B.C. Salmon Exports Plunge 86% Amid Supply Crisis – Urgent Update

UPDATE: British Columbia’s salmon exports are facing a catastrophic decline, with a staggering 86.1% drop in shipments to Japan as the province grapples with severe supply issues. In May 2024, B.C. exported only $903,000 worth of salmon to Japan, plummeting from nearly $6.5 million in May 2023. This alarming trend signals a potential crisis for the industry, as major international markets turn away from B.C. due to inconsistencies in supply.

Industry insiders report that the U.S. and China, critical to B.C.’s salmon market, are also experiencing significant declines. Exports to the U.S. fell by 34.5%, dropping to $5.2 million from $7.3 million, while exports to China fell to zero, down from $1.3 million last year.

Nick Dicarlo, sales director at Cermaq Canada Ltd., stated, “My customers are down about 70% in terms of the volume they’ve purchased compared to previous years.” Dicarlo attributed this sharp decline to the federal government’s decision not to renew 15 salmon farm licenses in the Discovery Islands, citing environmental concerns. This decision has drastically affected the ability to maintain a steady supply for global buyers.

In a further blow to the industry, the Canadian government announced plans to ban open-net pen salmon farms in B.C. by 2029. As a consequence, buyers are increasingly turning to competitors in Norway and Australia, despite their inability to match B.C.’s rapid 24-hour turnaround from dock to Asia.

Dicarlo emphasized, “B.C. salmon farming companies are no longer viewed as good partners…because we just don’t have the product.” The sentiment is echoed by Jeremy Law, general manager of Blundell Seafoods Ltd., who reported significant sales declines and layoffs, stating, “It is devastating for the industry.”

The impact on jobs is tangible, with Blundell Seafoods having to lay off over 30 full-time employees linked to the production line. Law lamented the long-term relationships being built elsewhere, as businesses seek more reliable sources for their salmon supply.

In May, B.C.’s salmon exports to other regions, including the European Union and ASEAN countries, also saw declines, except for South Korea, which saw a slight increase to $1.3 million. Dicarlo noted that the drop in exports to China was particularly troubling, explaining, “We have to cycle our crop much quicker, so our fish are smaller and we don’t have big fish to offer.”

As the situation evolves, Dicarlo remains hopeful that the government will reconsider its stance on the ban, especially with looming economic pressures and tariff threats from the U.S. He urged, “Canada has spent a tremendous amount of money and effort to develop these markets—only to pull back production and let other countries fill the void.”

The Canadian government’s phase-out of open-net pen salmon farming is expected to be fully implemented by mid-2029. Starting July 1, 2024, only marine- or land-based closed-containment systems will be eligible for aquaculture licenses in coastal B.C. This controversial plan has garnered mixed reactions, with environmental groups applauding the move while industry stakeholders warn of potential economic fallout.

As this urgent situation develops, the future of B.C.’s salmon industry hangs in the balance, with global buyers seeking more reliable sources amidst increasing uncertainty. Expect further updates as this story unfolds.