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 BLACKCOD COMPETITIVE OVERVIEW
Blackcod Competitive Analysis
Island Scallops is the one of the only hatcheries to produce quantities of juvenile sablefish. These fish were sold to five commercial salmon farming facilities and the fish have been marketed successfully. At the present time, due to disease and pricing difficulties in the salmon farming industry, little demand for a new species has materialized. Although two additional marine fish hatcheries have been constructed in BC, neither has successfully produced large quantities of sablefish. The first facility, located in Cedar, has yet to produce sablefish juveniles for sale. The second facility, on Salt Spring Island, is mired in controversy and does not plan on farming sablefish but rather (we believe) intends to remain solely a juvenile producer.
BC Blackcod Competition
Island Scallops is one of the only companies that supplies hatchery-produced sablefish juveniles for the ocean-farming sector. We believe ISL can initially expect to be a dominant player in the farming of sablefish for the next two to four years. The farming of sablefish is still in its infancy and only limited production has occurred.
This limited production is not a matter of biological barriers but rather a lack of interest by the major producers to venture into a new marine species. Alaska sablefish fishermen have expressed interest in farming sablefish and the Sablefish Association of Alaska has voted unanimously to start farming sablefish in southern Alaska. ISL has been in discussion with this association and has been told that due to "anti-aquaculture" policy in Alaska, it is very unlikely that any farming will occur in the near future.
Washington State contains two parties interested in sablefish farming. The first is the Makah Tribe and the second is a private company, which is trying to obtain farming permits in Port Angeles. These parties have made inquiries to ISL for juvenile sablefish. However, to date, no orders have been placed.
The main industry participants in the sablefish-farming sector are two Norwegian salmon farming operations (Omega Salmon Group and Pacific National Group) and two small independent salmon farmers (Totem Sea Products and Target Marine). Each of these farms have successfully raised and marketed ISL-produced sablefish. The majority of these fish were marketed through Calkins and Burke, as live fish into the Vancouver market. At the present time, due to financial difficulties in the Atlantic salmon farming industry, no sablefish juveniles were sold in 2004.
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 SCALLOPS BLACK COD  COMPETITIVE OVERVIEW GENERAL FISHERIES |
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