by Steve Atkinson
The Record
Jan. 26, 2005
On the evening of January 19, Roberta Stevenson, CEO, Nuu-chah-nulth Shellfish Development Corporation (NSDC), was in Tahsis to make a presentation on the feasibility of a co-operative shellfish industry for interested residents.
Nearly four years ago the Village of Tahsis decided to invest in shellfish tenures to provide an economic opportunity in shellfish aquaculture for its citizens. The first tenure applied for is located in McBride Bay just off Nootka Island.
A Shellfish Co-operative Implementation Plan regarding the tenure was available to the public. One of the recommendations mentioned in the plan was that the Village of Tahsis should commission the development of a business plan.
The Village of Tahsis will also facilitate the development of the co-op. Things being considered in the development process are: arranged leases on tenure area and possible equipment; contractor to install the infrastructure; assisting in the technical structure of the co-op; liability of the co-op's Board of Directors; hiring of a manager; keeping all members informed of progress and the taking of at least four years until a profit is shown.
There are a number of key items which need to be addressed on Constraints and Issues. These are issues on development, operation and market.
In the development of the co-operative there has to be the identification of at least 10 prospective co-op members. These members must have lease eligibility and personal resources.
Constraints on the operation of the co-operative would be: no guarantee of a successful shellfish farm; scheduling; quality; opposition; fuel costs and high cadmium levels.
The BC shellfish market has important challenges, including the Canadian dollar. It is recommended that the co-op partner with NSDC and West Coast producers to explore and secure foreign markets.
The implementation plan had some other recommendations. For example, the layout plan shows the site has a capacity total of 100 rafts. In the starting up of the co-op it was recommended to get a 10 member commitment willing to invest in 5 rafts. This would have the shellfish farm at 50% capacity.
In addition, a manager is needed for the setup and running of the co-op. The annual manager's salary will be shared between the 10 members. The site is capable of handling additional capacity. As more members are added each members' contribution toward the managerial costs will be decreased.
Each of the members will also be provided with training. The Village of Tahsis should facilitate their training program.
A financial plan provided for the costs and revenues of building and operating 5 rafts: 3 rafts of shucking oysters and two rafts of single oysters. Each raft has lifetime expectancy of 10 to 15 years. It takes 2.5 years to grow a crop of shucking oysters and 1.5 years to grow a crop of single oysters. In order for a grower to have income each year it is necessary to seed 5 rafts: 3 with shuckers and 2 with singles over a period of three years. A grower could begin with a minimum of two rafts: 1 to grow shuckers and 1 to grow single shell oysters, while adding rafts in subsequent years.
The cost of starting and implementing the infrastructure of the co-op are estimated to be nearly $300,000. The Village of Tahsis is willing to cover the cost of the start up, recovering the cost through lease agreement to the co-operative.
The funding for development of a shellfish farm would be from the members and the co-operative itself. Each member would have to invest nearly $20,000 in the first year. An investment up to a total of nearly $54,000 over a period of 3 years would be required. This money will be used to build rafts, purchase equipment and seed.
It is assumed that the member will borrow up to $60,000 to become involved in this venture. Lending agencies present at the public meeting were Farm Credit, Community Futures Development Corporation of Strathcona and Ecotrust Canada.
In the implementation plan it mentioned about funding programs taken from "Agricultural Cooperatives; A start up guide." This guide also mentions a guideline that is stressed for a successful co-operative. This is to have membership in provincial and national associations. It can keep the new co-operative abreast of what others around the country are doing.
Concerns from the
large public turnout were impacts of nearby fin fish farm and toxic algae
blooms. Ms. Stevenson stated that shellfish are highly resilient to change
in the ocean's ecosystem.
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