Seafood Innovation and Transition Program

PROGRAM OBJECTIVES:The Seafood Innovation and Transition Program will concentrate on advancements in harvesting, processing, and aquaculture while addressing research and development priorities and strategic marketing initiatives, particularly value-added and niche opportunities. The program will focus on:

• Revitalization of the Groundfish Sector • Innovation and Technology • Industry Research and Development• Strategic Marketing Initiatives

One of the primary objectives of this program will be to support the harvesting and processing sectors in making the transition from a shellfish to a groundfish dominated industry. These initiatives will ensure the Newfoundland and Labrador fishing and aquaculture industries continue to be major economic contributors to the provincial economy.

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PROGRAM OVERVIEW: The program will support harvesting enterprises to adopt innovative harvesting, handling, and holding technology to ensure increased utilization, improved quality and higher returns. Priority will be given to supporting harvesters to transition from shellfish to groundfish.

The program will support innovative approaches to produce high quality seafood products for international customers. For example, automated technology for filleting, chilling, portioning, and packaging to enhance productivity and decrease production costs, will be essential for industry in producing high quality products and competing in global markets.

The program will take a focused approach on innovative research. Scientific research is essential to fulfill knowledge requirements, in relation to sustainable fisheries policies, eco-certification, and aquatic invasive species, such as the European green crab and several species of tunicates. The program will support collaborative research that enhances knowledge of both traditional and emerging species, and informs sustainable fisheries decision-making processes.

Broad-scope priorities in the aquaculture sector, such as environmental sustainability, innovative technology, aquatic invasive species, and waste management initiatives will be supported under the program. Live-holding capacity to address supply chain issues, seed development, and innovative technologies are also areas where the program can provide support.

The program will support strategic marketing initiatives to help position and differentiate Newfoundland and Labrador fisheries and aquaculture products in domestic and international markets. Marketing activities focusing on diversification, value-added products and new market opportunities will be considered for support under the program.

FUNDING LEVELS: Maximum funding contribution per project is $100,000.

¾ The level of contribution for industry-led projects, not including small harvesting enterprises, will not exceed a maximum of 60% of eligible expenses.

¾ Maximum funding contribution for small enterprises (vessels under 40 feet) is 80% of eligible expenses. ¾ Non-profit organizations and research and development institutions qualify for up to 100% of eligible costs,

depending on funding contributions from other sources, inclusive of contracted labour, materials, and supplies.

Contribution levels for industry-led projects will vary based on several factors including the level of risk to the applicant, the potential for broad industry application, and the nature of the applicant’s contribution.

All proposals must demonstrate solid industry partnership and commitment to projects which would be demonstrated through the provision of direct funding or in-kind contributions such as labour, equipment, or raw material. Proposals must also clearly outline how the project meets program criteria. If the proposal is related to groundfish, it must outline how project funding will assist with the transition from shellfish in the short- and long-term.

ELIGIBILITY REQUIREMENTS:The following proponents will be eligible for assistance under the program:• Licenced Newfoundland and Labrador harvesters, fish processing establishments, and aquaculture

companies, including the supply and service sector. • Research and development institutions, fisheries organizations, community groups, development

associations, and enterprises involved in manufacturing, harvesting, and aquaculture technology, including processing machinery, fabrication, and design.

• All proponents must be in good standing with the Government of Newfoundland and Labrador.

Eligible activities under the program include:Harvesting Sector:• Advanced and innovative harvesting technology with emphasis on transition to groundfish. • On-board handling and transportation systems.• Quality Improvement.• Energy-efficient and environmentally friendly harvesting technology to improve quality and provide

higher returns.• Test fisheries and resource surveys. Processing Sector:• Quality improvement initiatives.• Technology to develop new product lines, including underutilized species.• Technology related to waste reduction and improving energy efficiency.• Innovative technology using a more adaptable automated approach, including filleting, chilling/

skinning, trimming, portioning, and packaging to increase utilization, improve quality, and decrease production costs.

• Technology training.Aquaculture Sector:• Developing new growing areas.• Waste management initiatives.• Improving fish health and disease reduction.• Innovative processing technology to improve quality, expand product lines, and reduce production

costs.• Innovative grow-out technology.Strategic Marketing Initiatives:• Increased market awareness and market development in domestic and

international markets.• Marketing and promotion efforts focused on product quality, niche markets, value

added products, and efficiency.• First time participation in trade shows and outgoing trade missions.• Market research and intelligence.• Branding and packagingResearch and Development Initiatives:• Waste management.• Technology upgrades. • Product development.• Meeting standards of fisheries eco-certification.

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EVALUATION CRITERIA: The project evaluation criteria include, but is not limited to:• Transition to groundfish harvesting and processing. • Technology which is innovative or new to the

province. • Economic impact.• Sustainability.• Competitive impacts.• Commercial potential.• Industry trends/markets.• Regulatory impact and compliance.• Cost.• Contribution to project from proponent and other

funding partners.• Project management, expertise, and experience.

Project activities not eligible for funding include:• Working capital.• Commonly used and/or traditional

harvesting gear and processing technology.• Standard aquaculture equipment/

technology/vessels.• Normal maintenance

expenditures and repairs.• Expansion to primary processing capacity.• Building construction and renovations. • Ongoing administrative or

overhead expenditures.• Projects by companies, groups, or

individuals who are in default of debts to the Government of Newfoundland and Labrador, and any related companies, associates, or entities. Debt refinancing. Combining of enterprises.

• Recurring participation in marketing events and trade shows/missions.

PROPRIETARY RIGHTSThe focus of the program is to enhance the competiveness of the province’s fishing and aquaculture industries. Thus, project information will be publicly available to support further development efforts. Projects containing confidential corporate information will be considered proprietary for a period of one year from project completion.

For additional information pertaining to aquaculture, please contact:

APPLICATION/PROJECT PROPOSAL:In order to be considered for funding, an application form and detailed project proposal must be submitted to:

Tara Mavin, Program Coordinator (A)Seafood Innovation and Transition Program Department of Fisheries and Land ResourcesPetten Building30 Strawberry Marsh RoadP.O. Box 8700St. John’s, NL A1B 4J6Phone: (709) 729-0118 Fax: (709) 729-1884E-mail: sitp@gov.nl.ca

Leonard House, Aquaculture Development OfficerDepartment of Fisheries and Land ResourcesP.O. Box 2600Corner Brook, NL A2H 6J8 Phone: (709) 637-2960 Fax: (709) 637-2908E-mail: lenhouse@gov.nl.ca