Land-based halibut farmer receives boost from government
A unique Prince Edward Island business that has been operating in the province for several years is expanding thanks to a loan from taxpayers.
Halibut PEI began raising halibut on land as a pilot project in 2009. Using underground salt water wells, juveniles purchased off-Island were raised to market size. Now, the company is looking to further its sustainable business model by supplying its own juveniles for the operation.
Today, the Atlantic Canada Opportunities Agency (ACOA) announced they are providing a repayable loan of $495,000 to help establish a new hatchery which will be integrated into the halibut grow out facilities. The Government of Prince Edward Island is providing a repayable amount of $355,000 through the PEI Century Fund.
The Honourable Wayne Easter, Member of Parliament for Malpeque, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for ACOA; and the Honourable Heath MacDonald, PEI Minister of Economic Development and Tourism, made the announcement.
“This innovative land-based aquaculture business has shown great potential to make a significant contribution to the rural economy of Atlantic Canada. The Government of Canada is pleased to support such a forward thinking and environmentally sustainable approach, and to help Halibut PEI increase market opportunities,” said local MP Wayne Easter.
“Halibut PEI is a growing company that is expanding its markets and providing a unique food product to its customers. On Canada’s Food Island, the Province supports unique food producers like Halibut PEI, that supply niche markets in an effort to expand our economy, increase our exports, and provide job opportunities for Islanders”, said The Honourable Heath MacDonald, Minister of Economic Development and Tourism.
“The move will not only cut out the cost of buying and importing fish from out of province, it will also open new sources of revenue for the company,” said Jim Dunphy, president of Halibut PEI.
The company plans to expand by building a hatchery, allowing it to move one step back in the production process, buying eggs instead juvenile fish.
Maintaining a steady supply of 5 gram fish, which Halibut PEI has been growing into about 3,000 gram or 6 lb fish, has been a struggle lately, according to Dunphy.
"If you depend on others to produce them there are going to be timelines that they may not necessarily meet," he said.
“This new funding being provided by both the federal and provincial governments, together with new private sector investment from our shareholders, enables our company to move on with the second phase of our business plan, the establishment of this new hatchery that enables Halibut PEI Inc. to produce halibut juveniles in PEI for our own grow out here in Victoria as well as other grow out operations in Atlantic Canada and for the export market.”
Renovations to the Halibut PEI plant are already completed, and Dunphy expects to commission equipment in late July. He hopes to be rearing the first batch of eggs this fall.
Currently, seven full-time staff are employed at Halibut PEI and Dunphy said another five will be hired when the hatchery is fully operational this fall.
Dunphy says having a more reliable supply of juvenile halibut by rearing it in-house should allow the company to expand from its 70 tonnes it's producing now.
"We turn customers away all the time for our halibut," said Dunphy.
"When you grow halibut in a facility such as ours, you can go to the customers and offer it to them 12 months a year, and so we have to be careful and cognisant that we don't sell out our supply too early."
Most of Halibut PEI's customers are in Ontario, Quebec and further west, according to Dunphy, but one restaurant owner in PEI has also been a loyal customer from the beginning.
