ijiunediate demand could raise prices when 

 supplies tighten; there is considerable 

 concentration of ownership in the process- 

 ing end with price leadership a natural 

 consequence. 62/ As noted earlier, the 

 Royal Commission on Price Spreads of Food 

 Products in a report issued in September 

 of 19^9 recommended legislation to enable 

 fishermen to bargain more effectively over 

 prices . 



Price movements in Canadian groundfish 

 are fundamentally influenced by the United 

 States market for frozen fillets and blocks. 

 Prices paid Canadian fishermen are there- 

 fore to some extent influenced by present 

 wholesale prices in the United States. New 

 England producers assert that the price of 

 Canadian imports has brought economic 

 disaster to the New England industry. Cana- 

 dian processors, on the other hand, claim 

 that the prices they receive for their fish 

 are the result of international marketing 

 factors, which are reflected in the United 

 States price. °^l 



Canadian ex-vessel prices for cod, 

 haddock, and ocean perch at key ports have 

 shown greater stability over the years. 

 Based on 19li9=100, the index numbers of 

 prices for cod, haddock and ocean perch to 

 fishermen in the Maritimes and Quebec were: 



Year 

 1956 

 1957 

 1958 



Cod 



98.3 

 87.3 

 99.0 



Haddock 

 75.6 

 80.3 

 101.8 



Ocean 

 perch 



72.2 

 75.5 

 87.7 



Source: Economics Service, Department of 

 Fisheries, Quebec. 



Prices paid at the leading New England 

 haddock and ocean perch ports in the same 

 three years show the following relationship 

 to 19U9. 



Year 



Cod 

 105 



loU 



137 



Haddock 



90 

 110 

 135 



Ocean 

 perch 



87 

 90 

 98 



In 1957 in both countries prices showed 

 little or no advance over 19ii9 levels. 

 Cod and haddock prices were up somewhat in 

 New England although ocean perch prices 

 were 10 percent lower. In Canada, 1957 

 groundfish prices were well below 191*9 

 levels. There were shortages of haddock in 

 1958 and this resulted in general price 

 advances in both New England and Canada. 

 Canadian prices for haddock and cod were 

 still barely at 19l;9 levels and ocean 

 perch prices were well below them. One 

 explanation for the sharp price rise for 

 haddock and cod in New England is the 

 effect of a daily fresh fish demand re- 

 acting to lower supplies. The fresh fish 

 market is not as important in Canada, where 

 most fresh landings are destined for quick- 

 freezing. In contrast with haddock, ocean 

 perch prices are comparatively stable. In 

 both countries ocean perch landings are 

 sold as frozen fillets in the interior 

 United States market. 



The general stability of New England ex- 

 vessel prices up to 1958 in the face of 

 declining landings of major groundfish 

 species meant depression in the industry. 

 It adversely affected both fishermen and 

 boat owners . Fishermen often had to be 

 content with the minimum broker payment in 

 Boston and with a stable share of declin- 

 ing catch values in other ports. Labor 

 costs to the owner in Boston rose to the 

 extent that "broker" trips raised labor's 

 proportionate share of catch values. 



The situation was somewhat different 

 for the Canadian vessel operator. He saw 

 his labor force take a stable per unit 

 share of the catch value but did not have 

 to contend with guaranteed minimum pay- 

 ments. More importantly, the fishermen's 

 gross share and his own gross revenues ad- 

 vanced in spite of stable or even declining 

 unit prices as total landings by deep-sea 

 craft increased substantially. Canadian 

 Atlantic Coast haddock landings nearly 

 doubled between 19U9 and 1957 while ocean 

 perch landings rose from 2 million to 35.5 

 million pounds between 19li9 and 1958. 



Clearly, the ex-vessel price system is 



62/ Ibid., p. U9. 



53/ One Canadian processor stated that, because of the existence of these factors, the 

 Canadians could lose the United States market if they were to raise their prices. 



32 



