Good afternoon, Mr. Chair and committee members. Thank you for the opportunity to appear before the Standing Committee on Fisheries and Oceans.
I'm here today representing Ocean Choice International. Ocean Choice is a family-owned Newfoundland and Labrador seafood company founded 25 years ago by brothers Martin and Blaine Sullivan. Today we are a vertically integrated global leader operating five processing plants in rural communities and a fleet of offshore factory freezer vessels, managing our own quota access for key species, and partnering with approximately 2,000 independent fish harvesters. Headquartered in St. John's with sales offices around the world, we deliver premium Canadian seafood to over 30 countries. Our operations support 1,400 employees across 300 communities throughout the province of Newfoundland and Labrador, reflecting our deep commitment to people and communities.
Sustainability is at the core of our business. Over 93% of the seafood we harvest, by value, is certified sustainable by the Marine Stewardship Council or managed through a robust fishery improvement project. Ocean Choice's success, and the strength of Canada's fishing industry as a whole, depends on responsible science-based management and stable access to the resource. This stability allows companies like ours to make long-term investments, create year-round jobs and build sustainable futures in coastal communities.
This brings me to why we are here today—namely, to discuss the allocation of unit 1 redfish and the importance of management grounded in historical and stable access to the resource. Before discussing allocations, it is important to note that the unit 1 redfish fishery dates back to the 1950s, when it was developed by the offshore sector, which historically held about 78.7% of the quota. Even after the commercial fishery was closed in the early 1990s, a 2,000-metric-ton index fishery continued under DFO-defined proportionate quota shares aligned with historical allocations.
Regarding the minister's decision in February 2024, while some have portrayed the offshore sector as winners, Ocean Choice and other offshore redfish participants actually lost 20% of their historical share. There are some unfortunate economic and biological realities when it comes to unit 1 redfish that must be recognized. The size of the redfish in unit 1 has actually stalled at around 24 to 25 centimetres since 2021, and scientists do not expect further growth. By comparison, most global redfish exceed 40 centimetres in length, putting Canadian producers at a market disadvantage. The overall biomass has also declined sharply from a peak of over four million tonnes in 2019 to about 1.7 million tonnes in 2024. Without new recruitment, the science suggests the biomass could fall to roughly 10% of the original level within the next eight years, even with limited fishing activity.
These factors, combined with overly precautionary management measures, have led to very limited activity in this fishery over the past two years. Despite these challenges, Ocean Choice and our partners in the offshore sector have invested millions of dollars to develop and expand markets for smaller-sized fish. These investments include innovations in harvesting and processing, market diversification and long-term strategies to position Canadian redfish competitively on the world stage.
Stable access to fisheries like unit 1 redfish, through secure quota shares, is essential for building a strong and sustainable industry. It enables companies to invest in market diversification, equipment, infrastructure and workforce development. Stability supports resilient coastal communities, aligns harvesting capacity with available resources and improves the quality and value of seafood products. Economically, it fosters self-reliant enterprises, supports skilled year-round employment and creates meaningful career opportunities for young people in the industry.
Long-standing quota-sharing arrangements are the foundation of responsible and transparent fisheries management in Canada and are reflected in current fisheries policy. For example, when closed fisheries are reopened, the minister generally respects historic fleet shares, recognizing past participation and dependency as the basis for allocations.
Ocean Choice has invested heavily in the fishery, paying fair market value for every pound of quota, including unit 1 redfish. Beyond securing access, we built global markets for Canadian seafood and invested in advanced technology, including our green class vessel, the MV Calvert. Our significant investment in the Calvert was made possible because of stable access to such species as unit 1 redfish and other groundfish stocks. These kinds of long-term, multi-million dollar investments are not possible without confidence in secure quota access.
In summary, these examples—from long-term investments in market diversification to the Calvert—illustrate how stability of access underpins not only the sustainability of the resource but also meaningful employment, economic growth and the long-term viability of Canada's fishing sector. Looking ahead, future allocation decisions, including for unit 1 redfish, must respect historical access so that participants can continue to invest and contribute to strong, sustainable fisheries.
Thank you for the opportunity to make a statement. I welcome the committee's questions and comments.