Transcript Document

2007 Sea Urchin Summit
Workshop Proceedings
Marriott Pinnacle Downtown
March 6, 2007
Welcome & Introductions
• Welcome to 2007 Sea Urchin Summit
• 45 attendees
• Fishermen, harvester groups, processors,
buyers, science, management, international
directorate, AAFC, Province
• All the players are here
• A day of productive dialogue
• Gain a common understanding the present
situation with a view to effecting positive
change
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Today’s Focus
Sea Urchin Benchmark Study
• Prepared by Explorations Unlimited
• Funded by Agriculture and Agri-Food Canada
• Part of Seafood Value Chain Roundtable
initiative
– Securing an enduring competitive advantage for
Canada in international markets
• Gaining a better understanding of the red
sea urchin fishery on the Pacific coast of
Canada
• Red sea urchins an interesting case study
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The “Case” of Red Sea Urchins
• Uni a valuable delicacy sold in Japan
• A successful small scale fishery in BC
– Well managed
– Sustainable
– Generating wealth for participants and coastal
communities
• Industry suffering from global trade
competition from the Russian IUU fishery
• Benchmark study commissioned to foster
improved understanding of the red sea
urchin fishery Sea Urchin Summit
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Purpose of Summit
• Bring everyone together
• Understanding the current situation
(the “problems”)
• Consider challenges and opportunities
in Benchmark Report
• Jointly develop strategies for
improving the competitiveness of the
BC sea urchin industry
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Today’s Program
• First Part – speakers
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Harvester perspective
Presentation of Benchmark Study
Processor perspective
Science perspective
Japanese market perspective
Federal response to Russian IUU situation
Brand Canada information
• Second Part – work groups
– Brainstorm ideas for positive change
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Mike Featherstone
President, PUHA
History of BC Sea Urchin Fishery
Events Leading to Summit
Mike Featherstone
History of the Fishery
• Early days 1971-1993 - slow
growth of fishery, then
explosion in landings in 9192 (max 29m lbs)
• Deteriorating prices,
quality, safety – “race for
fish”
• Voluntary IQ program 94-95,
order restored
• Full IQ program from 1996present; co-management
• Prices firmed until 2002, then
stabilized; improved safety,
high level of economic benefits
• Per licence contribution to
management & science
$5,500/licence; costs aligned
with revenues
• Russian IUU fishery spells
market collapse
• Current situation: PUHA cannot
meet obligations; only 60/110
licences active; inadequate
revenues. No way to recoup
funds.
• Challenge – where to go?
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Geoff Krause
Explorations Unlimited
Summary of Benchmark Study
Findings
Geoff Krause
Summary of Benchmark Study
• Japan is major market
• BC one of several
suppliers
• BC fits in “mid-tier” of
quality/price in
Japanese market
• BC rates high on
sustainability; a costly
science/mgt program
vs. other jurisdictions
• BC quite efficient
thanks to high CPUE
• Setbacks in market
change BC competitive
picture
• Russian IUU most
serious problem facing
legitimate producers
• Cascading effects in
Japanese market
• BC fishery cannot be
considered sustainable
when the economic
picture is so bleak
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Industry Panel
Current State of Sea Urchin Industry
Processor & Harvester Perspectives
Industry Panel
Current State of Industry
• Kiku Fisheries – devastated
by Russian Fishery. From
biggest BC processor to one
of smallest. Cut staff by
60%. Needed to make
drastic change in hurry.
• Grand Hale Marine – sales
dropped from $1.2m/yr to
$30k. Was 130 jobs… now no
meaningful employment.
Current trend… no fishery
soon.
• Hi-To Fisheries – from 100
workers to 30. Many causes
for downturn. Need more
value-added product. Very
concerned about future.
• Territory Seafoods – from 75
employees to 20. Biggest
factor is Russia IUU. Drastic
change needed. Industry is
on life support.
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Industry Panel
Current State of Industry
• Michael Callow (Green
Urchin Assoc) – no fishery by
next year. Problem is IUU,
period. Only harvest 12% of
TAC this year.
• Bob Hegadus (fisherman) –
affects on fishermen
dramatic. Fewer divers,
tenders, crewmen. Costs are
up and prices are down. No
young divers recruiting to
fishery. Safety is
compromised (smaller crew
sizes)
continued
• Pete Halney (California
Urchin Commission) –
California can compete with
legitimate players. BC and
California should take joint
approach… interests are
shared.
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Don Christian
D&D
Monitoring Programs
Don Christian
Monitoring Programs
• History of fishery, pre-IQ to
today
• Roles of DMP; many
elements and objectives
(not just enforcement)
• 100% industry funded
program
• 61 red urchin licences active
currently (out of 110); 41%
of TAC caught (vs 85% at this
time normally)
• Green urchins – less than 7%
caught (season virtually
over)
• DMP costs have risen
per pound of harvest,
while prices have
dropped
• Industry cannot afford
current cost burden
• D&D willing to look at
ways to re-structure
costs
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Juanita Rogers
DFO Management Biologist
Science and Management
Juanita Rogers
Science and Management
• Explanation of the “cycle”
of fishery review, stock
assessment, and fishery
management
• The relationship between
DFO and urchin harvesters is
key
• BC a far-flung area, five
regions are assessed;
estimating biomass to set
quotas
• The fishery management
toolkit: min size, limited
entry, IQ, area licensing,
area quotas
• Activities are funded
through a Joint Project
Agreement
• We’re here for the long
haul, need to explore
alternative ways of gaining
information needed to
manage the fishery (at
lower cost)
• Need to work urgently to
assess where we’re going.
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Masao Hashimoto
President, Kokusai Boueki Company
Japanese Market and
Russian IUU Situation
Masao Hashimoto
Japanese Market, Russian Situation
• Based in Sapporo
• Has worked with
Russians for 20 years,
has an understanding of
the problems
• IUU is a big problem,
not just in urchins, but
in other fisheries like
salmon and crab
• Problem is oversupply
into Japanese market
• Last three years, imports of
urchins to Japan from Russia
have exploded
• Aware of discussions
between Canadian,
Japanese, and Russian
governments. It’s an
international problem.
• Much of responsibility on
Japan side
• Has some ideas to discuss
privately.
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Gorazd Ruseski
DFO International Trade and Integration Branch
Federal Response to Russian IUU
Situation
Gorazd Ruseski
Federal Response to Russian IUU
• IUU fisheries worldwide are
• Japan has obligations under
problematic – est value $4-9
international agreements to
billion/yr.
which it is signatory
• There is opportunity to
• Japanese harvesters now
engage Russia and Japan on
feeling impacts, which will
many “fronts.” Several
help apply pressure
forums in next few months
• UN/FAO – port state scheme
• Both bi-lateral and multi– may become binding
lateral discussions w/ Japan
and Russia
• APEC Regions – sustainable
• Russia is working on its own
development – Canada will
internal plan of action
put forward sea urchin case
• Seems to be strong case
study
that Japan can validate
landings at ports more
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Terry Glavin
Author, Journalist, Adjunct UBC Professor
“The Collapse of Order in the
Russian Far East”
Terry Glavin
The Collapse of Order in Russian Far East
• Since the fall of
communism, massive events
in Russia have been largely
ignored
• In the far east “everyone’s a
poacher” out of simple
necessity
• Russia now like the “wild
west”
• Commerce dominated by
small-scale (poachers) and
organized crime
• A huge percentage of the
Russian economy is
controlled by criminals
• Lack of control over harvest
of natural resources
threatens numerous species
• Harvest are clearly not
sustainable
• The situation is in spite of
the best intentions or
ordinary Russians
• Opinion: something is going
to “give” in Russia’s far east
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Janice Vansickle
AAFC
Brand Canada
Janice Vansickle
Brand Canada
• PUHA has signed on to Canada Branding
initiative
• Benefits of a strong brand
• The brand “promise”
– We are committed to earning our customers’ trust in Canadian
agriculture and food products every day through our relentless
pursuit of excellence in all that we do
• A “template” for how agri-food producers
can exploit the Canada brand, generically,
and at a company level, was provided.
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Urchin Summit Part II
Brainstorming in Work Groups
Recommendations for Improvement
Breakout Groups
• Given the economic crisis described
today, we must develop and implement
strategies to effect positive change
• Both short term and long term
• We’ll organize you into working groups
to tackle four broad topics.
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Breakout Groups
4 Topics
1. Government policy – Russian IUU
Fishery
2. Government policy – Fishery
Management/Science
3. Operational Efficiencies
4. Marketing
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Operational Efficiencies
• This is our area of direct control
• What can we do to improve the bottom
line, for example:
–
–
–
–
–
Quality
Yields
Costs
Transportation
Handling methods
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List of Initiatives
Operational Efficiencies (1)
• Quality and yield – areas,
times; pay higher for higher
yields (color charts, tray
size)
• Need to respond to markets
quickly – communication w/
boats, DFO, etc
• OGM replaced w/ electronic
monitoring
• Proper handling, standardize
containers (bag sizes that
work well)
• Transportation – full
truckloads, lower costs;
more cooperation
• Transport as it relates
to quality; more
awareness of Krause
project. Protocols on
report… extent of
adoption of report
(logisitics study from
grounds to processors)
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List of Initiatives
Operational Efficiencies (2)
• Sharing of transportation
(trucks, etc); pursue more
• Handle product only once;
bag out of water, product
direct to tote (eliminate
handling stages)
• Stagger production – avoid
conflicts with Russian IUU
• Focus on fewer fishing
areas? As cost reduction
measure. Balance against
conservation.
• Consolidate truckloads w/
other co’s, even fisheries
• EM as cost reduction
• DMP… creates extra handling;
validate at processor vs
grounds
• Qualitative color coding (like
salmon)
• Transp & handling
• Quality from grounds
(refrigeration)
• Track temp., water loss
• Organization, efficiency
(trucks, packers
• Two-day loads – cost vs quality
• Tighter grading system (fewer
grades); calibrate what we
have.
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Marketing & Value Adding
• Given the realities of the current
Japanese market, what can we do to
improve the marketability and values
for our product?
• Specific initiatives, eg.
– Market research
– Product development
– Customer service
Sea Urchin Summit
Recognizing current
budget constraints
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List of Initiatives
Marketing, Value Adding (1)
• PUHA continue CAFI programs…
Asia, networking
• More info on website to
educate local & NA market
• Website as tool for Japan – get
feedback from end consumer…
what do they want?
• Promote locally on food
shows/media
• MSC – expensive to gain
certification… is it worth it?
Japan retailers are aware. MSC
trying to bring costs down.
• Greater effort on local (Cdn)
mkt (Prov $ support)
• Consistent supply… we’re not
there now (participation,
weather)
• MSC cert. – it’s a growing
movement, get ahead of it
(traceability could help.
Specialized marketing at boat
level)
• Alternate product uses (eg
today’s soup). Vancouver chefs
develop, roll out to USA; more
to China
• Processing Greens in Canada?
• Nutriceutical/health benefits –
“ocean viagra”
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List of Initiatives
Marketing, Value Adding (2)
• More trade shows to promote
(not just Japan)
• Control entry of CDN product
on mkt (timing)
• Processors round the world
discuss “supply management”
• Min. quality for export (only
top grade)
• Value add; eg uni roll at local
restaurants (frozen)
• Packaging methods; shelf life –
vacuum, MAP, canning
• Domestic distributors…
consolidate uni w/ other
products
• Diversification – provinces,
countries, domesic, buy local,
traveling road show (fishemen
to restaurant)
• Product development (soups,
quiches, etc). Use lower grades
for variety of products. “uni on
a stick”
• Rolls, cones for lower quality
product
• Yr-round supply… we’re a small
producer… don’t try to
compete w/ big guys
• Sell BC sea urchin… not just
Japan
• YVR as dist’n point
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List of Initiatives
Marketing, Value Adding (3)
• Market research – global
• Awareness of IUU fisheries,
trade, where is it going?
implications for consumers
China potential growth
• Pictures of smiling crews as
area. China Seafood Show
promo material
• Promotion – product,
fishery. Canada, France, EU
• Health aspects, functional
food
• Research on alternate
product forms
• Control packaging (less
pack/re-pack thru to end
user)
• Interest in Japan in origin of
product (north or south Sea
BC…
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what vessel?
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Government Policy
Fishery Management/Science
• Given the spirit of co-management in
the BC urchin fisheries, list short term
cost relief strategies not compromising
sustainability
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List of Initiatives
Fishery Management/Science (1)
• OGM monitoring at plant vs.
dock level – water loss
• Mandating compulsory
licence activation (PUHA
reaches income)
• Or… Subsidy of nonactivated licences
• Buyback of licences not
being used (ATP inventory
don’t generate revenue)
• Why OGMs on north and not
in south? (70% of fishery in
north)
• EM: EC vs WC parity
•
•
•
•
•
•
•
Reduced DFO lic fees – values
based on 90-93 incomes… reevaluate
Waive DFO lic fees if you pay the
PUHA fee (incentive to
participate)
Sliding scale of science/mgt costs
that reflect level of landings
OGM – EC has EM run by DFO… WC
no EM
Budget OGM for high priority
areas only (QCI, 3,4…)
Can we get away with EM only, or
do we need OGM
15% water loss reduction at
dock… means recovery would go
up… better for fishermen
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List of Initiatives
Fishery Management/Science (2)
• Validation at plant vs
dockside
• EM
• Share salary cost of research
staff amongst various
fisheries
• Industry cannot afford
programs it’s committed to
• Re-structure quota system
to reflect participation?
Incentives to participate, or
benefit to those that stay
in.
• Reds & greens – meeing w/ DFO
to go over options (next couple
of weeks, before season over)…
what can be done?
• S.t. – adjustments to science
and D&D payments… things to
get through this yr & next yr
• Things have changed… make
appropriate cost burden for
level of fishery (we were about
7% of gross… now 25+ (Alaska
legislate 7%)
• We need bridge financing from
DFO to get through this year
(political approach)
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List of Initiatives
Fishery Management/Science (3)
• We have to do something
now…
• Big picture of science &
mgt… need appropriate
G&O… workshop? Outside of
regular routine. Step back.
Include DFO & industry.
• Science – density, biomass,
population size info… is way
we gain info appropriate? (in
current economic
environment)
• Better use of on-grounds
knowledge (fishermen, realtime)
• Or… extrapolate info across
coast..
• FM toolkit – EM, more info
from fewer areas
• Upshot – more meetings,
don’t be frozen by inaction.
Coalition of DFO and
industry
• Consider – real time fishery
info that is available vs pure
science. Committ from gov’t
to use fishermen knowledge
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Government Policy
Russian IUU Situation
• List specific strategies to influence
positive change in the Russian urchin
fishery and the Japanese market
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List of Initiatives
Russian IUU Situation (1)
• Intense pressure on Ottawa
to apply pressure to Japan
first, Russia second
– Unified group, include
California, Aka
– Other fisheries, not just
urchins
• Some degree of involvement
of Japanese and Cdn
environmental interests
(activists)
• Two-front – reduce supply of
IUU by working w/ AKA, CA,
pressure govt; reduce
demand by differentiating
eco-friendly product from
not
• IUU fishery not crashing…
joint science program to
look at resource… can it
support this pressure?
• Ensure follow up of
international forums (Gor’s
presentation)
• Int’l summit like this
• Pursue anti-dumping
• Follow up on port validation
req’ts
• “hollywood” production re:
vision of sustainability; give
them hope
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List of Initiatives
Russian IUU Situation (2)
• Gor’s… won’t get
accomplished quickly…
Russia not being quickly
depleted
– Work on Japanese landing
port req’ts
– Work w/ CA, Japanese
harvesters to put pressure
on own gov’ts
• Marketing strategy, fishing
strategy to survive what’s
currently happening.
• Make our supply consistent…
don’t go head-head w/
Russians
• Pressure on Japan to follow
port state protocol; provide
solutions to Japan
• Maintain dialogue w/ Russia…
don’t back them into corner
• CDN embassy in Japan… talk to
Japanese fishermen… how are
they affected?
• Disc w/ Russian fishermen…
their views (working conditions,
price)
• Get others onside, not just CDA
• Engage NGOs globally
• Roundtable in Ottawa – bring
this forward
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List of Initiatives
Russian IUU Situation (3)
• Coordinated approach –
w/in govt, externally
(AKA)
• Work w/ Japan, not
Russia
• Work w/ legitimate
fishermen
• NGOs – focus on
sustainability
• Keep today’s energy
and momentum
going!
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Other Issues
• Sea otters – they’re here.
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Next Steps
• Emergency meeting DFO & industry
• Ottawa – Roundtable – meet w/ MPs
• Request funding from Province for MSC
pre-assessment
• Terry Glavin’s help – open avenues w/
Japanese environmentalists
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