Row brews over Canadian shrimp prices

Fishermen and fish processors on Canada's East Coast provinces are upset over new prices levels for UK shrimps.

The price setting panel in Newfoundland and Labrador has set the average prices for shrimp at 48 cents (45 US cents)/pound, an increase of just three cents over the 2009 rate.  Some fishermen had been hoping for a price level of 60 cents (56 US cents)/pound.

Canada's East Coast fishing has not had a happy time over the past 12 months. Newfoundland and Labrador are Canada's most important Canadian fishing regions and last year revealed a   sharp decline in the value of its seafood revenues due largely to a strong Canadian dollar relative to the US dollar (its main export market) and because of the global economic situation. The total value of the province's seafood industry declined nearly 22% in 2009 to a total value of CAD827 million (US$771.8 million).

The decline has also had a major impact on employment in the province's employment in the fishing industry which has fallen by 14%.

Now the price panel is under fire with warnings that the new price level could put fishermen and processors out of business. With the Gulf of Mexico shrimp industry severely restricted by the huge oil spill, demand for Canadian shrimp is bound to rise which should mean higher income. But not with prices at this meagre rate, the industry said.

In 2009, Canadian aquaculture production rose 18% and the market value for aquaculture products increased by 45.9% to CAD92 million (US$85.9 million), due primarily to strong prices for Atlantic salmon and trout.