The Canadian pavilion at Seafood Expo North America in Boston, Mass., on March 18.Lucy Lu/The Globe and Mail
Facing tariffs on two fronts, Canada’s seafood producers are using a seafood expo in Boston to push into new markets in the Indo-Pacific and Europe.
The Seafood Expo of North America – one of the largest of its kind worldwide – started Sunday and ended Tuesday, two days before China is set to impose a 25-per-cent tariff on Canadian seafood. U.S. President Donald Trump is also threatening to relaunch a 25-per-cent levy on Canadian seafood and other goods on April 2.
The United States and China are the two biggest markets for Canada’s seafood industry, accounting for more than 65 per cent and around 19 per cent of foreign sales, respectively.
“It’s a really uncertain environment,” said Martin Sullivan, chief executive officer of Ocean Choice International, a Newfoundland fisher and processor of several products, including snow crab, lobster and Atlantic cod.
However, despite the looming tariff threats, the mood in Boston is surprisingly optimistic, expo attendees said.
While tariffs in the next few weeks will be jarring – the vast majority of producers cannot shift all U.S. and China-bound products in time – the threats are forcing the sector to think long-term and focus on what makes Canada’s seafood a hot commodity worldwide.
“Our backs are up and we’re not going to let one bully kick sand in our face,” said Osborne Burke, general manager of Victoria Co-operative Fisheries Ltd., a processor on Cape Breton Island.
Canada’s seafood sector harvests more than 160 different species, from snow crab (which can be priced at $170 for 4.5 kilograms) to a more budget-friendly freezer staple such as cod. The country is a major exporter of seafood, ranking fifth worldwide in 2021.
Customers are happy with the quality of Canadian products, said Mr. Burke, who wore a red “Canada is not for sale” cap and a maple leaf flag T-shirt to the Boston event.
This is because of geography and because of business practices, said Edward Steeves, regional vice-president for Atlantic Canada for Export Development Canada, a Crown corporation that provides equity and financing options.
Atlantic Canada’s seafood sector harvests from cold water, which produces a better-tasting product than warm-water seafood. And the industry also follows better sustainability practices and food safety standards than many global competitors, said Mr. Steeves.
This gives Canada an edge in competitive and mature seafood markets. The sectors primed for Canadian export growth are the Indo Pacific – Japan, South Korea and the Philippines, for example – and Europe.
These markets have large populations, a strong cultural appetite for seafood and an established or growing middle class that want tasty, sustainable seafood, said reports from Export Development Canada and Agriculture and Agri-Food Canada.
Newfoundland cod processor Icewater Seafoods Inc. is one company that has leveraged Canada’s premium label.
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Around 65 per cent of the company’s exports go to France and Britain – two of the largest global markets for premium cod. The company’s major British buyer is Marks & Spencer PLC, a nationwide grocer on the high end of the price scale.
Around 35 per cent of Icewater Seafoods’ foreign sales go to the U.S. Icewater Seafoods ships more product to France and Britain because consumers there will pay a premium, said chief executive officer Alberto Wareham, whereas the U.S. market sources more cod from China.
But diversifying trade – even where markets exist – is not easy, he added. Mr. Wareham is also the chair of the Fisheries Council of Canada.
Established competition exists in Europe – for example, Russian fish is also cold-water and cheaper than Canada’s. And while Britain imposed a 35-per-cent duty on Russian whitefish after the country invaded Ukraine, the European Union did not.
Convincing a market to opt for Canadian product takes time and deep pockets, Mr. Wareham said.
“You don’t just pick up the phone and say, ‘Look, I have this cod. Why weren’t you buying it before?‘”
Governments are trying to help exporters with some costs and help them build relationships in new markets, said Gerry Byrne, Minister of Fisheries, Forestry and Agriculture for Newfoundland and Labrador.
His department, alongside the seafood industry, is increasing its presence at the Barcelona seafood trade expo in Spain in May, another one of the largest trade expositions worldwide. This comes in addition to a number of Atlantic Canadian seafood trade missions to Asia.
Governments are providing funding as well. Newfoundland and Labrador announced $6-million to help the sector tap into new markets, while Nova Scotia’s Ministry of Fisheries and Aquaculture increased its budget for seafood marketing by $200,000.
Gaining greater access to new markets – especially those in Asia – also requires Canadian companies get innovative with their product offerings, said Mr. Byrne.
For example, the Atlantic coastline is home to a significant biomass of sea cucumbers – a delicacy in Asia – and a number of companies have moved into this space over the past decade.
However, trade diversification comes with challenges in transportation and infrastructure. That is particularly challenging with seafood because it usually has to be kept cold.
The U.S. is a large market because of proximity, said Mr. Steeves, and for this reason, the country will always remain a key export destination, regardless of tariffs.
Nonetheless, depending on the product, new opportunities exist, said Stewart Lamont, managing director of Tangier Lobster Co. Ltd., a Nova Scotia company that exports to Europe, Asia and the Middle East, and doesn’t “export a single pound to the USA,” he said.
Mr. Lamont did not attend the Boston expo. He is boycotting the U.S. while Mr. Trump sits in the White House. But Tangier Lobster’s move away from the U.S. didn’t have much to do with the current administration. Trade diversification started around six years ago.
And it wasn’t easy, Mr. Lamont said. Moving live lobsters across continents on an airplane is no small feat. His company packs its lobsters in styrofoam cases, with iced jell packs and temperature probes. They reach market within 48 hours.
But the shipments are possible, and the company has benefited from making transitions. Tangier Lobster can command a high price in markets such as South Korea and Belgium, where consumers value high-quality foods. The company also does not have to compete with the US$464-million lobster industry in Maine.
“We differentiate our product by reputation and performance,” he said.
The Canadian federal and provincial governments can help ease this transition by investing in and incentivizing reliable trade infrastructure, such as air infrastructure and ports, said New Brunswick Premier Susan Holt.
But, ultimately, the last leg of this battle is turning the focus inward, she said.
Thousands of suppliers and buyers from more than 50 countries attended the Boston seafood expo – a testament to the competitive nature of this industry.
Export markets have lots of potential and the industry punches above its weight on the global stage, said Ms. Holt, but Canadians still consume less seafood than most Europeans or Asians. This could change, she said.
“We’d love to see more Canadians showing Trump where to put it by eating more seafood.”