<p>4.1 Profile of the Industry</p><p>4.1.1 Structure and Location</p><p>The aquaculture industry in N.L. is very different from that of B.C. and the other Atlantic Provinces. The biogeography, climate, oceanography, and marine resources in the province are such that the industry faces different biological and physical challenges (i.e. low water currents, low water temperatures, naturally low dissolved oxygen levels, and hard bottom substrates) compared to other regions of the country. Over the years, commercial aquaculture was attempted for a variety of species in the province with limited success. Currently, there are only three species of finfish and one species of shellfish produced commercially in N.L. waters (see Table 4.1). There are no land-based, closed-containment facilities growing finfish for commercial purposes in the province, nor are there any active IMTA sites. The majority of finfish aquaculture takes place in the Connaigre Peninsula along the southeast coast of the island. Shellfish aquaculture occurs along all coasts, but is concentrated in the Notre Dame Bay area on the north-east coast.36 There are no aquaculture sites in Labrador. In total, there were 87 commercial finfish site licences in 2013, covering a combined area of 2,376 hectares.37 There were also 53 commercial shellfish site licences that covered a combined area of 4,162 hectares.38 The structure of the finfish sector within the province has changed significantly over the years as a result of consolidation and integration. There are now three large companies involved in the sector: Cooke Aquaculture (Cold Ocean Salmon), Gray Aquaculture (Gray Aqua Group), and Northern Harvest Sea Farms. These three companies are vertically integrated and operate salmonid hatcheries, grow-out sites and processing plants in various locations. Northern Harvest Sea Farms is also a manufacturer of finfish nets and cages. There are also a number of smaller companies, including Nova Fish Farms (which grows Steelhead trout) and Nordic Salmon Company (which grows Arctic char). The three large finfish aquaculture companies also operate facilities outside of N.L. Cooke Aquaculture has salmon operations in N.B., N.S., P.E.I., the United States (Maine), Chile and Scotland, as well as sea bass and sea bream operations in Spain. Both Northern Harvest Sea Farms and Gray Aquaculture have salmon aquaculture operations in N.B., where their head offices are located. Over the last few years, the shellfish sector in N.L. has also witnessed some consolidation. A few companies have integrated operations that grow, process, market, and distribute their own cultured shellfish. The rest of the sector involves small family-operated businesses. Mussel growers have pooled inventory to ensure processors and marketers have sufficient product to meet the demands of their clients throughout the year. In March 2013, eight mussel growers and three primary processors in N.L. were certified to the Canadian Organic Aquaculture Standard.39</p><p> </p><p>4.1.2 Production</p><p>As can be seen from Figure 4.1, aquaculture production in N.L. grew slowly in the 1980s and 1990s. During this period, the province lagged behind the other Atlantic Provinces and B.C. in the volume and value of aquaculture production. Since then, however, aquaculture in the province has experienced significant growth. In 2013, the latest year for which comparable data is available, N.L. had the second highest production value of aquaculture in Canada, accounting for 20% of the total, behind B.C. (53%). When considered by species, N.L. was the second largest producer of Atlantic salmon in Canada in 2013 and the second largest producer of Blue mussels. In 2013, aquaculture production in N.L. reached a record, with 26,551 tonnes of finfish and shellfish produced, valued at $197 million. This included 22,196 tonnes of finfish, valued at $182 million, and 4,354 tonnes of shellfish, valued at $15 million. Overall production volume rose by 25% over the previous year, while production value increased by 74%. The increase in volume was largely the result of increased production of Atlantic salmon; Blue mussel production remained relatively on par with 2012 production. The significant growth in value was the result of higher production volumes of Atlantic salmon, combined with strong prices for both Atlantic salmon and Blue mussels. The development of the industry is strongly supported by the provincial government; by 2018, N.L. aims to increase production to 50,000 tonnes of salmonids and 6,000 tonnes of mussels.4</p>
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