bull

Excellence scientifique bull Protection et conservation des ressources bull Benefices aux Canadiens Scientific Excellencemiddot Resource Protection amp Conservationmiddot Benefits for Canadians

Proceedings of the 1995 Oyster Culture Workshop Moncton New Brunswick

J bull DJ Scarratt1 and TW Sephton

bull

Canada Department of Fisheries and Oceans Science Branch Maritimes Region Gulf Fisheries Centre PO Box 5030 Moncton New Brunswick E1 A 9B6

1 David Scarratt and Associates PO Box 1564 Halifax Nova Scotia B3J 2Y3

August 1995

Canadian Industry Report of Fisheries and Aquatic Sciences No 230

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Canadian Industry Report of Fisheries and Aquatic Sciences No 230

August 1995

PROCEEDINGS OFTHE 1995 OYSTER CULTURE WORKSHOP MONCTON NEW BRUNSWICK

by

David J Scarratt1 and Thomas W Sephton

Canada Department of Fisheries and Oceans Science Branch Maritimes Region

Gulf Fisheries Centre PO Box 5030

Moncton New Brunswick E 1 A 9B6

1David Scarratt amp Associates

PO Box 1564 Halifax Nova Scotia B3J 2Y3

ii

Printed on recycled paper

Imprime sur du papier recycle

copy Minister of Supply and Services Canada 1995 Cat no Fs 97-14230E ISSN 0706-3694

Correct citation for this publication is

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

iii

CONTENTS

LIST OF TABLES iv

LIST OF APPENDICES iv

ABSTRACTRESUME v

10 Workshop Opening amp Welcome 1

20 Introduction 2

30 Review of Culture Activities in the Maritimes 3 31 Aquaculture Developments in New Brunswick 3 32 Aquaculture Developments in Prince Edward Island 4 33 Aquaculture Developments in Nova Scotia 4

40 Basic Elements of Developing a Business Plan 6

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises 7

60 Marketing 10

70 Overview of Future Needs and Introduction to Discussion Workshops 12 71 Summary of Workshop Discussions 16

711 Workshop 1 Regulations and Inspection 16 712 Workshop 2 Research Requirements 17 713 Workshop 3 Technology Transfer and Training 18 714 Workshop 4 Marketing 19

80 Workshop Concluding Remarks 20

iv

LIST OF TABLES

TABLE 1 Estimated growth of a hypothetical shellfish farm 6

TABLE 2 Estimated annual costs of purchasing shellfish culture units 6

TABLE 3 Simplified hypothetical business plan costs and revenues 7

TABLE 4 Volume sales revenues for cultured oysters 9

TABLE 5 Unit sales revenues for cultured oysters 9

TABLE 6 Traditional market approach with volume sales 10

TABLE 7 New cultured market approach with unit sales 10

TABLE 8 List of NB mollusc aquaculture research and development priorities 13

LIST OF APPENDICES

APPENDIX 1 Workshop organising committee 21

APPENDIX 2 List of attendees 22

APPENDIX 3 Prioritised list of workshop recommendations and action items 24

v

ABSTRACT

Scarratt DJ and TW Sephton 1995 Proceedings of tile 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

The principal objective of the workshop was to bring together members of the oyster industry academics consultants and federal-provincial government officials to foster an effort at developing a cultured oyster industry capable of supplying high quality cultured oysters (primarily Crassostrea virginica) on a year round sustainable basis 102 partiCipants from throughout the Maritimes attended the 2 day workshop held in Moncton at the Gulf Fisheries Centre on March 15-16 1995 The workshop introduction articulated the importance of pre-planning culture activities in light of known market demands and the drastic effects that diseases have on oyster production Recent and ongoing aquaculture developments were reviewed for New Brunswick Prince Edward Island and Nova Scotia An overview of the basic elements of developing a business plan was followed by a detailed review of the estimated costs and economic returns from a culture enterprise with a discussion on the merits of volume and unit sales into the marketplace Basic marketing concepts for a cultured product were reviewed The 4 workshop sessions of day 2 were introduced with an overview of previously identified RampD priorities and ongoing NB aquaculture development programs A summary of the workshop discussion sessions on Regulations and Inspection Research Requirements Technology Transfer and Training and Marketing was presented and tabulated for future reference At the conclusion it was the desire of aU participants to make the Oyster Culture Workshop an annual event

RESUME

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

Lobjectif principale de Iatelier etait de regrouper les ostreiculteurs academiques consultants et les agents des gouvernements federaux et provinciaux afin dengendrer une initiative envers Ie developpement dune industrie ostreicole avec une approvisionnement dhuitres americaines (Crassostrea virginica) de qualite superieures et au cours de toute Iannee Un total de 102 partiCipants de la region des provinces maritimes etaient present acet atelier de 2 jours au Centre des Peches du Golfe a Moncton les 15 et 16 mars 1995 Limportance de bien etablir les activites de culture en fonction du besoin des marches connus et des consequences possibles des problemes de maladies a ete Iobjet de Iintroduction de Iatelier Les developpements recents et en cours dans Ie domaine de Iaquaculture au Nouveau- middot Brunswick en Nouvelle-Ecosse et a Lile du Prince Edouard ont ete presentes Un aper9u des elements de base du developpement dun plan daffaire a ete presente suivi dune revue detaillee des couts estimes et revenues possible dune entreprise ostreicole tenant compte des effectifs et du prix unitaire sur Ie marche Des concept de base sur Ie marketing du produit cultive ont ete discutes Au debut de la deuxieme journee les priorites de recherches et developpements pre-etablies ainsi que les programmes de developpement en cours au Nouveau-Brunswick ont ete presentes aux quatre groupes de travail Un resume des discussions des groupes de travail sur la reglementation et Iinspection les besoins en recherche transfert de technologie et formation et marketing a ete presente et converti en forme de table pour references futures A titre de conclusion les participants ont demande quun atelier sur Iostreiculture soit mene sur une base annuelle

1

10 Workshop Opening amp Welcome

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The concept for this oyster culture workshop originated in a paper An American oyster strategy for Atlantic Canada presented by Rene Lavoie at the MC meetings in Yarmouth in June 1994 He challenged the audience to focus on developing an oyster industry capable of supplying high quality cultured oysters on a year round sustainable basis I publicly accepted this challenge and re-iterated my acceptance at a meeting of the NS Aquaculture Coordinating Committee So here we are on the Ides of March (March 15 1995) discussing the further advancement of the industry We have used the term Longer and Smaller in earlier material advertising this meeting the slogan denoting the concept of promoting a longer season while marketing a smaller cultured oyster in an economically feasible manner

We originally envisioned a few dozen growers might attend but the actual registered attendance (102) exceeds our wildest dreams There are representatives from throughout the Maritimes from northern and southern NB PEl Cape Breton and South Shore NS (See Appendix 2) Also attending are oyster processors officials from federal and provincial governments and people just beginning in aquaculture We the organising committee would like to know more about your reasons for attending so please let us know over the coffee breaks and in informal discussion If the industry wants to have annual workshops they must reflect the industries needs and the industry itself should become involved in their organisation We suspect this will be apparent when we present the Action Plan for Future Development at the conclusion of the workshop

The workshop could not have happened without the collaboration and co-operation of my Federal and Provincial colleagues and in particular the financial support from NB DFA (Stephen Lanteigne) and PEl DAFampF (Richard Gallant) The organising committee for the workshop is shown in Appendix 1 The Organising Committee is appreciative of the logistic support and acknowledge the generous assistance from Mary Stephenson Helen Kerr Denise Methe Marcel Leger Clair Bryan Andre Gionet-Leblanc Anita Landry (wonderful culinary delights) Bob Dupuis Rejean Vienneau and Sharon McGladdery

I would particularly like to extend a warm welcome to Dr Rene Lavoie and ask him to introduce the workshop theme

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

Rapport canadien it Iindustrie sur les sciences ha lieutiques et aquatiques

Lcs rapports aIindustrie conlilnnlnt les resultats des actiit6 de recherche t de devcloppement qui peu enl eIre utile a Iindu~trie pour d~ application immediatcs ()u f ulUns II sont surtout deSli nes aux mem bres tles ~ecteur~ prima i re eL secondai re de Iindustrie des peche eL de 1lt1 mer II ny a aucunc restriction quanl au slijet de fail la serie rellele la vrule gamme de~ inlerets et des poliliques du ministeredcs Peches et des Oceans ce t-a-dirc les sciences hal ieutiques et aqultltiques

Les rapports it Iindu middottrie peuvent eIre cites comml de publications completes Ie titre exact parait all-desslIs du resume de chaque rapport Lcs rapports a Iindllltrie sont resumes dan la nvue Resume 1 siel(t Utlll(f(icII elllllliewiqll( et ils sont cla~ses dans Iindex annuel de publications scientiriqllcs ct Ie hnique du Ministtre

Ie nllmcros I a91 de celtc erie ont etc public it titre de rapporti sur les travaux de la Direct ion du Mveloppement industriel de rapp m techn iques de la Direction du developpemenl industriel et de rapports lechnique de la Direction des serv ices aux pecheurs Les numeros 92 a 110 sont parus a titre de rapports ltt Iindustrie du ervice des peches et de la mer min istere des Pechcs et lie lEnvironnemenL Le nom acwel de la serie a ctc elabli lor de la parulion du numero III

I C rapporl~ a Iindustrie ~on t produi lS a echelon regional mais numerotes a Iechelon na tiona l Le demandcs dl rapport seront ali fa ites par Ietablissemen t auteur d nl Ie nom Iigure su r la couvcrturc et la page du titre Les rapports cpu ises seront fournis eonlrc retribution par des agents commerciaux

Canadian Industry Report of Fisheries and Aquatic Sciences

IndtLSlry report contain the re UllS 01 re earch and development useful to industry for either immediate or fUlure application They are directed pri marily toward individuals in the primary and secondary sectors of Ihe fishing and marine industries No restriction is placed onu~iect mailer and t he cries reOecls the broad interc I and policies orthe Department fFi heriesand Ocean namely fisher ies and aquatic ciences

Industry reportgt may be citcd as lull puhlicaions The correct citation appears above the abstract of each report Each report is abstracted in Aquatic Sciencegt alld FIherils Ahstract and indexed in tilL Depltlrtments annual index t cientille and technical publicalions

Number~ 91inthl serieswenis~ueliasProJectRep rtsofthclndu trial Develshyopment Branch Techni al Report uf the Indu~lria l Development Branch and Techn ical Report~ of the Fis herman iervice Branch urn bers 92 - 110 were is ued J~ Departmenl or Fisheries and the Environment Fisheries and Marin en ice Industry Report The current erie name as changed with report number III

Inlill try report are produced reg ionally bUI lie numbered nationally Requests lor individual reports will be filled hy the issuinge tabllshment Ii ted on the front coyer and title pagt Out-ol-stock reports ill be upplieJ 1M a fet oy commercial ltlgcnlS

Canadian Industry Report of Fisheries and Aquatic Sciences No 230

August 1995

PROCEEDINGS OFTHE 1995 OYSTER CULTURE WORKSHOP MONCTON NEW BRUNSWICK

by

David J Scarratt1 and Thomas W Sephton

Canada Department of Fisheries and Oceans Science Branch Maritimes Region

Gulf Fisheries Centre PO Box 5030

Moncton New Brunswick E 1 A 9B6

1David Scarratt amp Associates

PO Box 1564 Halifax Nova Scotia B3J 2Y3

ii

Printed on recycled paper

Imprime sur du papier recycle

copy Minister of Supply and Services Canada 1995 Cat no Fs 97-14230E ISSN 0706-3694

Correct citation for this publication is

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

iii

CONTENTS

LIST OF TABLES iv

LIST OF APPENDICES iv

ABSTRACTRESUME v

10 Workshop Opening amp Welcome 1

20 Introduction 2

30 Review of Culture Activities in the Maritimes 3 31 Aquaculture Developments in New Brunswick 3 32 Aquaculture Developments in Prince Edward Island 4 33 Aquaculture Developments in Nova Scotia 4

40 Basic Elements of Developing a Business Plan 6

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises 7

60 Marketing 10

70 Overview of Future Needs and Introduction to Discussion Workshops 12 71 Summary of Workshop Discussions 16

711 Workshop 1 Regulations and Inspection 16 712 Workshop 2 Research Requirements 17 713 Workshop 3 Technology Transfer and Training 18 714 Workshop 4 Marketing 19

80 Workshop Concluding Remarks 20

iv

LIST OF TABLES

TABLE 1 Estimated growth of a hypothetical shellfish farm 6

TABLE 2 Estimated annual costs of purchasing shellfish culture units 6

TABLE 3 Simplified hypothetical business plan costs and revenues 7

TABLE 4 Volume sales revenues for cultured oysters 9

TABLE 5 Unit sales revenues for cultured oysters 9

TABLE 6 Traditional market approach with volume sales 10

TABLE 7 New cultured market approach with unit sales 10

TABLE 8 List of NB mollusc aquaculture research and development priorities 13

LIST OF APPENDICES

APPENDIX 1 Workshop organising committee 21

APPENDIX 2 List of attendees 22

APPENDIX 3 Prioritised list of workshop recommendations and action items 24

v

ABSTRACT

Scarratt DJ and TW Sephton 1995 Proceedings of tile 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

The principal objective of the workshop was to bring together members of the oyster industry academics consultants and federal-provincial government officials to foster an effort at developing a cultured oyster industry capable of supplying high quality cultured oysters (primarily Crassostrea virginica) on a year round sustainable basis 102 partiCipants from throughout the Maritimes attended the 2 day workshop held in Moncton at the Gulf Fisheries Centre on March 15-16 1995 The workshop introduction articulated the importance of pre-planning culture activities in light of known market demands and the drastic effects that diseases have on oyster production Recent and ongoing aquaculture developments were reviewed for New Brunswick Prince Edward Island and Nova Scotia An overview of the basic elements of developing a business plan was followed by a detailed review of the estimated costs and economic returns from a culture enterprise with a discussion on the merits of volume and unit sales into the marketplace Basic marketing concepts for a cultured product were reviewed The 4 workshop sessions of day 2 were introduced with an overview of previously identified RampD priorities and ongoing NB aquaculture development programs A summary of the workshop discussion sessions on Regulations and Inspection Research Requirements Technology Transfer and Training and Marketing was presented and tabulated for future reference At the conclusion it was the desire of aU participants to make the Oyster Culture Workshop an annual event

RESUME

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

Lobjectif principale de Iatelier etait de regrouper les ostreiculteurs academiques consultants et les agents des gouvernements federaux et provinciaux afin dengendrer une initiative envers Ie developpement dune industrie ostreicole avec une approvisionnement dhuitres americaines (Crassostrea virginica) de qualite superieures et au cours de toute Iannee Un total de 102 partiCipants de la region des provinces maritimes etaient present acet atelier de 2 jours au Centre des Peches du Golfe a Moncton les 15 et 16 mars 1995 Limportance de bien etablir les activites de culture en fonction du besoin des marches connus et des consequences possibles des problemes de maladies a ete Iobjet de Iintroduction de Iatelier Les developpements recents et en cours dans Ie domaine de Iaquaculture au Nouveau- middot Brunswick en Nouvelle-Ecosse et a Lile du Prince Edouard ont ete presentes Un aper9u des elements de base du developpement dun plan daffaire a ete presente suivi dune revue detaillee des couts estimes et revenues possible dune entreprise ostreicole tenant compte des effectifs et du prix unitaire sur Ie marche Des concept de base sur Ie marketing du produit cultive ont ete discutes Au debut de la deuxieme journee les priorites de recherches et developpements pre-etablies ainsi que les programmes de developpement en cours au Nouveau-Brunswick ont ete presentes aux quatre groupes de travail Un resume des discussions des groupes de travail sur la reglementation et Iinspection les besoins en recherche transfert de technologie et formation et marketing a ete presente et converti en forme de table pour references futures A titre de conclusion les participants ont demande quun atelier sur Iostreiculture soit mene sur une base annuelle

1

10 Workshop Opening amp Welcome

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The concept for this oyster culture workshop originated in a paper An American oyster strategy for Atlantic Canada presented by Rene Lavoie at the MC meetings in Yarmouth in June 1994 He challenged the audience to focus on developing an oyster industry capable of supplying high quality cultured oysters on a year round sustainable basis I publicly accepted this challenge and re-iterated my acceptance at a meeting of the NS Aquaculture Coordinating Committee So here we are on the Ides of March (March 15 1995) discussing the further advancement of the industry We have used the term Longer and Smaller in earlier material advertising this meeting the slogan denoting the concept of promoting a longer season while marketing a smaller cultured oyster in an economically feasible manner

We originally envisioned a few dozen growers might attend but the actual registered attendance (102) exceeds our wildest dreams There are representatives from throughout the Maritimes from northern and southern NB PEl Cape Breton and South Shore NS (See Appendix 2) Also attending are oyster processors officials from federal and provincial governments and people just beginning in aquaculture We the organising committee would like to know more about your reasons for attending so please let us know over the coffee breaks and in informal discussion If the industry wants to have annual workshops they must reflect the industries needs and the industry itself should become involved in their organisation We suspect this will be apparent when we present the Action Plan for Future Development at the conclusion of the workshop

The workshop could not have happened without the collaboration and co-operation of my Federal and Provincial colleagues and in particular the financial support from NB DFA (Stephen Lanteigne) and PEl DAFampF (Richard Gallant) The organising committee for the workshop is shown in Appendix 1 The Organising Committee is appreciative of the logistic support and acknowledge the generous assistance from Mary Stephenson Helen Kerr Denise Methe Marcel Leger Clair Bryan Andre Gionet-Leblanc Anita Landry (wonderful culinary delights) Bob Dupuis Rejean Vienneau and Sharon McGladdery

I would particularly like to extend a warm welcome to Dr Rene Lavoie and ask him to introduce the workshop theme

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

Canadian Industry Report of Fisheries and Aquatic Sciences No 230

August 1995

PROCEEDINGS OFTHE 1995 OYSTER CULTURE WORKSHOP MONCTON NEW BRUNSWICK

by

David J Scarratt1 and Thomas W Sephton

Canada Department of Fisheries and Oceans Science Branch Maritimes Region

Gulf Fisheries Centre PO Box 5030

Moncton New Brunswick E 1 A 9B6

1David Scarratt amp Associates

PO Box 1564 Halifax Nova Scotia B3J 2Y3

ii

Printed on recycled paper

Imprime sur du papier recycle

copy Minister of Supply and Services Canada 1995 Cat no Fs 97-14230E ISSN 0706-3694

Correct citation for this publication is

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

iii

CONTENTS

LIST OF TABLES iv

LIST OF APPENDICES iv

ABSTRACTRESUME v

10 Workshop Opening amp Welcome 1

20 Introduction 2

30 Review of Culture Activities in the Maritimes 3 31 Aquaculture Developments in New Brunswick 3 32 Aquaculture Developments in Prince Edward Island 4 33 Aquaculture Developments in Nova Scotia 4

40 Basic Elements of Developing a Business Plan 6

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises 7

60 Marketing 10

70 Overview of Future Needs and Introduction to Discussion Workshops 12 71 Summary of Workshop Discussions 16

711 Workshop 1 Regulations and Inspection 16 712 Workshop 2 Research Requirements 17 713 Workshop 3 Technology Transfer and Training 18 714 Workshop 4 Marketing 19

80 Workshop Concluding Remarks 20

iv

LIST OF TABLES

TABLE 1 Estimated growth of a hypothetical shellfish farm 6

TABLE 2 Estimated annual costs of purchasing shellfish culture units 6

TABLE 3 Simplified hypothetical business plan costs and revenues 7

TABLE 4 Volume sales revenues for cultured oysters 9

TABLE 5 Unit sales revenues for cultured oysters 9

TABLE 6 Traditional market approach with volume sales 10

TABLE 7 New cultured market approach with unit sales 10

TABLE 8 List of NB mollusc aquaculture research and development priorities 13

LIST OF APPENDICES

APPENDIX 1 Workshop organising committee 21

APPENDIX 2 List of attendees 22

APPENDIX 3 Prioritised list of workshop recommendations and action items 24

v

ABSTRACT

Scarratt DJ and TW Sephton 1995 Proceedings of tile 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

The principal objective of the workshop was to bring together members of the oyster industry academics consultants and federal-provincial government officials to foster an effort at developing a cultured oyster industry capable of supplying high quality cultured oysters (primarily Crassostrea virginica) on a year round sustainable basis 102 partiCipants from throughout the Maritimes attended the 2 day workshop held in Moncton at the Gulf Fisheries Centre on March 15-16 1995 The workshop introduction articulated the importance of pre-planning culture activities in light of known market demands and the drastic effects that diseases have on oyster production Recent and ongoing aquaculture developments were reviewed for New Brunswick Prince Edward Island and Nova Scotia An overview of the basic elements of developing a business plan was followed by a detailed review of the estimated costs and economic returns from a culture enterprise with a discussion on the merits of volume and unit sales into the marketplace Basic marketing concepts for a cultured product were reviewed The 4 workshop sessions of day 2 were introduced with an overview of previously identified RampD priorities and ongoing NB aquaculture development programs A summary of the workshop discussion sessions on Regulations and Inspection Research Requirements Technology Transfer and Training and Marketing was presented and tabulated for future reference At the conclusion it was the desire of aU participants to make the Oyster Culture Workshop an annual event

RESUME

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

Lobjectif principale de Iatelier etait de regrouper les ostreiculteurs academiques consultants et les agents des gouvernements federaux et provinciaux afin dengendrer une initiative envers Ie developpement dune industrie ostreicole avec une approvisionnement dhuitres americaines (Crassostrea virginica) de qualite superieures et au cours de toute Iannee Un total de 102 partiCipants de la region des provinces maritimes etaient present acet atelier de 2 jours au Centre des Peches du Golfe a Moncton les 15 et 16 mars 1995 Limportance de bien etablir les activites de culture en fonction du besoin des marches connus et des consequences possibles des problemes de maladies a ete Iobjet de Iintroduction de Iatelier Les developpements recents et en cours dans Ie domaine de Iaquaculture au Nouveau- middot Brunswick en Nouvelle-Ecosse et a Lile du Prince Edouard ont ete presentes Un aper9u des elements de base du developpement dun plan daffaire a ete presente suivi dune revue detaillee des couts estimes et revenues possible dune entreprise ostreicole tenant compte des effectifs et du prix unitaire sur Ie marche Des concept de base sur Ie marketing du produit cultive ont ete discutes Au debut de la deuxieme journee les priorites de recherches et developpements pre-etablies ainsi que les programmes de developpement en cours au Nouveau-Brunswick ont ete presentes aux quatre groupes de travail Un resume des discussions des groupes de travail sur la reglementation et Iinspection les besoins en recherche transfert de technologie et formation et marketing a ete presente et converti en forme de table pour references futures A titre de conclusion les participants ont demande quun atelier sur Iostreiculture soit mene sur une base annuelle

1

10 Workshop Opening amp Welcome

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The concept for this oyster culture workshop originated in a paper An American oyster strategy for Atlantic Canada presented by Rene Lavoie at the MC meetings in Yarmouth in June 1994 He challenged the audience to focus on developing an oyster industry capable of supplying high quality cultured oysters on a year round sustainable basis I publicly accepted this challenge and re-iterated my acceptance at a meeting of the NS Aquaculture Coordinating Committee So here we are on the Ides of March (March 15 1995) discussing the further advancement of the industry We have used the term Longer and Smaller in earlier material advertising this meeting the slogan denoting the concept of promoting a longer season while marketing a smaller cultured oyster in an economically feasible manner

We originally envisioned a few dozen growers might attend but the actual registered attendance (102) exceeds our wildest dreams There are representatives from throughout the Maritimes from northern and southern NB PEl Cape Breton and South Shore NS (See Appendix 2) Also attending are oyster processors officials from federal and provincial governments and people just beginning in aquaculture We the organising committee would like to know more about your reasons for attending so please let us know over the coffee breaks and in informal discussion If the industry wants to have annual workshops they must reflect the industries needs and the industry itself should become involved in their organisation We suspect this will be apparent when we present the Action Plan for Future Development at the conclusion of the workshop

The workshop could not have happened without the collaboration and co-operation of my Federal and Provincial colleagues and in particular the financial support from NB DFA (Stephen Lanteigne) and PEl DAFampF (Richard Gallant) The organising committee for the workshop is shown in Appendix 1 The Organising Committee is appreciative of the logistic support and acknowledge the generous assistance from Mary Stephenson Helen Kerr Denise Methe Marcel Leger Clair Bryan Andre Gionet-Leblanc Anita Landry (wonderful culinary delights) Bob Dupuis Rejean Vienneau and Sharon McGladdery

I would particularly like to extend a warm welcome to Dr Rene Lavoie and ask him to introduce the workshop theme

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

ii

Printed on recycled paper

Imprime sur du papier recycle

copy Minister of Supply and Services Canada 1995 Cat no Fs 97-14230E ISSN 0706-3694

Correct citation for this publication is

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

iii

CONTENTS

LIST OF TABLES iv

LIST OF APPENDICES iv

ABSTRACTRESUME v

10 Workshop Opening amp Welcome 1

20 Introduction 2

30 Review of Culture Activities in the Maritimes 3 31 Aquaculture Developments in New Brunswick 3 32 Aquaculture Developments in Prince Edward Island 4 33 Aquaculture Developments in Nova Scotia 4

40 Basic Elements of Developing a Business Plan 6

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises 7

60 Marketing 10

70 Overview of Future Needs and Introduction to Discussion Workshops 12 71 Summary of Workshop Discussions 16

711 Workshop 1 Regulations and Inspection 16 712 Workshop 2 Research Requirements 17 713 Workshop 3 Technology Transfer and Training 18 714 Workshop 4 Marketing 19

80 Workshop Concluding Remarks 20

iv

LIST OF TABLES

TABLE 1 Estimated growth of a hypothetical shellfish farm 6

TABLE 2 Estimated annual costs of purchasing shellfish culture units 6

TABLE 3 Simplified hypothetical business plan costs and revenues 7

TABLE 4 Volume sales revenues for cultured oysters 9

TABLE 5 Unit sales revenues for cultured oysters 9

TABLE 6 Traditional market approach with volume sales 10

TABLE 7 New cultured market approach with unit sales 10

TABLE 8 List of NB mollusc aquaculture research and development priorities 13

LIST OF APPENDICES

APPENDIX 1 Workshop organising committee 21

APPENDIX 2 List of attendees 22

APPENDIX 3 Prioritised list of workshop recommendations and action items 24

v

ABSTRACT

Scarratt DJ and TW Sephton 1995 Proceedings of tile 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

The principal objective of the workshop was to bring together members of the oyster industry academics consultants and federal-provincial government officials to foster an effort at developing a cultured oyster industry capable of supplying high quality cultured oysters (primarily Crassostrea virginica) on a year round sustainable basis 102 partiCipants from throughout the Maritimes attended the 2 day workshop held in Moncton at the Gulf Fisheries Centre on March 15-16 1995 The workshop introduction articulated the importance of pre-planning culture activities in light of known market demands and the drastic effects that diseases have on oyster production Recent and ongoing aquaculture developments were reviewed for New Brunswick Prince Edward Island and Nova Scotia An overview of the basic elements of developing a business plan was followed by a detailed review of the estimated costs and economic returns from a culture enterprise with a discussion on the merits of volume and unit sales into the marketplace Basic marketing concepts for a cultured product were reviewed The 4 workshop sessions of day 2 were introduced with an overview of previously identified RampD priorities and ongoing NB aquaculture development programs A summary of the workshop discussion sessions on Regulations and Inspection Research Requirements Technology Transfer and Training and Marketing was presented and tabulated for future reference At the conclusion it was the desire of aU participants to make the Oyster Culture Workshop an annual event

RESUME

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

Lobjectif principale de Iatelier etait de regrouper les ostreiculteurs academiques consultants et les agents des gouvernements federaux et provinciaux afin dengendrer une initiative envers Ie developpement dune industrie ostreicole avec une approvisionnement dhuitres americaines (Crassostrea virginica) de qualite superieures et au cours de toute Iannee Un total de 102 partiCipants de la region des provinces maritimes etaient present acet atelier de 2 jours au Centre des Peches du Golfe a Moncton les 15 et 16 mars 1995 Limportance de bien etablir les activites de culture en fonction du besoin des marches connus et des consequences possibles des problemes de maladies a ete Iobjet de Iintroduction de Iatelier Les developpements recents et en cours dans Ie domaine de Iaquaculture au Nouveau- middot Brunswick en Nouvelle-Ecosse et a Lile du Prince Edouard ont ete presentes Un aper9u des elements de base du developpement dun plan daffaire a ete presente suivi dune revue detaillee des couts estimes et revenues possible dune entreprise ostreicole tenant compte des effectifs et du prix unitaire sur Ie marche Des concept de base sur Ie marketing du produit cultive ont ete discutes Au debut de la deuxieme journee les priorites de recherches et developpements pre-etablies ainsi que les programmes de developpement en cours au Nouveau-Brunswick ont ete presentes aux quatre groupes de travail Un resume des discussions des groupes de travail sur la reglementation et Iinspection les besoins en recherche transfert de technologie et formation et marketing a ete presente et converti en forme de table pour references futures A titre de conclusion les participants ont demande quun atelier sur Iostreiculture soit mene sur une base annuelle

1

10 Workshop Opening amp Welcome

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The concept for this oyster culture workshop originated in a paper An American oyster strategy for Atlantic Canada presented by Rene Lavoie at the MC meetings in Yarmouth in June 1994 He challenged the audience to focus on developing an oyster industry capable of supplying high quality cultured oysters on a year round sustainable basis I publicly accepted this challenge and re-iterated my acceptance at a meeting of the NS Aquaculture Coordinating Committee So here we are on the Ides of March (March 15 1995) discussing the further advancement of the industry We have used the term Longer and Smaller in earlier material advertising this meeting the slogan denoting the concept of promoting a longer season while marketing a smaller cultured oyster in an economically feasible manner

We originally envisioned a few dozen growers might attend but the actual registered attendance (102) exceeds our wildest dreams There are representatives from throughout the Maritimes from northern and southern NB PEl Cape Breton and South Shore NS (See Appendix 2) Also attending are oyster processors officials from federal and provincial governments and people just beginning in aquaculture We the organising committee would like to know more about your reasons for attending so please let us know over the coffee breaks and in informal discussion If the industry wants to have annual workshops they must reflect the industries needs and the industry itself should become involved in their organisation We suspect this will be apparent when we present the Action Plan for Future Development at the conclusion of the workshop

The workshop could not have happened without the collaboration and co-operation of my Federal and Provincial colleagues and in particular the financial support from NB DFA (Stephen Lanteigne) and PEl DAFampF (Richard Gallant) The organising committee for the workshop is shown in Appendix 1 The Organising Committee is appreciative of the logistic support and acknowledge the generous assistance from Mary Stephenson Helen Kerr Denise Methe Marcel Leger Clair Bryan Andre Gionet-Leblanc Anita Landry (wonderful culinary delights) Bob Dupuis Rejean Vienneau and Sharon McGladdery

I would particularly like to extend a warm welcome to Dr Rene Lavoie and ask him to introduce the workshop theme

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

iii

CONTENTS

LIST OF TABLES iv

LIST OF APPENDICES iv

ABSTRACTRESUME v

10 Workshop Opening amp Welcome 1

20 Introduction 2

30 Review of Culture Activities in the Maritimes 3 31 Aquaculture Developments in New Brunswick 3 32 Aquaculture Developments in Prince Edward Island 4 33 Aquaculture Developments in Nova Scotia 4

40 Basic Elements of Developing a Business Plan 6

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises 7

60 Marketing 10

70 Overview of Future Needs and Introduction to Discussion Workshops 12 71 Summary of Workshop Discussions 16

711 Workshop 1 Regulations and Inspection 16 712 Workshop 2 Research Requirements 17 713 Workshop 3 Technology Transfer and Training 18 714 Workshop 4 Marketing 19

80 Workshop Concluding Remarks 20

iv

LIST OF TABLES

TABLE 1 Estimated growth of a hypothetical shellfish farm 6

TABLE 2 Estimated annual costs of purchasing shellfish culture units 6

TABLE 3 Simplified hypothetical business plan costs and revenues 7

TABLE 4 Volume sales revenues for cultured oysters 9

TABLE 5 Unit sales revenues for cultured oysters 9

TABLE 6 Traditional market approach with volume sales 10

TABLE 7 New cultured market approach with unit sales 10

TABLE 8 List of NB mollusc aquaculture research and development priorities 13

LIST OF APPENDICES

APPENDIX 1 Workshop organising committee 21

APPENDIX 2 List of attendees 22

APPENDIX 3 Prioritised list of workshop recommendations and action items 24

v

ABSTRACT

Scarratt DJ and TW Sephton 1995 Proceedings of tile 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

The principal objective of the workshop was to bring together members of the oyster industry academics consultants and federal-provincial government officials to foster an effort at developing a cultured oyster industry capable of supplying high quality cultured oysters (primarily Crassostrea virginica) on a year round sustainable basis 102 partiCipants from throughout the Maritimes attended the 2 day workshop held in Moncton at the Gulf Fisheries Centre on March 15-16 1995 The workshop introduction articulated the importance of pre-planning culture activities in light of known market demands and the drastic effects that diseases have on oyster production Recent and ongoing aquaculture developments were reviewed for New Brunswick Prince Edward Island and Nova Scotia An overview of the basic elements of developing a business plan was followed by a detailed review of the estimated costs and economic returns from a culture enterprise with a discussion on the merits of volume and unit sales into the marketplace Basic marketing concepts for a cultured product were reviewed The 4 workshop sessions of day 2 were introduced with an overview of previously identified RampD priorities and ongoing NB aquaculture development programs A summary of the workshop discussion sessions on Regulations and Inspection Research Requirements Technology Transfer and Training and Marketing was presented and tabulated for future reference At the conclusion it was the desire of aU participants to make the Oyster Culture Workshop an annual event

RESUME

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

Lobjectif principale de Iatelier etait de regrouper les ostreiculteurs academiques consultants et les agents des gouvernements federaux et provinciaux afin dengendrer une initiative envers Ie developpement dune industrie ostreicole avec une approvisionnement dhuitres americaines (Crassostrea virginica) de qualite superieures et au cours de toute Iannee Un total de 102 partiCipants de la region des provinces maritimes etaient present acet atelier de 2 jours au Centre des Peches du Golfe a Moncton les 15 et 16 mars 1995 Limportance de bien etablir les activites de culture en fonction du besoin des marches connus et des consequences possibles des problemes de maladies a ete Iobjet de Iintroduction de Iatelier Les developpements recents et en cours dans Ie domaine de Iaquaculture au Nouveau- middot Brunswick en Nouvelle-Ecosse et a Lile du Prince Edouard ont ete presentes Un aper9u des elements de base du developpement dun plan daffaire a ete presente suivi dune revue detaillee des couts estimes et revenues possible dune entreprise ostreicole tenant compte des effectifs et du prix unitaire sur Ie marche Des concept de base sur Ie marketing du produit cultive ont ete discutes Au debut de la deuxieme journee les priorites de recherches et developpements pre-etablies ainsi que les programmes de developpement en cours au Nouveau-Brunswick ont ete presentes aux quatre groupes de travail Un resume des discussions des groupes de travail sur la reglementation et Iinspection les besoins en recherche transfert de technologie et formation et marketing a ete presente et converti en forme de table pour references futures A titre de conclusion les participants ont demande quun atelier sur Iostreiculture soit mene sur une base annuelle

1

10 Workshop Opening amp Welcome

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The concept for this oyster culture workshop originated in a paper An American oyster strategy for Atlantic Canada presented by Rene Lavoie at the MC meetings in Yarmouth in June 1994 He challenged the audience to focus on developing an oyster industry capable of supplying high quality cultured oysters on a year round sustainable basis I publicly accepted this challenge and re-iterated my acceptance at a meeting of the NS Aquaculture Coordinating Committee So here we are on the Ides of March (March 15 1995) discussing the further advancement of the industry We have used the term Longer and Smaller in earlier material advertising this meeting the slogan denoting the concept of promoting a longer season while marketing a smaller cultured oyster in an economically feasible manner

We originally envisioned a few dozen growers might attend but the actual registered attendance (102) exceeds our wildest dreams There are representatives from throughout the Maritimes from northern and southern NB PEl Cape Breton and South Shore NS (See Appendix 2) Also attending are oyster processors officials from federal and provincial governments and people just beginning in aquaculture We the organising committee would like to know more about your reasons for attending so please let us know over the coffee breaks and in informal discussion If the industry wants to have annual workshops they must reflect the industries needs and the industry itself should become involved in their organisation We suspect this will be apparent when we present the Action Plan for Future Development at the conclusion of the workshop

The workshop could not have happened without the collaboration and co-operation of my Federal and Provincial colleagues and in particular the financial support from NB DFA (Stephen Lanteigne) and PEl DAFampF (Richard Gallant) The organising committee for the workshop is shown in Appendix 1 The Organising Committee is appreciative of the logistic support and acknowledge the generous assistance from Mary Stephenson Helen Kerr Denise Methe Marcel Leger Clair Bryan Andre Gionet-Leblanc Anita Landry (wonderful culinary delights) Bob Dupuis Rejean Vienneau and Sharon McGladdery

I would particularly like to extend a warm welcome to Dr Rene Lavoie and ask him to introduce the workshop theme

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

iv

LIST OF TABLES

TABLE 1 Estimated growth of a hypothetical shellfish farm 6

TABLE 2 Estimated annual costs of purchasing shellfish culture units 6

TABLE 3 Simplified hypothetical business plan costs and revenues 7

TABLE 4 Volume sales revenues for cultured oysters 9

TABLE 5 Unit sales revenues for cultured oysters 9

TABLE 6 Traditional market approach with volume sales 10

TABLE 7 New cultured market approach with unit sales 10

TABLE 8 List of NB mollusc aquaculture research and development priorities 13

LIST OF APPENDICES

APPENDIX 1 Workshop organising committee 21

APPENDIX 2 List of attendees 22

APPENDIX 3 Prioritised list of workshop recommendations and action items 24

v

ABSTRACT

Scarratt DJ and TW Sephton 1995 Proceedings of tile 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

The principal objective of the workshop was to bring together members of the oyster industry academics consultants and federal-provincial government officials to foster an effort at developing a cultured oyster industry capable of supplying high quality cultured oysters (primarily Crassostrea virginica) on a year round sustainable basis 102 partiCipants from throughout the Maritimes attended the 2 day workshop held in Moncton at the Gulf Fisheries Centre on March 15-16 1995 The workshop introduction articulated the importance of pre-planning culture activities in light of known market demands and the drastic effects that diseases have on oyster production Recent and ongoing aquaculture developments were reviewed for New Brunswick Prince Edward Island and Nova Scotia An overview of the basic elements of developing a business plan was followed by a detailed review of the estimated costs and economic returns from a culture enterprise with a discussion on the merits of volume and unit sales into the marketplace Basic marketing concepts for a cultured product were reviewed The 4 workshop sessions of day 2 were introduced with an overview of previously identified RampD priorities and ongoing NB aquaculture development programs A summary of the workshop discussion sessions on Regulations and Inspection Research Requirements Technology Transfer and Training and Marketing was presented and tabulated for future reference At the conclusion it was the desire of aU participants to make the Oyster Culture Workshop an annual event

RESUME

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

Lobjectif principale de Iatelier etait de regrouper les ostreiculteurs academiques consultants et les agents des gouvernements federaux et provinciaux afin dengendrer une initiative envers Ie developpement dune industrie ostreicole avec une approvisionnement dhuitres americaines (Crassostrea virginica) de qualite superieures et au cours de toute Iannee Un total de 102 partiCipants de la region des provinces maritimes etaient present acet atelier de 2 jours au Centre des Peches du Golfe a Moncton les 15 et 16 mars 1995 Limportance de bien etablir les activites de culture en fonction du besoin des marches connus et des consequences possibles des problemes de maladies a ete Iobjet de Iintroduction de Iatelier Les developpements recents et en cours dans Ie domaine de Iaquaculture au Nouveau- middot Brunswick en Nouvelle-Ecosse et a Lile du Prince Edouard ont ete presentes Un aper9u des elements de base du developpement dun plan daffaire a ete presente suivi dune revue detaillee des couts estimes et revenues possible dune entreprise ostreicole tenant compte des effectifs et du prix unitaire sur Ie marche Des concept de base sur Ie marketing du produit cultive ont ete discutes Au debut de la deuxieme journee les priorites de recherches et developpements pre-etablies ainsi que les programmes de developpement en cours au Nouveau-Brunswick ont ete presentes aux quatre groupes de travail Un resume des discussions des groupes de travail sur la reglementation et Iinspection les besoins en recherche transfert de technologie et formation et marketing a ete presente et converti en forme de table pour references futures A titre de conclusion les participants ont demande quun atelier sur Iostreiculture soit mene sur une base annuelle

1

10 Workshop Opening amp Welcome

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The concept for this oyster culture workshop originated in a paper An American oyster strategy for Atlantic Canada presented by Rene Lavoie at the MC meetings in Yarmouth in June 1994 He challenged the audience to focus on developing an oyster industry capable of supplying high quality cultured oysters on a year round sustainable basis I publicly accepted this challenge and re-iterated my acceptance at a meeting of the NS Aquaculture Coordinating Committee So here we are on the Ides of March (March 15 1995) discussing the further advancement of the industry We have used the term Longer and Smaller in earlier material advertising this meeting the slogan denoting the concept of promoting a longer season while marketing a smaller cultured oyster in an economically feasible manner

We originally envisioned a few dozen growers might attend but the actual registered attendance (102) exceeds our wildest dreams There are representatives from throughout the Maritimes from northern and southern NB PEl Cape Breton and South Shore NS (See Appendix 2) Also attending are oyster processors officials from federal and provincial governments and people just beginning in aquaculture We the organising committee would like to know more about your reasons for attending so please let us know over the coffee breaks and in informal discussion If the industry wants to have annual workshops they must reflect the industries needs and the industry itself should become involved in their organisation We suspect this will be apparent when we present the Action Plan for Future Development at the conclusion of the workshop

The workshop could not have happened without the collaboration and co-operation of my Federal and Provincial colleagues and in particular the financial support from NB DFA (Stephen Lanteigne) and PEl DAFampF (Richard Gallant) The organising committee for the workshop is shown in Appendix 1 The Organising Committee is appreciative of the logistic support and acknowledge the generous assistance from Mary Stephenson Helen Kerr Denise Methe Marcel Leger Clair Bryan Andre Gionet-Leblanc Anita Landry (wonderful culinary delights) Bob Dupuis Rejean Vienneau and Sharon McGladdery

I would particularly like to extend a warm welcome to Dr Rene Lavoie and ask him to introduce the workshop theme

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

v

ABSTRACT

Scarratt DJ and TW Sephton 1995 Proceedings of tile 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

The principal objective of the workshop was to bring together members of the oyster industry academics consultants and federal-provincial government officials to foster an effort at developing a cultured oyster industry capable of supplying high quality cultured oysters (primarily Crassostrea virginica) on a year round sustainable basis 102 partiCipants from throughout the Maritimes attended the 2 day workshop held in Moncton at the Gulf Fisheries Centre on March 15-16 1995 The workshop introduction articulated the importance of pre-planning culture activities in light of known market demands and the drastic effects that diseases have on oyster production Recent and ongoing aquaculture developments were reviewed for New Brunswick Prince Edward Island and Nova Scotia An overview of the basic elements of developing a business plan was followed by a detailed review of the estimated costs and economic returns from a culture enterprise with a discussion on the merits of volume and unit sales into the marketplace Basic marketing concepts for a cultured product were reviewed The 4 workshop sessions of day 2 were introduced with an overview of previously identified RampD priorities and ongoing NB aquaculture development programs A summary of the workshop discussion sessions on Regulations and Inspection Research Requirements Technology Transfer and Training and Marketing was presented and tabulated for future reference At the conclusion it was the desire of aU participants to make the Oyster Culture Workshop an annual event

RESUME

Scarratt DJ and TW Sephton 1995 Proceedings of the 1995 oyster culture workshop Moncton New Brunswick Can Ind Rep Fish Aquat Sci 23026p

Lobjectif principale de Iatelier etait de regrouper les ostreiculteurs academiques consultants et les agents des gouvernements federaux et provinciaux afin dengendrer une initiative envers Ie developpement dune industrie ostreicole avec une approvisionnement dhuitres americaines (Crassostrea virginica) de qualite superieures et au cours de toute Iannee Un total de 102 partiCipants de la region des provinces maritimes etaient present acet atelier de 2 jours au Centre des Peches du Golfe a Moncton les 15 et 16 mars 1995 Limportance de bien etablir les activites de culture en fonction du besoin des marches connus et des consequences possibles des problemes de maladies a ete Iobjet de Iintroduction de Iatelier Les developpements recents et en cours dans Ie domaine de Iaquaculture au Nouveau- middot Brunswick en Nouvelle-Ecosse et a Lile du Prince Edouard ont ete presentes Un aper9u des elements de base du developpement dun plan daffaire a ete presente suivi dune revue detaillee des couts estimes et revenues possible dune entreprise ostreicole tenant compte des effectifs et du prix unitaire sur Ie marche Des concept de base sur Ie marketing du produit cultive ont ete discutes Au debut de la deuxieme journee les priorites de recherches et developpements pre-etablies ainsi que les programmes de developpement en cours au Nouveau-Brunswick ont ete presentes aux quatre groupes de travail Un resume des discussions des groupes de travail sur la reglementation et Iinspection les besoins en recherche transfert de technologie et formation et marketing a ete presente et converti en forme de table pour references futures A titre de conclusion les participants ont demande quun atelier sur Iostreiculture soit mene sur une base annuelle

1

10 Workshop Opening amp Welcome

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The concept for this oyster culture workshop originated in a paper An American oyster strategy for Atlantic Canada presented by Rene Lavoie at the MC meetings in Yarmouth in June 1994 He challenged the audience to focus on developing an oyster industry capable of supplying high quality cultured oysters on a year round sustainable basis I publicly accepted this challenge and re-iterated my acceptance at a meeting of the NS Aquaculture Coordinating Committee So here we are on the Ides of March (March 15 1995) discussing the further advancement of the industry We have used the term Longer and Smaller in earlier material advertising this meeting the slogan denoting the concept of promoting a longer season while marketing a smaller cultured oyster in an economically feasible manner

We originally envisioned a few dozen growers might attend but the actual registered attendance (102) exceeds our wildest dreams There are representatives from throughout the Maritimes from northern and southern NB PEl Cape Breton and South Shore NS (See Appendix 2) Also attending are oyster processors officials from federal and provincial governments and people just beginning in aquaculture We the organising committee would like to know more about your reasons for attending so please let us know over the coffee breaks and in informal discussion If the industry wants to have annual workshops they must reflect the industries needs and the industry itself should become involved in their organisation We suspect this will be apparent when we present the Action Plan for Future Development at the conclusion of the workshop

The workshop could not have happened without the collaboration and co-operation of my Federal and Provincial colleagues and in particular the financial support from NB DFA (Stephen Lanteigne) and PEl DAFampF (Richard Gallant) The organising committee for the workshop is shown in Appendix 1 The Organising Committee is appreciative of the logistic support and acknowledge the generous assistance from Mary Stephenson Helen Kerr Denise Methe Marcel Leger Clair Bryan Andre Gionet-Leblanc Anita Landry (wonderful culinary delights) Bob Dupuis Rejean Vienneau and Sharon McGladdery

I would particularly like to extend a warm welcome to Dr Rene Lavoie and ask him to introduce the workshop theme

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

1

10 Workshop Opening amp Welcome

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The concept for this oyster culture workshop originated in a paper An American oyster strategy for Atlantic Canada presented by Rene Lavoie at the MC meetings in Yarmouth in June 1994 He challenged the audience to focus on developing an oyster industry capable of supplying high quality cultured oysters on a year round sustainable basis I publicly accepted this challenge and re-iterated my acceptance at a meeting of the NS Aquaculture Coordinating Committee So here we are on the Ides of March (March 15 1995) discussing the further advancement of the industry We have used the term Longer and Smaller in earlier material advertising this meeting the slogan denoting the concept of promoting a longer season while marketing a smaller cultured oyster in an economically feasible manner

We originally envisioned a few dozen growers might attend but the actual registered attendance (102) exceeds our wildest dreams There are representatives from throughout the Maritimes from northern and southern NB PEl Cape Breton and South Shore NS (See Appendix 2) Also attending are oyster processors officials from federal and provincial governments and people just beginning in aquaculture We the organising committee would like to know more about your reasons for attending so please let us know over the coffee breaks and in informal discussion If the industry wants to have annual workshops they must reflect the industries needs and the industry itself should become involved in their organisation We suspect this will be apparent when we present the Action Plan for Future Development at the conclusion of the workshop

The workshop could not have happened without the collaboration and co-operation of my Federal and Provincial colleagues and in particular the financial support from NB DFA (Stephen Lanteigne) and PEl DAFampF (Richard Gallant) The organising committee for the workshop is shown in Appendix 1 The Organising Committee is appreciative of the logistic support and acknowledge the generous assistance from Mary Stephenson Helen Kerr Denise Methe Marcel Leger Clair Bryan Andre Gionet-Leblanc Anita Landry (wonderful culinary delights) Bob Dupuis Rejean Vienneau and Sharon McGladdery

I would particularly like to extend a warm welcome to Dr Rene Lavoie and ask him to introduce the workshop theme

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

2

20 Introduction

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The culture of oysters represents a tremendous opportunity for Maritime mollusc aquaculture and the objectives of this workshop are clear We want to share the vision of this opportunity but offer a caution If you dont know what youre after it will be hard to get So as individual growers you should have a clear idea of what your business objectives are

The aim should be to produce lots of high quality farmed oysters year round in Atlantic Canada We should aim to have them on hand at all times And to do this we will have to pay attention to culture techniques harvesting and also to storage We should follow the recent trend toward marketing cultured American oysters (Crassostrea virginica) at 63 mm (25) rather than at the legal size limit for wild oysters of 76 mm (3) If this is done oyster growers should aim to make $ubstantial profit$ But it will require much thinking and careful analysis of the individual sites the species personal skills and attitudes and attention to selling And the development of action plans which recognise the learning curve and how skills develop over time

Why should we start now There is seed becoming available now as a result of the experiments done by Maurice Daigle (Richiboucto NB) There is interest now in moving towards a culture industry and away from the traditional techniques There is a market now both for cultured and traditional fishery oysters There is co-operation now among the Federal and Provincial governments There also a Federal Aquaculture Development Strategy now in place This commits the Government of Canada from the Cabinet down to recognising that aquaculture is an approved part of the nations business and giving it appropriate support The Free Trade agreement and the value of the US Dollar give a window of opportunity that we must use now

On the down-side too many of the regulations governing the traditional fisheries stand in the way of appropriate aquaculture development and these must be changed by making a clear legal and regulatory separation between cultured and wild fish products

We must also be careful not to kill the golden goose Dont cut corners Dont take foolish risks Remember the history of the European oyster Ostrea edulis industry in France Until 1972 France harvested about 50000 tons of cultured European oysters annually That year there was an outbreak of the disease Martelia By 1978 landings were down to 10000 tons and there was an outbreak of the disease Bonamia In 1981 landings were 3000 t and in 1986 barely 1000 t Initially stocks were replaced by the Portuguese oyster Crassostrea angulata and and when it

succumbed to disease by the Pacific oyster C gigas which is faster growing but not as valuable a species as 0 edulis

It is worth considering the value of the European oyster in France One thousand tons is worth $6 Million Canadianl Even now the 1972 production of 50000 t would be worth $300M Clearly there is export opportunity for European oysters cultured in Canada for the European market t There is a danger that unscrupulous growers in search of a fast buck might be tempted to bring European oyster seed into Canada from Maine where Bonamia has been diagnosed and in doing so jeopardise the Bonamia-free status we currently enjoy It is difficult to think that people

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

3

would be so short-sighted notwithstanding evidence to the contrary The demand for oysters during the 1976 Quebec provincial election was so high that as prices escalated people sold oysters progressively muddier and of lower quality and ultimately lost much in good will in an industry that has existed since the time of Champlain

30 Review of Culture Activities in the Maritimes

31 Aquaculture Developments in New Brunswick

Denise Methe NB Department of Fisheries amp Aquaculture Bouctouche NB

In 1994 there were 790 shellfish leases registered in New Brunswick of which only 10 were not for oysters Private leases were first issued in 1898 The first oyster landings recorded in NB was in 1886 (2500 t) and they have remained relatively stable over the intervening 70 years In 1954 however landings began to decline and reached their lowest levels in 1960 were only 3 tons This drastic decline was latter attributed to a disease of unknown pathogen and is commonly referred to as Malpeque Disease Since then there has been a gradual recovery In 1988 landings reached 1569 tons but have since declined 513 tons in 1992 due probably to over-fishing of the public beds

There has been a progressive development program over the past 15 years In 1979 Chinese hat collectors were used for the first time while in 1982 Vexar bags were introduced 1985 saw seed producers first begin to collect spat in commercial quantities In 1986 the spat forecasting program was introduced In 1990 the first seed oysters were sold commercially in the province In 1991 cultured cocktail oysters were sold in the US In 1993 there was mechanisation of spat washing and grading as well as the fall threshing of spat collectors (as opposed to overwintering and spring threshing) and the oyster (Crassostrea virginica) breeding program by the Centre Universitaire de Shippagan (Universite de Moncton) established at the Centre Marin at Shippagan There have been experiments with different forms of spat collectors as well as middot with the formulation of the limecement coating used on them Evaluations were also conducted with clam shells in mussel socks with scallop shells French tubes plastic sheeting and Plano collectors Experiments were also conducted on the remote setting of eyed larvae from hatchery-bred American oysters in heated tanks of water with spat collectors There has been further experimentation with the use of nursery bags in racks lantern nets (which have a tendency to foul) and the use of Nortene (Vexar) bags on wood or re-bar tables for raising nursery size oysters through to market size Most oyster production is still conducted on-bottom with suitable substrate

There has been some experimentation with the use of setting out oyster on the intertidal after the set in order to control the settlement of small oysters on market-sized stock and with the use of brine and starfish to kill new-settled spat

Oyster culture is making the transition from RampD to commercial expansion and the industry is fast approaching economic viability

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

4

32 Aquaculture Developments in Prince Edward Island

Richard Gallant ampMatt Smith PEl Department of Agriculture Fisheries ampForestry Charlottetown PEl

The objective in PEl is to encourage the development of an oyster industry based on private leases while maintaining the public fishery The intent is to increase the quantity and quality of oysters and enhance employment opportunities Recent landings have ranged from a low of 544 tons in 1973 to a maximum of 1900 tons in 1988 1994 landings were 1 540 t

There are about 1100 licenses to fish public beds on the island of which about 400 are active There is a spring relay fishery along with a fall harvest resulting in about 85 of the Island landings come from the public beds There is a tripartite enhancement program for the public beds involving the spreading of cultch on selected beds experimentation with spat collection using shell bags suspended on wooden fencing (East River) and buoys the subsequent seeding of areas with the shells and the CUltivation of beds with harrows

There are 770 private leases comprising 2270 hectares which are vastly under-utilised yielding only 15 of the total landings An Island-wide oyster lease development program offers training in production technology technology transfer financial incentives for 2-3 years on-site technical services and also addresses the question of lease security The results of this program appear promising as the number of lessees actively enhancing their leases is increasing of late

Additional work includes experimentation with a variety of spat collectors Vexar mesh with and without a cement coating French tubes cement dipped wooden lathes half pipes and the traditional egg crates wrapped in wire mesh (which are very labour intensive) There is a severe problem anticipated in securing adequate quantities of shell for public bed improvement programs although some is being secured from mussel-mud operations Shell bag seed is spread directly on leases the first fall after spatfall There is some experimentation with French-style racks and with tray culture and there is work on grading and overwintering of harvested oysters

Technology of oyster culture can be developed profitably provided lease holders have well developed plans and are prepared to experiment with techniques prior to commercialisation Monitoring results is critical to success

33 Aquaculture Developments in Nova Scotia

Lou Clancy NS Department of Fisheries Halifax NS

The culture of American oysters in Nova Scotia is on a much smaller scale than in NB or PEl The main populations are along the North Shore and in the Bras dQr Lakes

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

5

Culture of American oysters is principally on-bottom but some growers are using suspended culture such as in lantern nets bottom trays which are effective but expensive and Nortene bags on tables Spat are collected for bottom seeding on scallop shells clam shell nets Chinese hats veneer rings as well as purchases from the wild (principally from New Brunswick) and of hatchery bred oysters (mostly European oysters) There are currently three hatcheries in the province not including the provincial experimental hatchery at Ship Harbour which is now available for private use Currently there are 180 lease sites covering approximately 800 hectares Recent production hqs been about 100 tons worth $265000 The new policy announced by the NSDOF is a use it or lose it policy in which lease holders not able to bring their holding up to an annual production of about $10000 may be requested to forfeit their leases (unless there are extenuating circumstances)

The European oyster Ostrea eduis was introduced in 1970 from PEl by R Drinnan and is dependent upon hatchery production of seed which has had its difficulties in the past At present 3 hatcheries are proposing to produce seed in 1995 Because of the potential seed supply problem no new European oyster leases will be awarded unless a secure source of seed can be assured Spat are grown out in pearl nets on longlines until they are put out in table culture at a size of 25-40 mm Harvest is normally at 65-70 mm in 3-4 years The current value of the European oyster industry is about $100000 annually but is expected to increase Individual oysters are sold by unit at a farmgate price of 60-70cent apiece It is not yet feasible to ship oysters to Europe because of the small volumes produced to-date The industry urgently requires improved hatchery production and improved production methods The south shore of mainland NS is ideal for this species which is adapted to cooler temperatures and a more saline environment that C virginica

Discussion Dr Tom Sephton introduced the concept (originally articulated by Dr Gary Newkirk) of over-summering juvenile European oyster spat in warm waters of the Gulf of St Lawrence in order to give them a head start prior to transfer to Atlantic waters for subsequent grow-out This might improve survival through the first winter which appears to be a critical time for O eduis Paul Smith noted that the 0 edulis brood stock in Nova Scotia was free of the two principal diseases that had caused the serious European mortalities and therefore represented a potential for brood stock and spat supply elsewhere in the world This disease-free status must be carefully protected

There was also discussion about the use of Nova Scotia Atlantic waters for the summertime marketing strategy for C virginica Oysters would not spawn and lose condition in these cooler conditions and thus would extend the normal marketing season into the lucrative summer tourists months

In response to a question on the vulnerability of Bras dOr oysters to Malpeque disease Dr Sharon McGladdery stated that experiments where currently underway Oysters from the Bras dOr had been transferred to Malpeque Bay and to a site in New Brunswick Their condition would be checked after ice-out and at intervals throughout the summer

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

6

40 Basic Elements of Developing a Business Plan

Dr David J Scarratt D Scarratt amp Associates Halifax NS

The first step in developing a business plan is to design an operational program which outlines the overall objectives of the enterprise taking into account the characteristics of the site the species selected the technology proposed and the desired rate at which the enterprise will grow In principle it does not matter which species is being grown the overall method of developing a

plan remains unchanged insofar as it represents the aims and ambitions of the grower and the biological characteristics of the species and site The farmer will need to know roughly what growth and mortality rates could be expected and the time to harvest This can be a problem if the site is new but careful study of the literature and discussion with other growers may be a guide

The plan described in A Handbook of Northern Mussel Culture (Chapter 11) (Scarratt 1993) was used to explain the principles In this model the aim is to set out an increasing number of mussel spat collectors each year sufficient after three years to provide enough seed to stock a farm capable of producing 60 tons of mussels per year The grower will need to estimate the number of lines needed for the collectors and socks assuming that spat from each collector will require two socks and that lines once filled with socks will become available again after harvest two years later The overall growth of the farm can be shown thus

Table 1 Estimated growth of a hypothetical shellfish farm number of units

ItemYear 1 2 3 4 Collectors 600 1200 1800 -Lines 4 12 24 32 Socks 1200 2400 3600 3600 Floats 300 1800 3300 4500

Once the general rate of development of the farm is outlined costs can be assigned This requires realistic estimates of what each item will cost both in terms of material and labour Thus the basic operational plan can now be re-cast in terms of estimated dollar outlays in each year of the plan (Table 2) Note that only the cost of the new purchases is entered

Table 2 Estimated annual costs of purchasing shellfish culture units

ItemYear 1 2 3 4 5 Collectors 840 840 840 - -Lines 500 1000 1500 1000 -Socks 280 560 840 840 840 Floats 1200 6000 6000 4800 -

TOTAL $2820 $8400 $9180 $5640 $840

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

7

Also required will be major items such as boats and motors work barge trucks wharf storage shed or workshop smaller items like twine and tubs as well as the costs of setting up the enterprise The timing of some of these acquisitions is discretionary but must be realistic Each cost is entered in the appropriate year in which the expenditure is planned It is useful to keep a cumulative total of the expenditures planned It is imperative that interest charges on any loans be included in the plan Revenues expected from the sale of product should be entered for each year after harvesting commences with an estimate of annual profit or loss It is instructive to estimate when the overall account begins to show a profit which may not be for several years The model may pass through several trials before a plan is designed which is biologically sound economically realistic and meets the ambition and pocket of the grower

Table 3 Simplified hypothetical business plan costs and revenues

IterniYear 1 2 3 4 5 6 7 Ca~ital 22820 8400 9180 5640 1640 1640 1640

Operating 14000 18000 25000 30000 30000 30000 30000 Total 36820 26400 34180 35640 31640 31640 31640 (year) Total 36820 63200 97400 133040 164680 196320 227960

(to-date)

Revenues - - $20000 $40000 $60000 $60000 $60000

Net Profits -$36820 -$63200 -$77400 -$73040 -$44680 -$16320 +$12040

For examples of business plans see Scarratt (1993) and also Enright (1995) The plan in the latter document was developed for the culture of European oysters and includes an example of the handling of loans and loan repayment

References Enright C 1995 European (8elon) Oyster Aquaculture Development Planning Report NSDOF Tech Rept 95-09 Hamax 32 pp Scarratt DJ 1993 A Handbook of Northern Mussel Culture Island Press Montague PEl 167pp

50 Estimated Costs and Returns from Oyster Grow-Out Enterprises

Thomas Landry Stephen Lanteigne DFO Gulf Region Moncton NB NBDFA Bouctouche NB

Three separate scenarios were evaluated all based on an annual acquisition of 300000 American oysters and a 12 acre lease (the smallest allowable in New Brunswick) It was further assumed that the site met all appropriate site selection criteria for access depth bottom topography exposure temperature salinity predators and public health sanitary standards The basic assumptions and data were developed by DFO and NBDFA from their own information and from consultations with industry

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

8

Scenario 1) Bottom culture of purchased 30 mm seed (ranQe 25-35 mm)

Assumptions - Planting density 300000 per acre set out in May of year 1 - 10 annual mortality - Harvest by rake and tongs at 76 mm 30 in year 4 50 in year 5 20 in year 6 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates direct cost for seed at $10500 per annum and a total sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in year 6 No estimates were made of labour and other costs

Scenario 2) Bottom culture with seed collection and nursery Qrowth on racks

Assum ptions - Seed collection on 120 Chinese hat collectors in July of year 1 - Threshing of Collectors in October of same year - Seed placed in bagsracks for 1 year ampplanted on bottom in fall of year 2 25-35 mm - 300000 spat recovered and seeded on 1 acre - Mortality 10 annually - Harvest by rake and tongs at 76 mm 30 in year 5 50 in year 6 20 in year 7 - 85 recovery of marketable oysters in each year of harvest

The simple model estimates a direct once only cost for collectors bags and tables of $9180 in year 1 and sales worth $10724 in year 4 $28958 in year 5 and $35747 per year thereafter The farm would begin to show a profit in Year 6 No estimates were made of labour and other costs

Scenario 3) Nursery and bottom culture of Purchased 25-35 mm seed

Assumptions - 300000 30 mm seed purchased in May of Year 1 set out in 1200 bags on 120 2-tier

tables with a filling density 2501bag - Estimated mortality 3 - Harvesting by hand at 76 mm 50 in year 4 50 in year 5

The simple model estimates annual purchase of bags ($4800) and tables ($6960) for years 1 through 5 and annual costs of seed purchase at $10500 beginning in year 1 and continuing indefinitely Revenues commence at $34225 in year 4 and increase to $68450 in year 5 and remain at that level thereafter Total expenses in excess of $80000 would have been incurred before any revenues were realised and the farm would not begin to show a profit before year 6 No estimates were made of labour and other costs

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

9

The following Tables 4 and 5 demonstrate the effects on annual income of differing oyster survival from seed to harvest and price paid They also reflect the differing market strategies of selling by the pound or by the piece (unit)

Table 4 Volume sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

lb)

Volume Price Per Pound

$115 $125 $135 52 156000

(24000Ibl $27600 $30000 $32400

62 185895 (285991b)

$32899 $35747 $38609

72 216000 (33213 lb)

$38215 $41538 $44862

Table 5 Unit sales revenues for cultured oysters

Survival

Number Oysters

Harvested (corresponding

Ib-l

Unit Price Per Oyster

$015 $025 $035 863 258900

(28767 lb) $38835 $64725 $90615

913 273802 (30422bl

$41070 $68450 $95831

963 288900 2100lb[

$43335 $72255 $101115

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

10

Comparative prices (per pound or per oyster) for two different market strategies are shown in Tables 6 and 7

Table 6 Traditional market approach with volume sales

Marketing Strategy

Traditional Market $lb

Bottom Culture (65 Oysterslb)

Equivalent $ per oyster

Suspended Culture (9 Oysterslb)

Equivalent $ per oyster $115 0177 0128 $125 0192 0139 $135 0208 0150

Table 7 New cultured market approach with unit sales

Marketing Strategy

New Cultured Market $unit

Bottom Culture (65 Oysterslb)

Equivalent $ per Pound

Suspended Culture (9 Oysterslb)

Equivalent $ per Pound

$015 098 135 $025 163 225 $035 228 315

bull

Conclusions

Depending on investments made and prices realised an oyster culture enterprise could be either highly profitable or a business failure The risks and opportunities will require careful consideration and the enterprise will require careful management reacting quickly to the market trends demands and opportunities

60 Marketing

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The market for American oysters produced in the Canadian Maritime Provinces is North America This market requires approximately 15000 tons of oyster meat per year Oyster production in the Atlantic Provinces is sold almost exclusively live in the shell and amounts to 2700 to 3500 tons per year

There are two fundamental principles of good marketing that must be recognised - know your product - know your market

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

11

Knowing the product is to understand all the steps and costs of its production cycle as well as the strengths and weaknesses that might affect performance in the market place Knowing the market is to understand its particular requirements for quality quantities timing product presentation and any price constraints

The Canadian oyster trade is well established and highly seasonal (fall amp winter) and deals principally in oysters which are served on the half-shell Atlantic oysters are blessed with a long shelf life with the minimal amount of required handling protocols Shell quality (shape and appearance) is a dominant factor over meat quality and has a strong effect on prices Prices in 1993 for Choice Standard and Commercial grade oysters were $3000 $1750 and $1200 per ton respectively Growers can improve quality by appropriate cultivation practices using known methods and technology

Oyster marketing approaches can be categorised in three groups traditional market driven or product driven In the traditional approach oysters are sold ungraded to buyers at prices determined by the buyers offer for the product High demand can lead to competition among buyers for the available oysters and bring higher prices to fishermen and growers The market-driven approach consists of determining what the market needs and then targeting production to meet those needs using the growers site seed methods and labour In the product-driven approach growers produce oysters to take best advantage of their site and

production means and then seek the best buyers (and price) for the product

Oyster growers should have a reasonably accurate idea of what price they will receive from their target market in order to calculate their financial estimates and profit margins In the product-driven approach a promotion and marketing plan involving target buyers approaches and timing is useful to ensure predictable sales (market price) and cash flow (revenues)

Product line(s) should be chosen in relation to market prices and what can be best produced at a profit at each site The current regulated legal market size for American oysters is 76 mm (3) in shell length Efforts are underway to amend DFO regulations to remove the size limits for cultivated oysters This initiative if successful will open options for marketing smaller cocktail or champagne oysters Value-added and new products may be an option for some growers but requires some basic investment in RampD New retailing opportunities exist right now in 1) the year-round market (the restaurant menuwhite table cloth trade) 2) the summertime American market for oysters grown in cold water and 3) the European market for European oysters (Ostrea edulis)

The keys to successful marketing are regular supply fair price and consistent high Quality Other important factors are shelf life meat quality and product safety

It is generally accepted that at least initially several growers (eg different geographic locations around the Maritimes) would have to collaborate and associate (plan together) to begin serving the year-round markets Important factors are the number of growers required their location and the schedule needed to supply clients 52 weeks per year A quality control scheme and its costs should be considered at the start and immediately put in place to ensure client satisfaction

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

12

This is especially important for the initial break-in period when a burgeoning market can be cut short because of problems with delivery schedules and quality

Prospective growers should carefully consider their intended product the markets for it and the prices which can reasonable be expected Information on estimated production costs and price expectation will be used to estimate profit margins and the volume of production required to reach the producers target income Test marketing should be carefully planned as to timing product quantity and approach It should be done early enough to adjust production targets if indicated A flexible expansion strategy should be defined early as part of the basic business plan

70 Overview of Future Needs and Introduction to Discussion Workshops

Dr Thomas W Sephton DFO Gulf Region Moncton NB

The overall purpose of this inaugural meeting is to define the initiatives needed and the directions to take to make oyster culture thrive In this regard we will identify some specific action items required to get where the Industry wants to go The present situation was considerably improved by the recent announcement of the Federal Aquaculture Development Strategy by Minister Brian Tobin (Feb 1995) which for the first time clearly eriunciates what the Federal Government will do to establish an appropriate climate for aquaculture development in Canada In specific a pledge for provinciallindustrial consultation and for regulatory reform which will clearly separate regulations for culture fisheries those designed to manage the wild harvest Oysters with a current harvest of about 5000 t (both wild and cultured) worth $8 Million are an excellent candidate

To further advance the development of aquaculture and define respective responsibilities a series of Memorandums of Understanding (MOUs) with the provinces outline priorities for work including Molluscan Health Seedstock Supply Marine Grow-out Alternate Species Environment and others such as Health and Safety Marketing etc as appropriate The New Brunswick senior Management Committee saw fit to have the mollusc (shellfish) aquaculture research and development priorities identified for the Province in 1993 by a tripartite MOU Subcommittee for Mollusc Aquaculture Research Priorities The RampD priorities were identified by a tripartite team of federavprovincial government biologists university staff and industry representatives and are shown in the following summary Table 8 They were also used as a basis for the further development of the Alternate Shellfish Species Aquaculture Development Program described below

bull

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

13

Table 8 List of NB Mousc Aquaculture Research amp Development Priorities (as of Dec 1993)

Seed Supply Natural Environment Collection Term RampD Species Activities amp Required (listed in Comments order0 Priority)IIdentification of new seed collection s~es short-medium i Ao bm gss 1 DFO

i sse NB A~ SppIStudy of reproduction cycles to predict spatfall short i sse q gss be NBDFA i i DFOampMtA middotmiddotmiddotmiddot middotmiddot middotmiddotmiddotmiddotmiddot middot middotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddot middotmiddotmiddot middotmiddotmiddotmiddotmiddotmiddotmiddotvmiddotmiddotmiddotmiddotmiddot l Effects of genetics and environment on the sUNival

~

i medium Ao bm q i UdMCM l 1 mortal~y (monthly amp seasonal effects) and growth of i 1 gss sse Eo i NBDFA DFO l different sources (wild amp hatchery) of seed i i NB M Spp i Study of the effect of salin~y on seed (transfers) medium i gss Eo

Seed Supply Mollusc Hatchery Term RampD Species Activities amp Required (listed in Comments

order of Priorit

i Age and size of sexual maturation to maximise laNai i medium i Ao sse q be i UdMCM i iPE~~iQ L L 1 1 Broodstock conditioning for hatchery production i long Ao sse q be i UdMCM i ph~siological processes diet age i i i Selective breeding amp inter-population hybridisation long Ao q sse i UdMCM i

NBMSpp Optimal diet and nutrition for all life stages i long all spp i $p~~~~rl~b~D~m~~r~~9n~~m~~ 1Q~gIA9~lg~ I91J~QM9M 1 Remote Setting technology amp Applications i long Ao sse q NBDFA i UdMCM

14

Table 8 Cant

Wild ampCUltured Population ampProduction Research Term RampD Species Activities amp Required (listed in Comments order of Priority)

1N~nyrQJ)J~m~MQJ~Qct~g~rggr~llsect9rLLAgg~~Lyg~ji Effect of oyster drag on production and benthic conditions short i Ao i NBDFA i (DFO) Study of molluse growth as a function of density bottom vs short - Ao g sse UdMCM suspended cu~ure stock selection vs stock mixing i medium 1 be Eo bm NBDFA DFO i 1l~ g~lN~ A~sectpp 1 Study of impact and effects of fouling organisms and medium 1 gss Ao g 1 NB A~ Spp i methods for their control i i sse bs i i Study of seasonal (spring summer) mortality medium

Ao bm NBDFA

1 1 (DFO) Impact of peatmoss harvesting and particles water and air medium Ao g sse AFAP ~Jr~~1~lQ)JQ~~~~~~r~L LI9~Q1N~A~ sectPP lt

i Study to reduce the production cycle to market size by use i long i Ao bm g i NBDFA i of better grow-out techniques better seed stocks selected be sse Eo NB A~ Spp i for growth and survival 1

Study of production (carrying) capacity and time to market long Ao bm gss NB A~ Spp size of different bays using bottom and suspended cu~ure sse be Eo ~I

techniques

Technology Development Transfer amp Training Term RampD Species Activities amp Required (listed in Comments order of i Priorit

Optimise nursery grow-out techniques for juveniles short Ao sse g UdMCMI (upwelling basins floating upwellers amp on-off bottom racks) Ibe Eo NBDFA

NB A~ Spp Evaluate different harvesting techniques to replace short Ao sse g L~f~gggJgy~~r~r~gl11I9 i 1 i Develop a one step coUector (eliminate re-socking) which i short i bm i lp~rrI~~Jb~ grg~bJg9l~~r~i~~~~lLL 1 i Detennine costlbenefrts of different production seenarios to short-long 1 Ao sse g UdMCM i j mechanise grow-out techniques and optimise production 1 be gss Eo NBDFA j (stocking density size and optimal temperature for i i bm i NB M Spp 1 1 handling) (equipment manpower spp) i i i 1 Evaluate different anti-predator devices for molluse cu~ure short l bm sse Ao NBDFA (duck crab lobster starfish etc) i g be i i Evaluate different mechanised methods to assure better medium Ao bm l ~msectQf~~n9~~~J9r~~~(g~~I~y~~rgL l l ~~I~QL ~ i Establish an experimental molluse farm or network for long all spp NBDFA L~~~Q~r~~Q~~Pp~B~PLL 11

15

Table 8 Cont

MolluSC Health amp Safety Term RampD Species Activities amp Required (listed In Comments order of Priority)

l Toxic~y (bio-toxins and contaminates) (accumulation short i gss ssc be I DFO i retention and depurationcleansing) i Ao Eo l Identification of different sources of pollution and m~igative short all spp i NBDFA

ln~9-~Ir~~11liPEQji Study of the paras~es and diseases of molluscs to provide medium Eo ssc q DFO ~ an information base for identifying risks associated w~h the be gSS introduction and transfer of shellfish for aquacu~ure i i l Develop physiological cond~ion indices to determine themiddot long Ao gss Eo DFO

L~~~~~~~t~gf~y~Jtr~~~~~~r~~f~I~~l ll~tgl 1

Marketing Regulations ampValue Added Production Term RampD Species Activities amp Required (listed in Comments order of Priam

Increase the commercial qual~y and Public Relations of short all spp NBDFA l~h~f~bJQg~n~r~h~~I9~~Q~pr~~ (ID~ ~~I~~LlL l 1 Industry driven Program of Product quality and safety short all sPP ~ ~ assurance program ~ ~ ~ i DFO Regulations conceming the legal size of molluscs medium lAo q be i DFO what effect would varying the size have on the production sscimiddot

recruitment and population dynamics of public fishing areas ~ and beds

Activities amp CommeolS

UdMCM Universi19 de WooctonShippagan amp NBOFA Centre Marin NBDFA NB Dept FISheries amp AquacuI1ure Bouctoudle amp Shippagan Offices DFO DFO Sdenc8 Br Woocton amp St AOOrfHIS Biological Station UdM Universi18 de MJnctln Biology Dept NBAltSpp NB AIIBmat9 Shellfish Species Program DFOampMtA DFO MJncton amp Mount Allison University Biology Dept AFAP DFO Adantlc FISheries Adjustment Program NHQ Science

As stated above among the alternate candidate species considered to have potential for development are 4 native shellfish soft shell clams bar clams scallops bay quahaugs and 2 non-native species European oysters and bay scallops Essentially there are four main issues which must be addressed in developing any of these species into a viable industry Seedstock Supply whether for natural or hatchery-reared seed Rearing Technologies and Strategies from hatchery seed to final product Shellfish Health and its corresponding disease recognition and control methods and Environmental Interactions and Monitoring studies such as carrying capacity and the effects of toxins Reporting to a Management Steering Committee (with a

16 bull FederalProvincial Co-Chair) each of the above issues have a tripartite Technical Program Committee dedicated to examining the priorities and evaluating the project proposals submitted for funding Since the dictated funding priority (as a consequence of the lapse in the existing aquaculture development cooperation agreement for traditional species) is now for the development of these new candidate species as described in the Alternate Species Aquaculture Development Program of the New Brunswick Cooperation Agreement for Economic Diversification the bench mark (control) for any work on these mollusc species may well be American oysters which may allow some RampD work to continue on our traditionally cultured species

The purpose of the workshops planned for tomorrow is to identify the impediments to oyster industry development which apply in the short to long term and to initiate discussion among the Workshop participants to develop strategies to resolve them

General Discussion

There was general discussion on the development of markets with reference to the already well established markets for salmon and mussels Paul Smith suggested that for European and American oysters we should go to markets which are currently under-supplied rather than trying to break into markets already established First there should be a domestic tourist market related to summertime festivals Godfrey Marchand commented on the success of the mussel festival in Louisdale in developing a local awareness and the basis of a continuing market Godfrey also commented on the folly of new growers using enhancement subsidies to undercut prices charged by established growers If the price isnt there the industry cannot flourish Paul Smith suggested growers should be concentrating on production and quality control and allowing the marketing to be done by the dealers It was generally agreed that the window of opportunity for oyster aquaculture development was within the next 5 years

71 Summary of Workshop Discussions

A list action priorities stemming from the discussion workshops is shown in Appendix 3

711 Workshop 1 Regulations and Inspection

Chairman Dr Thomas W Sephton Rapporteur Jean-Andre Blanchard

Definition and recognition of Aquaculture as a distinct activity There is a clear and pressing requirement as described in the Federal Aquaculture Development Strategy for the inclusion of a definition of aquaculture in the Fisheries Regulations which will exempt cultured products from the size and seasonal regulations designed to conserve wild stocks There is a similar need for the official recognition of aquaculture as an approved occupation giving practitioners similar rights and privileges enjoyed by other professionals A specific issue of the denial of aquaculture permits as a result of environmental mismanagement by third parties (eg bacterial amp faecal contamination from dairy farm waste disposal) must be addressed as a matter of high priority The size and season-related limits should be removed

17

forthwith from cultured products Also there should be clarification and improvement in the regulations to allow the use of traps and other technology for predator control (eg traps for crabs)

Environmental Issues Existing environmental regulations should be enforced to prevent spread of bacterial contamination and other environmental degradation The management of conditional zones has to be improved Regulations exist (Canadian Shellfish Sanitation Program) to allow their use for aquaculture but they have yet to be fully tested with a pilot project that maintains appropriate sanitary safeguards There is a requirement for appropriate labelling and packaging within an improved DFO Inspection Quality Management Program to identify and track cultured shellfish products

Experimental sites Regulatory reform is needed to allow the leasing of experimental sites where not currently permitted It is not always possible to develop business plans sufficient to justify long-term site development and investment in the absence of basic information on a site

Management of Industry Development The time frame for lease referral approval and transfer should be shortened to encourage new entrants in getting established At present the time required to complete the referral system is an impediment to industry development The ability to transfer inactive leases to new entrants should be enhanced

There should be meetings between government and industry to discuss appropriate mechanisms of cost recovery for essential services that can not be supported by government programs

712 Workshop 2 Research Requirements

Ch~rman Thomas Landry Rapporteur Dr Dave Scarratt

Site Evaluations Evaluations of sites in the context of Coastal Zone Management are considered an important element of any farm development The problem is that there is a lack of information and guidance as to how a site could be evaluated in the absence of quantified information on matters such as temperature and salinity profiles plankton production etc and the effects of upland or upstream activities such as clear cutting road building farming and peatmoss harvesting The need therefore is for a series of networks in which individual farmers can provide specific information about conditions on their own farms which in turn will provide a general background awareness for farm sites not yet evaluated It was proposed that a series of networks be arranged Northern NB PEl Cape Breton Atlantic NS and Southern NB Growers must feel confident and comfortable with what is happening on their sites

Predation Predator control mechanisms require research Recently there has been a significant expansion of the range of the green crab Carcinus maenas which preys heavily on oyster spat

18

Suggestions as to the technology (nets trapping) for controlling this species is urgently needed also on the relationship between seed size and predator vulnerability There is also a lack of information on the value of cultivating beds as a means of removing crabs and starfish and bull controlling Polydora and Clione infestations

Harvesting and grow-out technology Harvesting can be the single most expensive part of an oyster growing operation if bottom grow-out technology is used Research is required on the adverse and beneficial aspects of tonging raking dragging including elements such as habitat conservation seasonal differences and the effects of sediment deposition elsewhere Hand picking and diving as effective harvesting techniques need further exploration The relative merits of finishing grow-out in table culture or on-bottom should be evaluated

Diseases The status of Malpeque Disease in Cape Breton Island is still uncertain Current experiments to determine the disease resistant status of Cape Breton stocks should continue and the results disseminated to both Fisheries Management and the Industry The disease profile work should continue and be extended into South Shore NS for European and American oysters

Specific concern regarding the NB-PEI Fixed Link (Bridge) project There was a further recommendation that the effects if any of the PEl Fixed Link be properly monitored evaluated and documented including specific observations by growers in the vicinity This is concern results from the Bridge Construction plans to construct a temporary work surface (causeway) during the summer of 1995 which shouldnt but may adversely affect adjacent oyster sites by altering sedimentation patterns

713 Workshop 3 Technology Transfer and Training

Chairman Stephen Lanteigne Rapporteur Willard Lewis

Seedstock supply Hatcheries represent an insurance against seed stock failure however there are major problems with securing funding The development of remote setting technologies must continue for American oysters and possibly also European There is inadequate documentation and information exchange on nursery grow-out technology Natural spat collection on bottom may well be inhibited by shortage of shell supply for cultch therefore the development and evaluation of artificial substrates used in suspension becomes more imperative

Harvesting methods Information transfer on harvesting technology is imperative and logically forms the subject for dedicated future Oyster Workshop programs

Experimental farms Experimental farms or networks of existing farms are required to showcase the different species and environment A series of sites is also required to provide baseline statistics to further establish speciessite selection criteria

19

Training There was a clear recommendation that the Oyster Workshop become a regular event

Training is pivotal to the future success of the industry Specific training in business (economic) operational (growth and production data) and environmental record keeping is important including articulation of what works and what doesnt Specific training is needed in site monitoring techniques to identity farm performance and environmental conditions

There should be government staff and funding for assistance in the development of training courses in Business Record Keeping Site Evaluation etc However it is imperative that industry be consulted to establish the curriculum for such courses and to establish timing and logistics to maximise the benefits to the industry Ideally upgrading courses should be one-day workshops which focus on specific issues complemented by longer introductory programs for newcomers to the industry Specialist instructors should be included wherever possible

The parallel was drawn with the agriculture extension services and the suggestion made that there may be similar models that the aquaculture industry could draw upon For example the veterinaryfarm record keeping software package designed for mussel farms (Atlantic Veterinary College UPEI Charlottetown) be adapted to oyster culture It is also possible that modern telephone technology (touch tone data entry) could be adopted to allow farmers to report standardised data to some centralised repository for archiving and analysis

714 Workshop 4 Marketing

Chairman Dr Rene Lavoie Rapporteur Learning Murphy

Basic Operating Premise There is an insufficient supply of both wild or cultured oysters to meet present overall market demand The volume of oysters for sale could be substantially increased before there is marketing advancements

Education Consumers need educating about the health (nutritional) value of oysters the serving opportunities In particular there is a generation gap in the consuming of oysters and therefore some considerable promotion and public relations is needed to bridge the gap

Industry Product Quality Standards There should be an industry-wide code of ethics (professionalism) to maximise quality standards and adherence to regulatory requirements This will require integrity at the supplier level and possibly a measure of vertical integration within enterprises if large volumes are to be considered There could be the development of niche marketing reIecting very close ties between consumers and producers dedicated to serving specific markets with regular supplies of consistent specification and predictable high quality

20

ProducerProcessor relationships This discussion echoed the quality standards issue but also identified the need for developing flexibility on product specification giving the market what it needed in terms of product specification presentation packaging shipment size timing year-round availability etc In addition the development of direct links between Top Producers and Top Consumers (5 Star hotels restaurants etc) will provide a regular reliable and predictable market for growers There should be the development of promotional material documentary videos and the like to be used for the promotion of the industry in general and its products in particular

The development of regular predictable markets based on assured market specifications and quality standards will reduce or eliminate price-cutting and bidding and stabilise grower incomes There should be a concerted move toward the selling of oysters by the unit rather than by weight or volume The industry should explore economic means of marketing oyster meat (shucked commercial grade oysters) as and when the market demands

80 Workshop Concluding Remarks

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The re-development and modernisation of the oyster industry will be a major challenge The workshops have outlined the work that the industry recognises and recommends as needing to be done These priorities identify the important next steps The list will be appended to the proceedings (Appendix 3) If we meet again a year from now it will be important that the industry can see which of those priority items has been accomplished in the year The list will be passed on to the MOU Committees on Aquaculture for attention by the various government agencies so they too will be under the spotlight

We hope that the exchange of information between growers will continue We would also appreciate any comments you may have about this meeting in order that we may do a good job of planning the next Make your views known The PEl Department of Agriculture Fisheries amp Forestry (Richard Gallant) has graciously offered to host the meeting next year in Charlottetown PEl We look forward to seeing you there

21

Appendix 1 Workshop Organising Committee

Dr Thomas W Sephton (Chair) Department of Fisheries amp Oceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Dr Rene E Lavoie Department of Fisheries ampOceans Scotia-Fundy Region PO Box 550 Halifax NS B3J 2S7

Thomas Landry Department of Fisheries ampOceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Stephen Lanteigne New Brunswick Department of Fisheries ampAquaculture PO Box 760 Bouctouche NB EOA 1GO

Richard Gallant Prince Edward Island Department of Agriculture Fisheries ampForestry PO Box 2000 Charlottetown PEl C1 A 7N8

Sylvio Doiron New Brunswick Department of Fisheries ampAquaculture PO Box 1010 Shippagan NB EOB 2PO

Andrew Bagnell Nova Scotia Department of Fisheries PO Box 2223 Halifax NS B3J 3C4

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

15

Table 8 Cont

MolluSC Health amp Safety Term RampD Species Activities amp Required (listed In Comments order of Priority)

l Toxic~y (bio-toxins and contaminates) (accumulation short i gss ssc be I DFO i retention and depurationcleansing) i Ao Eo l Identification of different sources of pollution and m~igative short all spp i NBDFA

ln~9-~Ir~~11liPEQji Study of the paras~es and diseases of molluscs to provide medium Eo ssc q DFO ~ an information base for identifying risks associated w~h the be gSS introduction and transfer of shellfish for aquacu~ure i i l Develop physiological cond~ion indices to determine themiddot long Ao gss Eo DFO

L~~~~~~~t~gf~y~Jtr~~~~~~r~~f~I~~l ll~tgl 1

Marketing Regulations ampValue Added Production Term RampD Species Activities amp Required (listed in Comments order of Priam

Increase the commercial qual~y and Public Relations of short all spp NBDFA l~h~f~bJQg~n~r~h~~I9~~Q~pr~~ (ID~ ~~I~~LlL l 1 Industry driven Program of Product quality and safety short all sPP ~ ~ assurance program ~ ~ ~ i DFO Regulations conceming the legal size of molluscs medium lAo q be i DFO what effect would varying the size have on the production sscimiddot

recruitment and population dynamics of public fishing areas ~ and beds

Activities amp CommeolS

UdMCM Universi19 de WooctonShippagan amp NBOFA Centre Marin NBDFA NB Dept FISheries amp AquacuI1ure Bouctoudle amp Shippagan Offices DFO DFO Sdenc8 Br Woocton amp St AOOrfHIS Biological Station UdM Universi18 de MJnctln Biology Dept NBAltSpp NB AIIBmat9 Shellfish Species Program DFOampMtA DFO MJncton amp Mount Allison University Biology Dept AFAP DFO Adantlc FISheries Adjustment Program NHQ Science

As stated above among the alternate candidate species considered to have potential for development are 4 native shellfish soft shell clams bar clams scallops bay quahaugs and 2 non-native species European oysters and bay scallops Essentially there are four main issues which must be addressed in developing any of these species into a viable industry Seedstock Supply whether for natural or hatchery-reared seed Rearing Technologies and Strategies from hatchery seed to final product Shellfish Health and its corresponding disease recognition and control methods and Environmental Interactions and Monitoring studies such as carrying capacity and the effects of toxins Reporting to a Management Steering Committee (with a

16 bull FederalProvincial Co-Chair) each of the above issues have a tripartite Technical Program Committee dedicated to examining the priorities and evaluating the project proposals submitted for funding Since the dictated funding priority (as a consequence of the lapse in the existing aquaculture development cooperation agreement for traditional species) is now for the development of these new candidate species as described in the Alternate Species Aquaculture Development Program of the New Brunswick Cooperation Agreement for Economic Diversification the bench mark (control) for any work on these mollusc species may well be American oysters which may allow some RampD work to continue on our traditionally cultured species

The purpose of the workshops planned for tomorrow is to identify the impediments to oyster industry development which apply in the short to long term and to initiate discussion among the Workshop participants to develop strategies to resolve them

General Discussion

There was general discussion on the development of markets with reference to the already well established markets for salmon and mussels Paul Smith suggested that for European and American oysters we should go to markets which are currently under-supplied rather than trying to break into markets already established First there should be a domestic tourist market related to summertime festivals Godfrey Marchand commented on the success of the mussel festival in Louisdale in developing a local awareness and the basis of a continuing market Godfrey also commented on the folly of new growers using enhancement subsidies to undercut prices charged by established growers If the price isnt there the industry cannot flourish Paul Smith suggested growers should be concentrating on production and quality control and allowing the marketing to be done by the dealers It was generally agreed that the window of opportunity for oyster aquaculture development was within the next 5 years

71 Summary of Workshop Discussions

A list action priorities stemming from the discussion workshops is shown in Appendix 3

711 Workshop 1 Regulations and Inspection

Chairman Dr Thomas W Sephton Rapporteur Jean-Andre Blanchard

Definition and recognition of Aquaculture as a distinct activity There is a clear and pressing requirement as described in the Federal Aquaculture Development Strategy for the inclusion of a definition of aquaculture in the Fisheries Regulations which will exempt cultured products from the size and seasonal regulations designed to conserve wild stocks There is a similar need for the official recognition of aquaculture as an approved occupation giving practitioners similar rights and privileges enjoyed by other professionals A specific issue of the denial of aquaculture permits as a result of environmental mismanagement by third parties (eg bacterial amp faecal contamination from dairy farm waste disposal) must be addressed as a matter of high priority The size and season-related limits should be removed

17

forthwith from cultured products Also there should be clarification and improvement in the regulations to allow the use of traps and other technology for predator control (eg traps for crabs)

Environmental Issues Existing environmental regulations should be enforced to prevent spread of bacterial contamination and other environmental degradation The management of conditional zones has to be improved Regulations exist (Canadian Shellfish Sanitation Program) to allow their use for aquaculture but they have yet to be fully tested with a pilot project that maintains appropriate sanitary safeguards There is a requirement for appropriate labelling and packaging within an improved DFO Inspection Quality Management Program to identify and track cultured shellfish products

Experimental sites Regulatory reform is needed to allow the leasing of experimental sites where not currently permitted It is not always possible to develop business plans sufficient to justify long-term site development and investment in the absence of basic information on a site

Management of Industry Development The time frame for lease referral approval and transfer should be shortened to encourage new entrants in getting established At present the time required to complete the referral system is an impediment to industry development The ability to transfer inactive leases to new entrants should be enhanced

There should be meetings between government and industry to discuss appropriate mechanisms of cost recovery for essential services that can not be supported by government programs

712 Workshop 2 Research Requirements

Ch~rman Thomas Landry Rapporteur Dr Dave Scarratt

Site Evaluations Evaluations of sites in the context of Coastal Zone Management are considered an important element of any farm development The problem is that there is a lack of information and guidance as to how a site could be evaluated in the absence of quantified information on matters such as temperature and salinity profiles plankton production etc and the effects of upland or upstream activities such as clear cutting road building farming and peatmoss harvesting The need therefore is for a series of networks in which individual farmers can provide specific information about conditions on their own farms which in turn will provide a general background awareness for farm sites not yet evaluated It was proposed that a series of networks be arranged Northern NB PEl Cape Breton Atlantic NS and Southern NB Growers must feel confident and comfortable with what is happening on their sites

Predation Predator control mechanisms require research Recently there has been a significant expansion of the range of the green crab Carcinus maenas which preys heavily on oyster spat

18

Suggestions as to the technology (nets trapping) for controlling this species is urgently needed also on the relationship between seed size and predator vulnerability There is also a lack of information on the value of cultivating beds as a means of removing crabs and starfish and bull controlling Polydora and Clione infestations

Harvesting and grow-out technology Harvesting can be the single most expensive part of an oyster growing operation if bottom grow-out technology is used Research is required on the adverse and beneficial aspects of tonging raking dragging including elements such as habitat conservation seasonal differences and the effects of sediment deposition elsewhere Hand picking and diving as effective harvesting techniques need further exploration The relative merits of finishing grow-out in table culture or on-bottom should be evaluated

Diseases The status of Malpeque Disease in Cape Breton Island is still uncertain Current experiments to determine the disease resistant status of Cape Breton stocks should continue and the results disseminated to both Fisheries Management and the Industry The disease profile work should continue and be extended into South Shore NS for European and American oysters

Specific concern regarding the NB-PEI Fixed Link (Bridge) project There was a further recommendation that the effects if any of the PEl Fixed Link be properly monitored evaluated and documented including specific observations by growers in the vicinity This is concern results from the Bridge Construction plans to construct a temporary work surface (causeway) during the summer of 1995 which shouldnt but may adversely affect adjacent oyster sites by altering sedimentation patterns

713 Workshop 3 Technology Transfer and Training

Chairman Stephen Lanteigne Rapporteur Willard Lewis

Seedstock supply Hatcheries represent an insurance against seed stock failure however there are major problems with securing funding The development of remote setting technologies must continue for American oysters and possibly also European There is inadequate documentation and information exchange on nursery grow-out technology Natural spat collection on bottom may well be inhibited by shortage of shell supply for cultch therefore the development and evaluation of artificial substrates used in suspension becomes more imperative

Harvesting methods Information transfer on harvesting technology is imperative and logically forms the subject for dedicated future Oyster Workshop programs

Experimental farms Experimental farms or networks of existing farms are required to showcase the different species and environment A series of sites is also required to provide baseline statistics to further establish speciessite selection criteria

19

Training There was a clear recommendation that the Oyster Workshop become a regular event

Training is pivotal to the future success of the industry Specific training in business (economic) operational (growth and production data) and environmental record keeping is important including articulation of what works and what doesnt Specific training is needed in site monitoring techniques to identity farm performance and environmental conditions

There should be government staff and funding for assistance in the development of training courses in Business Record Keeping Site Evaluation etc However it is imperative that industry be consulted to establish the curriculum for such courses and to establish timing and logistics to maximise the benefits to the industry Ideally upgrading courses should be one-day workshops which focus on specific issues complemented by longer introductory programs for newcomers to the industry Specialist instructors should be included wherever possible

The parallel was drawn with the agriculture extension services and the suggestion made that there may be similar models that the aquaculture industry could draw upon For example the veterinaryfarm record keeping software package designed for mussel farms (Atlantic Veterinary College UPEI Charlottetown) be adapted to oyster culture It is also possible that modern telephone technology (touch tone data entry) could be adopted to allow farmers to report standardised data to some centralised repository for archiving and analysis

714 Workshop 4 Marketing

Chairman Dr Rene Lavoie Rapporteur Learning Murphy

Basic Operating Premise There is an insufficient supply of both wild or cultured oysters to meet present overall market demand The volume of oysters for sale could be substantially increased before there is marketing advancements

Education Consumers need educating about the health (nutritional) value of oysters the serving opportunities In particular there is a generation gap in the consuming of oysters and therefore some considerable promotion and public relations is needed to bridge the gap

Industry Product Quality Standards There should be an industry-wide code of ethics (professionalism) to maximise quality standards and adherence to regulatory requirements This will require integrity at the supplier level and possibly a measure of vertical integration within enterprises if large volumes are to be considered There could be the development of niche marketing reIecting very close ties between consumers and producers dedicated to serving specific markets with regular supplies of consistent specification and predictable high quality

20

ProducerProcessor relationships This discussion echoed the quality standards issue but also identified the need for developing flexibility on product specification giving the market what it needed in terms of product specification presentation packaging shipment size timing year-round availability etc In addition the development of direct links between Top Producers and Top Consumers (5 Star hotels restaurants etc) will provide a regular reliable and predictable market for growers There should be the development of promotional material documentary videos and the like to be used for the promotion of the industry in general and its products in particular

The development of regular predictable markets based on assured market specifications and quality standards will reduce or eliminate price-cutting and bidding and stabilise grower incomes There should be a concerted move toward the selling of oysters by the unit rather than by weight or volume The industry should explore economic means of marketing oyster meat (shucked commercial grade oysters) as and when the market demands

80 Workshop Concluding Remarks

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The re-development and modernisation of the oyster industry will be a major challenge The workshops have outlined the work that the industry recognises and recommends as needing to be done These priorities identify the important next steps The list will be appended to the proceedings (Appendix 3) If we meet again a year from now it will be important that the industry can see which of those priority items has been accomplished in the year The list will be passed on to the MOU Committees on Aquaculture for attention by the various government agencies so they too will be under the spotlight

We hope that the exchange of information between growers will continue We would also appreciate any comments you may have about this meeting in order that we may do a good job of planning the next Make your views known The PEl Department of Agriculture Fisheries amp Forestry (Richard Gallant) has graciously offered to host the meeting next year in Charlottetown PEl We look forward to seeing you there

21

Appendix 1 Workshop Organising Committee

Dr Thomas W Sephton (Chair) Department of Fisheries amp Oceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Dr Rene E Lavoie Department of Fisheries ampOceans Scotia-Fundy Region PO Box 550 Halifax NS B3J 2S7

Thomas Landry Department of Fisheries ampOceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Stephen Lanteigne New Brunswick Department of Fisheries ampAquaculture PO Box 760 Bouctouche NB EOA 1GO

Richard Gallant Prince Edward Island Department of Agriculture Fisheries ampForestry PO Box 2000 Charlottetown PEl C1 A 7N8

Sylvio Doiron New Brunswick Department of Fisheries ampAquaculture PO Box 1010 Shippagan NB EOB 2PO

Andrew Bagnell Nova Scotia Department of Fisheries PO Box 2223 Halifax NS B3J 3C4

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

16 bull FederalProvincial Co-Chair) each of the above issues have a tripartite Technical Program Committee dedicated to examining the priorities and evaluating the project proposals submitted for funding Since the dictated funding priority (as a consequence of the lapse in the existing aquaculture development cooperation agreement for traditional species) is now for the development of these new candidate species as described in the Alternate Species Aquaculture Development Program of the New Brunswick Cooperation Agreement for Economic Diversification the bench mark (control) for any work on these mollusc species may well be American oysters which may allow some RampD work to continue on our traditionally cultured species

The purpose of the workshops planned for tomorrow is to identify the impediments to oyster industry development which apply in the short to long term and to initiate discussion among the Workshop participants to develop strategies to resolve them

General Discussion

There was general discussion on the development of markets with reference to the already well established markets for salmon and mussels Paul Smith suggested that for European and American oysters we should go to markets which are currently under-supplied rather than trying to break into markets already established First there should be a domestic tourist market related to summertime festivals Godfrey Marchand commented on the success of the mussel festival in Louisdale in developing a local awareness and the basis of a continuing market Godfrey also commented on the folly of new growers using enhancement subsidies to undercut prices charged by established growers If the price isnt there the industry cannot flourish Paul Smith suggested growers should be concentrating on production and quality control and allowing the marketing to be done by the dealers It was generally agreed that the window of opportunity for oyster aquaculture development was within the next 5 years

71 Summary of Workshop Discussions

A list action priorities stemming from the discussion workshops is shown in Appendix 3

711 Workshop 1 Regulations and Inspection

Chairman Dr Thomas W Sephton Rapporteur Jean-Andre Blanchard

Definition and recognition of Aquaculture as a distinct activity There is a clear and pressing requirement as described in the Federal Aquaculture Development Strategy for the inclusion of a definition of aquaculture in the Fisheries Regulations which will exempt cultured products from the size and seasonal regulations designed to conserve wild stocks There is a similar need for the official recognition of aquaculture as an approved occupation giving practitioners similar rights and privileges enjoyed by other professionals A specific issue of the denial of aquaculture permits as a result of environmental mismanagement by third parties (eg bacterial amp faecal contamination from dairy farm waste disposal) must be addressed as a matter of high priority The size and season-related limits should be removed

17

forthwith from cultured products Also there should be clarification and improvement in the regulations to allow the use of traps and other technology for predator control (eg traps for crabs)

Environmental Issues Existing environmental regulations should be enforced to prevent spread of bacterial contamination and other environmental degradation The management of conditional zones has to be improved Regulations exist (Canadian Shellfish Sanitation Program) to allow their use for aquaculture but they have yet to be fully tested with a pilot project that maintains appropriate sanitary safeguards There is a requirement for appropriate labelling and packaging within an improved DFO Inspection Quality Management Program to identify and track cultured shellfish products

Experimental sites Regulatory reform is needed to allow the leasing of experimental sites where not currently permitted It is not always possible to develop business plans sufficient to justify long-term site development and investment in the absence of basic information on a site

Management of Industry Development The time frame for lease referral approval and transfer should be shortened to encourage new entrants in getting established At present the time required to complete the referral system is an impediment to industry development The ability to transfer inactive leases to new entrants should be enhanced

There should be meetings between government and industry to discuss appropriate mechanisms of cost recovery for essential services that can not be supported by government programs

712 Workshop 2 Research Requirements

Ch~rman Thomas Landry Rapporteur Dr Dave Scarratt

Site Evaluations Evaluations of sites in the context of Coastal Zone Management are considered an important element of any farm development The problem is that there is a lack of information and guidance as to how a site could be evaluated in the absence of quantified information on matters such as temperature and salinity profiles plankton production etc and the effects of upland or upstream activities such as clear cutting road building farming and peatmoss harvesting The need therefore is for a series of networks in which individual farmers can provide specific information about conditions on their own farms which in turn will provide a general background awareness for farm sites not yet evaluated It was proposed that a series of networks be arranged Northern NB PEl Cape Breton Atlantic NS and Southern NB Growers must feel confident and comfortable with what is happening on their sites

Predation Predator control mechanisms require research Recently there has been a significant expansion of the range of the green crab Carcinus maenas which preys heavily on oyster spat

18

Suggestions as to the technology (nets trapping) for controlling this species is urgently needed also on the relationship between seed size and predator vulnerability There is also a lack of information on the value of cultivating beds as a means of removing crabs and starfish and bull controlling Polydora and Clione infestations

Harvesting and grow-out technology Harvesting can be the single most expensive part of an oyster growing operation if bottom grow-out technology is used Research is required on the adverse and beneficial aspects of tonging raking dragging including elements such as habitat conservation seasonal differences and the effects of sediment deposition elsewhere Hand picking and diving as effective harvesting techniques need further exploration The relative merits of finishing grow-out in table culture or on-bottom should be evaluated

Diseases The status of Malpeque Disease in Cape Breton Island is still uncertain Current experiments to determine the disease resistant status of Cape Breton stocks should continue and the results disseminated to both Fisheries Management and the Industry The disease profile work should continue and be extended into South Shore NS for European and American oysters

Specific concern regarding the NB-PEI Fixed Link (Bridge) project There was a further recommendation that the effects if any of the PEl Fixed Link be properly monitored evaluated and documented including specific observations by growers in the vicinity This is concern results from the Bridge Construction plans to construct a temporary work surface (causeway) during the summer of 1995 which shouldnt but may adversely affect adjacent oyster sites by altering sedimentation patterns

713 Workshop 3 Technology Transfer and Training

Chairman Stephen Lanteigne Rapporteur Willard Lewis

Seedstock supply Hatcheries represent an insurance against seed stock failure however there are major problems with securing funding The development of remote setting technologies must continue for American oysters and possibly also European There is inadequate documentation and information exchange on nursery grow-out technology Natural spat collection on bottom may well be inhibited by shortage of shell supply for cultch therefore the development and evaluation of artificial substrates used in suspension becomes more imperative

Harvesting methods Information transfer on harvesting technology is imperative and logically forms the subject for dedicated future Oyster Workshop programs

Experimental farms Experimental farms or networks of existing farms are required to showcase the different species and environment A series of sites is also required to provide baseline statistics to further establish speciessite selection criteria

19

Training There was a clear recommendation that the Oyster Workshop become a regular event

Training is pivotal to the future success of the industry Specific training in business (economic) operational (growth and production data) and environmental record keeping is important including articulation of what works and what doesnt Specific training is needed in site monitoring techniques to identity farm performance and environmental conditions

There should be government staff and funding for assistance in the development of training courses in Business Record Keeping Site Evaluation etc However it is imperative that industry be consulted to establish the curriculum for such courses and to establish timing and logistics to maximise the benefits to the industry Ideally upgrading courses should be one-day workshops which focus on specific issues complemented by longer introductory programs for newcomers to the industry Specialist instructors should be included wherever possible

The parallel was drawn with the agriculture extension services and the suggestion made that there may be similar models that the aquaculture industry could draw upon For example the veterinaryfarm record keeping software package designed for mussel farms (Atlantic Veterinary College UPEI Charlottetown) be adapted to oyster culture It is also possible that modern telephone technology (touch tone data entry) could be adopted to allow farmers to report standardised data to some centralised repository for archiving and analysis

714 Workshop 4 Marketing

Chairman Dr Rene Lavoie Rapporteur Learning Murphy

Basic Operating Premise There is an insufficient supply of both wild or cultured oysters to meet present overall market demand The volume of oysters for sale could be substantially increased before there is marketing advancements

Education Consumers need educating about the health (nutritional) value of oysters the serving opportunities In particular there is a generation gap in the consuming of oysters and therefore some considerable promotion and public relations is needed to bridge the gap

Industry Product Quality Standards There should be an industry-wide code of ethics (professionalism) to maximise quality standards and adherence to regulatory requirements This will require integrity at the supplier level and possibly a measure of vertical integration within enterprises if large volumes are to be considered There could be the development of niche marketing reIecting very close ties between consumers and producers dedicated to serving specific markets with regular supplies of consistent specification and predictable high quality

20

ProducerProcessor relationships This discussion echoed the quality standards issue but also identified the need for developing flexibility on product specification giving the market what it needed in terms of product specification presentation packaging shipment size timing year-round availability etc In addition the development of direct links between Top Producers and Top Consumers (5 Star hotels restaurants etc) will provide a regular reliable and predictable market for growers There should be the development of promotional material documentary videos and the like to be used for the promotion of the industry in general and its products in particular

The development of regular predictable markets based on assured market specifications and quality standards will reduce or eliminate price-cutting and bidding and stabilise grower incomes There should be a concerted move toward the selling of oysters by the unit rather than by weight or volume The industry should explore economic means of marketing oyster meat (shucked commercial grade oysters) as and when the market demands

80 Workshop Concluding Remarks

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The re-development and modernisation of the oyster industry will be a major challenge The workshops have outlined the work that the industry recognises and recommends as needing to be done These priorities identify the important next steps The list will be appended to the proceedings (Appendix 3) If we meet again a year from now it will be important that the industry can see which of those priority items has been accomplished in the year The list will be passed on to the MOU Committees on Aquaculture for attention by the various government agencies so they too will be under the spotlight

We hope that the exchange of information between growers will continue We would also appreciate any comments you may have about this meeting in order that we may do a good job of planning the next Make your views known The PEl Department of Agriculture Fisheries amp Forestry (Richard Gallant) has graciously offered to host the meeting next year in Charlottetown PEl We look forward to seeing you there

21

Appendix 1 Workshop Organising Committee

Dr Thomas W Sephton (Chair) Department of Fisheries amp Oceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Dr Rene E Lavoie Department of Fisheries ampOceans Scotia-Fundy Region PO Box 550 Halifax NS B3J 2S7

Thomas Landry Department of Fisheries ampOceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Stephen Lanteigne New Brunswick Department of Fisheries ampAquaculture PO Box 760 Bouctouche NB EOA 1GO

Richard Gallant Prince Edward Island Department of Agriculture Fisheries ampForestry PO Box 2000 Charlottetown PEl C1 A 7N8

Sylvio Doiron New Brunswick Department of Fisheries ampAquaculture PO Box 1010 Shippagan NB EOB 2PO

Andrew Bagnell Nova Scotia Department of Fisheries PO Box 2223 Halifax NS B3J 3C4

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

17

forthwith from cultured products Also there should be clarification and improvement in the regulations to allow the use of traps and other technology for predator control (eg traps for crabs)

Environmental Issues Existing environmental regulations should be enforced to prevent spread of bacterial contamination and other environmental degradation The management of conditional zones has to be improved Regulations exist (Canadian Shellfish Sanitation Program) to allow their use for aquaculture but they have yet to be fully tested with a pilot project that maintains appropriate sanitary safeguards There is a requirement for appropriate labelling and packaging within an improved DFO Inspection Quality Management Program to identify and track cultured shellfish products

Experimental sites Regulatory reform is needed to allow the leasing of experimental sites where not currently permitted It is not always possible to develop business plans sufficient to justify long-term site development and investment in the absence of basic information on a site

Management of Industry Development The time frame for lease referral approval and transfer should be shortened to encourage new entrants in getting established At present the time required to complete the referral system is an impediment to industry development The ability to transfer inactive leases to new entrants should be enhanced

There should be meetings between government and industry to discuss appropriate mechanisms of cost recovery for essential services that can not be supported by government programs

712 Workshop 2 Research Requirements

Ch~rman Thomas Landry Rapporteur Dr Dave Scarratt

Site Evaluations Evaluations of sites in the context of Coastal Zone Management are considered an important element of any farm development The problem is that there is a lack of information and guidance as to how a site could be evaluated in the absence of quantified information on matters such as temperature and salinity profiles plankton production etc and the effects of upland or upstream activities such as clear cutting road building farming and peatmoss harvesting The need therefore is for a series of networks in which individual farmers can provide specific information about conditions on their own farms which in turn will provide a general background awareness for farm sites not yet evaluated It was proposed that a series of networks be arranged Northern NB PEl Cape Breton Atlantic NS and Southern NB Growers must feel confident and comfortable with what is happening on their sites

Predation Predator control mechanisms require research Recently there has been a significant expansion of the range of the green crab Carcinus maenas which preys heavily on oyster spat

18

Suggestions as to the technology (nets trapping) for controlling this species is urgently needed also on the relationship between seed size and predator vulnerability There is also a lack of information on the value of cultivating beds as a means of removing crabs and starfish and bull controlling Polydora and Clione infestations

Harvesting and grow-out technology Harvesting can be the single most expensive part of an oyster growing operation if bottom grow-out technology is used Research is required on the adverse and beneficial aspects of tonging raking dragging including elements such as habitat conservation seasonal differences and the effects of sediment deposition elsewhere Hand picking and diving as effective harvesting techniques need further exploration The relative merits of finishing grow-out in table culture or on-bottom should be evaluated

Diseases The status of Malpeque Disease in Cape Breton Island is still uncertain Current experiments to determine the disease resistant status of Cape Breton stocks should continue and the results disseminated to both Fisheries Management and the Industry The disease profile work should continue and be extended into South Shore NS for European and American oysters

Specific concern regarding the NB-PEI Fixed Link (Bridge) project There was a further recommendation that the effects if any of the PEl Fixed Link be properly monitored evaluated and documented including specific observations by growers in the vicinity This is concern results from the Bridge Construction plans to construct a temporary work surface (causeway) during the summer of 1995 which shouldnt but may adversely affect adjacent oyster sites by altering sedimentation patterns

713 Workshop 3 Technology Transfer and Training

Chairman Stephen Lanteigne Rapporteur Willard Lewis

Seedstock supply Hatcheries represent an insurance against seed stock failure however there are major problems with securing funding The development of remote setting technologies must continue for American oysters and possibly also European There is inadequate documentation and information exchange on nursery grow-out technology Natural spat collection on bottom may well be inhibited by shortage of shell supply for cultch therefore the development and evaluation of artificial substrates used in suspension becomes more imperative

Harvesting methods Information transfer on harvesting technology is imperative and logically forms the subject for dedicated future Oyster Workshop programs

Experimental farms Experimental farms or networks of existing farms are required to showcase the different species and environment A series of sites is also required to provide baseline statistics to further establish speciessite selection criteria

19

Training There was a clear recommendation that the Oyster Workshop become a regular event

Training is pivotal to the future success of the industry Specific training in business (economic) operational (growth and production data) and environmental record keeping is important including articulation of what works and what doesnt Specific training is needed in site monitoring techniques to identity farm performance and environmental conditions

There should be government staff and funding for assistance in the development of training courses in Business Record Keeping Site Evaluation etc However it is imperative that industry be consulted to establish the curriculum for such courses and to establish timing and logistics to maximise the benefits to the industry Ideally upgrading courses should be one-day workshops which focus on specific issues complemented by longer introductory programs for newcomers to the industry Specialist instructors should be included wherever possible

The parallel was drawn with the agriculture extension services and the suggestion made that there may be similar models that the aquaculture industry could draw upon For example the veterinaryfarm record keeping software package designed for mussel farms (Atlantic Veterinary College UPEI Charlottetown) be adapted to oyster culture It is also possible that modern telephone technology (touch tone data entry) could be adopted to allow farmers to report standardised data to some centralised repository for archiving and analysis

714 Workshop 4 Marketing

Chairman Dr Rene Lavoie Rapporteur Learning Murphy

Basic Operating Premise There is an insufficient supply of both wild or cultured oysters to meet present overall market demand The volume of oysters for sale could be substantially increased before there is marketing advancements

Education Consumers need educating about the health (nutritional) value of oysters the serving opportunities In particular there is a generation gap in the consuming of oysters and therefore some considerable promotion and public relations is needed to bridge the gap

Industry Product Quality Standards There should be an industry-wide code of ethics (professionalism) to maximise quality standards and adherence to regulatory requirements This will require integrity at the supplier level and possibly a measure of vertical integration within enterprises if large volumes are to be considered There could be the development of niche marketing reIecting very close ties between consumers and producers dedicated to serving specific markets with regular supplies of consistent specification and predictable high quality

20

ProducerProcessor relationships This discussion echoed the quality standards issue but also identified the need for developing flexibility on product specification giving the market what it needed in terms of product specification presentation packaging shipment size timing year-round availability etc In addition the development of direct links between Top Producers and Top Consumers (5 Star hotels restaurants etc) will provide a regular reliable and predictable market for growers There should be the development of promotional material documentary videos and the like to be used for the promotion of the industry in general and its products in particular

The development of regular predictable markets based on assured market specifications and quality standards will reduce or eliminate price-cutting and bidding and stabilise grower incomes There should be a concerted move toward the selling of oysters by the unit rather than by weight or volume The industry should explore economic means of marketing oyster meat (shucked commercial grade oysters) as and when the market demands

80 Workshop Concluding Remarks

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The re-development and modernisation of the oyster industry will be a major challenge The workshops have outlined the work that the industry recognises and recommends as needing to be done These priorities identify the important next steps The list will be appended to the proceedings (Appendix 3) If we meet again a year from now it will be important that the industry can see which of those priority items has been accomplished in the year The list will be passed on to the MOU Committees on Aquaculture for attention by the various government agencies so they too will be under the spotlight

We hope that the exchange of information between growers will continue We would also appreciate any comments you may have about this meeting in order that we may do a good job of planning the next Make your views known The PEl Department of Agriculture Fisheries amp Forestry (Richard Gallant) has graciously offered to host the meeting next year in Charlottetown PEl We look forward to seeing you there

21

Appendix 1 Workshop Organising Committee

Dr Thomas W Sephton (Chair) Department of Fisheries amp Oceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Dr Rene E Lavoie Department of Fisheries ampOceans Scotia-Fundy Region PO Box 550 Halifax NS B3J 2S7

Thomas Landry Department of Fisheries ampOceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Stephen Lanteigne New Brunswick Department of Fisheries ampAquaculture PO Box 760 Bouctouche NB EOA 1GO

Richard Gallant Prince Edward Island Department of Agriculture Fisheries ampForestry PO Box 2000 Charlottetown PEl C1 A 7N8

Sylvio Doiron New Brunswick Department of Fisheries ampAquaculture PO Box 1010 Shippagan NB EOB 2PO

Andrew Bagnell Nova Scotia Department of Fisheries PO Box 2223 Halifax NS B3J 3C4

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

18

Suggestions as to the technology (nets trapping) for controlling this species is urgently needed also on the relationship between seed size and predator vulnerability There is also a lack of information on the value of cultivating beds as a means of removing crabs and starfish and bull controlling Polydora and Clione infestations

Harvesting and grow-out technology Harvesting can be the single most expensive part of an oyster growing operation if bottom grow-out technology is used Research is required on the adverse and beneficial aspects of tonging raking dragging including elements such as habitat conservation seasonal differences and the effects of sediment deposition elsewhere Hand picking and diving as effective harvesting techniques need further exploration The relative merits of finishing grow-out in table culture or on-bottom should be evaluated

Diseases The status of Malpeque Disease in Cape Breton Island is still uncertain Current experiments to determine the disease resistant status of Cape Breton stocks should continue and the results disseminated to both Fisheries Management and the Industry The disease profile work should continue and be extended into South Shore NS for European and American oysters

Specific concern regarding the NB-PEI Fixed Link (Bridge) project There was a further recommendation that the effects if any of the PEl Fixed Link be properly monitored evaluated and documented including specific observations by growers in the vicinity This is concern results from the Bridge Construction plans to construct a temporary work surface (causeway) during the summer of 1995 which shouldnt but may adversely affect adjacent oyster sites by altering sedimentation patterns

713 Workshop 3 Technology Transfer and Training

Chairman Stephen Lanteigne Rapporteur Willard Lewis

Seedstock supply Hatcheries represent an insurance against seed stock failure however there are major problems with securing funding The development of remote setting technologies must continue for American oysters and possibly also European There is inadequate documentation and information exchange on nursery grow-out technology Natural spat collection on bottom may well be inhibited by shortage of shell supply for cultch therefore the development and evaluation of artificial substrates used in suspension becomes more imperative

Harvesting methods Information transfer on harvesting technology is imperative and logically forms the subject for dedicated future Oyster Workshop programs

Experimental farms Experimental farms or networks of existing farms are required to showcase the different species and environment A series of sites is also required to provide baseline statistics to further establish speciessite selection criteria

19

Training There was a clear recommendation that the Oyster Workshop become a regular event

Training is pivotal to the future success of the industry Specific training in business (economic) operational (growth and production data) and environmental record keeping is important including articulation of what works and what doesnt Specific training is needed in site monitoring techniques to identity farm performance and environmental conditions

There should be government staff and funding for assistance in the development of training courses in Business Record Keeping Site Evaluation etc However it is imperative that industry be consulted to establish the curriculum for such courses and to establish timing and logistics to maximise the benefits to the industry Ideally upgrading courses should be one-day workshops which focus on specific issues complemented by longer introductory programs for newcomers to the industry Specialist instructors should be included wherever possible

The parallel was drawn with the agriculture extension services and the suggestion made that there may be similar models that the aquaculture industry could draw upon For example the veterinaryfarm record keeping software package designed for mussel farms (Atlantic Veterinary College UPEI Charlottetown) be adapted to oyster culture It is also possible that modern telephone technology (touch tone data entry) could be adopted to allow farmers to report standardised data to some centralised repository for archiving and analysis

714 Workshop 4 Marketing

Chairman Dr Rene Lavoie Rapporteur Learning Murphy

Basic Operating Premise There is an insufficient supply of both wild or cultured oysters to meet present overall market demand The volume of oysters for sale could be substantially increased before there is marketing advancements

Education Consumers need educating about the health (nutritional) value of oysters the serving opportunities In particular there is a generation gap in the consuming of oysters and therefore some considerable promotion and public relations is needed to bridge the gap

Industry Product Quality Standards There should be an industry-wide code of ethics (professionalism) to maximise quality standards and adherence to regulatory requirements This will require integrity at the supplier level and possibly a measure of vertical integration within enterprises if large volumes are to be considered There could be the development of niche marketing reIecting very close ties between consumers and producers dedicated to serving specific markets with regular supplies of consistent specification and predictable high quality

20

ProducerProcessor relationships This discussion echoed the quality standards issue but also identified the need for developing flexibility on product specification giving the market what it needed in terms of product specification presentation packaging shipment size timing year-round availability etc In addition the development of direct links between Top Producers and Top Consumers (5 Star hotels restaurants etc) will provide a regular reliable and predictable market for growers There should be the development of promotional material documentary videos and the like to be used for the promotion of the industry in general and its products in particular

The development of regular predictable markets based on assured market specifications and quality standards will reduce or eliminate price-cutting and bidding and stabilise grower incomes There should be a concerted move toward the selling of oysters by the unit rather than by weight or volume The industry should explore economic means of marketing oyster meat (shucked commercial grade oysters) as and when the market demands

80 Workshop Concluding Remarks

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The re-development and modernisation of the oyster industry will be a major challenge The workshops have outlined the work that the industry recognises and recommends as needing to be done These priorities identify the important next steps The list will be appended to the proceedings (Appendix 3) If we meet again a year from now it will be important that the industry can see which of those priority items has been accomplished in the year The list will be passed on to the MOU Committees on Aquaculture for attention by the various government agencies so they too will be under the spotlight

We hope that the exchange of information between growers will continue We would also appreciate any comments you may have about this meeting in order that we may do a good job of planning the next Make your views known The PEl Department of Agriculture Fisheries amp Forestry (Richard Gallant) has graciously offered to host the meeting next year in Charlottetown PEl We look forward to seeing you there

21

Appendix 1 Workshop Organising Committee

Dr Thomas W Sephton (Chair) Department of Fisheries amp Oceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Dr Rene E Lavoie Department of Fisheries ampOceans Scotia-Fundy Region PO Box 550 Halifax NS B3J 2S7

Thomas Landry Department of Fisheries ampOceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Stephen Lanteigne New Brunswick Department of Fisheries ampAquaculture PO Box 760 Bouctouche NB EOA 1GO

Richard Gallant Prince Edward Island Department of Agriculture Fisheries ampForestry PO Box 2000 Charlottetown PEl C1 A 7N8

Sylvio Doiron New Brunswick Department of Fisheries ampAquaculture PO Box 1010 Shippagan NB EOB 2PO

Andrew Bagnell Nova Scotia Department of Fisheries PO Box 2223 Halifax NS B3J 3C4

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

19

Training There was a clear recommendation that the Oyster Workshop become a regular event

Training is pivotal to the future success of the industry Specific training in business (economic) operational (growth and production data) and environmental record keeping is important including articulation of what works and what doesnt Specific training is needed in site monitoring techniques to identity farm performance and environmental conditions

There should be government staff and funding for assistance in the development of training courses in Business Record Keeping Site Evaluation etc However it is imperative that industry be consulted to establish the curriculum for such courses and to establish timing and logistics to maximise the benefits to the industry Ideally upgrading courses should be one-day workshops which focus on specific issues complemented by longer introductory programs for newcomers to the industry Specialist instructors should be included wherever possible

The parallel was drawn with the agriculture extension services and the suggestion made that there may be similar models that the aquaculture industry could draw upon For example the veterinaryfarm record keeping software package designed for mussel farms (Atlantic Veterinary College UPEI Charlottetown) be adapted to oyster culture It is also possible that modern telephone technology (touch tone data entry) could be adopted to allow farmers to report standardised data to some centralised repository for archiving and analysis

714 Workshop 4 Marketing

Chairman Dr Rene Lavoie Rapporteur Learning Murphy

Basic Operating Premise There is an insufficient supply of both wild or cultured oysters to meet present overall market demand The volume of oysters for sale could be substantially increased before there is marketing advancements

Education Consumers need educating about the health (nutritional) value of oysters the serving opportunities In particular there is a generation gap in the consuming of oysters and therefore some considerable promotion and public relations is needed to bridge the gap

Industry Product Quality Standards There should be an industry-wide code of ethics (professionalism) to maximise quality standards and adherence to regulatory requirements This will require integrity at the supplier level and possibly a measure of vertical integration within enterprises if large volumes are to be considered There could be the development of niche marketing reIecting very close ties between consumers and producers dedicated to serving specific markets with regular supplies of consistent specification and predictable high quality

20

ProducerProcessor relationships This discussion echoed the quality standards issue but also identified the need for developing flexibility on product specification giving the market what it needed in terms of product specification presentation packaging shipment size timing year-round availability etc In addition the development of direct links between Top Producers and Top Consumers (5 Star hotels restaurants etc) will provide a regular reliable and predictable market for growers There should be the development of promotional material documentary videos and the like to be used for the promotion of the industry in general and its products in particular

The development of regular predictable markets based on assured market specifications and quality standards will reduce or eliminate price-cutting and bidding and stabilise grower incomes There should be a concerted move toward the selling of oysters by the unit rather than by weight or volume The industry should explore economic means of marketing oyster meat (shucked commercial grade oysters) as and when the market demands

80 Workshop Concluding Remarks

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The re-development and modernisation of the oyster industry will be a major challenge The workshops have outlined the work that the industry recognises and recommends as needing to be done These priorities identify the important next steps The list will be appended to the proceedings (Appendix 3) If we meet again a year from now it will be important that the industry can see which of those priority items has been accomplished in the year The list will be passed on to the MOU Committees on Aquaculture for attention by the various government agencies so they too will be under the spotlight

We hope that the exchange of information between growers will continue We would also appreciate any comments you may have about this meeting in order that we may do a good job of planning the next Make your views known The PEl Department of Agriculture Fisheries amp Forestry (Richard Gallant) has graciously offered to host the meeting next year in Charlottetown PEl We look forward to seeing you there

21

Appendix 1 Workshop Organising Committee

Dr Thomas W Sephton (Chair) Department of Fisheries amp Oceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Dr Rene E Lavoie Department of Fisheries ampOceans Scotia-Fundy Region PO Box 550 Halifax NS B3J 2S7

Thomas Landry Department of Fisheries ampOceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Stephen Lanteigne New Brunswick Department of Fisheries ampAquaculture PO Box 760 Bouctouche NB EOA 1GO

Richard Gallant Prince Edward Island Department of Agriculture Fisheries ampForestry PO Box 2000 Charlottetown PEl C1 A 7N8

Sylvio Doiron New Brunswick Department of Fisheries ampAquaculture PO Box 1010 Shippagan NB EOB 2PO

Andrew Bagnell Nova Scotia Department of Fisheries PO Box 2223 Halifax NS B3J 3C4

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

20

ProducerProcessor relationships This discussion echoed the quality standards issue but also identified the need for developing flexibility on product specification giving the market what it needed in terms of product specification presentation packaging shipment size timing year-round availability etc In addition the development of direct links between Top Producers and Top Consumers (5 Star hotels restaurants etc) will provide a regular reliable and predictable market for growers There should be the development of promotional material documentary videos and the like to be used for the promotion of the industry in general and its products in particular

The development of regular predictable markets based on assured market specifications and quality standards will reduce or eliminate price-cutting and bidding and stabilise grower incomes There should be a concerted move toward the selling of oysters by the unit rather than by weight or volume The industry should explore economic means of marketing oyster meat (shucked commercial grade oysters) as and when the market demands

80 Workshop Concluding Remarks

Dr Rene Lavoie DFO Scotia-Fundy Region Halifax NS

The re-development and modernisation of the oyster industry will be a major challenge The workshops have outlined the work that the industry recognises and recommends as needing to be done These priorities identify the important next steps The list will be appended to the proceedings (Appendix 3) If we meet again a year from now it will be important that the industry can see which of those priority items has been accomplished in the year The list will be passed on to the MOU Committees on Aquaculture for attention by the various government agencies so they too will be under the spotlight

We hope that the exchange of information between growers will continue We would also appreciate any comments you may have about this meeting in order that we may do a good job of planning the next Make your views known The PEl Department of Agriculture Fisheries amp Forestry (Richard Gallant) has graciously offered to host the meeting next year in Charlottetown PEl We look forward to seeing you there

21

Appendix 1 Workshop Organising Committee

Dr Thomas W Sephton (Chair) Department of Fisheries amp Oceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Dr Rene E Lavoie Department of Fisheries ampOceans Scotia-Fundy Region PO Box 550 Halifax NS B3J 2S7

Thomas Landry Department of Fisheries ampOceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Stephen Lanteigne New Brunswick Department of Fisheries ampAquaculture PO Box 760 Bouctouche NB EOA 1GO

Richard Gallant Prince Edward Island Department of Agriculture Fisheries ampForestry PO Box 2000 Charlottetown PEl C1 A 7N8

Sylvio Doiron New Brunswick Department of Fisheries ampAquaculture PO Box 1010 Shippagan NB EOB 2PO

Andrew Bagnell Nova Scotia Department of Fisheries PO Box 2223 Halifax NS B3J 3C4

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

21

Appendix 1 Workshop Organising Committee

Dr Thomas W Sephton (Chair) Department of Fisheries amp Oceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Dr Rene E Lavoie Department of Fisheries ampOceans Scotia-Fundy Region PO Box 550 Halifax NS B3J 2S7

Thomas Landry Department of Fisheries ampOceans Gulf Region PO Box 5030 Moncton NB E1 C 9B6

Stephen Lanteigne New Brunswick Department of Fisheries ampAquaculture PO Box 760 Bouctouche NB EOA 1GO

Richard Gallant Prince Edward Island Department of Agriculture Fisheries ampForestry PO Box 2000 Charlottetown PEl C1 A 7N8

Sylvio Doiron New Brunswick Department of Fisheries ampAquaculture PO Box 1010 Shippagan NB EOB 2PO

Andrew Bagnell Nova Scotia Department of Fisheries PO Box 2223 Halifax NS B3J 3C4

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

22

Appendix 2 List of Attendees

Joseph Caissie PO Box 410 Grandamp-Dique NB EOA lSO

Pierre Caissie PO Box 1 Grandamp-Digue NB EOA lS0

Edgar leBlanc Lower Neguac NB EOC 1M)

Uoyd Lewis Alberton PEl

Paul Smith 2111 Poplar Sl Halifax NS B3L 2Y6

Jean-Andre Blanchard NBDFA EcoiedesP~

CPl78 Caraquet NB EOB 1KO

Hanson R Spence RRl Bayfield NB EOA lEO

Gerard Cormier Bertrand NB EOB lJO

Randy Oatway PEl

James Bur PEl

8enSmilh PO Box 49 VICtoria PEl COA 2GO

Robert Duplessis pOBoxm Bouctouche NB EOA lGO

Gerard Allain PO Box 1014 Bouctouche NB EOA lGO

John Mmy PO Box 334 Sl Pel8fs NS 80E 380

Norman Basque PO Box 531 Chapel Island NS BOE 380

Richard Gallant PEIDAFampF PO Box 2000 Charlottetown PEl C1A 7N8

Dale Small DFO Ellerslie PEl COB lJO

Luc Robichaud PO Box 924 Bouctouche NB EOA 1GO

Stephen Pauley RRl Port Elgin NB EOA 2KO

Ellen Furguson PO Box 28050 Moncton NB

Joan Kean-Howie DFO Scotia-Fundy Halifax NS

Lewis Clancy NS Depl of FISheries PO Box 2223 Halifax NS B3J 3C4

BiD MacDonald RR2 Baddeck NS BOE lBO

Charles Dennis Es~oni NS BOA lJO

Diana Pickering PO Box 668 Kensington PEl COB lAO

Angela Reid PO Box 84 Baddeck NS SOE 1 SO

David Lemon DFO Scotia-Fundy Halifax NS

Sylvio Doiron NBDFA PO Box 1010 Shippagan NB EOB 2PO

Ralph Taylor RR3 Chatham NB El N 3A3

John Fox PO Box 272 MJsquodoboit Harbour NS 80J 2LO

Howard Hawkins RRl Head of Jeddore NS BOJ 1PO

Stephen Doucet Baie Ste Anne NB EOC lAO

bull

Gordie MJllins PO Box 8309 Emerald PEl COB 1M)

Chris Harvey PO Box 150 RR 2 Ellerslie PEl COB lJO

Alan Morrison DFO PEl Area Office Charlottetown PEl

Daniel Caissie RR 1 Box 838 Bouctouche NB EOA lGO

David Scarratt PO Box 1564 Halifax NS B3J 2Y3

Godfrey Marchand PO Box 14 Cleveland NS BOE lJO

Denis MaIM NBDFA PO Box 760 Bouctouche NB EOA lGO

Stawart Field Bayfield NB EOA 1EO

CyreUe Vautour Sl Louis de Kent NB EOA 2Z0

Erick BataJler CP1253 Sh9diac NB EOA 3GO

Beulah dEon and Dennis dEon Mddle West Pubnico Yarmou1h County NS

Joe Mclenaghan RR2 Box415 Black Rv Bridge NB EOC 180

Ronald Daigle Richibouctou NB EOA 2M)

Louis PhiUppe Bourgeois Grandamp-Digue NB EOA lS0

MartI MacNeil PO Box 802 Station M Halifax NS B3J 3R3

Serge Gaudet RR 1 Box 5 Site 5 Richibouctou NB EOA 2M)

Malcolm M Spence Bayfield NB EOA 1EO

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

23

Paul K Mlnnis Keith Lewis Randy Macleod PO Box 465 RR3 Ellerslie FISheries Station Cornwall PEl COA lHO Oleary PEl COB lVO Ellerslie PEl COB lJO

John G Gaudet Bernard Clifford Coughlin 113 Lady Slipper Drive PO Box 521 Eliefslie PEl COB lJO PEl C1N 1TO Bouctouche NB EOA lGO

Roy Demis S Delaney David Lawis PO Box 608 Eliefslie PEl COB lJO RRl Souris PEl

Alberton PEl COB 180 Anita Landry Gregory FIEkI NBDFA Cecil Cameron RRl PO Box 6000 fIjkmaq Aboriginal FISheries Service Bayfield NB EOA 1EO Fredeficton NB E3B 5H 1 RR2

East Bay NS 80A lHO Jacques Jaillat Ken Gagnon PO Boxn4 Shediac NB EOA 3GO Roger Townshend Bouctouche NB EOA lGO

RRl Norm Savoie Mt Stswart PEl COA HO Paul Gamble Neguac NB EOC 1$0 Fortune Cove PEl

France Routhier Laurent Savoie Farm Credit C()(p Jacques Nowlan Neguac NB EOC 1$0 1133 St George Blvd Suite 230 PO Box 227

Moncton NB EIE 4El Bouctouche NB EOA lGO Daniel Archer Bertrand NB EOB lJO Maurice Daigle UoneI leBlanc

Richibouctou NB EOA 2M) PO Box 847 Carolyn Lewis Bouctouche NB EOA lGO RR3 Randy Bernard Oleary PEl COB lVO 278 DukeSt Reginald Pauley

Summerside PEl C lA 3Tl POIt Elgin NB EOA 2KO Glen Barbour Elmsdale PEl COB 1KO Claude Ramsay Dr Andrew Boghen

PO Box 564 Biology Dept Douglass Boylan C()(nwali PEl COA lHO Universit9 de Monc1oo Coleman PEl COB lHO MonctonNBE1E3E9

George Matthews Grace Coughlin RR2 Marc Gallant RR2 COInwall PEl COA lHO NBDFA Ellerslie PEl COB lJO PO Box 760

Emilien leBreton Bouctouche NB EOA lGO Gerard Despres CP 92 General Delivery lowS( Neguac NB EOA 1M) Bill Warren Bouctouche NB EOA lGO Sou1ti Freetown

SamuaI Breau Kinkora PEl COB lNO Andre Jaillet Tabusintac NB EOC 2AO PO Boxn4 Keith William Bouctouche NB EOA 1GO Lionel leBlanc SaInt John NB

Richibouctou V~Iage NB EOA 2NO Matt Smith Gaeten Dugas PEIDAFampF Lea MJrphy RR 2 Boite 19 site 8 PO Box 2000 DFO - Charlottetown Caraquet NB EOB 1KO Char1ottetown PEl C1A lN6

Miles Smith Paul Seres RR2 RR2 Tyne Valley PEl COB 2CO ~tague PEl COA lRO

Frank Hansen Willard Lewis Ellerslie PEl COB lJO RR3 Oleary PEl COB lVO

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

24

Appendix 3 Prioritised List of Workshop Recommendations and Action Items

Aquaculture definition As described in Federal Aquaculture Development Strategy include as exemptions in DFO Fisheries Regulations

DFO

Aquaculture as an Occupation Develop distinct definition as applied to fishermen farmers lawyers etc

DFO Provinces

Enforcement of Environmental Regulations increase enforcement activity of existing laws amp prosecute

Fed Govt (EnvCan) Provinces

Conditional Zones Increased application of Management of Contaminated Fisheries Regulations amp Canadian Shellfish Sanitation Program in aquacu~ure context to maintain safeguards and permit aquacu~ure to develop in conditional areas Authorise increased use of depurationcleansing facilities with appropriate product labelling packaging amp accounting

DFO Provinces Industry

Leasing amp Perm itting Accelerate lease referral amp approval process Consider transfer of inactive leases to new entrants

Provinces Fed Referral Agencies

Remove size limits for cultured oysters DFO

Consult amp Negotiate of Cost Recovery for services offered industry instead of unilateral decisions

DFO Provinces Industry

Clarify Plant Registration requirements for cultured shellfish products

DFO

Clarify Predator Control Regulations Use of rock crab and lobster trCJ)s for~redator removal

DFO

2) RESEARCH AGENCY ACTION Site Evaluations Extend data base to assist existing and new growers to evaluate site potential and performance

ProvlFed Govt University Industry

Predation Green crab distribution seed size vs predator effects control technology

University FedlProv Govt Industry

Parasites Polydora abundance in relation to site activity University FedlProv Govt Industry

Organise Experimental Site Network instead of Demonstration Farm

University FedlProv Govt Industry

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

25

2) Con AGENCY ACTION Harvesting Methods Cost effectiveness and environmental impacts of methods - drags rakes tongs hydraulic dredges

European Oyster Cost benefit analysis of nursery grow-out in Northumberland Strait followed by finishing in Nova Scotia

American Oyster Management practice to optimize wild seed supply amp seed performance evaluations

Malpeque Disease Evaluate disease status in relation to ex DFO Fisheries Mollusc Disease Surveys Extend coverage to south shore Nova Scotia for Introduction amp Transfer Cttee

Overlay Water Contamination Evaluate whole animal testing to lace water tests for bacterial n

Industry University ProvlFed Govt Industry University ProvlFed Govt Industry University FedlProv Govt DFO Indust DFO Industry

FedlProv Govt Indust

Predator Control Methods ProvlFed Govt Industry

Harvesting Methods ProvlFed Govt Industry Un

Record KeepingAccounting Increase accuracy for growth amp rformance data ana and economic Training Courses To maximise benefits Industry to provide input and review basic course curriculum of courses offered (eg Business Records Site Evaluation) review logistics and calendar of course offerings Annual Oyster Culture Workshop Continue with published

Industry P Industry Community Colleges Provo Govt FedlProv Govt Indust

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc

26

4) MARKETING AGENQyen ACTIONmiddot Oyster Supply Increase to supply markets year-round Industry

Education Consumer - health value benefits of wild vs Industry cu~ured products recipes Distributors - proper handling Provo Govt display and shelf life demonstrations Public Relations Producers shyFlexibility In meeting public demands water quality for DFO holding Env Can Producer-Consumer Relations Produce top quality Industry guaranteed product for table cloth restaurants product size quantity JlualitYJ aesthetics Price Stability maximise price return without price cutting and Industry bidding wars Unit Marketing rather than volume Industry

Shucked Meat Products Develop market for commercial Industry grade oyster meats PR Promotion Materials Develop videos and graphic Industry handouts for TV Documentaries Commercials Public Tourist Provo Govt Display Boards Information Centres Shop2in~Centres etc