THE PRICE per POUND What does it really cost to get fish out of the ocean and onto your plate? By Quentin Casey

22 Atlantic Business Magazine | November/December 2017

n the winter afternoon high school, and thought of Nick- of February 17, 2013, erson like a son. “He knew he was the crew of the Miss Ally pushing it to the limit,” Symonds O added. “But he had to, because he hurried to get the last of their had big bills.” longlining gear back on deck. The storm they had hoped The Atlantic fishery is a to avoid was approaching, multi-billion-dollar industry. In bringing hurricane-force 2015, commercial landings totalled winds and waves that could $2.8 billion, representing the lion’s share of all landings in Canada. easily swallow a boat the Licences, depending on the Miss Ally’s size. species, can range in cost from tens of thousands of dollars up The five men aboard the Miss to hundreds of thousands. There Ally—a 12-metre Cape Islander from are currently Atlantic Bluefin tuna Woods Harbour, N.S.—were licences listed for around $180,000. for halibut far off the Nova Scotia Some lobster and crab licences can coast, where the continental shelf fetch more than $1 million. falls off to deeper water. In July, federal minister Katlin Nickerson, the boat’s Dominic LeBlanc said licences are 21-year-old captain and owner, was “over-valued” and indicated he likely in the wheelhouse, watching wants to work with the industry to the progress of his crew on deck: make the licensing process “fairer”. Billy Jack Hatfield, 33; Joel Hopkins, “Fishing licenses (sic) have 27; Cole Nickerson, 28; and Tyson become over-valued in recent Townsend, 25. years, especially here in south- Environment Canada had west Nova Scotia. This makes warned for nearly two days that it extremely difficult for young a winter storm, headed up from fishermen to access the fishery, and Cape Hatteras, would hit Nova more often than not prevents new Scotia on the 17th. Yet the Miss entrants altogether,” LeBlanc said Ally crew remained at sea to haul in the text of a speech delivered in their gear, despite the obvious and Western Shore, N.S. approaching danger. Why? “A system where access to a As I have detailed in my recent fishing license is determined by book, The Sea Was in Their Blood, who you’re related to, or how many THE the captain’s fatal decision to stay hundreds of thousands of dollars at sea and retrieve his gear was you have, or how much debt you influenced by many factors. are willing to take on, seems For example, the boat’s overhead unfair.” spotlight malfunctioned, making It’s unclear, however, how it difficult to locate the longlining LeBlanc intends to lower licence gear. Plus, Nickerson was fishing prices. “It’s not going to be easy,” per partly with gear loaned by a friend he added. PRICE and fellow Woods Harbour captain, Melanie Sonnenberg, president John Symonds. Looking back, of the Canadian Independent Fish Symonds fears Nickerson did not Harvesters’ Federation, says licence want to abandon the gear. prices have risen for many species, There was also the issue of though not all. And while she money. Nickerson owed a lot of it. agrees licence prices must allow for Two years earlier, Nickerson paid new, young entrants, she notes the $700,000 for the Miss Ally, a lobster current prices aren’t arbitrary. licence, and fishing gear. He was “The fishery itself has grown aided with a down payment from in terms of its value. And that’s POUND his maternal grandparents, but the reflected in the licence prices,” What does it really cost to get fish out of the bulk of the total was financed with said Sonnenberg, whose group a loan from the Nova Scotia Vessel represents thousands of fishermen ocean and onto your plate? Loan Program, which provides on both coasts. “If landings aren’t By Quentin Casey money for fishermen to build, buy, strong you’ll see licences come and upgrade boats. back on their own. It’s all about As Symonds told me while I was supply and demand.” researching the book: “The boy was For many fishermen, she noted, in debt to his eyeballs, let’s face it.” a licence is seen as part of an Symonds gave Nickerson his first eventual retirement package, so the fulltime crewing job, right out of value cannot simply be stripped

atlanticbusinessmagazine.com | Atlantic Business Magazine 23 away. “It is a sign of prosperity, there’s no doubt of that,” she added of the prices. “We don’t want to do anything that upsets that.” I asked Sonnenberg if financial pressure is influencing the deci- sions fishermen make on the water. “I suppose it’s always a concern,” The crew lost in the sinking of the Miss Ally (l-r): Captain Katlin Nickerson, Billy Jack Hatfield, Joel she said. She added, however, that Hopkins, Cole Nickerson, Tyson Townsend there’s an industry-wide tradition of informal mentorship that helps Even Mike McGlone, a Nova respect what it takes to get there. ensure young fishermen—often Scotia fishmonger who has worked And yet we’re the first to complain those with big debts—conduct in fish retail and wholesale for that it’s too expensive.” themselves “wisely and safely.” 25 years, admits he did not fully For fishermen, the only way to “People look after their own,” she consider the physical danger and pay for big boats and expensive said. financial risk endured by fishermen. licences is to catch a lot of fish. Yet “Until I read the book I didn’t fully prices can fluctuate wildly, partic- The financial pressures appreciate what it takes on the water ularly for lobster, which was worth involved with fishing extend and the risks associated with it, or the more than $2 billion in Canadian beyond licences. Quota is another passion and the commitment that fish- exports in 2016, making it the coun- expensive component. Then there’s ermen have,” he said in an interview. try’s most valuable export. the cost of owning a . McGlone has sent copies of Nickerson entered the fishery Even 50-foot lobster and crab boats The Sea Was in Their Blood to during a period of poor prices. can cost well over $500,000. his clients in Atlanta, New York, During 2011/12, his first lobster The average consumer, biting into Toronto, and Montreal. He hoped it season with his own boat, the early their lobster roll, pan-fried haddock, would help enlighten them about price was just $3-4 a pound—a or halibut steak, likely lacks a full the realities of the industry. price that offers no chance of profit. appreciation of the financial burden “We take for granted that there’s A year later, the price was similarly borne by fishermen, let alone the going to be fresh seafood on the poor. And it was influencing Nicker- potential physical risks fishermen counters in grocery stores and on son’s decision-making on the water. endure to get seafood from ocean plates in restaurants,” he added. In late December 2012, Nickerson to plate. “We do not fully understand and and his lobster crew—Hatfield and Hopkins—steamed from Woods Harbour to haul his lobster pots. It was a stormy day. The wind was screeching across the harbour and no other boats were on the water. The conditions made it difficult to work. Suddenly, a wave crashed over the stern, completely covering Hatfield and Hopkins. The two A CECTI men barely managed to cling to the swamped deck as the water drained away, leaving them soaked amidst a tangle of gear and traps. Aailable at: Nickerson quickly retreated to shore. John Symonds—Nickerson’s friend and former captain—later expressed alarm about the decision to haul in such rough conditions. Byron’s “What are you doing?” he asked Nickerson. 188 ater Street According to Symonds, with St. ohns NL 709.753.5555 lobster fetching just $3.50 a pound, the young captain was barely making any money and was behind on his payments. “John, I got some big bills coming at me and they’re not getting paid,” Nickerson told Symonds. Two years of poor lobster prices were causing Nickerson to fall behind financially. “He got himself in quite the hole,” concluded Nickerson’s father, Todd, himself a .

24 Atlantic Business Magazine | November/December 2017 away. “It is a sign of prosperity, That’s why Nickerson was keen there’s no doubt of that,” she added to fill his boat with halibut in the of the prices. “We don’t want to do winter of 2013. Halibut prices anything that upsets that.” typically rise 25–50 per cent in I asked Sonnenberg if financial winter because the supply is low; pressure is influencing the deci- fewer fishermen are willing to go sions fishermen make on the water. after halibut in dangerous winter “I suppose it’s always a concern,” conditions. At the time, halibut was Buying or selling a The crew lost in the sinking of the Miss Ally (l-r): Captain Katlin Nickerson, Billy Jack Hatfield, Joel she said. She added, however, that Hopkins, Cole Nickerson, Tyson Townsend fetching $7 to $10 a pound—a big there’s an industry-wide tradition incentive to catch some. business? Considering of informal mentorship that helps Even Mike McGlone, a Nova respect what it takes to get there. But a key fact remained: Nick- ensure young fishermen—often Scotia fishmonger who has worked And yet we’re the first to complain erson and his crew had to go those with big debts—conduct in fish retail and wholesale for that it’s too expensive.” offshore in the middle of winter to a sale to management themselves “wisely and safely.” 25 years, admits he did not fully For fishermen, the only way to fill the Miss Ally. “People look after their own,” she consider the physical danger and pay for big boats and expensive or the next generation? said. financial risk endured by fishermen. licences is to catch a lot of fish. Yet Late in the afternoon of “Until I read the book I didn’t fully prices can fluctuate wildly, partic- February 17, after finally getting his The financial pressures appreciate what it takes on the water ularly for lobster, which was worth gear aboard, Nickerson reported—via The right support makes involved with fishing extend and the risks associated with it, or the more than $2 billion in Canadian satellite phone—that he had 15,000- beyond licences. Quota is another passion and the commitment that fish- exports in 2016, making it the coun- 20,000 pounds of halibut in the Miss all the difference. expensive component. Then there’s ermen have,” he said in an interview. try’s most valuable seafood export. Ally’s hold, worth up to $160,000. the cost of owning a fishing vessel. McGlone has sent copies of Nickerson entered the fishery Separating that catch and the Even 50-foot lobster and crab boats The Sea Was in Their Blood to during a period of poor prices. wharf were 130 kilometres of can cost well over $500,000. his clients in Atlanta, New York, During 2011/12, his first lobster storm-churned ocean. The deci- The average consumer, biting into Toronto, and Montreal. He hoped it season with his own boat, the early sion to stay at sea was risky—and their lobster roll, pan-fried haddock, would help enlighten them about price was just $3-4 a pound—a ultimately fatal. or halibut steak, likely lacks a full the realities of the industry. price that offers no chance of profit. Huge seas hammered the boat, appreciation of the financial burden “We take for granted that there’s A year later, the price was similarly with waves towering more than 10 borne by fishermen, let alone the going to be fresh seafood on the poor. And it was influencing Nicker- metres high. One wave, measured potential physical risks fishermen counters in grocery stores and on son’s decision-making on the water. by a nearby weather buoy, rose endure to get seafood from ocean plates in restaurants,” he added. In late December 2012, Nickerson to nearly 20 metres. Nickerson “We do not fully understand and and his lobster crew—Hatfield and reported hurricane-strength winds to plate. Get all your questions answered by the Transactions Advisory team Hopkins—steamed from Woods of 80 knots (150 km/h). Harbour to haul his lobster pots. It Shortly after 11 p.m., the boat’s at Grant Thornton Corporate Finance Inc.—we know Atlantic Canada. was a stormy day. The wind was Emergency Position-Indicating We’ll meet your needs with our full service approach that focuses on screeching across the harbour and Radio Beacon (EPIRB) was detected providing deal support at every stage of the transaction. Our services no other boats were on the water. by satellite, triggering a flurry of are built upon: The conditions made it difficult activity on shore. to work. Suddenly, a wave crashed Despite a two-day air and water • Integrity and reputation over the stern, completely covering search, the five men were never • Dedicated and experienced transactions, M&A, Hatfield and Hopkins. The two found. men barely managed to cling to When I talked to John Symonds debt advisory, and valuation professionals the swamped deck as the water in 2015, two years after the Contact us to see if we can add value at any critical point in the drained away, leaving them soaked sinking, he’d recently bought a new transaction lifecycle of your business. amidst a tangle of gear and traps. boat. He had two framed photos in Nickerson quickly retreated to shore. the wheelhouse: one of his mother John Symonds—Nickerson’s friend and one of Nickerson, his former GrantThornton.ca/CorporateFinance and former captain—later expressed crewman. In the photo, Nickerson alarm about the decision to haul in was smiling and holding a lobster. Kevin Fraser Jillian Murray such rough conditions. Symonds had also recently Partner, Atlantic Practice Partner, Transactions “What are you doing?” he asked purchased another lobster licence. Leader, Transactions T +1 902 491 7745 Nickerson. He wished he had the extra licence T +1 902 491 7797 E [email protected] According to Symonds, with in 2013. He would have given it to lobster fetching just $3.50 a pound, Nickerson. Perhaps having more E [email protected] the young captain was barely lobster to catch would have kept Louis-Pierre Francoeur making any money and was behind the 21-year-old out of the halibut Director, Transactions on his payments. fishery. Perhaps Nickerson would “John, I got some big bills coming still be alive. T +1 902 491 7546 at me and they’re not getting paid,” “I can’t say enough good about E [email protected] Nickerson told Symonds. him,” Symonds told me of his lost Two years of poor lobster prices friend. “He was just number one. He were causing Nickerson to fall was a go-getter.” Audit | Tax | Advisory behind financially. “He got himself in quite the hole,” concluded FEEDBACK © Grant Thornton Corporate Finance Inc. A Canadian Member of Grant Thornton International Ltd. Nickerson’s father, Todd, himself a * [email protected] fisherman. a @AtlanticBus; @QuentinCasey; #ThePricePerPound

atlanticbusinessmagazine.com | Atlantic Business Magazine 25

Docket: GT-17-108 Client: Grant Thornton Project: Atlantic Business Mag Transactions Ad Filename: GT-17-108_AtlanticBusinessTransactions_Resize_2017-10-06 Live Area: 4.625” × 9.875” Trim Size: 4.625” × 9.875” Bleed Size: 4.625” × 9.875” Colors: 4 Colour Prepared At 100% Created By: Andy Kelly Created On: 10/10/2017 @ 02:10PM

36 Distillery Lane, Suite 250 • Toronto, ON M5A 3C4 t 416 360-6691 ryanedwards.ca