Madam Chair, and committee members, thank you for allowing the Louisbourg Seafoods group the opportunity to participate in this important study.

My name is Damien Barry, and I'm the general counsel and CEO of the Louisbourg Seafoods group, based in Cape Breton, Nova Scotia. Established in 1984, we are a privately held, family-owned group of companies, currently operating five processing facilities and employing up to 650 workers at peak times in the coastal communities of Glace Bay, North Sydney, Englishtown, Canso and Louisbourg.

We harvest, buy and process species such as lobster, snow crab, sea cucumber, whelk, cold water shrimp, mussels and redfish, primarily for export to the U.S., China and the European Union. Over the past 40 years, we have invested millions of dollars in developing export markets for various species, and we continue to do so to the present day. Our company prides itself on its sustainable fishing practices and its strong relationships with all stakeholders in the seafood industry, including our inshore harvesters, our fellow processors, our various research partners, and the many different government agencies and departments we engage with at both provincial and federal levels on a daily basis.

As a processor, we export significant quantities of product to the aforementioned markets on an annual basis, and as such, we deal with a multitude of requirements, policies and regulations when transporting our products to our customers around the globe. Each year, these regulatory requirements continue to grow as the global seafood industry continues to engage with issues such as forced labour, illegal, unreported and unregulated fishing, marine mammal protection and traceability, to name but a few. We of course fully support any policies and measures that can help reduce any harmful impact on the seafood sector, and we strive to fulfill our obligations as a company to ensure that we meet the highest standards.

The inshore harvesters we buy from in Cape Breton—particularly in lobster and snow crab—rely on processors such as us to take their product and to sell it into the market in bulk. Owing to the sheer volume we produce as well as market factors, 99% of the lobster and crab we buy and process is exported to the U.S. and China. Key administrative matters such as pre-export approvals, correct labelling, packaging and marking requirements to meet regulatory requirements, catch certificates and traceability requirements fall on processors such as us to ensure that Atlantic Canadian seafood products can be showcased internationally.

As requirements under international import policies continue to grow and expand, so too does the pressure and burden on processors. Markets have softened dramatically in the past two years, and margins continue to shrink for the processing sector. Harvesters have expectations of certain prices when selling their catches. Without processors buying their catch, the seafood industry—particularly in Atlantic Canada—would essentially collapse without the access to export markets that has been developed by processors and buyers.

In order to remain competitive and ensure high-quality export products, processors must constantly reinvest in their facilities to try to maintain these high-quality products and to meet constantly changing and more stringent import policies of our target markets. For example, digitization of records and the traceability of seafood products is now becoming a necessity when exporting to markets in the EU and in the U.S.A.. The burden and responsibility invariably falls on processors to invest in resources to meet these regulatory demands. In addition to investing in processing and value-added products, we also invest heavily in science to ensure healthy and sustainable stocks in all of our species, including our secondary species.

To echo some of the comments of earlier speakers before this committee, we would strongly advocate for continued close relationships and co-operation between all stakeholders in the seafood industry, such as government and the private sector, to ensure that we continue to remain competitive in the global seafood market. For example, we have worked closely with trade commissioners in various target markets to help us connect with and develop relationships with our international customers. Services and supports provided by federal agencies such as the trade commissioners are vital to companies such as ours.

We would also ask that the government continue to financially support the processing and harvesting sector through programs such as the Atlantic fisheries fund and other related programs that support the development and implementation of innovative and practical solutions to meet the ever increasing and changing regulatory demands of our trading partners and export markets. In addition to this, the government also needs to provide support in helping all industry stakeholders develop and implement traceability programs. With the coming into effect of the Food Safety Modernization Act in the U.S. by January 2026, for example, this is a critical time for the seafood sector in Atlantic Canada to prepare for and be ready for the various new requirements of the FSMA.

The FSMA is but one example of the ever-changing and evolving import policies that processors and other stakeholders in the seafood sector have to adapt to and respond to in order to remain competitive in the global seafood marketplace. Whilst revenues may be significant for the seafood sector in Canada in general, the cost of doing business continues to grow with increased labour costs, raw material shortages and increased costs associated with responding to ever demanding regulatory requirements both at home and abroad.

Thank you for the opportunity to speak here today, and I welcome any questions.