A decision by Canada's Fisheries Minister Bernadette Jordan to phase out existing netpen salmon farms owned by Mowi, Cermaq and Grieg Seafood in the Discovery Islands region by next summer will cause more than 24 percent of British Columbia's (BC) farmed salmon production to shut down, according to an industry report. The region produces 21,490 metric tons of salmon among the three companies annually.
The BC Salmon Farmers Association on Tuesday unveiled a study, "Consequences of the Decision to Shut Down Salmon Farming in the Discovery Islands," to show the "real impact of Minister Bernadette Jordan’s decision to phase out existing salmon farming facilities in the Discovery Islands by June 30, 2022."
The report, written by the Canadian economics consulting firm RIAS Inc., looks at the economic and social impacts on workers and families connected to the Discovery Islands region of British Columbia.
In addition to impacting more than 1,500 jobs in the region, the decision will mean a potential loss of over CAD170 million ($135 million/€111 million) to BC’s salmon farmers from having to euthanize 10.7 million young fish. That process will take place this month, according to the report, unless an extension is granted.
The majority of the 1,535 jobs associated with salmon farming in the Discovery Islands are also primarily located in "remote Indigenous and non-Indigenous coastal communities of BC where there are very few employment opportunities."
The job losses will largely impact Campbell River and Vancouver Island regions, the report says.
The salmon farming industry is unique in that it pays higher wages than others such as tourism and commercial salmon fishing in BC. It also provides more stable work and better benefits. The report states that for many households in both Indigenous and non-Indigenous communities on North Vancouver Island, "the salmon farm employee is the primary wage earner and possible sole income source of family medical and extended coverage benefits."
"The closure of these 19 salmon farms in the Discovery Islands means that 222 families with a member working directly or on one of those farms will lose, on average, more than (CAD) 79,000 in salary and benefits per year," the report says.
Farms to shut down 'well before the 18-month cut-off'
There are 19 salmon farms that will be impacted by the decision, which are run by Mowi Canada West, Cermaq Canada and Grieg Seafood BC that are now in the process of shutting down.
The farms comprise over 30 percent of Mowi Canada West's production, 20 percent of Cermaq's production and 12 percent of Grieg's production in British Columbia.
Layoffs at the three companies are already occurring, according to the report, with more than 220 people directly related to salmon farming impacted.
"Because the companies are unable to stock those farms going forward and several of the farms were empty and scheduled for stocking in early 2021, those impacts will start being felt in the first quarter of 2021," according to the report. "The companies must also account for the time it will take to decommission the farms, and so will have to shut them down well before the 18-month cut-off."
Nearly 12.5 million salmon at risk
There are almost 12.5 million salmon in the Discovery Islands production cycle, the report says. "With about 26.3 percent of total farm capacity for Mowi Cermaq and Grieg now eliminated, "most fish will be euthanized," it adds.
According to the report, major companies operating in Discovery Islands have issued "cease to invest" directions to operations in BC, "as Canada is no longer seen as having a stable investment climate for salmon farming compared to other countries competing for investment dollars."
Companies are asking Fisheries Minster to extend closure deadline
BC salmon farming companies say they do not have the capacity to decommission the Discovery Islands sites within the next 18, months, which is why they are asking the Fisheries Minister to extend the closure deadline to 54 months.
Companies who were asked "to provide input on if and how the financial damages they face could be moderated" said that extension would "allow juvenile salmon and eggs to complete their lifecycle."
The companies added if they were "permitted to stock the farms as planned with juveniles already in their systems, it would allow salmon farmers to avoid mass culling and fully decommission sites in an orderly manner."
