FFAW/FANL AGREEMENT

       APRIL 2, 2002

 RE SHRIMP CAPS

 Further to paragraph 7 of 2002 Shrimp Agreement (Appendix E) the parties agree as follows:

 1.         To ensure an orderly harvest, production and marketing of northern shrimp (SFA6), the parties agree to limit the quantity of shrimp landed by each individual SFA6 shrimp permit holder to the following maximum amount (cap) by area of residence.

                        2J - 460,000 lbs.

                        3K North - 550,000 lbs.

3K South - 340,000 lbs.

4R - 325,000 lbs.

3L - 150,000 lbs.

 These are interim harvesting caps to be reviewed by the various fleets when the Shrimp Management Plan is released to reflect any quota increases.

 The various fleets will review landings on a monthly basis beginning May 31, 2002 with a view to increasing the individual harvest limits outlined above if necessary in order to achieve the objective of landing the full <65' quota in SFA6.  The parties will meet as necessary to discuss progress toward this objective and to consider options for achieving it.

Notwithstanding the trip limits prescribed in Appendix “E”, there will be a maximum of one trip per vessel in 3L with a cap of 38,000 lbs. plus 5% tolerance, for a total of 39,900 lbs.

 2.                  Fish Harvester’s Resource Centre (FHRC) will be the exclusive dockside monitoring company for the <65' Northern Shrimp Fishery and TAVEL Limited will be the exclusive dockside grading company.  These arrangements can be amended by mutual agreement of the parties.  The parties agree that the Dockside Monitoring company (Fish Harvester’s Resource Centre) will provide timely information upon request to shrimp buyers as to the landings and date of landings by individual permit holders for the purpose of facilitating the individual maximum landings outlined above.

 

                              FFAW/FANL Shrimp Agreement - 2002

                                                                  Appendix “E”

The prices and related terms and conditions for shrimp for 2002 are as follows.  This Agreement applies to shrimp harvested by inshore vessels <65 feet in SFA’s 5 and 6, and in NAFO Areas 4R and 3L.

1.                  Prices will be paid on the basis of count per pound, as per the attached price schedule which is included in and forms part of this Agreement.

2.                  Reject Shrimp - Shrimp graded at 2.0 grams and under will be excluded when determining the count for pricing purposes.

3.                  Sampling Protocol - Count will be based on the results of random sampling as per the attached table.  Each sample will be approximately 500 gm.

4.                  Trip Limits   (includes all landings for a trip, including reject and personal use shrimp.)

April 1 - May 31st                                                  50,000 lbs. per trip

June & September                                                  45,000 lbs. per trip

July & August                                                          30,000 lbs. per trip

October 1 to end of season           50,000 lbs. per trip

 Each shrimp harvesting licence holder will have an annual trip limit tolerance of 7% of his harvesting “cap” of northern shrimp.  In addition Gulf-based harvesters will have a separate tolerance of 7% of their Individual Quota of Gulf (4R) shrimp which will apply to their landings of 4R shrimp.

 Any harvester who exceeds the trip limit outlined above will be paid for the amount in excess of the trip limit to a maximum of 10% of the trip limit in effect at the time, until his annual tolerance has been used up.  The amount charged against his annual tolerance will be the amount for which he is paid above and beyond the trip limit in effect at the time.

 Thereafter, the harvester will not be paid for any amount beyond the trip limit in effect at the time of landing.  Processors engaged in purchasing shrimp beyond the tolerances outlined above and where trip limits are further exceeded will pay the harvester for the amount of the trip limit (minus personal use) and will make a separate payment for any additional amount purchased.

 This additional payment will be made to the bank account established by the parties for that purpose.  The additional payment will be made at the same time that the harvester is paid. Funds will be spent for such purposes as determined by the FFAW/CAW Shrimp Harvesters’ Negotiating Committee.

 An example of the application of the Trip Limit Tolerance is attached to this appendix.

 5.                  Arrears in paying these additional payments into the fund will be penalized by interest charges at the rate of 2% per month effective 30 days after the date on which each payment is due and compounded monthly.  The cost of arbitration proceedings entered into for the purpose of enforcing this provision shall be shared on a 50:50 basis between the processor involved and the fund outlined in Clause 4.

 6.                  The parties agree that discharge, handling and trucking of shrimp will be in accordance with the Discharge/Handling/Trucking Protocol implemented by the parties.

 7.                  The parties will use their best efforts to establish an agreement on shrimp harvesting caps which will form part of this agreement.

 8.                  Subject to Paragraph 14, the duration of this Agreement shall be April 1st, 2002 to December 31st,  2002, inclusive.  All plants will have a four-week closed period.  On the Island, this period will be August 3rd  to September 1st, 2002.  In Labrador, the closed period will be the first four weeks of the season, unless the parties are advised otherwise by the plant operating in Labrador.

9.                  The parties agree to maximum sales of six million pounds per week during the period from June 30 to August 3, 2002, inclusive, for an overall maximum of 30 million pounds during that period.  A joint FANL/FFAW Committee (two members each unless mutually agreed otherwise) will meet on or before June 20, 2002 to develop a specific management plan to meet the above targets.

10.             Shrimp must be not greater than 3° C. at the time of discharge.  Temperatures must be taken in the hold of the boat.

11.             The parties agree to the following maximum trip duration (dock to dock):

April, May & October to end of season                                                            120 hours

June & September                                                                                               112 hours

July & August*                                                                                                    100 hours 

*Where applicable

 Payment for trips longer than the maximum will be subject to production.

 For the purpose of determining trip duration, each vessel must hail in and hail out at a toll-free number provided and staffed by the buyers.

12.             The parties recognize that certain fishing areas at times produce yellowing of the shrimp (liquification of the liver).  Harvesters undertake to move away from affected areas when the problem arises.

13.             Notwithstanding the provision of Paragraph 9, either party has the right to give notice of intent to re-negotiate prices within 14 days in the event of significant unforeseen change in market prices.  The right to give such notice commences July 1, 2002.

14.             The terms and conditions of this Agreement may be amended by mutual consent.

 

DISCHARGE/HANDLING/TRUCKING PROTOCOLS -  SHRIMP

The following protocols for shrimp discharge, handling and trucking provide processors, dischargers and transporters with a results based action plan for ensuring that shrimp is maintained at the proper temperatures and holding conditions required to maximize quality. These protocols are in accordance with the management plan, the task force report and the Department of Fisheries and Aquaculture’s Fish Inspection Regulations. Processors have the responsibility to ensure that these protocols are adhered to and are responsible for ensuring that their shore agents and truckers abide by these protocols.

 Requirements (as per the Fish Inspection Regulations: 417/78 s22)

15.              

·                    Maintenance of shrimp in an enclosure or area of containment in which the relative humidity is greater than 75%;

·                    Protection of shrimp from physical damage, contamination and weather at all times;

·                    Stowage of shrimp in a container so that the depth of shrimp and ice does not exceed 90 centimetres but in any event so that the minimum distance between the shrimp and ice and the top of the container is 4 centimetres. In addition, DFA will monitor and report on the industry’s agreement that the maximum net weight of shrimp in boxed containers will be 60 pounds per box (with 10% tolerance) and stowage of shrimp in bags at a maximum net shrimp weight of 25 pounds per bag (with 10% tolerance); and.

·                     The utilization of handling practices that minimize the downgrading of shrimp from the boat through processing.

 

Prerequisites

·           Adherence by harvesters to established protocols and regulations on: temperature, box or bag weight and handling.

·           Shrimp landings not meeting established guidelines, i.e., where grading samples include any spoiled or tainted shrimp, will be immediately reported to DFA for inspection.

 Protocols

Unloading and Transport

·            Unloading will occur at a suitable storage area which is conducive to maintaining shrimp at temperature of 0 to 3 degrees Celsius;

·            Acceptable truck loading facilities must be available at the wharf. Required to eliminate shrimp crushing caused by throwing pans aboard a truck;

·            Ice must be available for icing the shrimp aboard the truck;

·           Transport methods and handling must be conducive to maintaining the temperature at 0 to 3 degrees Celsius and average box/bag weights at 60/25 pounds of shrimp (with 10% tolerance) respectively;

·           Boxes must be stowed “so that the depth of fish (shrimp) and ice does not exceed 90 centimetres but in any event so that the minimum distance between the fish and ice and the top of the contain is 4 centimetres.... A container ... may be placed on top of another container provided no pressure is, as a result, exerted on fish (shrimp) in the container on which it is placed” (Fish InspectionRegulations: 417/78s22 26 (l) (g) and (2));

·            Prior to departure from the dock, truck operators must obtain a record detailing: time(s) and location(s) of loading, weight per lot, temperature records at the time of loading and should develop a loading plan identifying each load. Temperatures must be checked and recorded prior to discharge.

Plant Holding

·            Shrimp should be stored in lots in a CFIA approved holding area;

·            Temperatures and box or bag stowage must be maintained within established guidelines during holding;

·            Records detailing the arrival time of the shrimp, its temperature and bag/box weights at arrival, holding room temperatures, and lot locations must be maintained.