The coastal waters of Nova Scotia support some 400 aquaculture sites (not all in production), producing a range of finfish and shellfish species. The industry is comprised mainly of independent producers operating on a relatively small scale. Even the province's larger salmon and mussel farms tend to be smaller than their New Brunswick and PEI counterparts. Industry data gathered by the Nova Scotia Department of Agriculture and Fisheries indicates that 25-30% of aquaculture workers are full-time employees, the balance part-time and seasonal.

Production tends to be concentrated in few farms. Provincial aquaculture officials estimate that fewer than 20% of farms account for over 80% of production. For a variety of reasons, many of the sites (oyster in particular) are not in production.

The main species are salmon (Atlantic and steelhead account for two-thirds of total value), blue mussel and American oyster. Developing species include Arctic Char, halibut, scallop, striped bass, quahog and European oyster. In 2003, about 8,000 tonnes of product were shipped, with a total value of just under $40 million. Included in the revenue figure is the hatchery output, with about $4.5 million in sales.

The aquaculture sector started slowly in the early 1980s, with moderate growth into the early 1990s. It expanded rapidly after 1995, achieving a five-fold increase in the value of production (attributable mainly to salmon and steelhead). There followed two years of decline (attributable mainly to the failure of a large trout producer), with a recovery in 2003. Sales revenue, 1990-2003, is given in Figure 5.

The sector faces several challenges that, in combination, act to inhibit development and growth:

• natural limitations: though the province has 7,000 km of coastline and an abundance of sheltered inlets and bays, it also has a temperature regime whose extremes are at worst lethal, and at best lie outside the optimum for efficient growth of key species such as salmon, steelhead and American oyster. Culture of these species is naturally confined to a very few areas with limited carrying capacity. Water quality is also an issue in some coastal areas.
• technological and knowledge gaps: other than salmon, steelhead and mussels, culture techniques and growth parameters for key species (e.g., scallop, European oyster) would be considered in the development stage.
• hostile public environment: prospective growers face considerable opposition from established fishing interests (mainly lobster licence-holders) who fear a loss of fishing grounds, and from coastal land-owners who object on aesthetic grounds. This constrains access to some of the better areas.
• dilution of research and support: while a diversity of species may to some imply a diversity of opportunity, it seems also to have led to a dilution of research and development funds resulting in inadequate attention to any particular species.
• challenging regulatory regime: A common refrain amongst growers concerns the length of time it takes to obtain a lease - periods of 2-3 years are not uncommon. Some of the best sites are inactive or held by those with only a marginal interest in aquaculture.

Aquaculture is still in a developmental stage in Nova Scotia and this is reflected in economic data that show growth, but also wide swings in key results. The contribution to GDP rose four-fold between 1997 and 2000, rising from $5.7 million to just over $21.6 million in 2000. It then dropped precipitously to $10.1 million in 2001 due to the failure of a major producer. Employment (FTE) has fluctuated with production, increasing from 512 in 1997, peaking at 708 in 2000, and then dropping to 529 in 2002.

With a substantial share of salmon production controlled by New Brunswick-based farms, much of the Nova Scotia production is shipped to processing facilities there. Direct exports from Nova Scotia to customers outside Canada are generally in the $5-6 million range, about 25% of the farm gate value.

The industry makes a modest contribution to household income. The figures in Table 5 reflect employed labour only and exclude returns to the enterprise owner. The GDP figures would be a closer approximation to household income.

The contribution made by aquaculture to the Nova Scotia economy is summarized in Table 5.

The Nova Scotia fish processing sector consists of 295 licenced plants, with an estimated twothirds operating in 2004.³ The sector utilizes some 30 species, producing a wide range of fresh, frozen and value-added products. The number of licenced operations has remained stable since 1997, following a 10-year decline that saw plant numbers drop from a peak of 372 in 1988. Processing plants are concentrated in southwest Nova Scotia and Cape Breton.

The drop in plant numbers and number operating is attributable mainly to the decline in groundfish stocks. In 2002, about 90,000 tonnes of groundfish were landed in the Nova Scotia, down from about 175,000 tonnes in 1990. Though the local groundfish fishery continues to provide raw material for the sector, many plants depend heavily on frozen fish imported from Norway, Iceland and Russia.

Despite the challenges posed by the decline in groundfish, the Nova Scotia processing sector adapted, and by the end of the 1990s, approached the billion-dollar mark in total sales. It has since dropped back, though there has been some growth in employment (to just over 7,000) following several years of stability in the 5,000 range. This is attributable in part to the expansion of the crab processing sector where several new plants have come on stream in Cape Breton.

About 80% of the value of production is exported, mainly to the U.S., Europe and Japan. Lobster, scallop, snow crab and shrimp are the main commodity exports.

The economic importance of fish processing in Nova Scotia increased during the second half of the 1990s, and has since stabilized. The contribution to GDP rose from $173 million in 1995 to peak at just under $300 million (current dollars) in 1999. Employment as measured in full-time equivalents (FTE) fluctuated within the 5,000-5,500 range up to 2000, and then increased to the 7,300 level in 2002.

Industry Canada data shows that exports attributable to fish processing increased by 60% between 1995 and 2002, rising from $430 million to just under $690 million. Scallop, crab, shrimp and surf clam account for much of this export value. Groundfish, particularly cod and haddock, are also significant contributors (though much of the cod is imported, processed and re-exported).

The contribution of fish processing to household income fluctuated within a narrow range between 1995 and 2001, with a low of $104 million in 1996 and a high of $117 million in 2001. The high point came in 2002, with employment growing by just over 1,000 FTE and income reaching about $133 million.

The contribution made by the fish processing sector to the Nova Scotia economy is summarized in Table 6.