Question Period Note: Transformation of the Freshwater Fish Marketing Corporation

• Our government recognizes the important role that the Freshwater Fish Marketing Corporation has played in the lives of freshwater fish harvesters, including those in remote and northern Indigenous communities, for more than 50 years.
• We are committed to transforming the Freshwater Fish Marketing Corporation so that it remains competitive in today’s open market and continues to meet the needs of harvesters into the future.
• Until transformation is complete, the Freshwater Fish Marketing Corporation will operate under its current mandate.

BACKGROUND
• Headquartered in Winnipeg, Manitoba, the Freshwater Fish Marketing Corporation (FFMC) is a federal Crown corporation established in 1969.
• Enabled under the Freshwater Fish Marketing Act (the Act), the FFMC has the exclusive right to market and trade freshwater fish in interprovincial and export markets in designated products supplied by commercial fishers in participating jurisdictions. The FFMC was established to operate on a self-sustaining basis without government appropriations.
• Over the past 13 years, the FFMC operating environment has experienced significant change. Ontario, Saskatchewan, and Manitoba withdrew from the Act in favour of an open market in 2011, 2012 and 2017 respectively, while Alberta closed its commercial in-land fishery in 2014. The Northwest Territories is the only remaining participating jurisdiction under the Act. However, many harvesters from Manitoba and Saskatchewan continue to sell their fish to the FFMC through contracts.
• These changes have prompted the need to transform the FFMC to remain competitive in today’s open market and continue to meet the needs of commercial fishers into the future. In response to this need, Fisheries and Oceans Canada (DFO) initiated engagement with stakeholders and Indigenous partners on FFMC transformation in 2017, and in 2018 created a Ministerial Advisory Panel to consider alternative governance and ownership models that would support collaboration and co-operation amongst commercial fishers and involve them in decision-making. In 2019, DFO appointed an Interlocutor on the Transformation of the FFMC to explore the potential for fisher-led governance and ownership of a transformed FFMC.
• The Interlocutor’s report recommended that DFO continue working with a committee he established, the Interim Committee of Inland Fish Harvesters, to explore transformation of the FFMC to a harvester-led governance and ownership model. In August 2021, this Committee incorporated as the not-for-profit corporation, Freshwater Fish Harvesters Association, Inc. (FFHAI). In March 2022, the FFHAI submitted a proposal to DFO on its vision to transform the FFMC into a harvester-led entity.
• A number of other parties have also expressed interest in being involved in the future of the FFMC. Ongoing efforts continue to confirm that there is high interest amongst affected and interested groups to participate in a transformed the FFMC.
• The Government of Canada has recently decided to move forward to transform the FFMC through an open and transparent competitive process.
• DFO announced the decision and next steps to the FFMC Board of Directors, Indigenous governments and organizations, provinces and territories, and industry in November 2023.
• The competitive process was launched with an initial solicitation of interest that was open from February 19 – April 5, 2024. A formal bid solicitation process will follow later in the year.
• Among other considerations, DFO intends to develop bidding criteria for the competitive process to promote continued market access for rural, remote, and isolated harvesters, and to promote economic reconciliation. These criteria will be developed and informed through feedback from the solicitation of interest and ongoing engagements with commercial fishers, Indigenous governments and organizations, and provincial and territorial governments.
• In order to remain competitive in the open market, the FFMC has developed strategies to operate more effectively, including by shifting from a supply-driven marketing model, to one that is driven by customer demand; diversifying revenue; and, aggressively targeting new sales markets.
• The FFMC’s 2024-25 to 2028-29 Corporate Plan projects deficits in each of the next five years (e.g., a loss of $2.3 million in 2024-25). Intensifying open-market competition is the most significant contributor to the projected decline in profitability.

If pressed on the competitive process to divest the Freshwater Fish Marketing Corporation
• The Government of Canada will launch a competitive bid process later this year to identify a new owner for the Freshwater Fish Marketing Corporation.
• Among other considerations, bidding criteria for the competitive process will be developed to promote continued market access for rural, remote, and isolated harvesters, and to promote economic reconciliation.
• These criteria will be developed and informed through engagements with commercial fishers, Indigenous governments and organizations, and provincial and territorial colleagues.

If pressed on there being no final payments to fishers in 2023-24
• Final payments are paid to fishers only in years when the Corporation has cash surpluses.
• The Corporation remains true to its legislated mandate to increase returns to fishers.

If pressed on the Freshwater Fish Marketing Corporation’s projected deficits
• In recent years, factors such as intensifying open market competition, elevated inflation, COVID-19, and climate change have presented challenges for Canada’s inland commercial fishery.
• I know that the Corporation is diligently working to reduce its projected deficits, while continuing to meet its mandate of increasing returns to harvesters, increasing interprovincial trade, and promoting exports to international markets.