Why this issue/sector merits consideration

This section is adapted from the Office of the Commissioner for Aquaculture Development "Recommendations for Change" report.

For more information visit:

http://www.ocad-bcda.gc.ca/Private%20Report%20Final%20P2.pdf

Aquaculture is a farming, not a fishing enterprise.  It is a modern, fast growing food production sector and Canada needs to establish a farm based approach to our role in this industry.  Although the contributions and potential of aquaculture as a lead producer of a safe, reliable source of high-quality affordable fish protein have been acknowledged time and time again, aquaculture does not have an enabling policy or regulatory framework in place to allow the industry to move forward.  In fact the current aquaculture policy framework is having the unintended affect of restraining the industry because the framework represents a "piecemeal" approach, not an encompassing food production approach.

The new Agriculture Policy Framework (APF) announced by Prime Minister Chrétien in June of 2002 is aimed at rejuvenating both the federal and provincial policies and management of the agriculture sector.  In fact, it should apply to the entire food production sector in Canada, including fish, since fish is food.  One can argue that some elements of the APF, e.g. food safety and branding of Canadian food in international markets, could be at risk if fish products are excluded from this initiative.

It is urgent that the federal government recognize the agriculture nature of aquaculture and establish a public policy and regulatory environment that distinguishes aquaculture from the hunter-gatherer approach of the wild fisheries.  Fisheries and Oceans Canada (DFO) as the lead regulatory agency for aquaculture should pursue similar and collaborative approaches with Agriculture and Agri-Food Canada (AAFC) to help foster the aquaculture sector.

Canada should establish the rights of aquaculturists to manage their private stocks according to agronomy principles and market forces instead of having to follow regulations aimed at the hunter-gatherer approach of the public fisheries. The provisions of the Fisheries Act to protect fish habitat and provisions of the Canadian Environmental Assessment Act would continue to apply to aquaculture in order to ensure that aquaculture operations are conducted in an environmentally safe manner.

The following three points are key to the identification of an appropriate policy response facing the federal government:

• 34 federal departments and agencies are involved either directly or indirectly in aquaculture clearly demonstrates the need to implement a horizontal approach to the management of aquaculture within the federal system.
• Aquaculture is also a shared jurisdiction in Canada and thus requires an effective and permanent federal/provincial/territorial planning, harmonization and management mechanism.
• Aquaculture products are food, and thus require a modern agriculture-based approach with regard to on-farm food safety, production management, farm risk management, quality assurance and marketing.

Examples of what's right/wrong with how this issue/sector is regulated

This section is adapted from the Office of the Commissioner for Aquaculture Development "Recommendations for Change" report.

For more information visit:

http://www.ocad-bcda.gc.ca/Private%20Report%20Final%20P2.pdf

According to the Food and Agriculture Organization of the United Nations (FAO), aquaculture is the fastest growing food production sector in the world.  The fundamental problem with aquaculture regulation in Canada is that aquaculture is regulated according to fisheries (hunter-gatherer approach) conservation policies instead of as a food production sector.

Since 1984, Fisheries and Oceans Canada (DFO) has been and continues to be the lead regulatory agency for aquaculture.  The legislated mandate of DFO is to conserve wild stocks and protect the marine environment.  Therefore, the focus of DFO has appropriately been on wild fisheries conservation and environmental protection.  However, little attention has been paid to aquaculture and its potential ecological and economic benefits.  In reality aquaculture has been viewed as a general threat rather than a benefit, and current legislation and policy has resulted in diminishing Canada's present and potential opportunities in the area of fish farming.  This not only adversely affects the individual fish farmers and aquaculture companies, but also the economies of other sectors indirectly supported by the aquaculture industry, and the Canadian economy as a whole.

Aquaculture continues to be treated as a subset of the wild fishery as most of the public policy on aquaculture is derived directly from fisheries policies, which cannot take into account the unique nature of water farming.

In 1986, Canadian aquaculture production amounted to only 10,488 tonnes, valued at $35 million. Growing at an average annual rate in excess of 19 percent, in 2001, Canadian aquaculture output reached152,523 tonnes, valued at $597 million.  Although there has been some growth within the sector, this level of production falls far below Canada's capacity and capability.  Indeed, Canada is losing its competitive edge and market share, and is seeing our products displaced by countries like Norway, new Zealand, Chile and China at an increasing rate.  This is largely due to the prohibitive regulatory framework within which the Canadian aquaculture is presently required to operate.

Aquaculture operates primarily in a public resource and therefore DFO will always play a role in aquaculture.  Properly done, DFO can provide confidence to Canadians that aquaculture is a sound, environmentally sustainable food production industry that takes place largely in coastal and rural Canada.  This responsibility of helping aquaculture to achieve its social license is very important.

However, aquaculture needs an overall policy approach that recognizes it as farming and with that, equitable and affordable programming that responds to the developmental needs of the sector.  It needs a balanced regulatory framework that has a legislated mandate to protect and grow the aquaculture industry.

Provisions of the Fisheries Act and the Canadian Environmental Assessment Act would still apply to aquaculture to ensure that aquaculture proceeds in an environmentally safe manner.  Although, presently, there is a lack of clarity with respect to the Fisheries Act, especially in terms of consistent application of the act.  As farmers of the aquatic resource, it is critical that aquaculture proceed in a manner that is environmentally sustainable.  However, aquaculturists need policies that allow them to manage their stocks according to agronomy principles and market forces instead of according to hunter-gatherer fisheries conservation policies.

The new Agriculture Policy Framework (APF) announced by Prime Minister Chrétien in June of 2002 is aimed at rejuvenating both the federal and provincial policies and management of the agriculture sector.  In fact, it should apply to the entire food production sector in Canada as fish is food.  One can argue that some elements of the APF, e.g. food safety and branding of Canadian food in international markets, could be at risk if fish products are excluded from this initiative.

It is urgent that the federal government recognize the agriculture nature of aquaculture and establish a balanced public policy and regulatory environment that distinguishes aquaculture from the hunter-gatherer approach of the wild fisheries.  Additionally Canada should establish the rights of aquaculturists to manage their private stocks according to agronomy principles and market forces instead of having to follow regulations aimed at hunter-gatherer public fisheries.

The following three points are key to the identification of an appropriate policy response facing the federal government:

• 34 federal departments and agencies are involved either directly or indirectly in aquaculture clearly demonstrates the need to implement a horizontal approach to the management of aquaculture within the federal system.
• Aquaculture is also a shared jurisdiction in Canada and thus requires an effective and permanent federal/provincial/territorial planning, harmonization and management mechanism.
• Aquaculture products are food, and thus require a modern agriculture-based approach with regard to on-farm food safety, production management, farm risk management, quality assurance and marketing.

Fish farmers are responsible for their own prosperity and growth, however, Canada's policies will affect the pace at which the aquaculture industry grows, and the scope the industry achieves.  Canada's fish farmers must have flexibility through regulatory frameworks to enable our food production approach to be innovative and adapt to changing market demands.  We need to focus on niche marketing, organic marketing and production marketing, each of which requires different strategies and business planning.  Canada is losing capacity in each of these marketing areas because of the current, restrictive hunter-gatherer approach to managing a fish farm operation.   Provincial governments' share and support industry concerns about the prohibitive regulatory environment, and the negative impacts this has on aquaculture operations.

Aquaculture is a major contributor to the Canadian economy.  The Office of the Commissioner for Aquaculture Development (OCAD) has estimated that within 15 years, at a growth rate of 10-15% annually, Canadian aquaculture could generate in excess of $2.8 billion annually in farm-gate revenues (up from $600 million in 2001) and provide sustainable, year-round employment to more than 47,000 Canadians (up from 12-14,000 currently).  Value-added processing and revenues generated in the related supply and services sector could push the total economic value of the sector beyond $6.6 billion.

Aquaculture is carried out in all provinces and one territory, including 16 First Nations communities with a total of 72 cold-water species licensed for farming, including 50 species of finfish and 18 species of marine shellfish.  In 2001, aquaculture employed 12,390 people primarily in rural and coastal communities. This includes direct and indirect employment. Two thirds of the workers were under 35.  Further, for every two people employed in the production of fish and shellfish, approximately one additional person is employed in the related supplies and services sector.

Efficient and effective regulatory frameworks are required to maintain an internationally competitive industry and increase public confidence in the sustainability of aquaculture in Canada.  For Canadian aquaculture, this will require a paradigm shift, from aquaculture being regulated as a subset of the wild fishery, to aquaculture being regulated as the food production industry that it is.  Aquaculture must be granted parity with agriculture, and have access to the same support programs as other food production sectors.  Smart regulations will be integral to making this happen.

Proposed directions for EACSR to consider

Minister Regan has stated a number of times that the Government of Canada will use smart regulations to ensure the Canadian aquaculture industry is environmentally sustainable, socially responsible and economically viable.

On their own initiative, the Canadian Aquaculture Industry Alliance (CAIA) helped found and is an active participating member of the Canadian On-Farm Food-Safety (COFFS) Working Group, even though aquaculture has not had the same access to on-farm food safety funds as the other nineteen participating commodity groups.  Although the aquaculture industry does not have access to Agriculture and Agri-Food Canada(AAFC) funds or programs, including the recently announced $80 million program in support of on-farm food safety systems, the aquaculture industry recognizes the relevance of food safety systems for aquaculture, and is moving forward to implement such a system to the best degree possible without appropriate funding support systems in place.

The Government has publicly stated their commitment to "work collaboratively with all interested parties to review a wide range of policy instruments available to further the efficiency of existing regulatory frameworks, including the implementation of a national industry code system for responsible aquaculture."  Based on limited support from the Office of the Commissioner for Aquaculture Development, CAIA initiated the development of a National Code System that, while ensuring sustainable aquaculture techniques and approaches, will provide national standards for food safety, responsible environmental management and product traceability in individual aquaculture operations.  The CAIA National Code System is now ready for industry verification, which has begun and is expected to be completed by the fall of 2004.  However, implementation of a sound, internationally acceptable national code system for food safety, environmental management and traceability will take additional industry effort without the funding support programs available to our Canadian competitors in the market.

CAIA respectfully requests that the Government of Canada, under the new Smart Regulatory Framework, grant aquaculture parity with agriculture, and access to the same support programs as other food production sectors.  Such a regulatory framework would enable the Canadian aquaculture industry to move forward, and succeed as a major competitive force in the international market for safe, high quality aquaculture products.

The Government of Canada has adopted a smart regulation strategy to accelerate reforms in key areas to promote health and sustainability, to contribute to innovation and economic growth, and to reduce the administrative burden on business.  Aquaculture is truly a sector where the Government can demonstrate the level and scope of its commitment to smart regulations, while at the same time strengthen and diversify the Canadian economy. Aquaculture must be granted parity with agriculture, and have access to the same support programs as other food production sectors.  Smart regulations will be integral to making this happen.