Update from the processing sector

Mowi set to close its processing plant in Surrey, BC

Mowi Canada West has announced that it will permanently close its fish processing plant in Surrey, British Columbia, blaming the Canadian Government’s decision to shut down salmon farming in the Discovery Islands region.

Above: The Mowi processing plant in Surrey, British Columbia MOWI is British Columbia’s largest salmon producer and its 23,000 sq ft processing plant, in the town of Surrey, currently employs around 80 people.

The decision to cancel salmon farming licenses in the Discovery Islands was announced by former federal Minister of Fisheries and Oceans, Bernadette Jordan on 17 December 2020. Although Surrey is outside the region concerned, Mowi says the loss of 30% of its production in BC means the production plant is no longer viable. A recent economic report commissioned by the BC Salmon Farmers Association found that the companies operating within Surrey that are part of BC’s farm-raised salmon supply chain generate more than $363m in revenues, and create jobs for 1,189 workers earning almost $65m in salaries. Dean Dobrinsky, spokesperson for Mowi Canada West said: “This is devasting news to the employees and families who have relied on this operation for their livelihood. It is clear that the decision of the former Minister has lasting implications. Her decision is far reaching and continues to be incredibly damaging to the communities where we operate. It has been more than a year and we have yet to hear from either the former Minister or the new Minister, Joyce Murray.”

A legal challenge over the Discovery Islands decision is currently being considered by Canada’s Federal Court.

Rupinder Dadwan,

Above: Rupinder Dadwan

“This is devastating news to the employees”

Human Resources Manager at Mowi Canada West commented: “This is what happens when politics overrides science-based evidence. At the beginning of the pandemic we were deemed an essential service providing our country affordable and healthy food, and now we’re forced to close our doors. Our Federal Government doesn’t have to do this - it can choose fairness and engagement over divisiveness and exclusion.”

Anita Huberman, President of the Surrey Board of Trade said that she was “devastated” by the job losses. She also regretted that Canadian production jobs are being moved to the United States.

Mowi said that “until business certainty is restored in British Columbia”, the company will supply its customers’ orders for value-added seafoods through its facilities located in the US.

The Surrey plant is expected to close in late March 2022. Primary processing for all salmon grown by Mowi in BC will continue at its plant in Port Hardy, Canada.

Boston Seafood Expo set to go ahead

SEAFOOD Expo and Processing North America, popularly known as the Boston Seafood Show, is to go ahead , the organisers have said.

In early January, Peter Pan Seafood of Alaska said it was pulling out because of fears over the spread of the Omicron version of coronavirus, sparking fears that others could soon follow.

Cermaq also announced in January that it would not be attending the Expo.

But the show organisers have received several messages of support from several big companies and have reaffirmed that the 40th edition of what is officially called Seafood Expo North America/ Seafood Processing North America will take place at the Boston Convention and Exhibition Centre on 13-15 March.

Last year’s show was cancelled because of the pandemic.

The three-day event will highlight a comprehensive exhibit hall for business and networking opportunities, new products, food sampling, special events and education.

“We are excited to be back in-person in Boston to reconvene seafood professionals looking to do business in the North American market,” said Wynter Courmont, Event Director with Diversified Communications. “Year over year, industry suppliers and buyers have valued the business opportunities at the event, and this year will be no exception.”

Rob O’Sullivan, Vice President Sales, Americas at Clearwater Seafoods, said: “After two long years of virtual meetings, we eagerly anticipate the opportunity to meet with our customers, partners, colleagues and new clients in person and under the same roof.

“Nothing replaces the importance of interacting face to face or the integral platform Seafood Expo North America provides to drive new business, reconnect with clients and partners, and get a pulse on the marketplace.”

Young’s Seafood returns to profitability

YOUNG’S Seafood has returned to strong profi tability under its new ownership, fi gures for its most recent fi nancial period show.

The UK’s largest seafood supplier and a major buyer of farmed salmon, but probably best known for its Gastro and Fish Shop brands, has reported a pre-tax profi t of £29.5m for the 53 week period ending 3 April 2021.

This compares favourably with a loss of £13.7m for the 78 week period ended 28 March 2020.

The latest accounts cover the fi rst full year of the Covid-19 pandemic, when UK frozen and chilled seafood companies did brisk business as restaurants remained closed for long periods, allowing consumers to discover the benefi t of keeping their freezers full.

Sales were par� cularly robust, reaching £597.1m compared with £815.1m for the 78 week fi nancial “year”, represen� ng an actual increase of more than £700,000 a week

Profi t a� er tax came to £21.3m against a loss of £10.1m for the previous fi nancial period.

The Companies House accounts show that Young’s spent frac� onally short of £400m (£399.9m) buying raw materials such as fi sh and other consumables. The fi gure for the 78 week period was £609.8m.

Young’s has since changed ownership, becoming part of the Canadian based Sofi na Food Group last April.

CEO Simon Smith said the company con� nued to improve its opera� onal commercial performance during the period.

He explained that it was con� nuing to develop long term partnerships with its customers by off ering quality products and good service across mul� ple categories.

He added: “Young’s is well placed to deal with the strong compe� � ve pressures that characterise the seafood industry and is preparing for signifi cant growth in the years to come.

“Young’s is also con� nuing to invest in product innova� on and process development to deliver fair value to its customers and maintain a leading posi� on its key markets.”

He said the seafood industry was highly compe� � ve, but Young’s intended to develop new products to meet changes in consumer demands.

Above: Young’s Fish Fillets

ISI appoints new UK Managing Director

Above: Bjarni Á rmannsson GLEN Mathews, a senior executive with Hilton Seafood, has been appointed as Managing Director of Iceland Seafood UK, with effect from the end of February.

He has more than 30 years’ experience in the seafood processing sector. Mathews was previously in the position of Production Director of Hilton Seafood (formerly Icelandic Seachill) for 20 years, managing three factories with over 1,400 employees.

The move is part of a raft of changes being brought in for the Iceland Seafood International group’s UK operation. In November, ISI Group CEO Bjarni Armannsson (pictured) said a “combination of ramping up a renovated factory, dealing with challenging logistics from southeast Asia and merging two factories in a period of COVID-19 issues and Brexit” were creating difficulties for the UK division.

He announced changes would be made to strengthen the local management team of IS UK “to address the business complexities, the increased retail exposure and harvest the upcoming growth of the business”.

Reynir Jonsson, the Group CFO stepped in as an interim Managing Director and at the same time it was announced that Glen Mathews would be joining the business at end of February 2022. Iceland Seafood has now appointed Mathews as Managing Director of IS UK.

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