Northern Harvest Sea Farms Newfoundland Ltd will soon announce a CAD10-million (US$9.71-million) hatchery to be built near Stephenville, Newfoundland and Labrador (NL), allowing the company to drastically increase salmon production at its marine farms on the south coast.

Launched less than two years ago from acquisition of aquaculture assets from the Barry Group in summer 2008, Northern Harvest now reports some 5,000 tonnes of annual production in NL and expects to double that by 2011.

The firm runs operations in St Alban's, Hermitage, Harbour Breton and Pool's Cove, operates 10 marine farms and employs 125 full-time workers. It is predicted that 75 more people will be hired as the company expands.

In 2009, the industry reached record levels of production with almost 14,000 tonnes and a market value of CAD92 million (US$89.3 million), led mostly by development in the salmonid sector. It is believed there is potential for 40,000 tonnes of production yearly.

Most of the smolts used in salmon production are imported from the Maritimes, while access to a copious groundwater supply was a vital reason for the location, Northern Harvest president Larry Ingalls said.

Cyr Couturier, executive director of the province's aquaculture industry association, said the incremental value of this new investment should generate over CAD50 million (US$48.6 million) annually for the province's rural areas in a few years.

NL's aquaculture industry employs about 1,000 people and the Coast of Bays region is a hub of activity, with excellent sites to grow salmon.