The money will go towards sustaining jobs and operations of the Nova Scotia lobster processor. (Photo: D B Kenney Fisheries Limited)

Seafood processor to receive loan for lobster season

CANADA
Monday, November 30, 2009, 15:30 (GMT + 9)

Nova Scotia seafood processor D B Kenney Fisheries Limited will continue to play a key role in the 2009 lobster season with support from the provincial government. The firm will receive a loan guarantee of CAD 2.5 million (USD 2.35 million) to maintain its operations and jobs through the Industrial Expansion Fund.

A significant contributor to the Brier Island and Digby County economies, the family-owned and operated business employs 70 workers and gives work to numerous local fishers and their crews. It processes local seafood and ships it to the national and international markets and touts yearly sales of around CAD 15 million (USD 14.1 million).

“This is an investment in sustaining jobs and growing the economy and seafood sector in southwest Nova Scotia,” said Economic and Rural Development Minister Percy Paris.

“It will also help sustain a competitive market for harvesters of lobster, scallop and fresh groundfish in the province. The company has a strong management team with a wealth of experience and expertise to move it forward,” he highlighted.

Over 80 per cent of Nova Scotia’s seafood production is exported annually; the seafood industry produces the second largest exported product in the province.

At the same time, the industry has faced a considerable amount of challenges in the past several years, such as increasing competition and fluctuations in market prices for its products. Mounting global competition is prompting these Canadian processors to focus on the fresh fish market for its better margins and lesser operating costs than those of the frozen fish market.

“We are pleased to receive government support for this important sector and company,” said owner and operator of DB Kenney Daniel Kenney Junior. “Our shareholders have invested in a vital restructuring process focusing on profitable business lines and we are prepared to move this business into the future.”

The Industrial Expansion Fund and other like projects are assisting businesses in their growth, expansion and safeguarding and creation of jobs that are beneficial for the economy. The fund uniquely offers financial support through loans and guarantees to offset the effect of the several traditional funding sources currently reluctant to provide such services.

By Natalia Real
editorial@fis.com
www.fis.com