Photo courtesy of Nova Scotia Archives, 2010
Local Seafood Direct Marketing:
Emerging Trends For Small-scale Fishers in
Nova Scotia
Prepared by Anchor Consulting
March 2010
EXECUTIVE SUMMARY
In June 2009, the Nova Scotia Department of Fisheries and Aquaculture contracted
“Anchor Consulting” to conduct market research for small-scale players interested in
direct marketing opportunities in the local provincial supply chain. The research, funded
by the "Product Quality Development Fund", explores trends affecting seafood direct
marketers around the province. It also draws out lessons from more established niche
direct marketing enterprises in other sectors and jurisdictions.
Small-scale seafood producers are beginning to explore, and in some cases realize,
potential opportunities offered by direct marketing and value-added goods and services
in gaining a niche market share. Many of these producers have been motivated to direct
market into the local supply chain by poor opportunities on global commodity markets,
coupled with the frustrations associated with buyer consolidation and marketing policies
that favour larger industry players.
Research for this study, conducted in 2009, demonstrates that Nova Scotians feel a
strong affinity for locally caught seafood. The vast majority of respondents indicated a
willingness to pay more for directly marketed seafood products, especially if the premium
supported fishers, coastal communities, or the ocean environment. Consumers,
including chefs, expressed keen interest in supporting direct marketing schemes,
especially those that can overcome the barriers of inaccessibility and inconvenience.
Research has also shown that local direct marketing has the potential to lead to greater
stability, local autonomy and opportunities, a fact confirmed by local producers
interviewed for this study (Halweil, 2002; Norberg-Hodge et al., 2002). Unfortunately
though, these efforts are currently largely unsupported and happening piece meal
around the province. Many of the barriers to local direct marketing identified by smallscale producers related to food policy and distribution systems designed for larger scale
industrial players. Indeed current marketing support in the province tends to focus on
export development benefit larger industrial players.
The direct marketing of small-scale seafood products will not erase all of the challenges
facing Nova Scotia’s seafood industry. However, preliminary market data analysis
underlines opportunities to examine and how policy changes might facilitate and support
local seafood direct marketing enterprises. Taking lessons from Community Supported
Agriculture (CSAs), Community Supported Fisheries (CSFs), and other direct marketing
models, a well-designed pilot project or start-up enterprise could open the door to
exciting new prospects for small scale fishers and aquaculture operators in the province,
prospects with benefits that extend far beyond the producers themselves, sustaining
communities and ocean ecosystems.
This report is intended to share Anchor Consulting’s research on seafood direct
marketing opportunities in Nova Scotia. It is also designed to provide some practical
background and marketing information for small-scale fishers that may be interested in
learning more about the subject. In no way is the information intended to be exhaustive,
and many of the policies and regulatory requirements may change over time. However, it
is hoped that the report will help fishers start exploring direct marketing opportunities.
i
ACKOWLEDGEMENTS
Anchor Consulting would like to thank Melissa Quinn and George Carmichael from the
Nova Scotia Department of Aquaculture and Fisheries for their support and guidance in
making this study possible. I would also like to thank Bill Whitman who provided
generously of his time to help shape the project. Many folks at Ecology Action Centre
also deserve giant thanks, especially Shannon Arnold and Carla Vandenberg.
I would also like to thank the many other individuals and organizations across Nova
Scotia who offered useful feedback, resources and time throughout the study.
This report was compiled by Sadie Beaton between June 2009 and March 2010.
Additional copies of this report are available from:
Ecology Action Centre – Marine Issues Committee
2705 Fern Lane
Halifax, Nova Scotia
Canada B3K 4L3
Tel: (902) 446 - 4840
Fax: (902) 405 – 3716
E-mail: sadie@ecologyaction.ca
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TABLE OF CONTENTS
EXECUTIVE SUMMARY.................................................................................................. i
ACKOWLEDGEMENTS .................................................................................................. ii
TABLE OF CONTENTS ................................................................................................. iii
LIST OF FIGURES......................................................................................................... iv
1. NOVA SCOTIA’S SMALL-SCALE FISHERIES............................................................1
1.1 Context..................................................................................................................1
1.2 Changing Trends ...................................................................................................1
2. AN OVERVIEW OF DIRECT MARKETING ................................................................3
2.1 Defining Direct Marketing ......................................................................................3
2.2 Why Try Direct Marketing? ....................................................................................6
2.3 Potential Drawbacks ..............................................................................................7
2.4 Direct Marketing Business Models.........................................................................7
2.4.2 Partnership .....................................................................................................9
2.4.3 Incorporation.................................................................................................10
2.4.4 Cooperative ..................................................................................................10
2.5 Relevant Legislative Authorities...........................................................................11
2.6 Relevant Permits for Seafood Direct Marketers in Nova Scotia ...........................12
3. THE DIRECT MARKETING STUDY.........................................................................16
3.1 Project Overview .................................................................................................16
3.2 Project Objective .................................................................................................16
3.3 Project Activities ..................................................................................................16
3.3.1 Secondary source research ..........................................................................17
3.3.2 Interviews .....................................................................................................17
3.3.3 Consumer Surveys .......................................................................................17
3.3.4 Online Restaurant Surveys ...........................................................................18
4. STUDY RESULTS - EMERGING TRENDS...............................................................19
4.1 Motivation to Directly Market ...............................................................................20
4.2 Perceived Benefits...............................................................................................21
4.3 Perceived Barriers ...............................................................................................23
4.3.1 Policy Barriers in Nova Scotia.......................................................................23
4.3.2 Other Barriers ...............................................................................................24
4.4 Marketing ............................................................................................................25
5. CONSUMER TRENDS..............................................................................................26
5.1 Consumer Survey Results ...................................................................................26
4.2 Restaurant Survey Results ..................................................................................28
6. LOOKING AHEAD.....................................................................................................31
7. REFERENCES..........................................................................................................33
APPENDIX A: INTERVIEW HIGHLIGHTS ....................................................................35
APPENDIX B: CONSUMER SURVEY TALLY AND HIGHLIGHTS ................................44
APPENDIX C: DIRECT MARKETING TO RESTAURANTS- SURVEY HIGHLIGHTS ...46
APPENDIX D: ...............................................................................................................51
DIRECT MARKETING READINESS CHECKLIST.........................................................51
iii
LIST OF FIGURES
Figure 2.1 A few simplified seafood supply chains...........................................................4
Figure 5.1: Anchor Consulting Consumer Seafood Survey- Willingness to pay slightly
more..............................................................................................................................27
Figure 5.2: Anchor Consulting Consumer Seafood Survey- Purchasing factors. ...........28
Figure 5.3: Anchor Consulting Chef Survey – Local Food Priorities...............................30
Figure 5.4: Anchor Consulting Chef Survey – Direct Purchasing Benefits .....................30
iv
1. NOVA SCOTIA’S SMALL-SCALE FISHERIES
1.1 Context
A narrow peninsula jutting into the North Atlantic, Nova Scotia is nearly surrounded by
ocean. A healthy and productive marine environment has been the basis of human
settlement here for thousands of years, since the Mi 'kmaq first followed the retreat of
the glaciers to this narrow peninsula. Explorer John Cabot's infamous report from off the
coast of Nova Scotia that “the sea was swarming with fish, which could be taken not only
with the net but in baskets” lured swathes of European fishers, who eventually built
dozens of communities along its extensive coast.
Despite massive ecosystem and societal changes, fishing activities remain a
cornerstone of Nova Scotia's coastal communities, providing direct and indirect
employment in the range of 30,000 people. Aquaculture activities also provide over
1,000 jobs, many of them in rural and coastal communities (NS Department of Fisheries
and Aquaculture, 1999). These communities produce one quarter of Canada’s seafood,
the largest proportion of any province.
Healthy, prosperous fishing communities are vital to the economic, cultural and
environmental resilience of the province now and into the future. From groundfish
to clams, shrimp to swordfish, to lobster and mussels, Nova Scotia's small-scale
fisheries and aquaculture operations have much to offer residents and visitors alike. The
province has garnered a reputation not just for picture-postcard coastal fishing
communities, but also quality seafood caught close to shore. Though much of it is
exported, ensuring local access to a sustainable supply of seafood is also an important
element of ensuring food security in Nova Scotia's communities.
1.2 Changing Trends
Nova Scotia’s seafood industry is rapidly changing. The groundfish collapse of the
early 1990s wrought especially big changes, threatening the very existence of many of
the province's fishing communities. Like many areas of the developed world, but
exacerbated by the groundfish collapse, parts of rural and coastal Nova Scotia are
experiencing considerable population declines. These communities have also felt the
impacts of other external trends- from market liberalization and global restructuring, to
government downsizing and decentralization (Alasia and Bollman, 2008; Nobuhior and
Apedaile, 2008).
Because fisheries in Nova Scotia evolved largely as an export-oriented commodity
industry, many of its small-scale fishers are extremely vulnerable to changes in global
markets. For example, the rise in value of the Canadian dollar relative to United States
(US) currency beginning in the early 2000s has had a serious economic impact.
Changing traceability requirements, along with the rise in prominence of seafood eco-
1
labels, particularly in the EU, US and Japan, have put even more pressure on Nova
Scotia's seafood sector (Magera and Beaton, 2008).
Despite changes, Nova Scotia remains a relatively rural region, with a higher percentage
of rural population than any other Canadian province (Curran, 2005). The small-scale
fisheries that make up the backbone of many of these communities face particular
challenges as the seafood industry continues to change. Federal and provincial policies
have also acted as barriers for small-scale fishers, in their consistent support and
subsidization of large-scale export development (PFPP, 2009).
However, the relative size of small-scale fisheries may also be advantageous in these
rapidly changing times. These small family businesses, as it were, can be comparatively
nimble when it comes to adapting and diversifying in changing seafood markets.
One promising trend in Nova Scotia is a surge in demand for local food products.
This stems from environmental and health concerns, along with a desire to invest
directly in local communities. In the agricultural sector, direct marketing enterprises such
as farmer’s markets, farm gate sales/shops, community supported agriculture boxes,
and internet sales have been gaining ground over the last 15 years. Such marketing
techniques, however, are still in their infancy in the small-scale fisheries sector.
Along with increased push for environmental sustainability, traceability, and resilience in
our coastal communities, the current focus on local food marketing provides an excellent
opportunity to push, invest in and develop a locally focused direct seafood market.
Market research and support for small-scale seafood producers interested in direct
marketing can help diversify coastal livelihoods, enhancing resilience in rural
communities.
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2. AN OVERVIEW OF DIRECT MARKETING
2.1 Defining Direct Marketing
Seafood is a major industry in Canada, mostly traded internationally. In 2008, seafood
exports were valued at $3.9 billion (DFO, 2009). It is estimated that over 80% of
Canada’s seafood, by value, is exported, with the United States as the largest export
market. Nova Scotia was Canada’s second leading exporter of fish and seafood
products in 2008, with a value of $846.5 million.
Much of this seafood travels a long and winding path between the fisher and the final
consumer. This path is known as the seafood “supply chain” and is loosely depicted in
Figure 2.1. A typical fish flows through the seafood supply chain something like this: a
fisher or fish farmer sells to a primary processor, who sells to a distributor, who sells to a
wholesaler, who may in turn sell to a retailer or food service operator, who then sells to
the consumer or end-user. Secondary processors may also be involved, as well as
brokers and shipping companies (SeaGrant, 2007).
Mark-Ups
Fishers often wonder why the same seafood they sell for, say, $.50/lb, is bought for
$5.00/lb by the final consumer. So what exactly occurs between the dock and display
case? Aside from all of the expenses that go into processing product and moving it to its
final destination, each link in the chain takes profits.
Keeping in mind that these percentages only estimates, processors might take a 15%
markup on their costs. Distributors take a 15 - 25% markup. Brokers traditionally earn 3
to 5% for their troubles. Retail and foodservice (including restaurants) look for upwards
of a 40% markup on the final sale.
Adapted from The Alaska Department of Commerce, 2002.
Direct marketing refers to the act of selling a product to an entity at a point on the
supply chain higher than the primary processor (SeaGrant, 2007). A fisher who does
direct marketing might sell directly to the consumer or to one of the wholesalers or
distributors somewhere in the middle of the supply chain. Activities can range from
selling fresh trap-caught shrimp from a roadside van to direct Internet sales, and/ or
participating in community supported fishery enterprises. Direct marketing enterprises
are well established in several other jurisdictions, but presently occur on a piecemeal
and uncoordinated basis in Nova Scotia.
It is important to note that direct marketing activities involve much more than the sale of
the product to a willing buyer higher on the chain. A seafood direct marketer may find it
necessary to engage in other activities including market research, networking, public
3
relations, advertising, and/or the development of attractive logos and packaging
(SeaGrant, 2007).
As well, in some cases it may be useful to perform or contract custom secondary
processing. Some seafood may sell better if made into steaks, fillets, or are shelled, or
frozen, pickled, canned or smoked. For various reasons, present regulations and
permitting may make some of these processing activities difficult or impossible for direct
marketers to perform this process themselves. Drawing up fee-for-service contracts may
be one strategy to get around this barrier.
Figure 2.1 A few simplified seafood supply chains. Courtesy of SeaChoice, 2009.
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What Exactly Does a Direct Marketer Do?
A fisher who wants to take on the challenge of direct marketing must do some or all of
the following:
• Determine an overall goal. For example, is the goal to make enough money to keep
fishing? Or to save for retirement? Is the aim like to expand markets?
• Create a business plan.
• Obtain all licenses and permits, pay bonds, collect and pay fees, complete forms and
file reports, submit to inspections, and file and pay taxes.
• Find potential customers. Then sell them on the product and negotiate prices and
terms. This can mean buying advertising, writing and printing promotional materials,
posting Web sites, sitting at booths in farmers markets or aboard the boat at dockside or
going on sales trips to distant cities.
• Gill, gut, wash and re-chill the fish for shipment or dockside sale.
• Chill or refrigerate the catch on-board or immediately after getting to shore.
• Box or package the product and physically remove it from the boat.
• Acquire equipment (such as a truck) to transport the product to the point of sale or
delivery, arrange shipment, weigh, prepare bills, arrange transportation and drayage,
transfers and final delivery
• Purchase packaging and labeling materials and containers, and, possibly, arrange
backhaul of shipping containers.
• Send bills, collect payment, deal with customers who don’t pay and with complaints, as
well as negotiate terms and specifications.
Adapted from the Fishermen’s Direct Marketing Manual (SeaGrant, 2007).
An extremely thorough and readable Fishermen’s Direct Marketing Manual is
available from Alaska Oregon and Washington SeaGrant, available for purchase or free
download at: http://seagrant.uaf.edu/bookstore/pubs/MAB-53.html Though much of the
manual focuses on challenges and opportunities for salmon and shrimp fishers, it also
includes lots of practical information that may be useful to Nova Scotia small-scale
fishers as well. Much of the background information about seafood direct marketing
included in this report has been sourced from this document.
5
2.2 Why Try Direct Marketing?
As the seafood marketplace changes, direct marketing is becoming an increasingly
attractive option for many small-scale Nova Scotian fishers. The momentum built by
local food and environmental movements has helped open the door to new direct
marketing enterprises – however these techniques are presently in their infancy
compare to other food sectors, notably for local small-scale agriculture sales.
Growing consumer demand for sustainable seafood and towards eco-certification has
also helped fishers realize the market cache of being able to tell their product’s story.
However, while certifications such as that offered by the Marine Stewardship Council
may make good business sense for larger fleets, it is often too costly for the small-scale
family fishing businesses that make up the backbone of our communities.
Direct marketing fishers can often act more nimbly than their more industrial colleagues,
allowing them to cater to niche customers by offering high quality and specialized
seafood products, along with a connection to the producer’s unique story.
In many cases, the benefits of direct marketing can be measured directly, in the form of
money in the fisher’s pocket. By bypassing some or all of the links in the supply chain,
fishers receive a higher premium for their product. Seafood direct marketers also gain a
sense of ownership and control over their livelihoods- in fact, research has shown that
local direct marketing has the potential to lead to greater stability, local autonomy
and opportunities, (Halweil, 2002; Norberg-Hodge et al., 2002).
Direct market enterprises can also help to address supply chain gaps by encouraging
consumers to seek out local food and stimulating consumer demand. Such enterprises
create employment opportunities in rural areas and generate economic activity
throughout the supply chain from rural/coastal producer to urban restaurateur or retailer.
Research has also shown that local food sales generate increased recirculation of
capital in the local economy (Halweil, 2002).
Just as seafood direct marketing may promise rich benefits, however, it also brings with
it potential peril. As the next section makes clear, selling to links higher in the supply
chain also comes with more risk, duties and responsibilities.
Is Direct Marketing Right for You?
1.
2.
3.
4.
5.
6.
7.
8.
Are you willing to take some risks?
Do you take pride in your products?
Do you enjoy showing and telling people how great your products are?
Are you willing to do some serious planning and research?
Are you willing to experiment?
Are you able to be flexible?
Do you like to operate independently and determine your own path?
Do you like to do creative things, and solve problems creatively?
Adapted from Market What You Grow (Hills, 1989).
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2.3 Potential Drawbacks
The fish business is full of risk. Highly perishable, seafood products are also subject to
ever-changing market demands and wide variations in quality (SeaGrant, 2007). In
longer supply chains, each player shares part of this market risk- but fishers who decide
to do direct marketing must assume a greater portion of the risk in direct proportion to
the greater share of profits they may be expecting. For example mishandling, late
shipments, or poor branding can all reduce the value of a seafood product, or even
render it worthless.
Cash flow is often a major concern for seafood direct marketers. Unlike the traditional
seafood supply chain where fishers are paid when they land their fish, seafood direct
marketing usually means paying others first. In this business model, fishers often must
pay upfront for services such as cold storage, processing, packaging, shipping,
insurance and distribution (SeaGrant, 2007). These hefty costs must be swallowed
along with all of the regular payouts for fuel, crew, equipment, maintenance and
paperwork.
Time is also a major consideration. Along with time spent fishing, fishers who want to
direct market their catches must also invest time in marketing activities. This can range
from simple networking and advertising to logo and website development, to even more
time-consuming activities like “blogging” to generate and maintain business
relationships. In some cases, direct marketers will look for strategic partners to help with
this part of their business.
Overall, direct marketing seafood products usually comes with more work, and less
assured rewards. However, growing numbers of fishers are finding that the benefits of
taking the leap towards direct marketing has more than compensated for potential
downsides. See Appendix D for a checklist designed to help assess an individual or
group’s readiness to embark on a direct marketing enterprise.
2.4 Direct Marketing Business Models
No two direct marketing enterprises are exactly alike. Though it is possible to direct
market seafood products in many ways, fishers interested in forming an enterprise will
need to choose a basic business model. The four main models are sole proprietorships,
partnerships, corporations and cooperatives. More information on setting up a direct
marketing business can be found on the Government of Canada website:
http://www.canadabusiness.ca/eng/125/141/
7
The Midcoast Fisheries Cooperative – A Forward-thinking Business Model for
Small-scale Fishers?
Since its conception, the Midcoast Fisheries Cooperative (MFC) has been leading the
way in innovative marketing models. The current marketing structure dominating this
fishery (groundfish) is based exclusively on volume. The MFC is moving away from this
antiquated model of catching high volumes of low-quality fish for a low price. Instead, its
model focuses on catching low volumes of high-quality fish, which is then sold for a
premium price directly to local markets.
The MFC has also voluntarily adopted stricter gear restrictions than federally mandated
and implemented rigorous quality assurance standards. These factors, along with the
distinctiveness of the Port Clyde fishing community, provided the foundation to create
the unique brand Port Clyde Fresh Catch™ for the MFC.
Using the Port Clyde Fresh Catch™ name in marketing and branding raises consumer
awareness of the Port Clyde fishermen’s work and creates a demand for their fresh,
wild-caught seafood. As consumers enthusiastically seek out Port Clyde Fresh Catch™
seafood, the cooperative’s fishers have strong incentives to adhere to the innovative
gear changes and the rigorous quality assurance standards as well as stewardship over
the resources. Customers then know they are getting a premium quality product that is
harvested in a manner that conserves the fishery.
While the Midcoast Fishermen’s Cooperative may harvest fewer fish than other fishers,
they are paid more for their harvest because it is sold as a high-quality, branded product
that customers value. This is a cycle in which the customer, the fishers and the resource
benefit. The consumer creates the demand for access to local, fresh, high-quality fish;
the fishers are paid a premium price so they supply only that demand, which achieves
conservation of the resource by reducing fishing; this in turn allows the public to
participate in the recovery and sustainability of this fundamental resource.
Purchasers of Port Clyde Fresh Catch™ seafood also know that they are helping
preserve one of Maine’s few remaining traditional fishing communities, supporting
environmentally sustainable fishing, and strengthening the local economy.
Excerpt from Fishery For the Future (Midcoast Fishermen’s Association, 2008).
2.4.1 Sole Proprietorship
The simplest business model for direct marketing enterprises is the sole proprietorship.
Here, one person owns the entire enterprise, performing all of the operational functions,
including securing capital, establishing the business, assuming the risks and paying all
taxes. This person also stands to reap all of the profits. A proprietor is legally designated
as self-employed.
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Advantages of Proprietorship:
•
•
•
•
•
•
•
Easy and inexpensive to form a sole proprietorship (you will only need to register
your business name provincially in Nova Scotia);
Relatively low cost to start your business
Lowest amount of regulatory burden
Direct control of decision making
Minimal working capital required to start-up
Tax advantages if your business is not doing well, for example, deducting your
losses from your personal income, lower tax bracket when profits are low,
All profits will go to you directly
Disadvantages:
•
•
•
•
Unlimited liability (if you have business debts, personal assets would be used to
pay off the debt)
Income would be taxable at your personal rate and, if your business is profitable,
this may put you in a higher tax bracket
Lack of continuity for your business, if you need to be absent
Difficulty raising capital on your own
Government of Canada, 2009
2.4.2 Partnership
In a partnership, two or more persons own the enterprise. Profits are generally shared
based on level of ownership but all partners share the risk, regardless of relative capital
invested. Partnerships may be formed using a simple written agreement.
Advantages of Partnership:
•
•
•
•
Easy to start-up a partnership
Start-up costs would be shared equally with you and your partner
equal share in the management, profits and assets
tax advantage, if income from the partnership is low or loses money (you and
your partner include your share of the partnership in your individual tax return)
Disadvantages:
•
•
•
•
•
Similar to sole proprietorship, as there is no legal difference between you and
your business
Unlimited liability (if you have business debts, personal assets would be used to
pay off the debt)
Hard to find a suitable partner
Possible development of conflict between you and your partner
You are held financially responsible for business decisions made by your partner
Government of Canada, 2009
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2.4.3 Incorporation
Another option for seafood marketers may be to incorporate. Corporations are regarded
as legal entities, separate and distinct from shareholding members, with all the powers
and capacities of an individual person. It is formed using a specialized contract between
shareholders, designed to limit risk of the owners to their actual investment.
Advantages of Incorporation:
•
•
•
•
•
•
Limited liability
Ownership is transferable
Continuous existence
Separate legal entity
Easier to raise capital
Possible tax advantage as taxes may be lower for an incorporated business
Disadvantages:
•
•
•
•
•
A corporation is closely regulated
More expensive to incorporate than a partnership or sole proprietorship
Extensive corporate records required, including shareholder and director
meetings, and documentation filed annually with the government
Possible conflict between shareholders and directors
Possible problem with residency of directors, if they are in another province or
the majority are not Canadian
Government of Canada, 2009
2.4.4 Cooperative
A cooperative is another business structure that can work for direct marketers. In this
model, an association of members owns the enterprise. It is voluntarily controlled,
operated at cost, which is owned, capitalized and controlled by member-patrons, sharing
risks and benefits proportional to their participation (Mitchell, 2002). This model may be
particularly useful when a group of persons or organizations seek to pool resources to
provide access to common needs, such as the delivery of products or services, the sale
of products or services, employment, and more.
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Cooperative Advantages:
•
•
•
•
Owned and controlled by members
Democratic control (one member, one vote)
Limited liability
Profit distribution
Disadvantages:
•
•
•
•
•
Possible conflict between members
Longer decision-making process
Participation of members needed for success
Extensive record keeping
Less incentive to invest additional capital
Government of Canada, 2009
2.5 Relevant Legislative Authorities
In Canada, there are federal laws prohibiting seafood, including finfish, shellfish and
crustacea from inter-provincial travel and trade without the facilities being registered
under the Federal Fish Inspection Act, which is administered by the Canadian Food
Inspection Agency (CFIA):
Federal Fish Inspection Act: http://laws.justice.gc.ca/en/F-12
CFIA is also responsible for upholding the Consumer Packaging and Label Regulations:
http://laws.justice.gc.ca/en/C-38/C.R.C.-c.417
Nova Scotia Department of Fisheries and Aquaculture, in turn regulates trade within the
province through the Fish Buyers’ Regulations and the Provincial Fish Regulations:
Provincial Fish Regulations: http://www.gov.ns.ca/just/regulations/regs/fcrinspc.htm
Provincial Fish Buyers Regulations:
http://www.gov.ns.ca/just/regulations/regs/fcrbuyer.htm
Complications often arise for seafood sellers when seafood products are processed (as
defined in the Provincial Fish Inspection Regulations). In Nova Scotia, the regulations
are interpreted to mean that one must obtain a Federal registration before a provincial
one is applied for and granted. These rules do not allow a restaurant, for example, to
make and wholesale pre-packaged seafood chowder even within the province. This is
by virtue of the fact that the Federal Fish Inspection regulations would make it nearly
impossible for a restaurant to meet the requirements.
It is always a good practice to contact the Legislation and Compliance Services division
with any questions or concerns. Legislation and Compliance Services are provided
through the Nova Scotia Department of Agriculture, and include the inspection and
11
enforcement of aquaculture, sea plants, fish buying and fish processing: Phone: (902)
424-4560 or contact online at https://www.gov.ns.ca/agri/secure/response.shtml
Other relevant policy, legislation and regulations:
Nova Scotia Fish Processors and Fish Buyers Licence Policy, Nova Scotia Fisheries and
Aquaculture: http://www.gov.ns.ca/fish/licensing/policy.shtml
Fisheries and Coastal Resources Act, Revised Statutes of Nova Scotia, 1996:
http://www.gov.ns.ca/legislature/legc/statutes/fishand.htm
Fish Buyers' Licensing and Enforcement Regulations, Nova Scotia Fisheries and
Coastal Resources Act: http://www.canlii.org/en/ns/laws/regu/ns-reg-286-84/latest/nsreg-286-84.html
Nova Scotia Fish Inspection Regulations, Nova Scotia Fisheries and Coastal Resources
Act: http://www.gov.ns.ca/just/regulations/regs/fcrinspc.htm
Food Safety Regulations made under Section 105 of the Health Protection Act:
http://www.gov.ns.ca/just/regulations/regs/hpafdsaf.htm
Co-operative Associations Act, Revised Statutes of Nova Scotia, 1989, Chapter 98,
amended 2001, c. 41, ss. 1-23:
http://www.gov.ns.ca/legislature/legc/statutes/coopassc.htm
2.6 Relevant Permits for Seafood Direct Marketers in Nova
Scotia
There are a variety of permits and licensing activities that may be required when setting
up seafood direct marketing enterprises in Nova Scotia. Provided below is only some of
the necessary paperwork:
 Business Name: Search and Reservation
Required by anyone who wants to find out if a business name is already in use in Nova
Scotia, and/or wants to reserve a business name. In Nova Scotia, having a business
name reserved by the Registry of Joint Stock Companies is the first step in registering
that business name for use within the province.
Cost: None
Time: 2 days.
Downloadable form: http://www.gov.ns.ca/snsmr/access/permits/forms/registry-jointstock-companies.asp
 Fish Buyers License
12
Required by anyone who buys fish, fishery products or fishery resources from fishers in
Nova Scotia.
* However, a license is not necessary for those who:
1) buy less than 25 kg of fish or fish products per calendar day for personal consumption
only;
2) buy fish or fish products, excluding lobster, for resale in a retail outlet.
3) as a non-profit organization, buy for trade;
4) buy fish or fish products from an existing license holder.
Costs: (Annual) $238.76
Time: 10 business days.
Downloadable form: http://www.gov.ns.ca/snsmr/access/permits/forms/registry-jointstock-companies.asp
 Fish Processors License (Nova Scotia)
Required by anyone who wants to operate an establishment for the purpose of
processing fish, including cleaning, filleting, icing, packing, canning, freezing, smoking,
salting, cooking, pickling, drying or any other manner of preparing fish for market.
*However, a licence is not necessary for those who:
1)process fish for his or her own personal consumption;
2)process fish for direct sale to the final consumer in a retail outlet owned by that person;
3)as Fisher, process their own catch into whole or dressed unfrozen, salted or pickled
fish.
Cost: (Annual) $238.76
Time: 10 days.
Downloadable form:
http://www.gov.ns.ca/fish/licensing/ProcessorBuyerApplicationApr09.pdf
 Food Establishment Permit
Required by anyone in Nova Scotia who wants to operate a foodservice facility such as:
restaurant, food take-out, mobile canteen, temporary food establishment, pushcarts or
any facility from which foods are sold, whether on a permanent basis or only
occasionally.
Includes:
cooking lobster (but not shucking)
filleting or steaking raw fish
Cost: (Annual):
13
Eating Establishments $101.33
Food Shops $67.13
Mobile Food Services $40.53
Mobile Lobster Fisher (Live Lobster only) $0.00
Public Market $40.53
Temporary Event (1 day): $12.67
Temporary Event (2 days or longer): 26.61
Multiple Temporary Events (2 to 5 events): $40.53
Note: Recognized charity organizations are not required to pay a fee for a Temporary
Event Permit.
Time: 10 days.
Downloadable Forms: http://www.gov.ns.ca/agri/foodsafety/pdfs/AppFoodEst.pdf and
http://www.gov.ns.ca/agri/foodsafety/pdfs/TempFoodPermit.pdf
 Business Name, Sole Proprietorship or Partnership: Registration (Nova
Scotia)
Required by anyone who wants to carry on business in Nova Scotia, either on their own
or with partners, and who wants:
1) to operate without legally incorporating the business
2) to use a business name that is different from their personal name(s).
Cost: (Annual) $61.66
Time: 6-10 business days.
Downloadable form: http://www.gov.ns.ca/snsmr/access/permits/forms/registry-jointstock-companies.asp#3596
 Co-operative: Incorporation (Both Profit and Non-Profit) (Approval and
Registration) (Nova Scotia)
Any group wishing to incorporate a co-operative in Nova Scotia must be approved by the
Nova Scotia Inspector of Co-operatives.
Cost: (annual) $119.94
Time: 6-10 business days
Downloadable form: http://www.gov.ns.ca/snsmr/access/permits/forms/registry-jointstock-companies.asp
14
Liability Insurance?
Product liability insurance is another consideration for seafood direct marketers –
especially those planning to participate in farmer’s markets. In fact, many farmer’s
markets insist on it for all vendors.
In the busy, crowded environment of the farmers’ market, accidents can and do happen.
Someone may slip on a fallen apple, or have a surprise allergic reaction to one of your
products.
Unfortunately, these kinds of accidents sometimes result in lawsuits against the vendor.
Liability insurance is a way of protecting your business. Without it, you could be sued if
someone gets sick from eating your food or gets hurt near your stall. Depending on how
serious the damage is, a lawsuit could have a major financial impact on your business,
your home, and your savings.
Every business, whether large or small, is at risk of being sued for negligence causing
property damage or bodily injury. Legal fees are an ever-increasing expense in claim
settlements. Liability insurance covers these fees even if a claim against you or your
business seems frivolous.
Courtesy of Your Alberta Farmers’ Market Association, 2007
15
3. THE DIRECT MARKETING STUDY
3.1 Project Overview
Starting in the summer of 2009, the Nova Scotia Department of Fisheries and
Aquaculture contracted “Anchor Consulting” to conduct market research for small-scale
players interested in direct marketing opportunities in the local provincial supply chain.
The research has been carried out in partnership with the Ecology Action Centre in
Halifax, Nova Scotia.
This report will explore general trends affecting budding seafood direct-marketers
in Nova Scotia, while drawing out lessons from more established niche directmarketing enterprises in other sectors and jurisdictions. The research makes a
case that providing support for niche seafood direct marketing enterprises will also
benefit local economies and the overall sustainability of the province’s seafood industry.
The project has been funded by the Nova Scotia Department of Fisheries and
Aquaculture "Product Quality Development Fund", designed to support research and
development that can stimulate the growth and value of the province's fisheries,
aquaculture, and food sectors through strategic planning, market diversification, and the
development of innovative products and technology.
3.2 Project Objective
The overall objective of this study was to gather sound market intelligence for smallscale players interested in direct marketing opportunities in the local provincial supply
chain to help build niche markets for local seafood products and small-scale direct
marketing enterprises.
3.3 Project Activities
To uncover barriers and opportunities to local seafood direct marketing in Nova Scotia,
researchers used a combination of secondary source research, qualitative interviews,
and survey research. The barriers identified by consumers, sellers and fishers may be
internal to the individual, such as lack of knowledge regarding how to carry out an
activity, or external, as in structural changes that need to be made in order for the
behavior
to
be
more
convenient.
It may be easy to speculate about barriers to seafood direct marketing, but according to
the principles of Community-Based Social Marketing, one should examine the extent of
specific barriers and benefits of any community population under study. CommunityBased Social Marketing brings a wealth of academic psychological research into the
practical field of planners and program designers (McKenzie-Mohr and Smith, 1999).
16
CBSM is “based upon research in the social sciences that demonstrates that behavior
change is most effectively achieved through initiatives delivered at the community level
which focus on removing barriers to an activity while simultaneously enhancing the
activities benefits” (McKenzie-Mohr and Smith, 1999).
The work of this project involved the following activities:
•
•
•
•
Secondary source research
Qualitative in-person and phone interviews with fishers and marketers
Quantitative in-person consumer surveys
Online restaurant survey
3.3.1 Secondary source research
Secondary source research provided needed context and helped shape the questions
used to flesh out the study. Topics included Nova Scotia’s demographic and
sustainability issues, traditional seafood supply chains and traceability systems, direct
marketing trends and examples, and opportunities for culinary and marine/coastal
tourism in the province. A survey of relevant food safety regulations, licensing and
policies was also undertaken. This background research framed barriers and
opportunities to the direct marketing of seafood on Nova Scotia’s local supply chains
already identified
A selected bibliography can be found in Section 6.
3.3.2 Interviews
Twenty-one interviews were conducted with small-scale fishers, fish farmers and sellers
throughout the province, as well as in the United States. Thirteen were carried out in
person, while eight interviews were conducted over the phone.
Interview questioned aimed to discover why producers have been motivated to market
their products directly into local markets. Other questions focused on fleshing out some
perceived barriers and benefits associated with direct marketing along with marketing
strategies and partnerships. Demographic information was also recorded.
Interview questions and answer highlights can be found in Appendix A.
3.3.3 Consumer Surveys
Short consumer-oriented surveys were carried out in November 2009. The purpose of
this survey was to discover local seafood consumption habits and preferences.
Questions were closely modeled on a recent Gulf of Maine Research Institute survey of
17
seafood buying habits in Maine. Seventy consumers were approached-outside of the
Halifax Farmer’s Market as well as outside of a major grocery chain.
A copy of the survey along with a tally chart of responses can be found in Appendix B.
3.3.4 Online Restaurant Surveys
An online restaurant-oriented survey was sent out through the Taste of Nova Scotia
listserve in November 2009. Similar to the consumer-oriented surveys, the purpose was
to learn about the seafood buying habits and preferences of chefs and restaurateurs.
Twenty-one chefs, managers and owners filled out the survey.
Survey questions along with response highlights can be found in Appendix C.
18
4. STUDY RESULTS - EMERGING TRENDS
Interviews with seafood producers and direct marketers from other regions and sectors,
along with small-scale fishers and fish farmers in Nova Scotia revealed a number of
noteworthy trends. Questions were asked about what motivated producers to begin
direct marketing their products along with the perceived barriers and opportunities
experienced. We also inquired about marketing strategies and any partnerships or links
they may have developed to support their business.
•
Interviewees are overwhelmingly motivated to direct market into the local supply
chain by poor opportunities on global commodity markets, coupled with the
frustrations associated with buyer consolidation and marketing policies that
favour larger industry players.
•
The perceived benefits of local direct marketing include the ability to command a
better price for products, to exert more control over one’s livelihood and to
interact directly with customers.
•
Interviewees described both policy-based and logistical barriers to direct
marketing of seafood in Nova Scotia. There is a strong perception that both food
distribution systems and fisheries policy are designed for larger corporate
players.
•
Local direct marketing of seafood in Nova Scotia has tended to lack the business
planning, innovative partnerships and policy support enjoyed by direct marketers
in other regions and sectors.
•
Selling seafood directly on local markets does not require elaborate marketing
strategies. Along with word of mouth, a dynamic online presence is often key to
success.
•
The Community Supported Fisheries (CSF) model may offer unique opportunities
for small-scale seafood producers to directly market their seafood products in
Nova Scotia.
What is a Community Supported Fishery?
Community Supported Fishery (CSF) is a community of people collaborating with a local
fishing community. Tailored after the Community Supported Agriculture model, a CSF
contributes freshly caught local seafood to the local markets while providing fishers with
a better price on less catch. CSF members give the fishing community financial support
in advance of the season, and in turn the fishers provide a weekly share of seafood
during the harvesting season. A CSF reconnects people to the ocean that sustains them
and builds a rewarding relationship between the fishers and the shareholders.
For example, The Gloucester Fishers’s Wives Association, MIT SeaGrant and the
Northwest Atlantic Marine Alliance (NAMA) sponsor Cape Ann Fresh Catch. CAFC
19
delivers a variety of the freshest haddock, cod, flounder, hake, dabs, grey sole, pollock,
and redfish. In traditional markets fishers are forced to chase whatever species is
fetching the highest price that week. By taking a mix of these species at the same price
week-to-week, fishers are able to fish areas that are not stressed by the rest of the fleet,
and give species and ecosystems time to recover and replenish. This cooperative
system also keeps fishers safer because they don’t have to fight the weather to go
offshore for a certain species; if the weather is dangerous, they can stay close to shore
and catch only what the CSF needs that week. At the same time, shareholders are
guaranteed the freshest, highest quality fish caught. The fish caught for the CSF will
never be old or frozen, and it will always come from fishers who believe in working with
the ocean and the community.
Adapted from Northwest Atlantic Marine Alliance, 2008.
4.1 Motivation to Directly Market
A significant amount of local seafood direct marketing seafood is already happening in
Nova Scotia. Most direct seafood sales seem to be happening via roadside peddling and
delivery activities, many of whom sell 100% of their catch directly. As well, more and
more seafood is being sold in Farmer Markets, by internet direct-order and home
delivery.
Local small-scale seafood direct marketers have overwhelming reported that they
are motivated to sell directly into Nova Scotia markets to ensure some control
over their livelihoods and command a better price. Interviewees repeatedly invoked
buyer consolidation and even monopolies, along with corporate control of quotas as
provoking the move from export-oriented commodity sales to local niche markets.
As seafood markets are increasingly globalized, many small-scale producers find
difficulty in controlling the price of their products. Low prices on commodity markets often
make it uneconomical for small-scale fisher to fish at all. As one interviewee asked,
“Without a healthy marketplace, how can we get a fair price for our catch?”
Besides getting a better price, many interviewees also felt that the quality and integrity of
their products could be better protected by local direct sales. Some interviewees
described how selling into the supermarket distribution system meant product could be
poorly handled and not so fresh by the time it was made available for sale. Several also
noted their observation that as supermarkets and chain restaurants have come to
dominate the local seafood marketplace, Nova Scotians have lost access to fresh, high
quality seafood. As one interviewee described, “One of the biggest comments we used
to get was how come your fish doesn’t smell when we cook it? See, they don’t know
because they’ve never had it so fresh…. and this is a local market!”
20
4.2 Perceived Benefits
As previously discussed, fairer prices and more control over livelihoods has motivated
many producers to move towards a direct marketing model. This impetus seems to have
panned out for many of our interviewees, who also cited both factors as major benefits.
As one fisher described, “It is the satisfaction of knowing you got what you deserved for
your product.”
Another oft-cited advantage felt by local direct marketing is the opportunity to interact
directly with consumers. Along with the basic social benefit, small-scale fishers and
farmers also felt the benefit of feeling support from their communities, and felt
encouraged to continue. As well, producers can receive feedback directly, which
allows for adjustment of supply volumes, and the ability to make quick and innovative
tweaks.
Direct marketing into the local food system can other advantages, as well. The
Community Support Fisheries (CSF) model, for example, provides the distinct benefit of
providing the money up front. This model allows fishers to avoid the yoke of debt that
often limits flexibility and increases risk at the beginning of a fishing season. Further,
CSF participants were also able to see how a successful program could be leveraged
into broader public support for sought-after fisheries management changes.
21
Direct Market Fishermen Can Use their Success to Leverage for Policy Change.
Excerpt from Glen Libby’s Testimony at Senate Field Hearing on Management Changes
to Magnuson Act. October 14, 2008.
“Consider that we currently have a fishery whose market structure is based on volume.
Catch high volumes of lower quality fish for a low price. We have a depleted fish stock
here in Maine that does not allow a sufficient volume to be taken for the industry to be
economically successful. There are two ways to fix this, consolidate the number of
fishermen, which increases the volume of fish that can be taken thus allowing the
remaining fishermen catch more fish. This leads to a consolidated fishery putting many
out of work and leaving Maine’s communities vulnerable, this is the Industry Funded
Buyout plan. OR, you change the market structure; you catch low volumes of high
quality fish and sell it at a premium price. By increasing profits, this model achieves
conservation of the resource by reducing the fishing effort thus redefining overcapacity
and maintaining access to the resource for fishermen and the people of Maine.
To ground truth this theory, the fishermen of the Midcoast Fishermen’s Cooperative
created a Community Supported Fisheries (CSF) based on the successful agriculture
model a Community Supported Agriculture (CSA). By selling directly to the people of
Maine using this model we have established a way to keep Maine’s fishermen fishing as
well as creating a bond with our customers. With this bond, they now feel a strong sense
of ownership for the fishery and the fishermen in the Gulf of Maine. Our CSF customers
are helping to preserve one of Maine’s last remaining traditional fishing communities
while supporting environmental sustainable fishing which will restore the resource and
strengthen Maine’s local economy. We have altered our gear to reduce bycatch and
lessen the impact on habitat.
By branding a product caught in a sustainable manner off Maine waters and landed in
our harbor we are able to market it at a price as much as ten times that of wholesale
prices.
This model has piqued the interest of people all over the country as a potential way to
avoid consolidation of the fishery, to help restore the resources, strengthen local
economies and create a local food supply. This was pioneered in Maine and Maine can
lead the way by example.
Through our CSF program the people of Maine have sent a clear message that they
want “their” community- based fishery to remain and prosper. The fishermen that I work
with are determined to leave this fishery in better shape than it is right now for their
children and grandchildren. I would ask you Senator, to give your full consideration to
this model, along with alternative management plans like Area Management and Sectors
as sound tools that would benefit Maine and New England for generations.”
-- Glen Libby is a life long, second-generation fisherman from Port Clyde, Maine,
Chairman of the Midcoast Fishermen’s Association and President of the Midcoast
Fishermen’s Cooperative.
22
4.3 Perceived Barriers
Though interviewees were quick to share the benefits they had experienced as a result
of direct marketing on the local supply chain, they also found no difficulty in articulating a
number of significant barriers. Many described both policy-based and logistical barriers
to direct marketing of seafood in Nova Scotia. There is a very strong message from
interviewees that both food distribution systems and fisheries policy increasingly
cater to larger corporate players.
4.3.1 Policy Barriers in Nova Scotia
Interviewees pointed to a plethora of different policy barriers to local direct marketing,
executed by various departments and levels of government. Most repeated that policies
around fisheries and aquaculture favoured larger industrial players. As one interviewee
described, "I mean, the squeeze that they got on the little guy, to me that philosophy
needs to change.” These concerns have been echoed by the People’s Food Policy
Project, which has noted, “Federal and Provincial policies consistently support subsidies
for large scale industrial export development, while entirely neglecting the development
of local and direct market development” (PFSP, 2009).
Several felt that corporate seafood interests have too much pull on government decisionmaking, while others blamed bureaucrats who had become “overly invested in particular
policies, created in their youth, many decades back.” Some even felt that policies had
been developed to actively work against the small-scale seafood seller– the $40
peddler’s license was mentioned as an example several times.
Policies and regulations related to food safety and value-added processing were
often described as barriers for small-scale producers. Regulations were often
described as being unclear, as well as being unfeasible and unnecessary for small-scale
operations.
As well, jurisdictional conflicts between various government departments were
mentioned several times. Shellfish producers, both diggers and growers– expressed
extreme frustration at the inadequate communication between relevant government
departments (including Environment Canada, Fisheries and Oceans Canada, and the
Canadian Food Inspection Agency) and with the producers and public around the
shellfish ban that happened in the summer of 2009. For example, one clam digger
explained that he found out from his wife that the ban had begun, who had found the
information accidentally while surfing the internet.
The Individually Transferred Quota (ITQ) system was also cited several times as a
barrier, concentrating power into the hands of corporate bodies, along with the lack of an
effective policy to prevent buyer monopolies. A few also mentioned that available
government grants and economic development loans had been unhelpful, being set up
to help bigger players only.
Other policy barriers mentioned by interviewees:
•
Need for a gray seal cull
23
•
•
•
Need for habitat protection of groundfish spawning grounds
Problems with issuing of annual experimental licenses
Lack of a government local food procurement policy.
4.3.2 Other Barriers
Besides the complex suite of policies that guide fisheries management, food safety, and
marketing, a variety other factors also affect small-scale producers’ ability to direct
market into the Nova Scotia’s food system.
Finding processing for small volumes of seafood has been a barrier for many
seafood producers. Many interviewees expressed frustration at the inability to find a
processor willing to separate their catch from other commodity market-oriented catches.
Even finding access to adequate freezing to preserve product quality has been a major
issue for some interviewees.
While many interviewees were able to market 100% of their catch on the local markets,
others acknowledged difficulty in selling excess volumes on export markets.
Similarly, dealing in small volumes of seafood can also make it difficult to access
shipping options, especially in Nova Scotia where fishing areas are spread widely in
rural areas and population density is quite low outside a few centres. As one fisher
described, “With the volumes I’m dealing with now, no truck is going to come down this
long dirt road to pick it up.”
Several producers also pointed to a lack of knowledge about seasonality and other
aspects of a wild fishery among general consumers and more specialized buyers and
chefs. More than one interviewee lamented restaurant demands for “just on time
deliveries” that are not feasible for small-scale seafood producers. Another interviewee
pondered the difficulty consumers must have in understanding how and where local
fisheries are located: ”Maybe fishing areas are just less part of our landscape than the
family farm – for example who knows really what Brown’s Bank looks like?”
A history of infighting throughout Nova Scotia’s fisheries sector was also cited as a
considerable barrier. While there are many associations organized by geography or gear
type, there is no province-wide association to unite small-scale fishers. Without trust and
cooperation, fishers are unable to work together to leverage for marketing dollars,
processing options or policy changes. As CSF enterprises along the Eastern Seaboard
have found, keeping a core group of fishers involved when there is a considerable time
commitment can be a major challenge, along with finding fishers to champion new direct
marketing ideas.
Last but not least, simply finding the time, energy and skills to actualize a direct
market enterprise can be a significant barrier. One interviewee observed, “You know it is
quite a process to go through to get a small business of any sort set up.” Others
underlined the need for computer literacy: “It is unacceptable at this particular point in
time to not be computer savvy or not to hire someone who can be computer savvy for
you. Otherwise, it is just not going to work.”
24
4.4 Marketing
Most interviewees used a very simple “word of mouth” marketing model to sell their
products. Many felt that the quality of the product and experience would and should
speak for itself. Because traceability has become such a public concern, interviewees
felt consumers were simply attracted to the trust that can be afforded from person
contact with producers.
While most admitted they had no particular target buyer in mind, some did mention that
more highly educated/ well-off clientele have been easier sells. Peddlers often target
commuters on their way home from work. One shrimp fisher described his clientele as
“local independent people who don’t mind getting their hands a little dirty with food.”
Direct marketers in other regions or sectors underlined the critical importance of an
online presence that can “go viral,” the electronic equivalent of “word of mouth.” A
dynamic online presence that includes the use of social media such as Facebook and
Twitter has been reported as a key element of success for many direct marketers. As a
Nova Scotian farmer who runs a Community Supported Agriculture (CSA) program
noted, “Only 2 of 200 subscribers used a telephone to sign up, while the other 198 all
emailed.”
Direct marketing projects in other sectors and regions tended to highlight the importance
of forging partnerships with diverse groups, especially NGOs, to provide energy,
funding and marketing expertise.
As one interviewee noted, “Partnering with
environmental organizations has been hugely instrumental, both in helping to advance
awareness for our customers of the work we are doing, also to solidify our presence in
the community.” Several ventures were also able to capitalize on the free exposure that
media afforded them, especially Community Supported Fishery (CSF) projects.
Most seafood producers selling seafood directly onto the local market in Nova Scotia are
not employing sophisticated market strategies. In fact, most lack a written business
plan of any kind. Nor have most explored innovative partnerships, for example with
“Buy Local” programs or non-governmental organizations, which have been key
components of direct marketing success in other sectors and regions.
25
5. CONSUMER TRENDS
5.1 Consumer Survey Results
Canadian seafood consumers eat an average of 23 kilograms (50 lbs) of seafood every
year (Fisheries and Oceans Canada). What and how we eat seafood has changed
dramatically over the past few decades, owing to ecosystem changes, market shifts and
evolving consumer demands. Today’s consumers are more educated and informed
about environmental, health and food safety issues, and public scrutiny has
intensified significantly in recent years around how and where seafood is grown,
captured, processed, and transported.
The purpose of this survey was to discover local seafood consumption habits and
preferences in Halifax, Nova Scotia. Questions were closely modeled on a recent Gulf of
Maine Research Institute survey of seafood buying habits in Maine. Seventy participants
were surveyed in two locations in Halifax, Nova Scotia.
Survey participants revealed a strong affinity for locally caught seafood. The vast
majority of respondents indicated a willingness to pay slightly more for directly marketed
seafood products, especially if the premium supported fishers, coastal communities, or
the ocean environment. These trends bode well for seafood direct marketers in Nova
Scotia, and reveal a significant willingness to participate in direct marketing schemes
that relate to Farmer’s Markets or weekly home delivery.
Survey responses have revealed a number of interesting consumer attitudes and
preferences:
•
Knowing the seafood was harvested locally was the factor most likely to
encourage participants to purchase a particular seafood product.
•
Participants expressed their strong willingness to pay slightly more for seafood if
the premium went to supporting fishers, coastal communities, or the ocean
environment. Local and sustainable harvesting was also strongly agreed upon as
worth paying more for.
•
Participants were most likely to participate in a seafood direct marketing scheme
where weekly boxes of seafood are dropped off at a Farmer's Market, or direclty
purchased from a fisher or fishing co-op at a Farmer's Market stall. Weekly
delivery to the door was also popular.
•
Some seafood direct marketers sell products in a relatively unprocessed form.
Participants overwhelmingly indicated they were most likely to purchase filleted
fish, but were also receptive to whole groundfish, gutted and/or peeled and deheaded shrimp.
26
•
Participants strongly agreed that there were several benefits to purchasing
seafood directly from a fisher or fishing co-op. Supporting the local economy was
the most agreed upon benefit, closely followed by encouraging a fair price for the
producer/seller and building a relationship with the producer. Preserving small
owner-operator fisheries was also seen as an important benefit.
•
Participants saw inaccessibility and inconvenience as the top barriers to
purchasing seafood directly from a fisher or a fishing co-op currently. Price, on
the other hand was not seen as a much of a barrier at all.
Figure 5.1: Anchor Consulting Consumer Seafood Survey- Willingness to pay slightly more.
27
Figure 5.2: Anchor Consulting Consumer Seafood Survey- Purchasing factors.
4.2 Restaurant Survey Results
Canadians eat over 30% of their annual seafood meals in restaurants. Most Nova
Scotian restaurants feature several seafood selections, with a significant number
specializing in seafood fare (Strategic Information Services, 2007). Though visitors to the
province may assume seafood options are locally procured, that is often not the case.
As many chefs and restaurateurs already know, menu choices at restaurants have a
huge impact on local fisheries as well as consumer taste preferences. Current
consumer awareness of environmental and social issues means that more and more
people are looking for restaurants with local and sustainable sourcing policies. Several
Halifax restaurants are advertising local seafood choices from small-scale fisheries or
aquaculture operations. Others are featured on a new consumer oriented website that
features
Halifax
restaurants
with
sustainable
seafood
options.
(http://www.yourchoicehalifax.ca)
Similar to the consumer survey, chefs described an overwhelming desire to support
the local food system and economy. Most also recognized the marketing value of
local food and local producer stories. All 23 respondents expressed interest in a local
seafood direct marketing delivery enterprise.
28
•
While 100 % of respondents currently source seafood from a supplier/ processor,
over half also sourced some of their seafood directly from a fisher.
•
Over 90 % of chefs felt that supporting the local food system and the local
economy was an important factor (and benefit) when seeking local food for their
menu.
•
80 % of chefs felt environmental sustainability was also an important
consideration when seeking local food for their menu.
•
Over 80 % of respondents were interested in sourcing local seafood because of
the marketing benefits of local food and local producer stories.
•
Nearly 75 % felt that helping to preserve traditional owner-operator fisheries was
a very important benefit of directly purchasing local seafood.
•
Price was cited as the least important factor, out of eight options, when asked to
rate considerations when sourcing local menu options.
•
95 % felt that the inaccessibility of directly marketed seafood was a barrier to
purchasing it, while only 15 % saw a lack of processing to be an issue.
•
Chefs overwhelmingly felt they would be most likely to participate in a local
seafood direct marketing enterprise that consisted of weekly deliveries (100 %).
•
100% of chefs surveyed felt they would likely use local filleted fish from a
seafood direct marketing business, with nearly 90 % feeling likely to use local
peeled and de-headed shrimp.
29
Figure 5.3: Anchor Consulting Chef Survey – Local Food Priorities
Figure 5.4: Anchor Consulting Chef Survey – Direct Purchasing Benefits
30
6. LOOKING AHEAD
Pursuing market diversification for local seafood products is an important economic
strategy as the industry shifts and changes. Direct market enterprises may be an
excellent diversification tool for small-scale fishers and aquaculturists. Further, research
has shown that local direct marketing has the potential to lead to greater stability,
local autonomy and opportunities, a fact confirmed by local producers interviewed for
this study (Halweil, 2002; Norberg-Hodge et al., 2002).
Direct market enterprises can also help to address supply chain gaps by encouraging
consumers to seek out local food and by creating a demand producers can then respond
to. They create employment opportunities in rural areas and generate economic activity
throughout the supply chain from rural/coastal producer to urban restaurateur or retailer.
Research has also shown that local food sales generate increased recirculation of
capital in the local economy (Halweil, 2002).
Survey research has demonstrated a strong affinity among consumers for local
seafood options, and a strong willingness to pay slightly more for directly marketed
seafood if the premium went to supporting fishers, coastal communities, or the ocean
environment. There was also overwhelming agreement that local direct marketing of
seafood supports the local economy, encourages a fair price for the producer/seller, and
preserves small owner-operator fisheries.
There is also substantial evidence that increasingly the availability of local foods can
enhance health, food-security and well being for persons, communities, and ecological
systems (Guptill & Wilkins, 2002).
The Six Pillars of Food Sovereignty
1. Focuses on Food for People:
* puts people’s need for food at the centre of policies
* insists that food is more than just a commodity
2. Values Food Providers:
* supports sustainable livelihoods
* respects the work of all food providers
3. Localises Food Systems:
* reduces distance between food providers and consumers
* rejects dumping and inappropriate food aid
* resists dependency on remote and unaccountable corporations
4. Puts Control Locally:
* places control in the hands of local food providers
* recognizes the need to inhabit and to share territories
* rejects the privatization of ‘natural resources’
31
5. Builds Knowledge and Skills:
* builds on traditional knowledge
* uses research to support and pass this knowledge to future generations
* rejects technologies that undermine or contaminate local food systems
6. Works with Nature:
* maximizes the contributions of ecosystems
* improves resilience
* rejects energy intensive, monocultural, industrialized, destructive methods
The People’s Food Policy Project, 2007
Small-scale seafood producers are beginning to explore, and in some cases realize,
potential opportunities offered by direct marketing and value-added goods and services
in gaining a niche market share. Unfortunately though, these efforts are currently largely
unsupported and happening piece meal around the province.
Many of the barriers to local direct marketing identified by small-scale producers
related to food policy and distribution systems designed for larger scale industrial
players. Indeed current marketing support in the province tends to focus on export
development benefit larger industrial players. At the same time consumers, including
chefs, have expressed keen interest in supporting direct marketing schemes, especially
those that can overcome the barriers of inaccessibility and inconvenience.
Seafood direct marketing via Community Supported Fishery (CSF) enterprises along the
US Eastern Seaboard have enjoyed immense popularity in the past three years, with
more CSFs beginning up all the time. Fishers in these regions have enjoyed the coveted
benefits of better prices and increased sense of control over their livelihoods, while local
consumers have responded enthusiastically to the renewed access and convenience of
local seafood drop-off and delivery points. Small-scale farmers in Nova Scotia are
enjoying similar success with a variety of Community Supported Agriculture (CSA)
enterprises that allow for cost and risk sharing at the beginning of the season.
The direct marketing of small-scale seafood products will not erase all of the challenges
facing Nova Scotia’s seafood industry. However, based on the available literature and on
the market research gathered in this study, a variety of policy changes are needed to
facilitate and support local seafood direct marketing enterprises. The Nova Scotia
Department of Fisheries and Aquaculture is uniquely positioned to create and maintain
policies that help small-scale fishers and aquaculturists diversify their businesses and
add to the resilience of our province’s coastal communities.
The current groundswell of support for local food in Nova Scotia may offer unique
opportunities to invest in and develop seafood direct marketing enterprises.
Taking lessons from CSAs, CSFs, and other direct marketing models, a well-designed
pilot project or start-up enterprise could open the door to exciting new prospects for
small scale fishers and aquaculture operators in the province, prospects with benefits
that extend far beyond the producers themselves, sustaining communities and ocean
ecosystems.
32
7. REFERENCES
Alasia, Alessandro and Bollman, Ray. (2008). An Index of Community Vulnerability:
Conceptual Framework and Application to Population and Employment Changes. - 1981
to 2001. Statistics Canada - Catalogue no. 21-601-MIE
Alaska Department of Commerce. (2002). Seafood Marketing. Accessed December,
2009:
http://www.commerce.state.ak.us/oed/seafood/seafoodmarketing/seafoodmarketing.htm
Alberta Farmer’s Market Association. (2007).How to Be A Farmer’s Market Vendor.
Accessed February 4, 2010:
http://www.albertamarkets.com/GetConnected/Resources/tabid/173/Default.aspx
Curran, A. 2005. Taking the Pulse of Active Transportation: Measure the Built
Environment for Healthy Communities. Community Counts, Nova Scotia Department of
Finance: Action for Neighbourhood Change, United Way of Halifax Region.
Guptil, A. & Wilkins, J. L. (2002) Buying into the food system: trends in food retailing in
the US and implications for local foods, Agriculture and Human Values, 19, pp. 39–51.
Halweil, B. (2002) Home Grown: the case for local food in a global market. Washington:
Worldwatch Institute.
Hills, R.J. (1989). Market What You Grow. Atlanta: The Chicot Press.
McKenzie-Mohr, D. and W. Smith. (1999). Fostering Sustainable Behavior. Gabriola
Island, BC: New Society Publishers.
Magera, A. and S. Beaton. (2008). Towards Seafood Tracebility in Canada. A
SeaChoice Guide. Accessed November, 2009:
http://fish.gshaw.ca/files/asset/file/145/Seafood_Traceability_in_Canada.pdf
Midcoast Fishermen’s Cooperative. (2008). A Fishery For the Future. Accessed
February, 2010: http://www.islandinstitute.org/publications/A-Fishery-for-theFuture/12991/
Northwest Atlantic Marine Alliance. (2008). Cape Ann Fresh Catch. Accessed March,
2010: http://namanet.org/csf/cape-ann-fresh-catch
Norberg-Hodge, H., Merrifield, T. & Goerlick, S. (2002). Bringing the Food Economy
Home: local alternatives to global agribusiness. Halifax, NS: Fernwood Press.
Nobuhiro T. and Apedaile, P. L. (2008). Revitalization: Fate and Choice. Brandon
University Rural Development Institute. Accessed November, 2009:
http://revitalization.brandonu.ca/index.php?pageid=11
33
People’s Food Policy Project. (2009). Food Sovereignty Values Food Providers.
Accessed November, 2009. http://peoplesfoodpolicy.ca/node/45
SeaGrant. (2007). Fishermen’s Direct Marketing Manual. Ed. Terry Johnson. Anchorage:
Alaska SeaGrant.
Strategic Information Services. (2007). Food for Thought: North America’s Food & Drink
Markets in 2007. Geneva: Food for Thought. Accessed November, 2009:
http://www.fft.com
34
APPENDIX A: INTERVIEW HIGHLIGHTS
35
A. GENERAL/ LOGISTICS
-Do you sell local seafood directly to consumers, restaurants, specialty retailers? Anywhere else?
SDMS04: Home delivery to consumers and a few restaurants.
SDMS05: Consumers and taverns, a few fish markets.
SDMS06: Consumers, .
SDMS07: Consumers,. Some home delivery.
SDMS08: Consumers, lobster.
SDMS10: Planning stage so far. Co-op.
SDMS14: Consumers direct.
SDMS19: Consumers and restaurant. Retailers not good for consistency and quality rep.
SDMS16: Consumers
SDMS17: Consumers
SDMS06: Farmgate and direct to restaurants and small retailers. (Wine).
SDMS12: Consumers direct. Farm products.
SDMS03. Consumers – a few chefs also participate.
SDMS11: Consumers and restaurants. Restaurants “good for the bottom line, being steady.” .
-What percentage of your seafood business is direct marketing?
SDMS2: 10-15% two trucks on the road.
SDMS05: Almost 100%
SDMS07: 100%
SDMS08: Not sure, maybe 25%.
SDMS10: Would love 100%, but even 30% would be great start.
SDMS14: 100%
SDMS19: 100% most in NS, some outside.
SDMS06: 100% in Nova Scotia.
SDMS12: 20%, rest goes wholesale.
SDMS03: Almost 100% boats are oriented for consumer direct marketing
SDMS11: 100%. CSF.
-What forms of direct seafood marketing are you interested in? Which are you presently engaged in, if any?
SDMS01- Coops. Home delivery. Farmer’s Markets.
SDMS02- Home delivery.
SDMS05: Delievery. Interested in “wharfgate” and roadside too.
SDMS06: Has done roadside lobsters, interested in various direct marketing ideas for harpooned swordfish, from
wharfgate to restaurant direct marketing, to CSFs.
SDMS07: Roadside and home delivery- but would love to find PROCESSING.
SDMS08: Roadside.
SDMS10: Co-op mediated sales, to skip buyer.
SDMS14: Home delivery and roadside peddling.
SDMS19: Internet, farmer’s market and some “wharfgate”.
SDMS06: Farmgate.
SDMS12: CSA and farmgate.
SDMS03: Facilitating direct marketing wharfside through phone service.
SDMS11: CSF
-Do you have a direct marketing business plan?
SDMS01- yes, though simple. Needed for a funding application.
SDMS10- Not yet, but planning one.
SMDS14: Not large enough scale to need one. “Learn as I go.”
SDMS19: Yes, a few. (Wife does marketing for a living!)
SDMS16: Yes.
SDMS17: Yes – because was involved with an ACOA grant application.
SDMS06: Yes, elaborate, complete.
SDMS12: Yes, “quite a business plan.” Took 40 hours work, focusing on details thinking.
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SDMS11: Yes, for CSF, developed with NGO, other partners.
B. REASONING/ MOTIVES
-What made you interested in pursuing direct marketing of seafood in the local supply chain (reasons/ motive)?
SDMS01: “Trying to promote local fishing, sustainable fishing through consumerism, as a political non-profit.”
SDMS02: Local demand, looking to expand business.
SDMS04: Price- bypassing the middle man.
SDMS05: Having a diverse set of customers = more control over livelihood. Ie, used to depend wholly on Fishers’s
Market, who were really inconsistent.
SDMS06: $$. Trying to get a more reasonable price. Very little competition – ie because ITQs mostly owned by buyers,
vertical integration.
SDMS07: Price. Commodity market for shrimp is very low priced, not worth fishing for that.
SDMS08: Monopoly buyer, terrible prices, can’t live that way, but worth fight for pride alone.
SDMS10: Price for lobsters going down last three years. Also a monopoly in the area makes for unfair pricing and
treatment.
SDMS14: Control and independence. Can control quality and set own price. Cutting out the middle man.
SDMS19: Quality Control. In NS, plants are quite far apart, when the shellfish is out of your hands, you lose control of
consistency and can’t control cost either.
SDMS16: Both environmental and social reasons. A way to consolidate shopping excursions for people. With seafood
particularly, it was spurned by consumer demand, groundfish sells out immediately.
SDMS17: Something wrong – a disconnection between our local food culture and dietary health/ environment. Seafood is
an important source of protein – and part of our “maritime fabric.” Wanted to prove that consistent sustainable seafood IS
available in NS.// “Because we are a have not province, we have a need for a solid local business network.”
SDMS06: Crazy markup by the near-monopoly buyer – not good for sales. Also crazy beaurocracy and no repect for local
quality.
SDMS12: Wanted to bring people back into the food system equation, which had removed people and made us lose our
faith in people. “Asked, What do we need to do to sustain our family, and worked backwards to see what could work to let
us make that connection.”
SDMS03: Consumer demand – getting calls all the time to find out when boats in, what’s in them. Fishers get to fish less
this way- but better prices make it worth it.
SDMS11: Poor economic conditions for groundfishers. Needing better price. Marketing as a way to leverage for
regulatory change around gear restrictions, area management, etc. Wanting to create a new marketing mould that could
be learned from.
-Are you/ did you transitioning from another type of business model? If so, what?
SDMS06: Used to sell to one company, but found inconsistent, dangerous to put all eggs in one basket.
SDMS10: Always sold to an established buyer, but no longer happy with pricing, etc.
SDMS14: Used to sell all clams to one company. Started getting ripped off.
SDMS17: Yes.. Saw need for local-oriented food business. Seafood “part of our Maritime Food fabric.”
SDMS12: Grew up on a farm doing wholesales and Farmer’s Markets. Bought a small organic farm, went to a conference
about Community Supported Agriculture and wanted to get into it.
SDMS03: Former harbourmaster was against direct marketing and didn’t allow it…. Friendly with buyer monopoly. New
harboumaster has brought this change.
SDMS11: Sold to buyer. Bad prices.
-What is the overall goal or vision for your business? A mission statement? Has it shifted over time?
SDMS01: Co-op project to support local fishers with sustainable gear.
SDMS05: Survival!
SDMS08: Fighting for fishing to keep happening in his community.
SDMS14: Quality and freshness. You can trust me – my reputation.
SDMS19: Qulaity – also connecting the product with the family history, story.
SDMS16: Dedicated to satisfying the growing demand for healthy, locally grown, affordable and ecologically sustainable
food.
SDMS17: Vote with your dollars, take control back. Don’t bastardize food’s integrity, which comes with nutrition, taste and
a story.
SDMS06: Quality first, the rest will follow.
SDMS12: “A viable sustainable business where people are part of the food community and where people can know where
37
their food has come from.”
SDMS03: “Our harbour, our community.” Also a mandate to encourage tourism.
SDMS11: A sustainable fishery. However, over time this has shifted the focus more on income generation as economic
crisis worsens, groundfish prices continue to plummet.
-Do you feel your business is sustainable?
SDMS01 – No it wasn’t. too much responsibility on one person (all volunteer, she had a baby, stopped). Also- no contract
and depending on one plant or source, not secure, only got leftovers.
SDMS02 – difficult economic times, drop off in demand. Unsure.
SDMS07: Fishing method sustainable – business model needs input of processing to be more sustainable though.
SDMS08: Worried what will happen the way the lobster business is going. Too many fishing for it. Too much buyer
control.
SDMS03: Yes, though demand currently outstrips supply.
SDMS12: not yet. The business is new, it needs more cashflow coming through. Wants to be able to pay farm workers
better as well – a living wage to keep good skilled staff, and doesn’t feel she is there yet.
C. BENEFITS
-What do you see as the main benefits of direct marketing in the local supply chain? What about for others - ie community,
individuals, economy, etc.?
SDMS02: Introducing Nova Scotians, even ones in fishing communities, to their own local fish – how good it can be when
fresh and well handled.
SDMS04: Price- there is a satisfaction that comes from getting the price you actually deserve for your fish.
SDMS05: Meeting community. 7:40. Also providing local employment in the immediate area.
SDMS06: Opportunity to experience the quality, support “greenness”. With lobsters people were sympathetic to harvester
situation, wanted to support him. There is also a price point for customers associated with skipping the middle man.
SDMS07: More control over the price. Better price.
SDMS08: More control over the price, more price in the livelihood by interacting with customers directly, teaching them
the value of what you do.
SDMS10: Feeling the support of local people. Better price possibilities, and more control.
SDMS14: Interacting with community.
SDMS19: The opportunity to have relationships, feedback, pats on the back, but also have the time out in nature during
harvest. The balance. Possible benefit is that he may inspire other young people to provide local food.
SDMS26: Seeing progress in the local, alternative food system. For example, finally seeing growth in the supply base,
and meeting young farmers, making contact with local fish suppliers.
SDMS17: Providing the link for people to know and trust where food has come from. On a bigger scale – helping build a
network that can fortify small-businesses and increase the futue supply of local foods.
SDMS12: With a CSF, you get the money up front, which is helpful for budgeting – for example to arrange an operating
line at the start of the season. // More generally the shared learning that comes from engaging with your community.
SDMS03: Better price for fishers, better awareness about local and sustainable seafood products, “a more fair
marketplace without a buyer monopoly is just healthier for everyone.”
SDMS11: Allowing for prices that groundfisher can survive on. Finding that the message about supporting your local fisher
really resonates within the community, is good for morale, also helps to leverage for regulatory changes in the fisheries
management.
-Are there others who might lose out as a result?
SDMS14: Not really - His small business a drop in the bucket – not a threat to bigger businesses or processors.
SDMS17: Bigger food businesses are not really good for anyone, and arguably especially not for poor people… whereas
local food systems benefit everyone except big business.
SDMS03: “Nearby proessors and storefront fish sellers have squawked about this some, and to tell the trueth, they
probably did lose some business. But they have also benefited increased foot traffic close to their selling areas- and for
processors, because the fishers are only allowed to sell whole, many customers are stopping off at processors to get
filleting done.”
-Have you experienced more control over your livelihood? Better market access?
SDMS04: yes- prices more stable allow for more control.
SDMS08: It is a start, yes. Worried the government will find a way to stop it though.
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SDMS14: Yes, this was the whole point of switching to direct marketing.
-Have you seen (other) positive outcomes for yourself or your business? Can you elaborate?
SDMS03: There’s been great free publicity for the whole area, including syndicated network coverage of the fish phone
service, which has led to more foot traffic – good for all of the businesses in the area.
D. MARKETING/ BRANDING
-Who is your target buyer? Locals, certain income brackets, etc? Restaurants, retailers?
SMDS01: Everything from poor folk musicians to even 1 millionaire customer.
SDMS06: Father’s day great time for direct marketing lobster.
SDMS07: Roadside in the winter – targeting rush hour traffic, morning and evening. Dusk interferes at certain times
though.
SDMS14: Community connections, long established relationships.
SDMS16: Anyone interested in organic food. But educated and well-off clientele do dominate.
SDMS17: Grabbing the foodies and enviros first, but then trying to bring the “local food” cache down to the masses as an
end goal. Foodies are too few and enviros are too poor, we need the masses. “We’d like to de-businify real food.”
SDMS06: Farmgate sales – 65% maritimers, 20,000 a year. Target people who seek quality and locality – “not your cheap
walmart customer.”
SDMS12: Wasn’t really thought through, no particular demographic, just people committed to good food.
SDMS03: Different ethnic markets for different fish products. Also tourists.
SDMS11: Locals who are interested in supporting local fishers, coastal economies. Which seems to resonate widely in his
community, which is tight knit.
-How have you/ do you plan to engage your target audience?
SDMS01: Word of mouth
SDMS02: Knocked on doors initially, then word of mouth.
SDMS05: Word of mouth and business cards. Have called cooks in restaurants. But after 50 years in the business –
people know you by name.
SDMS07: Have signs on power poles, signs on the truck. Sits in a visible place. Has also used a phone list to do initial
contacts.
SDMS08: Word of mouth and a well-place truck all you need.
SDMS10: Co-op pooling money to hire a marketer – logos, contacts, etc.
SDMS14: Word of mouth, long established relationships. Has used facebook sometimes too.
SDMS19: Word of mouth, using the internet, engaging display at the market, reputation.
SDMS16: Being visible, online and at events. Raising awareness about food issues at festivals and other venues.
SDMS17: Word of mouth. Good dishes, good ingredients in a form that are amenable to the “regular joe”, ie not
“gourmet”. Also working with various groups and in a small-bisiness network, being visible.
SDMS06: Quality speaks for itself.
SDMS12: Online presence key for establishing and spreading word of mouth. Blog, emails, enewsletters. (Only 2 of 200
subscribers used the phone, rest signed up by email.)Also made printed materials with a graphic designer, was visible
and active in local community. Let it go “viral.”
SDMS03: Had no plan and have spent no marketing dollars – but media has spontaneously taken care of the need to
spread the word. The media “framed it in the beginning as a fishers’s fight against a price monopoly, and this to
Americans at least, is apple pie stuff, and the networks went with it.” / Some individual boats have emails lists too, or
cards they send in mailouts.
SDMS11: Working with an ENGO to develop marketing side- fully electronic social media based things, along with
community events.
-How have you/ do you plan to adapt to customer feedback?
SDMS12: Planning a survey at end of season, in accordance with business plan.
SDMS16: Always on the look out for new suppliers, keeping a good list.
-How do you plan to communicate your seafood product's chain of custody? Ie tagging, traceability software, ecolabelling,
website info, etc?
SDMS01: Trust – as a non-profit model, there is no reason to mistrust.
SDMS05: no website, no email, only use a computer for bookwork – his mom and dad do it.
39
SDMS08: Hearing about MSC, but sounds like a waste of money? Not sure you need it if people can see yer face and talk
to you.
SDMS10: Hoping new marketer will work on this—probably website, logo, etc.
SDMS14: His reputation and personal relationship. Also – facebook sometimes.
SDMS19: Website is pretty key. Also being visible and telling personal story of the operation.
SDMS16: Webpage is “extremely important.” Feels it is not the certifications but the stories of the producers that ismost
important, would like to communicate that better on the website and in the store.
SDMS17: Website. Signage, working on getting a nutritionist intern to help explain and educate people about products.
SDMS06: website is extremely important. Would like it to express more about the personal and family behind his business
though. 12:40.
SDMS12: Website important, personal contact with customers, and through email, etc, to establish trust, tell story.
SDMS03: No need for expensive labeling systems when you can talk to the fishers themselves on the wharf.
SDMS11: CSF model allows for direct link back to fishers. Lots of info communicated via website, acebook, community
events.
-Do you feel you have enough access to marketing information? What kind of market research/information do you think
could help?
SDMS17: Feel he has enough access, lots of data, but TIME is the barrier, no time to absorb it all.
-Have you explored value-added products?
SDMS05: Breading clams -before the days of certified kitchens. Too much start up cost now to get a cert preparation
place.
SDMS08: Wife tried to find HACCP certified kitchen, do lobster sandwiches for sale at bake sales, difficult though.
SDMS19: Too much red tape involved in value-added for shellfish. Also feels that it can encourage waste of less desirable
parts of seafood- ie the organs of bay scallop.
SDMS12: Exploring the idea of having a certified kitchen in future.
SDMS11: First year only whole groundfish. This year, fishers in the coop are taking turns actually making fillets. Adds
complexity but is good money in the end.
E. BUMPS IN THE ROAD / BARRIERS
-Do you feel that government policies/regulations are currently helpful to direct seafood marketers? Can you elaborate?
SDMS01: Not really, because at the time of the coop it was operating in a direct marketing vacuum. If she did it now, she
feels that policy support for MSC would be a barrier.
SDMS02: Seal cull needed. Also the quota system: puts a squeeze on the little guy. Seems it is the small guys who are
penalized by this system. Day boats aren’t the ones harming the fishery.
SDMS05: Economic development loans can be problematic – they want you to ask for lots of money, if you ask for too
little they say it is “small potatoes” and don’t give the loan – but if you want to stay out of debt you don’t want a big loan!
Also grant money for improving operations seems to favour bigger players, and penalize small independent businesses.
SDMS06: Peddling liscence a bit absurd, he feels designed to appease big buyers. ITQs a bigger deal – they concentrate
owndership and reduce competition, squeeze out smaller players. No longer a competitive fishery for swordfish.
SDMS07: Experimental trap-shrimp license has sat in this stage for too long – why not make it a commercial fishery?
Every year they must wait for details of the years experiment to be announced – once waited until March!
SDMES08: Red tape on value-added products. Most DFO policies, even province and municipality favour large corporate
players.
SDMS10: No government policy in place to properly prevent buyer monopolies. Peddling bylaws and licenses is
government working to make things difficult for small players.
SDMS14: Shellfish ban process- Government gave no notice to harvesters – he found out because his wife read about it
on the internet. // Also food safety regulations are important but could be made easier to understand.
SDMS16: Food safety regulations can be unclear, especially as they vary from product to product. Some things you don’t
know about until you get caught for it.
SDMS17: Green procurement plan could be really great. But it’s a case of the bean counters in gov versus those into the
green side. / Also, support needed to simplfy distribution channels when working with multiple products, etc., maybe using
the internet.
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SDMS19: Every small business will complain about time consuming paperwork and regulations. Shellfish aqua regs, esp
though, a jurisdictional mess. New protocols come down, but are not consistent. Closures not communicated well, no
warning to growers. Need more coordination and communication between various departments.
SDMS06: Government departments not communicating – especially between tourism and agriculture, economic
development.
SDMS12: Policies have been mostly pretty helpful. Got two grants – one an Innovative voucher, and another from Direct
Market Trust Fund.
SDMS03: Worked in collaboration with Health Department and an Insurance company to make it work, to ride through
some of the confusing policies.
SDMS11: USA context, management measures that are working to eliminate the small day-boat fishery, continuing to
destroy habitat, lack of spatial management.
-In your opinion what are the biggest obstacles facing small-scale producers like yourself? Can you see any solutions to
those issues? How have you overcome roadblocks along the way?
SDMS01: MSC is too crude, doesn’t consider spatial management and habitat properly, supports the big industry at
expense of smaller sustainable fishers. Also more generally the corporate, vertically integrated fishery is a barrier, in the
way that it is given political priority over smaller community players.
SDMS02: Consistent supply.. We need to leave little fish in the water and let them grow – habitat protection could help,
especially on spawning grounds..
SDMS06: ITQ system, which among other things has eroded trust between fishers and buyers and “consolidates wealth
into the hands of fish buyers.” Fish buyers own fish before they are even caught. / More generally, “the government
prefers to deal with a handful of power players.” Fish being perishable also makes logistics difficult when it comes to
direct marketing – dependence on processing. Chefs and buyers looking for “just on time delivery, call us next
Wednesday” when fishery doesn’t allow for that regimented schedule… need something in writing so they don’t renig at
last minute. /
SDMS08: Government policies that favour the big players. Also, when it comes to shipping, much easier to find for large
volumes of seafood.
SDMS10: Corporate players have too much pull on government, both provincially and federally. These big guys can also
lower their prices to gouge the little guy at key times.
SDMS14: Quite a long process to set a small business- are their some regs that could be loosened to help small-scale?
/Need more open clamming areas. What if communities were able to do some of their own water quality testing?
SDMS19: Beaurocrats invested in particular policies, created in their youth, many decades back. Younger, more
enlightened visions are hard to realize, like butting heads. He’s tried to overcome this through direct and open
communication with these people, putting head down but picking battles carefully.
SDMS17: Jiggling the many aspects of small business- cashflow, PR, HR. Looking for a business MBA person to help
Cutting the red tape (“the bulldozer commission”) for local food businesses is essential, make less confusing, less small
print, let’s look at how to make it easier for a small-producer and work form the ground up.
SDMS06: A history of infighting in the fishery. Strong associations can help address issues and make it easier for
political officials to understand. Need younger guys to take hold of new ideas.. Need to find opportunities to draw tourists
to region for culinary experiences.
SDMS12: Most barriers have been logistical, related to find the time, energy and skills to carry out the plan. Lack of
computer literacy in the producer-market sector is a big barrier.
SDMS03: “A monopoly of big buyers depressing what could be a very healthy marketplace.”
SDMS11: Fisheries management policy that works against the small-scale fisher.
-How about some of the (other) barriers? Do you forsee technological barriers? Logistical barriers? Food safety issues?
SDMS01: Lack of information is a barrier. “Fishing areas are just less part of our landscape than the family farm – for
example who knows really what Brown’s Bank looks like?” People don’t know their options and things are labeled well.
SDMS02- Time. 19:00. Ie, trying to sit at Farmer’s Market’s etc.
SDMS04: The logistical barrier of arranging for shipment of low volumes- ie is it worth driving down a 17 mile dirt road to
pick up a small lot of fish.. Also, the low population density of this province compare to Maine, say 22:00.
SDMS05: “The price of gas is the price of doing business.”
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SDMS06: Lack of market knowledge among harvesters makes it hard to know when getting ripped off. Finding a
processor to work with that won’t own the fish.
SDMS07: Finding processing for trap shrimp that will keep it separate.
SDMS08: Food safety rules make it hard to do value-added seafood products.
SDMS14: Food safety regulations could be explained better and made easier for small-scale businesses/ harvesters to
follow.
SDMS16: Supply is an issue when it comes to seafood. It can be limited, and it is oten seasonal, which confuses
customers. People will horde-buy seafood when it comes into the store.
SDMS17: Food safety red tape: mostly a problem for off-site events and food prep.
SDMS19: Food safety red tape a major nightmare for shellfish aquaculture, needs consistency, see above.
SDMS12: Finding enough money in the business to pay workers fairly, so they can stay and skill-share, etc.
SDMS11: In a CSF model, difficult to avoid much of the work going back to fishers – ie filleting, transport, etc--- they have
to be really engaged in and dedicated to the idea of the eventual outcome- the broader goal of policy change. // Sees
processing arrangement as key to any scale-up of this operation.
-Do you have ideas about how to get around food distribution systems that were built for larger scales and longer supply
chains?
SDMS01: Niche marketing
SDMS05: If only people could work together…. But “fishers are a funny bunch”.
SDMS06: Get rid of ITQs.
SDMS16: Notes that sometimes the alternative local food system has advantages. For example, working with the
grassroots helps tune into seasons,the levels of supply and such, helps keep ear to the ground for new, innovative
products. Don’t have to arrange for long supply-shipping.
SDMS17: Building local relationships, understanding and being tuned into the seasons, and working this into local
business planning.// 25:00, this task rests on the younger generation’s interest and focus.
SDMS12: Connecting people to their food communities, putting them back in the equation.
SDMS03: Creating personal relationships and shorter supply chains while getting rid of monopolies.
-What could be done to encourage people to go into direct marketing of seafood on the local supply chain? Or should
people not be encouraged?
SDMS01 fishers should be encouraged – but not at the expense of their day to day operations.
SDMS17: Local food has great potential marketing value on the local supply chain, along with the money making, it has
potential to cause happy customers and producer/ consumer pride.
F. PARTNERSHIPS/ LINKS
-What interesting partnerships have you sought out to make your business work? Gov, NGOs, industry, etc? Do tourists/
summer residents play a role?
SDMS05: Proud of being independent- not interested in working with others! (Should have phrased this question better
maybe…)
SDMS06: Negotiations with folks in fisheries management is based on personal relationships, he’s seen it when working
in shellfish world. /// Partnering with ENGOs is an easy sell and also really compatible with some fisheries, like harpoon
swordfish, to work on fisheries reform and also marketing.
SDMS14: No – independent- this is a condition of my licence. Tourists play a big role in summer – When one finds him it
is “like, bang, merry Christmas!” Sometimes yacht people are good market.
SDMS16: Very active with community partners, more in the past. Ie, ENGOs. And organic certification bodies. Also
interested in government partnerships, particularly to pursue food security program, around using food allowance $$ to
arrange delivery of food from his business, fresh healthy.
SDMS17: With ENGOs on events and for research and “ethical advice” Schools to get links to interns ( business,
nutritionists), and government for entrepreneurial support “if you are willing to jump through all of the hoops”.
SDMS06: ACOA, Taste of NS, Select NS, Come to Life, Slow Food NS, Economuseum,
SDMS12: Worked with Provincial department, help with various grants.
42
SDMS03: The Culinary Institute of America takes students out to talk about the importance of building relationships
between restaurants and fishers, show them how the gear works and how to shop. Have also worked with the local
Chamber of Commerce, A Tourist Bureau, and a Farm Bureau that promotes local food.
SDMS11: Works in a coop model, closely with an NGO and a wharf authority. NGO helps with bookwork, marketing, and
fundraising.
43
APPENDIX B: CONSUMER SURVEY TALLY AND
HIGHLIGHTS
44
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45
APPENDIX C: DIRECT MARKETING TO RESTAURANTS- SURVEY
HIGHLIGHTS
46
47
48
49
50
APPENDIX D:
DIRECT MARKETING READINESS CHECKLIST
51
Checklist: Have You Got What it takes to be a Direct Marketer?
Personal qualifications:








I am friendly and outgoing.
I like to meet people.
I welcome visitors to my farm and am happy to answer their questions.
I have the support and encouragement of my family.
I am willing to work long hours seven days a week during the peak season.
I am not afraid to take risks.
I take pride in my product and I'm not shy about saying so.
I am flexible, independent, creative and thrifty.
Production capabilities:
 I have the necessary knowledge about production methods and techniques.
 I know who my target clients are and what they want.
 I will be able to supply the variety, quantity and quality of products my customers want.
Merchandising and marketing savvy:
 I know how to develop a marketing strategy.
 I understand my target market and utilize appropriate marketing tools (i.e. business cards, customer lists, public
relations, cross promotions, networking).
 I have a working knowledge of retail selling.
 I understand the principles of merchandising.
 There is demand for the products I plan to sell.
 I have a unique product.
 There is room for another direct market outlet in my area.
 I can work with neighbouring farms to co-operatively market our products and our region.
Logistics:




I have the space and location for a farm direct marketing operation.
I have adequate space for parking.
There is convenient access to the farm.
There is sufficient traffic near the farm to generate business.
Business factors:




I have sufficient capital available to construct facilities and acquire equipment.
I have completed a feasibility assessment and a projected cash flow.
Farm direct marketing activities complement my farm production possibilities.
I have good financial management practices (product costing, pricing, budgeting, cash flow and record keeping).
Courtesy of Government Alberta Agriculture and Rural Development, 2009.
52