Thank you very much, Mr. Chair. I apologize for the poor Internet connection and for not being able to use the video. Most of you have seen my face before anyway, so I don't think it will detract from the deliberations.
It's a pleasure to participate with you this afternoon. As some members of the committee have changed since my last appearance prior to the election, I should just indicate whom I represent.
The Fisheries Council of Canada is the national voice for the wild capture sector, representing processors on all three coasts. Practically all members also harvest. For those of you on the east coast, you know about the fleet separation rules. I represent the processors and the offshore harvesters. Most are privately held family-owned businesses.
The fisheries sector in Canada has enjoyed strong growth in recent years. The value of our exports was up 25% in the last five years to $7.5 billion, so this is good news. The sector employs nearly 80,000 people across the country, primarily in coastal communities.
Our top four export markets, by value, are the U.S. at a 61% share of our exports, China at 17%, the EU at 7% as a bloc, and Japan at 4%.
Lobster and other crustaceans are the top product grouping, representing 55% of our exports. Fresh or chilled fish is second at 14%. Molluscs are third at 7%.
Turning to the pandemic, impacts on individual companies vary, as Jean indicated, depending on species, product format, geographic market and market segment. Products that would typically go to food service or white tablecloth restaurants have been the hardest hit. Unfortunately, seafood is not top of mind for takeout.
The trade stats can be used to assess the disruption of the global trading system and its impact on our sector. March exports were down by 15% as a whole for fish and seafood. We did see some panic buying during March, which mutes some of the pandemic’s impact during that month. April exports were down by double that, at 30%.
Aside from the market disruption, there is tremendous effort to protect our workers and vessel crews. FCC has been doing everything it can to help the sector stay on top of the public health guidance. Companies are investing in PPE, modifying operational configurations to create more distancing, implementing more sanitation practices and so on. In some sectors there is a reliance on temporary foreign workers and some have been more successful than others in securing them in light of the pandemic.
We are pleased that the government has come forth with the Canadian seafood stabilization fund, in recognition of the disruption faced by the sector. The priority for the sector is the health and safety measures for workers. These are increasing costs for everyone. For example, a processing plant could spend upward of $50,000 a year or more on PPE. Costs to install physical barriers are in the tens of thousands of dollars per plant, and isolating vessel crews before voyages adds cost as well.
The program will also help shift operations to serve retail markets, and it will be administered by the regional development agencies. Regions not included will be eligible for support from the regional relief and recovery fund. We hope the stabilization fund will go live imminently. I have to say that companies are quite anxious to learn exactly what is covered and what is not.
The sector is eligible for the economy-wide measures, including the wage subsidy and the emergency response benefit. Smaller operators are eligible for the business account. Financing support from EDC, BDC and Farm Credit Canada is also helpful. In particular, we have confirmed that Farm Credit is now providing support to the factory freezer vessels, as they have integrated harvesting and processing operations.
As economies open and the food service market recovers, it will create opportunity for our sector to recover, but it will be a long and difficult voyage. We look forward to many discussions with you and other parliamentarians and governments on how to best position the fisheries sector to contribute to the recovery of Canadians in coastal communities and across the country.
I look forward to your questions. Thank you.