Thank you, Mr. Chair.
Many people have spoken at this committee about the start of the cod moratorium on July 2, 1992, and its end on June 26, 2024. I'd like to start by talking about the time in between those dates.
After the moratorium, most people and communities across Newfoundland and Labrador moved on from cod to other species of fish, other industries and—for some—other provinces. The Icewater Seafoods plant in Arnold's Cove, Newfoundland, has continued to process cod and only cod. To some, that might seem ill advised, but Icewater Seafoods and the people of Arnold's Cove defied the odds. Thirty-two years later, we are the only plant in North America focused solely on producing premium-quality North Atlantic cod year-round.
Many people, understandably, attribute that to the relentless commitment of my late father, Bruce Wareham. He knew that, while Newfoundland has a 500-year history of cod, it is a history of quantity and not quality. Newfoundland cannot compete in premium global cod markets or maximize the value of the species for people and communities by focusing on quantity. It has to be focused on quality. My father recognized this 30 years ago, and we have continued to focus on quality ever since.
We completed a three-year, $14-million upgrade in 2020, investing in technology needed to ensure the Arnold's Cove plant remains one of the top cod-producing plants in the world. We employ more than 220 local people, whom we proudly call our cod experts. Their pay is among the highest wages in the seafood processing industry in Atlantic Canada, and their pride and loyalty are clear. Two employees have celebrated 50 years of service, and there are currently 21 employees with over 40 years of service. What we have accomplished together is incredible. Our cod is supplied to premium markets, with the majority going to the U.K. and France—the two largest markets in the world for premium-quality cod. Icewater is one of only a few plants in the world approved to supply cod to Marks and Spencer. Even with a small cod quota, we proved it can be done.
The decision of one company and one community not to move on from cod has been critical to the local and regional economy for over 20 years. As of fall 2023, the company has contributed approximately $272 million, which goes back to the local economy through fish purchases from inshore harvesters, direct wages and salaries to employees, costs paid to local transportation and logistics companies for collecting the raw material throughout Newfoundland, and the products and services we source from local companies for the operation of the plant.
Let me be clear. None of this happens without year-round supply. This means that none of it happens without Canadian—or, in this case, Newfoundland—offshore harvesters being part of the fishery. We call this a balanced fishery. Marks and Spencer requires cod 12 months of the year, regardless of whether it is purchased from Iceland, Norway or Newfoundland. Newfoundland accounts for just 3% of the 2024 world supply of north Atlantic cod. We are not in a position to negotiate a seasonal supply.
When Minister Lebouthillier announced the end of the cod moratorium in June, it was a great day for the community of Arnold's Cove. While the Canadian offshore harvesters quota is only 6%, the economic value it enables is much higher. It allows northern cod to compete in those year-round global markets. That means more work for plant workers and better prices per pound for inshore harvesters, who benefit from the year-round model. In 2024 alone, the price increase to inshore harvesters is estimated to be $10 million.
I know some have highlighted to this committee just how fast inshore harvesters caught and landed their cod this year. In fact, they caught more in 48 hours than offshore harvesters were allocated for the entire year. However, a successful fishery isn't just about catching the fish and landing it. It has to be focused on landing a quality product that can be processed and sold to premium cod markets year-round. The top cod-fishing nations in the world, Iceland and Norway, have a year-round model. The majority of their cod is caught by trawlers that fish during the winter months. They have maintained MSC sustainability certification, the global standard for seafood sustainability. Their fisheries are successful.
If Canada wants a cod fishery that can compete on the world stage in premium markets, it cannot be an inshore-only model. It has to be a balanced fishery, with all sectors participating. We know what works. We proved it in Arnold's Cove. We ask this committee to have the courage to support priority for the inshore harvesters without shutting out local offshore harvesters, because that is the only model that works.
Thank you.