CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
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CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T 1W0 203-919 Island Highway Campbell River, BC V9W 2C2 250-286-0022 February 2019
Cermaq Canada Request for an Option to Lease to Nova Scotia Fisheries and Aquaculture Table of Contents i. Introduction ii. Who we are - Cermaq Canada iii. Proponent and Company Information iv. Pre-Request Meeting 1. Proposed Aquaculture Development 2. Maps of Interest Areas 3. Proposed Development 4. Benefits of the Proposed Development 5. Current Aquaculture Activities in Nova Scotia 6. Knowledge and Experience 7. Market Plan 8. Financial Capacity 9. Public Engagement 10. Other Information Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 2
i. Introduction Hello Nova Scotia. A foreword by David Kiemele, Managing Director, Cermaq Canada In the following options paper, you are going to read a lot about our company, what we do, how we do it, and how we think we could add value to the Nova Scotian seafood story. However, we are first and foremost, passionate salmon farmers who care about the communities in which we live and work, the health and well-being of the environment and the planet, and being able to provide healthy, sustainable protein for generations to come. Wherever we operate, we connect and communicate with local people to build a sense of community around the work we do. By sharing and respecting knowledge that has long been part of local cultures, we take a natural approach to improving the future. We know that by supporting employees and fostering their growth and development, we all become stronger. We believe that by creating strong people, we support the strengthening of families, communities and the economy. This then supports our work to help protect the iconic wild salmon, create enhancement hatcheries, support habitat and beach clean-up work and clean the ocean, and provide delicious salmon for families. I have been working in the aquaculture industry for over two decades, and every year we see new technology and research, which helps to improve our farming practices. Between my executive team and myself, we have well over 100-years of collective experience working directly in Atlantic salmon farming, fish health, research, technology and community engagement and support. We are salmon experts, and we are excited to bring this experience and strength to Nova Scotia to establish successful salmon farms, and to help provide support and guidance for enhancement hatcheries looking to support the return of the local Atlantic salmon populations, and grow the local economy. We are the first patron sponsor of the United Nations Compact Action Platform for Sustainable Ocean Business, and are also working to support the UN’s Sustainable Development Goals (SDGs) through our business modelling and practices. And we grow really delicious, sustainable and healthy salmon. We look forward to working with the province and building relationships as we work through the feasibility of our proposed expansion into Nova Scotia. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 3
If you have any questions, please reach out to us by phone 250- 286-0022, or email questions@cermaq.com. I would be happy to talk about us as an organization, our potential expansion plans, and why I think we could add value to Nova Scotia. Thank you – David Kiemele Managing Director ii. Who we are – Cermaq Canada From egg to plate and everything in-between - we are your salmon farmer and champion for wild. Cermaq is Canada`s West Coast’s second largest salmon farming company. Our head office is located in Campbell River, a small town on Northern Vancouver Island. We have 27 salmon farm licenses on both the east and west coast on Vancouver Island, four hatcheries and a processing plant in Tofino. We also contract process with Brown’s Bay Packing just north of Campbell River. Annually, Cermaq Canada produces over 22,000 metric tons of healthy, sustainable salmon. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 4
We are part of Cermaq Global, headquartered in Oslo, Norway, with operations in Norway, Chile and Canada. As a global organization, we are aware of the challenges being faced around the world from climate change, ocean debris and micro-plastics, declining natural fish stocks, and loss of arable lands for traditional protein farming. We are supporting the United Nations and its work to combat these issues and are proud members of the United Nations Global Compact Action Platform on Sustainable Ocean Business. Cermaq is owned by Mitsubishi, and are part of the organization’s Fresh Foods Product division. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 5
iii. Proponent and Company Information Proponent Information Proponent Name: Cermaq Canada Ltd. Phone: 250-286-0022 Fax Number: 250-286-0042 Email Address: questions@cermaq.com Mailing Address: 203-919 Island Highway Campbell River, BC V9W 2C2 iv. Pre- Request Meeting Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 6
Before submitting this request, you MUST participate in a pre-request meeting with the Manager of Aquaculture Development, or an appropriate designate. To arrange your pre-request meeting please call (902) 875-7439. Once held, please indicate the date of your meeting. Date of Meeting: February 22, 2019 Department representative Cermaq Canada met with: Bruce Hancock, Director of Aquaculture Division 1. Proposed Aquaculture Development 1. What is the nature of the proposed aquaculture development? Marine Aquaculture - Finfish Marine Aquaculture - Shellfish Marine Aquaculture - Plant Marine Aquaculture - Other Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 7
2. Maps of Interest Areas Attach a map that clearly identifies the body of water and the boundaries of the proposed geographic area. (You are expected to work with the Department’s GIS Specialist to generate a map that defines the area under consideration. In evaluating this section, the Department will review information such as: other licensed aquaculture activities in the area, and any environmental or physical limitations that would preclude the proposed aquaculture activities from taking place. Cermaq Canada have the following areas of interest: Map A. Cermaq - Chedabucto Bay Map B. Cermaq - Bay of Rocks Map C. Cermaq - South Guysborough Map D. Cermaq - St. Marys Bay The attached maps identify the areas of interest within the red lines. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 8
Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 9
Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 10
Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 11
Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 12
3. Proposed Development Attach a description of the proposed development. This should include but not be limited to: the species (including strain, if relevant), method of cultivation, stage(s) to be cultivated, scale of the operation (for finfish: maximum biomass, maximum densities and expected annual production in tons, for shellfish: site size in HA and expected annual harvest either in number or weight in kg), anticipated date of stocking, and any other information deemed necessary to describe the development. In evaluating this section, the Department will review information such as: the biological feasibility of the proposed species and cultivation method, compatibility and technical feasibility of the proposed production scale with the requested area. The table below outlines Cermaq Canada’s development plan. Species: Atlantic Salmon Strain: Local strain to be sought Stages: Egg to Harvest Broodstock: Domestic to be determined Freshwater Cultivation On land recirculation facilities Method: Marine Cultivation Method: 120 to 160m polar circle pens with K-grid Annual Production: 20,000MT Maximum Density: 20kg/m3 will be the absolute maximum, however this number could be lower and will be based on specific site capacity Maximum Tonnage: 3,500MT per site Anticipated Date of Stocking: 2023 Vessels: 15m to 24m work vessels per area. A 12m work vessel per site. Feed Barges: Concrete or steel feeding barges with a capacity of 440 to 660 Tonne silo barges Underwater Lighting: LED lights – site and production stage specific On land infrastructure: Hatcheries, Processing plants, works yards, wharfs and docks, offices, potential staff accommodation Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 13
Our salmon are cared for from egg to harvest by a team of dedicated professionals, passionate farmers and when the time comes for harvest, humane harvesting techniques that result in beautiful, fresh salmon that is able to feed the world for generations to come. Breeding. The eggs are harvested from broodstock fish, selected for qualities such as strong health, fast growth and low early maturation. On shore. Salmon spend the first part of their life in fresh water. From egg to smolt, the fish spends about 14 months in a land based hatchery. After hatching, the salmon lives in fresh water tanks on land. Seawater. Smolts are then entered into sea water to grow to full size (4-6 kg), for a period of 14-20 months. The fish has plenty of room, taking up to 2.5% of the pen volume. The location and use of the sites follow strict governmental regulations and require favourable environmental conditions. Harvesting. Harvesting is conducted with a strict focus on animal welfare and quality. The harvest process is quick and it only takes hours until the fish is on its way to the customer. Sales and Logistics. The sales office supply salmon to our customers 365 days a year. The fish is transported by sea, air and land. Nutritious and healthy meal. The final step is a healthy and nutritious meal served to families all over the globe. Cermaq globally provides the world with 2.5 million daily salmon meals. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 14
4. Benefits of the Proposed Development Attach a description of the benefits of the proposed development to the community in the area being requested as well as to the Province. These should include socio-economic impacts such as the anticipated direct local jobs created, use of local suppliers, potential spin off industries, complement to other business development in the community and Province, other relevant information to demonstrate the impacts to and scale of benefits. In evaluating this section, the Department will review information such as: the number of fulltime, part time, and seasonal employees directly related to the proposed development, sources of labour, types of goods and services, predicted volumes of goods and services, hatchery or seed source, location of processing of product, source and volume of feed, any other potential benefits. Cermaq Canada is working hard to become an employer of choice, as we believe that our employees are the secret to our success. We believe in creating a supportive, dynamic and fun culture – where everyone is encouraged and provided with the tools, training and skills to grow and develop within the company. We have opportunities for people from all walks of life - all we ask is that you have a great attitude and a love for the ocean, the environment, and most of all, our fish. We provide on-the-job training as well as skill and knowledge development opportunities. We need employees with all types of education, background, experience and talents to help us create our farms and operations. We anticipate creating between 300 and 350 new jobs in the coastal communities near our identified potential sites. We also have an important role to play when it comes to improving the health of our oceans, supporting wild salmon populations, fighting climate change and providing families with safe, healthy and nutritious salmon for generations to come. We believe that with farmed salmon – you can have your salmon, and eat it too. By choosing farmed salmon, you are helping to relieve the pressure wild populations, helping to ensure their continued survival, and helping to support Cermaq’s research, projects and partnerships to support and enhance wild salmon populations We support the United Nations Sustainable Development Goals (SDGs) and were the first organization to join the UNs Action Platform on Sustainable Ocean Business. Table 1. Anticipated direct full-time local jobs created Table 2. Use of local suppliers and spin offs Table 3. Economic and social impacts. Table 4. We spend where we work. Table 5. Adding value through direct and indirect spending Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 15
Table 1. Anticipated direct full-time local jobs created Farm Sites 6 - Full time employees per active site Maintenance 2 or more per region Fish Health Technician: 2 or more per region Fish Health Manager 1 Fish Health Coordinator 1 - a 15m work boat requires a minimum of 3 people Boat Operators - a 24m work boat requires a minimum of 4 people Divers 1 crew of 4 divers per area Net Washers a 15m work boat requires a minimum of 3 people per area Environmental Contractors 2 contractors and 2 field staff per area Hatcheries / Broodstock Facilities 12 full time people per hatchery Processing Plant 35 employees Including - Administration, Information Technology (IT), Accounting, Production, 30 employees Human Resources, Sales, Environmental, Community Engagement and Biologists Table 2. Use of local suppliers, potential spin off industries, complement to other business development in the community and Province Crew bus 1 per area, 1 per processing plant Freight service trucks (ie: smolt trucking, general freight, feed, nets, product, etc.) (harvesting, treatments, live fish transfers, etc.): 3 vessels with a 5 -7 Well boats / boat person crew Suppliers Net lofts all netting material, repair and washing services Aquaculture support feeding systems, equipment maintenance, lights, etc Feed manufacture and delivery via boat or truck - 26,000MT per year Marine Suppliers cage construction, anchoring hardware, rope, etc. Processed product packaging boxes, pallets, liners, etc. General supplies general hardware, lubricants, etc Grocery stores Fuel suppliers Staff housing Staff support services Technical certification training, etc Ticketed tradespersons welders, electricians, plumbers, heavy duty mechanics, etc. Fish Health & Environmental Diagnostic services and supplies Laboratories Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 16
Table 3. Economic and social impacts. The good and the great. We are committed to driving economic development and adding value to where we work and live. Average annual salary by community, compared to the average Cermaq employee base salary, and salary including benefits. $70,000 $65,000 $58,000 $60,000 $52,171 $50,000 $45,021 $45,917 $41,123 $38,645 $40,000 $30,000 $20,000 $10,000 $0 Campbell River Port Alberni Port Hardy Port McNeill Tofino Cermaq Cermaq employee employee w/benefits incl. Due to the nature of our business, we often live and work in rural and remote coastal communities. Within our business model, we build the required infrastructure in these regions so we can grow our eggs and smolts, farm in the ocean and eventually, harvest and process all within close proximity. It makes good business sense and help us to provide the healthiest and freshest fish possible to the markets if our required infrastructure - hatcheries, farms, offices and plants - are all within a short boat trip or drive away. In order for our operations to be economically sustainable, we need to have a large enough farming operation to support this required infrastructure. This translates into having about 20 farm licenses (not all will be farmed at the same time), two hatcheries and a processing plant. We have between 300 and 350 full-time employees, depending on the staffing levels required at the processing plants, and have an average annual payroll of $13.2 million with an additional $4.6 million provided to employees in paid benefits. The average annual salary of a Cermaq employee is just under $59,000, if benefits are included, the average annual salary rises to almost $65,000. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 17
Table 4. We spend where we work Since 2015, Cermaq has spent over $625 million with vendors, suppliers, consultants, equipment, utilities, taxes, benefits, and maintenance. When possible, local suppliers, vendors and service providers are used which helps to build and support a healthy, local economy. Table 5. Adding Value through direct and indirect spending Aside from providing thousands of direct employment opportunities, salmon farming supports thousands of indirect jobs and supports over 3,000 companies such as suppliers, vendors and service providers like hotel workers, car dealerships, health care employees, teachers and accountants. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 18
We invest in communities and look for ways to add value. In 2018, we contributed through donations and in-kind support to the communities in which we live and work. We look for ways to add value to the community by supporting existing passions and programs, or in some cases, adding to or improving the community’s infrastructure. Strategic priority funding is defined as a program, project or initiative, which helps to further awareness and support for aquaculture, or a project or initiative which supports our sustainability work. We share knowledge and engage in partnerships with like-minded Governments, organizations and individuals to find solutions to common challenges. We are transparent in our work to create trust, ensure traceability and be accountable to our stakeholders. We work continuously to create sustainable value through operational excellence, research and innovation. What can sustainable salmon farming do? The United Nations has stated that a profound change of the global food and agriculture system is needed to nourish the current estimated 765 million hungry people around the world, with an additional two billion hungry people worldwide by 2050. The former UN Secretary General Ban Ki-Moon stated during the 2018 Aquavision conference, “Fish farming is central to being able to cope with climate change, ensure social responsibility, and meet sustainability goals while reducing environmental impact.” Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 19
What will the world look like in 2050? Salmon farming has one of the smallest carbon footprints of all protein farming methods, and it also one of the most sustainable due to lower requirements for energy, arable land bases, efficient feed conversion rates and minimal fresh water requirements. Moving forward, salmon farming will have a significant role to play on proving future generations with a clean, healthy and sustainable protein source. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 20
Supporting the UN’s Sustainable Development Goals and Action Platform. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 21
What does a salmon farmer, the United Nations and a person who eats farmed salmon all have in common? We all care about the future of the planet, and are doing things within our area of influence to help create a better future for our children. Not seeing the connection? Well, as salmon farmers we know that we produce one of the most delicious, healthy, nutritious and environmentally sustainable sources of protein. Our operations don’t require access to arable farmlands, use very little fresh water and have low energy requirements. We also partner with organizations to carry out wild salmon enhancement and protection initiatives - helping to support this iconic species. By eating farmed salmon, you are supporting a low-carbon footprint organization, and helping to reduce the demand on wild salmon stocks. In essence – you are having your salmon, and eating it too. The United Nations is well known for its efforts to improve conditions world wide – including their recently launched Sustainable Development Goals (SDGs) and Action Platform for Sustainable Ocean Business. Cermaq was the first company to join the Action Platform on Sustainable Ocean Business and while we support all of the SDGs, we feel we can help influence: SDG 2 – No Hunger; SDG 8 Good Jobs and Economic Growth; SDG 12 - Responsible Consumption; SDG 13 – Climate Action; and in particular, SDG 14 – Life Under Water. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 22
How Cermaq supports the UN’s SDGs United Nations SDGs Cermaq Commitment SDG 2 seeks to achieve food security and find sustainable solutions to end hunger in all its forms by 2030. The aim is to ensure that everyone – regardless where they live - has enough good-quality food to lead a healthy life. SDG 8 supports sustained and inclusive economic growth, and is a prerequisite for sustainable development which can contribute to improved livelihoods for people around the world. Economic growth can lead to new and better employment opportunities and provide greater economic security for all. DG 12 supports sustainable growth and development while minimizing the natural resources and toxic materials used, and the waste and pollutants generated, throughout the entire production and consumption process. SDG 13 acknowledges that climate change presents the single biggest threat to development, and its widespread, unprecedented effects disproportionately burden the poorest and the most vulnerable. SDG 14 recognizes that healthy oceans, seas and other marine resources are essential to human well-being and social and economic development worldwide. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 23
Our business strategy is all about respect. We farm our fish in some of the most beautiful places in the world. The mix of cold, clear and crisp ocean waters and quiet isolation is what makes our fish so healthy, happy and delicious. Maintaining this environment, and all that entails, is critical to maintaining our business operations. Knowing this, we are working hard to protect and enhance our surroundings, including the fish and animals who live in it. Respecting nature. We are all linked. One of our company values is long-term vision. We rely on healthy, thriving oceans and an abundant marine ecosystem to produce our healthy salmon. If the oceans suffer, our business, the people we provide food for and the livelihood of our employees will suffer. Ecosystem integrity and access to marine resources are necessary for us to grow our salmon and provide the world with healthy, fresh and nutritious salmon We work through partnerships with local associations and groups, including many First Nations communities and organizations, to support ocean clean-up projects, shoreline and intertidal cleanup and restoration, as well as support for wild salmon through habitat restoration and hatchery enhancement projects. Respecting the basic human right to access healthy, nutritious foods. Salmon is one of natures “super-foods.” This amazing fish is rich in minerals, vitamins, protein and healthy Omega-3 oils. Salmon has been shown to reduce the risk for cardiovascular disease and reduce the risk for a large number of other health risks such as improving bone health, controlling blood pressure and reducing the risk for certain types of cancers. Salmon has also been linked to healthy weight and a decreased chance of Type 2 Diabetes. Natural fish stocks and traditional fishing is not able to meet the growing demand for sustainable protein. Our farmed salmon is a sustainable way to provide the world with access to healthy, nutritious and delicious salmon for generations to come. Responsible production and the value chain approach. Current farming and food production techniques will not be adequate to supply our growing global demand for fresh food, water and energy. A major shift in the global food supply system is going to be required – and farming our oceans is going to have a large role to play in that. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 24
We are actively working to meet environmental requirements and operate in a socially responsible manner. To lower our environmental footprint, we work to optimize our value chain – defined as the flow of our business, from egg to plate - by identifying, managing and monitoring risk. Aquaculture Stewardship Council (ASC), Best Aquaculture Practices (BAP), and Global G.A.P are independent third-party certifications, which help drive our commitment to continuous improvement. Respect for the needs of the planet. And its inhabitants. The production of food is a major part of our climate challenge and contributes to a significant amount of global greenhouse gas (GHG) emissions. Moving forward, how we farm and source our food will need to dramatically change. With sustianable aquaculture, we can continue to provide sustainable and healthy salmon, while helping reduce the overall pressures on the planet. Cermaq has developed a Carbon and Energy Management Program for all its operations globally, with the objective of reducing GHG emissions and energy use, enhance social lisence to operate and lower operating costs. Being at the forefront of sustainable aquaculture, salmon farming has the potential to drive innovation in climate-friendly seafood and healthy protein choices going forward. Providing opportunity and respecting our employees, the communities where we operate and First Nations. Salmon farming contributes to rural jobs and creates indirect benefits through spending, wages and opportunity (called the value chain). According to the UN, fisheries and aquaculture support the livelihoods of 12 percent of the world’s population. Approximately 60 million people are directly employed by fishing and aquaculture, with an additional 140 million people employed through the value chain. Cermaq contributes to local value creation in many ways. We provide jobs, we purchase and use local businesses, contractors and suppliers, we support community events and initiatives through sponsorship, in-kind and participation. We also provide education and learning opportunities through on the job training and specialized programs for youth and communities. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 25
Partnerships We work closely with all of our strategic partners to ensure we are producing sustainable and high-quality salmon in a responsible manner so that we can provide healthy, nutritious and delicious salmon for generations to come. 5. Current Aquaculture Activities in Nova Scotia Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 26
Attach a description of your current aquaculture activities in Nova Scotia, including the level of production for each lease you hold, the reasons for the production levels (if they are not maximized), and the contributions to the Nova Scotian economy associated with the operation(s). In evaluating this section, the Department will review information such as: consistency with the information the Department has on file for the operator and their current aquaculture activities; and the level of site utilization on existing aquaculture sites. Cermaq Canada does not currently have aquaculture activities in Nova Scotia. 6. Knowledge and Experience Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 27
Attach description of your relevant knowledge and experience. This can include education, business experience, aquaculture experience, previous aquaculture compliance history, previous experience in community engagement, proposed management team (if known), other relevant information to demonstrate the technical, community engagement and business skills available to execute the proposed development. In evaluating this section, the Department will review information such as: the relevance of experience to the proposed aquaculture development, years of relevant experience, and past operational success. The Cermaq Canada team have decades of local and international experience; we are salmon experts. Our broad scope of experience ranges from technical, environmental, community engagement and business skills. Cermaq Canada’s Executive Team Third-party relationships and certifications. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 28
Cermaq Canada works with several independent third-party certification organizations and complies with stringent regulations and criteria to ensure we are producing our salmon in a sustainable, safe and ethical manner. We currently hold certifications through the Aquaculture Stewardship Council (ASC), the Best Aquaculture Practices (BAP), and through the Occupational Safety Standard of Excellent (OSSE). Certified farms sites are regularly audited to ensure these tough standards continue to be met. Visit the ASC website at: https://www.asc-aqua.org/ to find out more. You can learn more about Best Aquaculture Practices and the certification process on their website at: https://www.bapcertification.org/ Find out more about OSSE and the certification process on their website at: http://www.safetyalliancebc.ca/osse/ We are the supporters of the United Nations Sustainable Development Goals (SDGs) and have been named the most transparent seafood company (Seafood Intelligence Transparency Benchmark 2017). 7. Market Plan Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 29
Attach a description of your basic market plan. For example: what is the product you will be selling (rough/whole, processed, value-added, etc.); what is the anticipated price; who is your target market; how will you distribute your product; and how will you promote your product? In evaluating this section, the Department will review information such as: is there evidence of a plan to sell, promote, and distribute the product; is this plan reasonable? Cermaq Canada will be selling fresh, whole, head on Atlantic salmon initially, with the potential for further value adding being done at a later date. It will depend on market demand and processing capacity. Marketing plan removed due to commercial sensitivity. Please refer to the Cermaq Canada Corporate Brochure and Cermaq Canada Sustainability Brochure for additional information: Cermaq Canada’s 2018 Sustainability report. Cermaq’s sustainability reports and annual reports can be viewed at the following link: https://www.cermaq.com/wps/wcm/connect/cerma q/cermaq/our-company/annual-report/ Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 30
Cermaq Canada’s corporate brochure. This brochure can be viewed at the following link: https://www.cermaq.com/wps/wcm/connect/295ad 532-64a3-4161-9b3b- 38a6eb5eef3d/Cermaq+Brochure.pdf?MOD=AJPERES &CONVERT_TO=url&CACHEID=ROOTWORKSPACE295 ad532-64a3-4161-9b3b-38a6eb5eef3d Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 31
8. Financial Capacity Attach a description of your financial ability to carry out the proposed development. This could include confirmed and expected financial resources for this development; top line revenues and expenses, and EBITDA three years back (if applicable) and one production cycle forward; strategic relationships that can assist with the viability of the proposed development; other relevant information to demonstrate the financial ability to execute the proposed development. In evaluating this section, the Department will review information such as: are the financial resources adequate for the proposed production level identified, and are the sources of financing identified debt or equity based, and are they secure. Commercially confidential Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 32
9. Public Engagement Attach a description of your plans for engaging with the public during the scoping period, should you be successful in obtaining an aquaculture option to lease. Include also a description of how you will remain engaged with the public throughout the term of a lease, should you be successful in your application. In evaluating the section, the Department will review information such as: who will you engage with; how will information be provided to the public meeting outlined in regulation that the Option Holder must hold; how you will receive information from the public; and what is the relevant experience of the lead on public engagement during the scoping. Cermaq’s approach to public engagement Cermaq has started to reach out to communities and associations in the identified areas, and plans to launch an extensive public engagement program to determine and address concerns raised by community, fishermen, associations and special interest groups. As an organization, we believe in transparency, accountability and conducting open, two-way engagement opportunities. If approved, the next stage of the project will involve a public announcement of our intent to investigate the possibility of expanding our operations into Nova Scotia. Following the announcement, Cermaq will immediately launch thorough engagement with local communities, fishermen, associations and governments, along with further investigations into possible site viability. Through engagement, Cermaq plans to identify biophysical and social impacts, as well look for opportunities to add value and provide benefits to other industry, communities and associations. Cermaq will be establishing an office in the Guysborough region, which will serve as our main consultation office, and plan to open satellite locations in those regions in which we have identified possible farm opportunities. After gathering advice on the best method of engagement, we will be hosting open houses in the summer through to late fall, and will be aiming to engage with communities, fishermen, associations, local municipalities and special interest groups to gather feedback and look for ways to address concerns and build shared value. We do not have a target or end-date for our consultation. We will depend on the feedback received, and input collected to determine next steps and potential timelines. Cermaq will engage with the Mi’kmaq Nation in a separate and parallel process. Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 33
Nova Scotia Expansion Investigation and Engagement Timeline Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 34
10. Other Information Include any other information that you would like to be considered in review of this request. For more information about Cermaq Canada please visit: cermaq.com/wps/wcm/connect/cermaq-ca/home facebook.com/cermaqcanada instagram.com/cermaqcanada/ twitter.com/CermaqCan youtube.com/watch?v=vf6pZDTle0M youtube.com/watch?v=slWKpfTicJg Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 35
Public Notice and Disclosure You are advised that in the event of a successful option request application, Fisheries and Aquaculture may disclose, in accordance with the departmental Routine Access Policy, a proponent’s name, as well as the nature, geographic area, and scale of the proposed development associated with an Aquaculture Option to Lease. Privacy Statement The personal and business confidential information collected on this form and any attachments (“this form”) will be used by the Nova Scotia Department of Fisheries and Aquaculture (“Fisheries and Aquaculture”) for the purpose of deciding on your request for an Aquaculture Option to Lease. All information collected is subject to the Freedom of Information and Protection of Privacy Act (“FOIPOP”) and will only be used or disclosed in accordance with that Act. By signing and submitting this form, I acknowledge that I have read, understand, and accept the above statement regarding the collection, use and disclosure of the personal information provided on this form. I also hereby certify that this information provided on this form is true and correct. February 28, 2019 Signature of Proponent Date Request for an Aquaculture Option to Lease February 2019 to Nova Scotia Fisheries and Aquaculture page 36
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