total
value from 2009 to 2010 primarily as a result of decreased landing,
lower market prices, and the strengthening of the Canadian dollar.
281 313 357 368 Crab, Queen 252 192 Shrimp Canada Seafisheries Landings 2010 – Top 6 Species
Scallop Lobster 24% 29% Crab, Queen Shrimp Scallop 4% 5% 5% 17% Clams / quahaug Salmon 16% Source: Fisheries and Oceans Canada
Clams / quahaug Other Salmon 260 260 83 88 93 90 74 85 60 65 2010 2009 2008 2007 70 24 22 32 25
Canada Report
Historical Landings
Landings in Million CAD – Species-Groups
2,500 Following figures show the development in value in
Canada fishery from 1990 to 2010.
Over the last two decades both groundfish and
pelagic have decreased in value by 45% and 58%
respectively. The primarily cause for the declining
ground­­­­­­­fish value is the closing of the cod fishery.
Shellfish has, however, increased by 126%, mainly due
to increases in crab, shrimp and lobster prices.
2,000 1,500 1,000 500 0 1990 1992 1994 Groundfish 1996 1998 2000 Pelagic & other finfish 2002 2004 Shellfish 2006 2008 2010 Other Landings in Million CAD – Top Species
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1990 Canada Report
26
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Lobster Crab, Queen Shrimp Scallop Clams/quahaug Salmon Halibut Greenland turbot Source: Fisheries and Oceans Canada
Canadian Seafood Exports by Province
Canada Seafood Export 2008-2011 in Million CAD
In 2011, Canadian exports of seafood totaled 610 million MT, valued at
$4.1 billion CAD. This is an increase in value from 2010 when seafood
was exported for $3.9 billion CAD.
912 957 Bri/sh Columbia 883 British Columbia led Canadian provinces with exports of $911 million
CAD, followed by Nova Scotia with exports of $902 million CAD. Newfoundland came third with exports of $860 million CAD.
911 902 794 Nova Sco/a 810 843 833 Canadian Provinces Seafood Exports in 2011, by Value
783 New Brunswick 7% 2% 4% 2% 696 757 Bri+sh Columbia 22% Nova Sco+a New Brunswick 780 Newfoundland 721 811 Newfoundland 21% 265 Quebec 22% 20% Source: Fisheries and Oceans Canada
Prince Edward Island Ontario 2011 860 Quebec 2010 2009 2008 246 240 231 Other 27
Canada Report
Canadian Seafood Exports by Species
The most valuable Canadian exports species in 2011 were lobster, salmon, crab and shrimp. The combined value of these species represented about
68% of the total export value.
Export value for all species increased in value from 2010 to 2011 except for salmon, which decreased by 11.8% and clam, which deacreased by 8.4%.
Canada Seafood Export in 2011, by Species and Value
25% 30% Canada Seafood Export 2010-2011 in Million CAD
Lobster Crab 1,028 Salmon 739 Shrimp, prawn 2% 18% 10% 15% 588 28
616 2010 699 Clam 394 372 Other 98 107 Lobster Canada Report
2011 947 Crab Salmon Shrimp, prawn Clam Source: Fisheries and Oceans Canada
Canadian Seafood Exports by Destination
In 2011, the main market for Canadian seafood was the U.S., accounting for 62% of exports. Europe accounted for 14.5% of Canada´s
exports and Japan 6%.
Canada Top Seafood Export Destination in 2011, by Value
Japan 2% 3% 3% 6% China Hong Kong 62% Russia United Kingdom Other Source: Fisheries and Oceans Canada
Canadian Exports from Major Markets in 2011, by Value
United States 15% 9% The People’s Republic of China and Hong Kong continue to grow as
export destinations for Canada’s seafood products. In 2011, more
than $478 million CAD of seafood was destined for these two markets
(approximately 11.7% of total exports), up from $389 million CAD in
2010.
2% 11% United States Europe 9% Japan 6% 10% China 62% Russia Other 29
Canada Report
Development of top six Export Destinations
The U.S., which is the most important market for Canadian seafood, imported $2.5 billion CAD of seafood in 2011. European Union was
the 2nd most important export market with $400 million CAD imported, followed by Japan with $250 million CAD imported.
Development of Seafood Exports in Million CAD
5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1991 1993 1995 United States Canada Report
30
1997 Japan 1999 2001 2003 European Union 2005 China 2007 2009 Hong Kong 2011 Russia Source: Fisheries and Oceans Canada
Canadian Seafood Demand - IV
Protein Consumption
Since 1996, overall animal protein consumption has remained relatively stable at around 100 - 110kg. pr. capita pr. year. In 2009, seafood protein
consumption accounted for only 7.8 kg. per Capita of the total protein consumption while poultry and red meat accounted for 37.7 kg. per Capita
and 55.5 kg. per Capita respectively.
Seafood and red meat protein consumption declined by 2.2kg. and 5.3kg. pr. capita pr. year from 1996 to 2009, while poultry protein consumption
increased by 6.9 kg. during the same period.
Canada Animal Protein Consumption 1996-2009 (In kg. per Capita)
120 100 80 60.8 60.2 64.1 66.5 64.0 62.8 61.7 61.2 61.2 56.6 56.8 59.0 56.1 55.5 30.8 31.8 32.7 33.8 35.3 36.5 36.7 35.5 36.9 37.3 37.7 37.8 38.1 37.7 8.4 8.8 8.8 10.0 9.5 9.7 9.6 9.8 9.1 9.0 8.7 8.8 7.8 7.8 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 60 40 20 0 Seafood Canada Report
32
Poultry Red Meat Source: Fisheries and Oceans Canada
Seafood Consumption
Canadian seafood consumption has trended slightly downwards since it peaked in 1999 primarily as a result of lower landing volumes. Per capita
consumption in 2010 increased to 7.32 kg. from 7.18 kg in 2009.
Canada seafood consumption 1995-2010 (In kg. per Capita)
10 0.4 9 8 0.3 7 1.5 6 5 2.2 0.3 0.4 0.3 1.7 1.9 2.1 2.0 2.3 2.4 2.3 0.5 0.5 2.4 2.1 2.5 2.2 2.7 0.4 0.5 2.2 2.0 3.0 2.8 0.5 0.5 1.9 1.9 2.7 2.9 0.5 1.9 2.9 0.4 1.6 2.4 4 3 2 4.0 4.5 4.3 4.0 4.8 4.5 4.4 4.0 4.4 3.9 3.7 1 3.5 3.6 0.4 0.4 0.4 1.4 1.5 1.6 2.2 2.4 2.4 3.1 2.8 3.0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Seafish, Fresh & Frozen Source: Fisheries and Oceans Canada
Seafish, Processed Shellfish Freshwater fish 33
Canada Report
Seafood Consumer Prices
Consumer Price Index (CPI) 2006-2011
The Consumer Price Index (CPI) in Canada rose by 2.56% in 2011
which is above the last five years compounding annual growth rate
(CAGR) of 1.98%.
9.9%
16.3%
18.7%
11.2%
15.3%
All Foods
Meats
Poultry
Fish & Seafood
Dairy
CAGR
1.9%
3.1%
3.5%
2.2%
2.9%
Seafood prices have increased by 11.2% since 2006 (2.2% CAGR), substantially lower than red meats (3.1% CAGR) and poultry (3.5% CAGR).
Consumer Price Index
120 115 110 105 100 95 2006 2007 Poultry Canada Report
34
2008 Meats 2009 Fish and Seafood 2010 2011 Dairy Source: Statistics Canada 2012 and IMF Country Data and Statistics
Canadian Seafood Imports
Canadian imports of fishery products in 2011 were
valued at $2.7 billion CAD. Approximately 35% of
the total imports, or $957 million CAD, was from
the U.S., followed by China with imports of $413
million CAD, and Thailand with imports of $398
million CAD.
Seafood Imports Canada 2011 by Countries and Value
US 24% 36% China Thailand 5% Viet Nam 5% 15% Chile 15% Other Seafood Imports Canada 2011 by Species and Value
18% 44% 9% 8% 3% 3% 6% 4% 2% 3% Source: Fisheries and Oceans Canada
Shrimp, prawn Salmon Lobster Tuna Crab Halibut Scallop Squid Cod Other 35
Canada Report
Canadian Seafood Companies - V
Selected Seafood Companies
The majority of seafood companies in Canada are either privately held or subsidiaries of international seafood companies with limitations on
the financial information available. The table below summarizes 12 selected seafood companies that play an important role in the Canadian
Seafood Industry.
Company Location/ Headquarter
Sales 2010
Operations
Ownership
(CAD millions)
High Liner Foods, Inc.
Lunenbourg, Nova Scotia
584.7
Processing and Distribution
Publicly Traded
Clearwater Seafoods, Inc.
Bedford, Nova Scotia
299.0
Harvesting, Processing and Distribution
Publicly Traded
Marine Harvest Canada, Inc.
Campbell River, British Columbia
234.1
Salmon Farming
Marine Harvest ASA
Clover Leaf Canada, Ltd
Markham, Ontario
151.9*
Canned Seafood Products
Bumble Bee Foods, Inc.
EWOS Canada, Ltd.
Surrey, British Columbia
96.4
Manufacturing and Distribution of Fish Feed
Cermaq ASA
Cooke Aquaculture, Inc.
St. George, New Brunswick
N/A
Salmon Farming
Privately Held
Ocean Nutrition Canada, Ltd.
Dartmouth, Nova Scotia
N/A
Marine-Based Production
Clearwater Fine Foods, Inc
Ocean Choice International, Inc.
St. John‘s, Newfoundland
N/A
Processing and Distribution
Penney Group, Inc. and others
Barry Group, Inc.
Corner Brook, Newfoundland
N/A
Harvesting and Processing
Westfish International, Inc.
Canadian Fishing Company, Ltd.
Vancouver, British Columbia
N/A
Harvesting, Processing and Distribution
Jim Pattison Group, Inc.
Northern Harvest Sea Farms, Inc.
Letang, New Brunswick
N/A
Salmon Farming
Privately Held
Quinlan Brothers, Ltd.
St. John‘s, Newfoundland
N/A
Harvesting and Processing
Privately Held
* Estimates based on 9 month financial statements for 2010
Source: S&P Capital IQ, Company websites, Company Reports
37
Canada Report
Listed Canadian Seafood Companies
Clearwater – 5 Year Share Price
6.0 High Liner Foods Inc. (TSX: HLF)
Founded in 1899, High Liner is a value-added processing
company that specializes in producing and marketing
of prepared and packaged seafood products for the
US market, Canada, and Mexico. The company made a
strategic acquisition in late-2011 when it purchased the
US and Asian operations of Icelandic Group for approximately US$ 280 million. Total revenues for 2011 were
$668.6 million CAD and net income was $18.2 million
CAD. Headquarters are located in Lundenburg, Canada.
Canada Report
38
CAD/Share Clearwater Seafoods Incorporated (TSX: CRL)
Founded in 1976, Clearwater is involved in harvesting,
processing and distribution of seafood products into the
US market, Canada, Europe, and Asia. LTM revenues on
September 30th 2011 were $232.5 million CAD and net
income was $7.8 million CAD. Headquarters are located
in Bedford, Canada.
5.0 4.0 3.0 2.0 1.0 0.0 2007 2008 2009 2010 2011 2012 2011 2012 High Liner Foods – 5 Year Share Price
CAD/Share There are two seafood companies listed on the Toronto
Stock Exchange with a combined market cap of $381.7
million CAD, which accounts for only 0.02% of the market
cap of all listed companies in Canada.
20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2007 2008 2009 2010 Source: S&P Capital IQ, Company websites, Company Reports.
Disclaimer
This introduction was produced by Íslandsbanki hf.
The information in this summary is based on publicly available data and infor­­mation
from various sources deemed reliable. The information has not been independently
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39
Canada Report
Íslandsbanki Seafood Team
Íslandsbanki, Kirkjusandi, 155 Reykjavík, Iceland
Tel.: +354 440 4500
For more information, please visit our websites:
www.islandsbanki.is/seafood
[email protected]