Stop the Transformation of Freshwater Fish Marketing Corp (FFMC)
Stop the Transformation of Freshwater Fish Marketing Corp (FFMC)
The Issue
BACKGROUND
The Department of Fisheries and Oceans Canada (DFO) recently announced it intends to "Transform" the Freshwater Fish Marketing Corporation (FFMC) into a "harvester-led entity" via an "open, transparent and competitive process" involving 2 steps:
1) An Expression of Interest (EoI) solicitation (completed) resulting in the disclosure of 10 parties ostensibly interested in acquiring FFMC.
2) A Request For Proposals (RFP) (late 2024) with a winning proponent to be selected by DFO after a competitive bid process
A Ministerial Advisory Panel prepared a report in 2018 outlining several recommendations and options for transforming FFMC:
https://www.dfo-mpo.gc.ca/fisheries-peches/consultation/ffmc-cpea/transformation-ffmc-cpea-eng.html
The primary recommendation of the report was to transform FFMC into a harvester-led business federation of regional fisher groups and/or processors.
In 2019, an Interlocutor was appointed by DFO to take further steps to transform FFMC including conducting consultations with fish harvesters and other stakeholders resulting in this report:
FFMC is a federal Crown Corporation solely owned by the Government of Canada since 1969. Its main fish processing facility and headquarters is located in Winnipeg, MB.
ISSUES
1) The concept of forming a harvester-led business federation of regional fisher groups and/or processors has not and will not occur insofar as the RFP process is concerned. The EoI response demonstrates that no such "federation" exists currently nor is one being organized. Respondents are regional organizations, community based or private corporate entities.
2) None of the due diligence, collaboration and negotiation outlined in the Interlocutor's Report has taken place between DFO and the "Interim Committee". In fact, the Interim Committee is no longer active or relevant. Instead a competitive RFP bid process has been introduced by DFO - a process that was not contemplated in either the Advisory Panel or the Interlocutor's Reports
3) The Advisory Panel Report recommended a 3 year transformation process starting in 2019. It is now late 2024 and no such process has been undertaken. The delay in DFO's engagement has rendered its proposals virtually irrelevant and no longer applicable to a sector that has long since adjusted to an open and competitive market. In other words, DFO's intervention in the form of divesting FFMC is no longer necessary or advisable. There is no longer a problem requiring a solution in the form of FFMC transformation. In the last 5 years FFMC has adapted fairly well to an open and competitive market and it still holds a dominant position as the primary buyer of fish from commercial harvesters.
4) The vast majority of commercial harvesters do not want to see FFMC divested into private hands because the transfer brings significant risk of failure or service decline. Most fishers are happy with the improved open market diversity that includes options to sell to FFMC or other private corporate buyers. Fishers finally have choice and most are quite content to continue selling to FFMC - hence its dominant position in the market. Anything that risks its demise or position in the market would be detrimental to the interests of fishers. The notion of "don't fix what isn't broken" certainly applies here. Fishers have fought hard for an open market with buyer competition that maintains reasonable prices. Fishers don't want market competition jeopardized - it's healthy the way it is.
5) The RFP process is fundamentally flawed and does not at all reflect what was contemplated in the previous reports and recommendations. The RFP will award FFMC to a very narrow interest group that will undoubtedly alienate other groups, regions and ethnicities. This will result in limited scope and mandate for the new organization and severely threaten its market share and viability.
OUR RECOMMENDATION
For the above reasons we urge fishers, community leaders and other stakeholders to outrightly reject the transformation of FFMC and call for an immediate abandonment of the process by DFO including cancellation of the pending RFP. The unnecessary transformation of FFMC must be halted immediately. Please indicate your opposition to the transformation of FFMC by electronically signing this petition. We will ensure it is presented to DFO along with clear direction that as primary stakeholders we reject the transformation of FFMC and instead call for efforts to be re-directed to the improvement of the current corporation and its services. We look forward to participating in those constructive endeavors.
Thank you/Miigwetch/Ekosi
1
The Issue
BACKGROUND
The Department of Fisheries and Oceans Canada (DFO) recently announced it intends to "Transform" the Freshwater Fish Marketing Corporation (FFMC) into a "harvester-led entity" via an "open, transparent and competitive process" involving 2 steps:
1) An Expression of Interest (EoI) solicitation (completed) resulting in the disclosure of 10 parties ostensibly interested in acquiring FFMC.
2) A Request For Proposals (RFP) (late 2024) with a winning proponent to be selected by DFO after a competitive bid process
A Ministerial Advisory Panel prepared a report in 2018 outlining several recommendations and options for transforming FFMC:
https://www.dfo-mpo.gc.ca/fisheries-peches/consultation/ffmc-cpea/transformation-ffmc-cpea-eng.html
The primary recommendation of the report was to transform FFMC into a harvester-led business federation of regional fisher groups and/or processors.
In 2019, an Interlocutor was appointed by DFO to take further steps to transform FFMC including conducting consultations with fish harvesters and other stakeholders resulting in this report:
FFMC is a federal Crown Corporation solely owned by the Government of Canada since 1969. Its main fish processing facility and headquarters is located in Winnipeg, MB.
ISSUES
1) The concept of forming a harvester-led business federation of regional fisher groups and/or processors has not and will not occur insofar as the RFP process is concerned. The EoI response demonstrates that no such "federation" exists currently nor is one being organized. Respondents are regional organizations, community based or private corporate entities.
2) None of the due diligence, collaboration and negotiation outlined in the Interlocutor's Report has taken place between DFO and the "Interim Committee". In fact, the Interim Committee is no longer active or relevant. Instead a competitive RFP bid process has been introduced by DFO - a process that was not contemplated in either the Advisory Panel or the Interlocutor's Reports
3) The Advisory Panel Report recommended a 3 year transformation process starting in 2019. It is now late 2024 and no such process has been undertaken. The delay in DFO's engagement has rendered its proposals virtually irrelevant and no longer applicable to a sector that has long since adjusted to an open and competitive market. In other words, DFO's intervention in the form of divesting FFMC is no longer necessary or advisable. There is no longer a problem requiring a solution in the form of FFMC transformation. In the last 5 years FFMC has adapted fairly well to an open and competitive market and it still holds a dominant position as the primary buyer of fish from commercial harvesters.
4) The vast majority of commercial harvesters do not want to see FFMC divested into private hands because the transfer brings significant risk of failure or service decline. Most fishers are happy with the improved open market diversity that includes options to sell to FFMC or other private corporate buyers. Fishers finally have choice and most are quite content to continue selling to FFMC - hence its dominant position in the market. Anything that risks its demise or position in the market would be detrimental to the interests of fishers. The notion of "don't fix what isn't broken" certainly applies here. Fishers have fought hard for an open market with buyer competition that maintains reasonable prices. Fishers don't want market competition jeopardized - it's healthy the way it is.
5) The RFP process is fundamentally flawed and does not at all reflect what was contemplated in the previous reports and recommendations. The RFP will award FFMC to a very narrow interest group that will undoubtedly alienate other groups, regions and ethnicities. This will result in limited scope and mandate for the new organization and severely threaten its market share and viability.
OUR RECOMMENDATION
For the above reasons we urge fishers, community leaders and other stakeholders to outrightly reject the transformation of FFMC and call for an immediate abandonment of the process by DFO including cancellation of the pending RFP. The unnecessary transformation of FFMC must be halted immediately. Please indicate your opposition to the transformation of FFMC by electronically signing this petition. We will ensure it is presented to DFO along with clear direction that as primary stakeholders we reject the transformation of FFMC and instead call for efforts to be re-directed to the improvement of the current corporation and its services. We look forward to participating in those constructive endeavors.
Thank you/Miigwetch/Ekosi
1
The Decision Makers
Petition created on August 12, 2024