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On Wednesday, structure staff fired their team at Grieg Seafoods NL in Marystown.
They were misrewhere when the company announced that it would postpone the structure at the salmon-to-ground aquaculture site, leading to market uncertainty due to COVID-19.
Perry Power, head of human resources at the Marystown site, told SaltWire that Wednesday’s fireds were hired through Grieg NL Development, the company that oversees the structure of the salmon farm on land and the livestock facility.
Power may simply not accurately say how many other people would be fired.
There were 193 other people hired in the structure process.
Power said some would remain in the entire smoltification building, which is almost finished.
But the next construction on the to-do list, the 10,000-square-foot post-smolt construction, is delayed.
In a press release on 21 October, Grieg Seafood NL said the resumption of the structure on land will feature global salmon markets.
Knut Skeidsvoll, regional director of Grieg Seafood Newfoundland, said: “The covid-19 pandemic has affected the entire world economy in a way that no one could have foreseen. Salmon markets are severely affected, leading to lower costs in all areas. a guilty company, we still do not see any selection at the speed of investment and, as a result, we have taken the difficult resolve to postpone the structure of the post-smolt building.
Skeidsvoll said the other parts of Grieg Seafood NL’s agricultural allocation will continue on time.
Marine sites have begun and will continue as planned for 2020 and 2021.
And the first salmon harvest will be held in 2022-2023, as planned.
“There are healthy fish in our ponds at the ground facility and we will store the first marine sites in 2021. “Skeidsvoll said.
The first harvest will take place in 2022/2023, where salmon will be put on the market according to our plans.
Power adds that another 53 people are hired at Grieg Seafood NL, who deal in particular with the aquaculture operation.
“We expect the long-term worker requirement to continue,” he said.
These come with biologists who will monitor fish in the nursery and at sea, sailors who will observe marine sites and others interested in the process of salmon expansion and harvesting.
This year has been volatile for seafood markets, according to sea product analyst John Sackton.
In a presentation to the annual general meeting of the Canadian Fisheries Council (CFC) on Tuesday, the analyst said the Canadian seafood market could be dubious in the coming months, depending on the final results of the US elections.
In the case of salmon, he said, they have been volatile due to closures in the food service industry.
Most salmon exported to the United States are shipped in the form of total fish, the preference of chefs in mid- and high-end restaurants.
“This market has collapsed due to the collapse in demand for food services,” Sackton said.
The value of the total salmon market in the United States has also declined this year, despite value spikes in July and September.
Some helped Canadian salmon exporters in 2020, Sackton said.
Norwegian and British manufacturers were unable to bring their products to the United States due to COVID-related shipping and shipping restrictions, and in September a trucker strike in Chile stopped salmon exports from the country.
There are also considerations about political uncertainty in the United States, about the lack of agreement to make a pandemic-related economic recovery plan bigger.
Paintless Americans so far have been getting $ 600 a week, which has kept them spending money. Seafood retail sales were flat, offering a market for Canadian manufacturers as COVID wiped out the place-to-eat business.
However, if unemployment benefits are reduced, the intake of seafood may be affected.
“If Trump is re-elected to the White House and does not produce a stimulus package or does not take steps for the spread of COVID, the economic slowdown can be simply severe,” Sackton predicted.
In Sackton’s view, the stability of the U. S. economy depends on a decisive victory through Democratic presidential candidate Joe Biden, who said he would provide a stimulus package to the country’s agreement with COVID-19.
Greig’s Skeidsvoll said the U. S. market is vital to the company.
And falling salmon costs by 2020 and continued uncertainty are forcing the company to make decisions in the immediate future.
“We are deeply convinced that this resolution has an impact on the loss of jobs in the local structure, especially since we know that many families are already suffering from the pandemic.
“We expect a recovery of the economy in Newfoundland and abroad,” Skeidsvoll said.
He added that while the pause in the structure will mean that the final touch of the land parts will take longer than originally planned, “this will not affect the final result. “
“Grieg Seafood Newfoundland is here to stay and will contribute to local employment and economic development, as expected, in the coming years,” Skeidsvoll said.
“We would like to thank the authorities, local suppliers, local communities in Marystown domain and especially our fantastic workers for the help and cooperation we have had with the pandemic.
Skeisdvoll added that the company will provide more updates as the assignment continues.
Grieg Seafood, an indexed company on the Oslo Stock Exchange, says it expects a loss of about $20 million (US) in the third quarter.
According to the publication of the fishing industry, Intrafish Greig’s inventory has dropped by 18 percent, and the company recently stopped negotiating its shares.
In September, the company will close its operations on the Isle of Skye in Scotland.
According to a corporate press release, 1,500 tons of salmon died at two sites in Skye, victims of a jellyfish incident, resulting in a loss of $8. 5 million (pounds) for the company.
The remaining 3 sites will be closed after the salmon harvest and Grieg plans to go to The Skye sites.
The company will also reduce prices until the end of 2020 and beyond.
However, the company said it still aims its long-term purpose of harvesting at least 150,000 tonnes of salmon from its operations until 2025.
And Newfoundland aquaculture is a component of that.
“With the acquisition of Grieg Newfoundland AS, we have taken a vital step towards achieving the 2025 goals,” the company said in its quarterly report. “The investment has a prospective long-term harvest of 30 to 45,000 tonnes of Atlantic salmon and includes exclusive long-term mining rights in Placentia Bay, a larger arable domain than the Faroe Islands. With its proximity to the east coast of the United States, the acquisition is our exposure to the U. S. market and underpins the 2025 strategy for our position as a global leader in sustainable salmon farming.
Earlier this year, the Government of Newfoundland and Labrador announced $30 million reimbursable to Grieg for the $250 million project.
Fisheries Minister Elvis Loveless will not be available for an interview Wednesday morning, but provided SaltWire with a statement.
He said the branch was evaluating the scenario of what the structure delay would mean.
“No cash has been paid to the company right now, and it will only sink if the milestones are reached,” Loveless said. At this stage, there is no explanation as to why cash will not flow because it is a wait and not a cancellation. Grieg Seafood Newfoundland trusted me that this was a painful resolution based only on global circumstances.
He said he was in constant contact with Grieg Seafood Newfoundland and was told that the structure delay would not make central operations.
“Although the post-smolt facility is intended to allow fish to grow and have a shorter production time at sea, it is not an infrastructure. Grieg Seafood Newfoundland assures us that healthy fish are being developed in its onshore facilities and that the first marine sites will be stored in 2021 as planned, with a first harvest in 2022/2023 and salmon will be marketed in accordance with the company’s plans.
The minister expressed optimism about the company’s operations in Placentia Bay.
“I am sure grieg Seafood Newfoundland is here to stay and will remain true to its commitment to contributing to local employment and economic progress over the next few years.