First Nations Participation in Commercial Fisheries: Opportunities & Challenges for CFEs
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1 First Nations Participation in Commercial Fisheries: Opportunities & Challenges for CFEs 2016 FNFC Annual Assembly Our Shared Path: Securing the Future of our Fisheries November 9, 2016 Kamloops
2 Overview Acknowledgement & Introduction First Nations Participation in Commercial Fisheries Pacific Integrated Commercial Fisheries Initiative (PICFI) First Nations Commercial Fishing Enterprises & FNFC CFE Principals & Operations Securing the Future Challenges Opportunities Success Stories
3 First Nations Participation in Commercial Fisheries Pre-contact 100% First Nations Post-contact Fisheries under jurisdiction of Canada Limited First Nations ownership/control of access Current Commercial Participation Individual owned commercial access Reduced fee access NFA access ATP & PICFI (communal commercial) Treaty/other ownership Legal
4 First Nations Participation in Commercial Fisheries Total Value of Commercial Licenses/Quota in BC: $1.97 billion (Est., March 31, 2015) Licenses: $926 million Quota: $794 million Communal: $250 million (First Nations) By value, First Nations may utilize approx. 10% - 15% of licenses/quota through ATP/PICFI Commercial access acquired by DFO, relinquished to First Nations/CFEs as communal commercial (F). Ownership of F category resides with DFO. CFEs now acquiring commercial access direct (i.e. not through DFO)
5 First Nations Participation in Commercial Fisheries By value: $250 million (10% - 15% of licenses/quota through ATP/PICFI) By number of licenses: 10% (reduced fee) and 16% (F) (shellfish, salmon, pelagics, groundfish) By quota share (ATP/PICFI): Dogfish 9.3% Halibut 16.7% Lingcod 15.4% Sablefish 21.0% Geoduck 5.6%
6 First Nations Participation in Commercial Fisheries Value by species can swing considerably year-to-year (examples 2014 to 2015) Pelagics -40% Salmon +18% Six most valuable fisheries account for 80% of value Halibut Geoduck Trawl Sablefish Prawn Crab
7 Pacific Integrated Commercial Fisheries Initiative (PICFI) Established in 2008 Five year implementation Short-term renewals 2013 onwards Due to expire March 31, 2017 Initial funding approved for: License/quota relinquishment Vessels/gear Operational support Capacity building & training 2015 & 2016 Direct acquisition of commercial access Diversification (through SPI funding 3 years) BDT - provides ongoing support
8 First Nations Commercial Fishing Enterprises (CFEs) 25 CFEs across BC 20 marine 5 inland (demonstration fisheries) Owned by 97 First Nations Mix of single/aggregate First Nations Supported by FNFC Business Development Team East coast CFEs Marshall decision (1999) 34 Mi'kmaq and Maliseet First Nations
9 NORTH COAST/MAINLAND MARINE 1. Lax Kw'alaams Fishing Enterprises Limited (LKFE) 2. North Coast - Skeena CFE Limited Partnership 3. Secretariat of the Haida Nation (SHN) 4. Central Coast Commercial Fisheries Corporation (CCCFA) 5. Sechelt Fishing Limited Partnership 6. Salish Seas Fisheries Limited Partnership INTERIOR 7. Talok Fisheries Limited 8. Upper Fraser Fisheries Conservation Alliance (UFFCA) 9. RiverFresh (Shuswap Nation Tribal Council) 10. Okanagan Nation Alliance (ONA) 11. Harrison Salmon Producers Limited Partnership (HSLP)
10 VANCOUVER ISLAND 12. Gwabalis 13. Kwakiutl Nation Development Corporation (KNDC) 14. Mama omas Limited Partnership 15. Hayu Fishing Limited Partnership 16. A-Tlegay Fisheries Limited Partnership 17. Musgamagw Dzawada enuxw Tribal Council (MDTC) 18. Ahousaht Fishing Corporation (AFC) 19. TFN Seafoods Limited Partnership 20. Tseshaht and Hupacasath CFE 21. Nuu-chah-nulth Seafood Development Corporation (NSDC) 22. SalPac Fisheries (GP) Limited 23. Hul qui minum Fisheries Limited Partnership (HFLP) 24. Quw utsun Kw atl kwa Enterprises Limited (Cowichan Tribes) 25. Salish Strait Seafoods Limited
11 CFE Principals Environmental Environmentally & ecologically sustainable fisheries Cultural Consistent with cultural values Employment/Career Development Access for community fishers Training/employment for youth/community members Capacity Appropriate governance & management Financially independent entities supporting First Nations goals
12 CFE Operations Leasing: Licenses/Quota Majority of licenses/access leased to community members first Some species expensive to harvest (e.g. geoduck) Become commercially viable if combined with other licenses/quota Leases to non-first Nations fishers at market value Usually requires community crew Harvesting: CFE Vessels & Gear Vessels limited to a few CFEs that harvest Majority of CFEs work with existing vessels in their First Nations communities
13 CFE Operations Governance/Management Boards are usually a mix of First Nations community members & business/sectors reps Lean & efficient operations run by community members (cost conscious) Employment & Training Approx. 1,100 jobs related to CFE activity (Nov. 2015) Primarily harvest related jobs; processing/value-added rising 1,725 days of training involving approx. 2,400 people ( )
14 Securing the Future Challenges Facing CFEs Internal Challenges Limited amount of licenses/quota Not enough to to be viable/or to meet community members demand Mixed portfolio (some commercially viable/others not) Ageing demographic in the sector CFEs have limited funds to acquire more access Demonstration designation difficult for inland CFEs Perception that CFEs not doing enough for community fishers Ongoing capacity building required to improve operations Need to include more First Nations External/Sector Challenges Uncertainty of supply Access is expense for high value fisheries Industry is consolidated & dominated by large players Industry is vertically integrated & competitive First Nations & CFEs need to work together to take on industry & advocate for each other
15 Securing the Future Opportunities for CFEs Fishing sector aligned with environmental, cultural, social & economic values Existing assets (vessels & gear) & experienced community fishers CFEs established with foothold in the industry CFEs continually improving governance, management & operational experience Experience purchasing access directly for community fishers Recruiting youth into the industry (not just harvesting) Capacity to develop business plans & business cases for new investment Access to BDT for ongoing support Diversification opportunities Sustainable aquaculture Processing/value-added, distribution & logistics Sales/marketing & branding
16 CFE Success Stories Harvest level partnerships with fishers/community Processing & value-added acquisitions Vertical integration Sales/marketing & branding
17 Harvest level partnerships with fishers/community A-Tlegay Fisheries LP Brian Assu Majority of licenses/access leased to community members first Historically per cent of our community members relied on the commercial salmon and herring industry. the PICFI program has helped to bring people back into the fishing industry, not just salmon and herring.
18 Harvest level partnerships with fishers/community Central Coast Fishers Association (CCFA) CCCFA has trained more than 200 people and PICFI is central to CCCFA s success. In the past, people have had to go away to find work, says CCFA general manager, Don Allan. Now, CCCFA is creating the possibility for people to build a career right at home that fits with the four Nations traditions and culture including working on the water. By working right from their communities, they act as role models to the next generation of youth.
19 Processing & value-added acquisitions Nuu-chah-nulth Seafood Development Corporation (NSDC) NSDC s diverse successes to date range from the grassroots to the dramatic - from supporting fishermen and women to buying a significant coastal cannery (St. Jean s Cannery). Combining traditional values of environmental stewardship with a professional board and economic focus, NSDC is helping its member Nations reconnect with their seafood resources. When PICFI came along, that s when we really took off. In 2008 we started working with our shareholders on setting a new direction, and in 2010 we submitted our business plan to PICFI. PICFI definitely helped launch us.
20 Vertical Integration - Lax Kw alaams Lax Kw alaams has a large population and a significant fishing fleet that averages 70 salmon fishing boats annually. It also owns the Coast Tsimshian Fish Plant processing facility. A large part of LKFE s success is that it has been able to employ over 250 members every year with expected continued growth as a result of PICFI funding initiatives.
21 Sales/Marketing Branding - RiverFresh RiverFresh (Shuswap Tribal Council) RiverFresh has developed a strong brand for its locally caught salmon, supplemented by wild seafood products from partners with similar brands and values. From its partners RiverFresh sells numerous other products such as halibut, ling cod, sablefish, smoked sablefish, coho, prawns and tuna.
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