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Opportunities and Challenges for the Seafood Industry after Nova Scotia lifts Groundfish Moratorium




Nova Scotia lifts groundfish moratorium

On May 13, 2025, Nova Scotia announced the lifting of a 30-year moratorium on groundfish (e.g., cod, haddock, halibut, flounder, pollock) buying and processing licenses, effective August 1, 2025, alongside a seven-year freeze on other seafood licenses. This decision, driven by a comprehensive policy review, aims to revitalize the province’s $2.4 billion seafood industry, which supports 20,000 jobs and accounts for 36% of exports in 2024. The end of the groundfish moratorium, in place since the 1994 collapse of stocks, reflects cautious optimism about stock recovery and offers significant opportunities for local businesses. However, the recovery of groundfish stocks remains complex, with ecological, regulatory, and market challenges. Below, we explore the state of groundfish recovery, its implications for Nova Scotia’s fishermen and businesses, and how to apply for the newly available licenses, with a focus on ensuring locals can capitalize on this opportunity. Harbourview Lending & Consulting stands ready to assist with business planning and analysis for those looking to seize this moment.

 

The State of Groundfish Recovery in Nova Scotia

 

The collapse of groundfish stocks, particularly Atlantic cod, in the early 1990s was a defining moment for Nova Scotia’s fishing industry, leading to a federal moratorium on commercial cod fishing in 1992 and the provincial groundfish license freeze in 1994. Overfishing, combined with environmental shifts, decimated stocks, wiping out thousands of jobs and a $700-million industry. Since then, recovery efforts have been shaped by strict federal quotas from Fisheries and Oceans Canada (DFO), scientific research, and ecosystem management. Here’s a detailed look at the recovery status of key groundfish species in Nova Scotia as of 2025, based on available data:

 

1. Atlantic Cod:

   - Status: Recovery remains slow and uneven. In areas like the Eastern Scotian Shelf (4VsW), cod stocks are still in the “critical zone,” with biomass well below the Limit Reference Point (LRP) needed for sustainable harvesting. For example, the 3Ps cod stock off southern Newfoundland, relevant to Nova Scotia’s adjacent waters, had an estimated spawning biomass of 15,840 tonnes in 2020, only 24% of the 66,000-tonne LRP. (https://www.saltwire.com/nova-scotia/cod-stock-in-area-3ps-off-southern-newfoundland-in-critical-zone-until-at-least-2022-dfo-395759)

   - Challenges: High natural mortality, particularly from grey seal predation, and environmental changes (e.g., warming waters) hinder recovery. Research suggests that historic overfishing altered the Scotian Shelf ecosystem, complicating stock rebuilding. (https://www.dfo-mpo.gc.ca/fisheries-peches/ifmp-gmp/groundfish-poisson-fond/groundfish-poisson-fond-4vwx5-eng.html)

   - Progress: The 2J3KL Northern cod stock off Newfoundland, reopened for commercial fishing in 2024, shows cautious optimism, with a 2024-2025 Total Allowable Catch (TAC) set conservatively to ensure sustainability. Nova Scotia’s cod stocks may benefit from similar management if recovery continues. (https://atlanticgroundfishcouncil.ca/)

 

2. Haddock:

   - Status: Haddock stocks, particularly on Georges Bank (5Z), show signs of recovery, with the 2021-year class being the largest since 2013. However, biomass has declined in recent years, leading to significant TAC reductions in 2023 (e.g., Canada set a 385-tonne TAC for Eastern Georges Bank cod). (https://atlanticfisherman.com/georges-bank-2023-haddock-quota-cut/)

   - Challenges: Canada and the U.S. failed to agree on a shared 2023 haddock quota due to differing views on stock productivity, highlighting uncertainties in recovery timelines. Environmental changes and variable recruitment (new fish entering the population) add complexity. (https://www.cbc.ca/news/canada/nova-scotia/canada-united-states-no-agreement-haddock-quota-1.6703973)

   - Progress: Recent data suggest haddock are returning to traditional growth patterns, offering hope for sustainable harvesting if TACs remain conservative. In 2022, Canadian haddock landings on Georges Bank were 5,033,297 kg, valued at $7,679,212. (https://atlanticfisherman.com/georges-bank-2023-haddock-quota-cut/)

 

3. Atlantic Halibut:

   - Status: Halibut stocks are in a healthier state, with a 2024-2025 TAC of 2,466 tonnes set for NAFO Divisions 4RST (including parts of Nova Scotia’s waters). The stock is considered in the “healthy zone” of DFO’s precautionary approach. (https://www.glf.dfo-mpo.gc.ca/en/node/20237)

   - Challenges: Recruitment remains variable, and bycatch in other fisheries can impact stocks. Strict management, including a 75-tonne allocation for DFO research, ensures sustainability (https://www.glf.dfo-mpo.gc.ca/en/node/20237)

   - Progress: Halibut is a high-value species, and its relative stability supports commercial and recreational fisheries, with longline fleets targeting it effectively. (https://www.dfo-mpo.gc.ca/fisheries-peches/ifmp-gmp/groundfish-poisson-fond/groundfish-poisson-fond-4vwx5-eng.html)

 

4. Redfish:

   - Status: Redfish (Sebastes mentella) in Unit 1 (Gulf of St. Lawrence) is a success story, with a 2023 spawning stock biomass of 2,302 kilotonnes, 8.7 times the upper reference point of 265 kt. This led to the reopening of the Unit 1 commercial redfish fishery in 2024, with Nova Scotia allocated 33% of the quota. (https://atlanticfisherman.com/emerging-commercial-redfish-fishery-a-chance-for-n-s-industry-to-do-some-really-good-things/)

   - Challenges: Growth has slowed since 2021, and no significant recruitment has occurred since 2011–2013. Biomass is expected to decline without fishing, requiring careful management. (https://atlanticfisherman.com/emerging-commercial-redfish-fishery-a-chance-for-n-s-industry-to-do-some-really-good-things/)

   - Progress: The fishery’s phased reopening, supported by industry consultation, aims to balance economic gains with sustainability. Louisbourg Seafoods has been marketing redfish globally since the 1990s, showing strong potential. (https://atlanticfisherman.com/emerging-commercial-redfish-fishery-a-chance-for-n-s-industry-to-do-some-really-good-things/)

 

5. Other Species (e.g., Flounder, Pollock, Silver Hake):

   - Status: Silver hake remains abundant, with a 2023 DFO assessment placing it in the healthy zone and a Canadian quota of 15,000 tonnes (though underutilized due to weak markets). Flounder and pollock stocks vary, with some, like 4T winter flounder, under rebuilding plans with no directed commercial fishery. (https://www.cbc.ca/news/canada/nova-scotia/failed-fish-plant-up-for-sale-in-nova-scotia-1.6828635)[](https://www.glf.dfo-mpo.gc.ca/en/node/20237)

   - Challenges: Bycatch in multi-species fisheries and market demand limit exploitation. For example, silver hake’s low market value has led to business failures, like Meridien Atlantic in 2023. (https://www.cbc.ca/news/canada/nova-scotia/failed-fish-plant-up-for-sale-in-nova-scotia-1.6828635)

   - Progress: Stable stocks like silver hake offer opportunities for new processors if market development improves.

 

Overall Trends:

- Ecosystem Shifts: Research indicates that overfishing altered the Scotian Shelf ecosystem, reducing body sizes, maturation rates, and age structures, which complicates recovery. Predation by grey seals and climate-driven changes (e.g., warming waters) further delay rebuilding. (https://www.dfo-mpo.gc.ca/fisheries-peches/ifmp-gmp/groundfish-poisson-fond/groundfish-poisson-fond-4vwx5-eng.html)[](https://pmc.ncbi.nlm.nih.gov/articles/PMC5493592/)

- Management: DFO’s precautionary approach, with TACs and rebuilding plans, prioritizes long-term sustainability. However, recovery timelines are extended under climate change, with a 19% lower recovery probability for depleted stocks in non-fished scenarios compared to static models.[](https://pmc.ncbi.nlm.nih.gov/articles/PMC5493592/)

- Economic Context: Groundfish exports from Nova Scotia and New Brunswick were worth $155 million in 2015, with 81% to the U.S. Reviving this sector could boost economic output, but only if stocks and markets align. (https://www.dfo-mpo.gc.ca/fisheries-peches/ifmp-gmp/groundfish-poisson-fond/groundfish-poisson-fond-4vwx5-eng.html)

 

Implications for Fishermen and Businesses

 

The lifting of the groundfish moratorium opens new opportunities but also presents challenges for Nova Scotia’s fishermen and businesses:

 

1. Opportunities:

   - Increased Demand: New buyers and processors entering the market could increase demand for groundfish, potentially raising wharf prices for fishermen. This is critical, as limited buyers have historically suppressed prices. (https://halifax.citynews.ca/2025/05/13/nova-scotia-lifting-moratorium-on-seafood-buyer-and-processor-licences/)

   - Market Diversification: Processors can target high-value markets (e.g., sushi-grade redfish, premium cod loins) to boost exports, especially to the U.S., Spain, and Vietnam. (https://atlanticgroundfishcouncil.ca/)

   - Job Creation: The industry’s growth, particularly in southwest Nova Scotia, could create jobs in processing, cold storage, and related sectors, supporting coastal communities. (https://www.bnnbloomberg.ca/business/company-news/2025/05/13/nova-scotia-to-lift-licensing-moratorium-for-buyers-and-processors-in-seafood-sector/)

   - Redfish Potential: Nova Scotia’s 33% share of the redfish quota offers a low-risk entry point for new businesses, given the stock’s healthy status. (https://atlanticfisherman.com/emerging-commercial-redfish-fishery-a-chance-for-n-s-industry-to-do-some-really-good-things/)

 

2. Challenges:

   - Stock Limitations: Slow recovery of cod and variable haddock recruitment limit supply, risking overcapacity if too many processors enter. The Nova Scotia Seafood Alliance warns of potential market instability, as seen in past lobster price wars. (https://www.1015thehawk.com/2025/05/13/n-s-lifts-moratorium-on-fish-buying-processing-licenses/)

   - Regulatory Oversight: Stricter provincial accountability measures, including higher fines, and federal DFO quotas require businesses to navigate complex compliance. (https://halifax.citynews.ca/2025/05/13/nova-scotia-to-lift-licensing-moratorium-for-buyers-and-processors-in-seafood-sector/)

   - Environmental Uncertainty: Climate change and ecosystem shifts (e.g., seal predation) extend recovery timelines, requiring adaptive management. (https://pmc.ncbi.nlm.nih.gov/articles/PMC5493592/)

 

How to Apply for Groundfish Buyer or Processor Licenses

 

Starting August 1, 2025, Nova Scotia businesses can apply for groundfish buyer or processor licenses through the [Nova Scotia Department of Fisheries and Aquaculture](https://novascotia.ca/fish/). Here’s how to prepare and apply, ensuring local businesses are well-positioned:

 

1. Eligibility:

   - Applicants must be registered in Nova Scotia via the [Registry of Joint Stock Companies](https://beta.novascotia.ca/apply-joint-stock-company-registry).

   - Submit a detailed business plan covering your “who we are” statement, intended operations (e.g., species to buy/process), operational methods, and labor access.

   - No residency or nationality requirements apply, but businesses must comply with provincial regulations.

 

2. Application Process:

   - Applications open August 1, 2025, for groundfish and other species (except lobster and snow crab, which start January 2, 2026).

   - Apply through the Department of Fisheries and Aquaculture, likely via an online portal at [novascotia.ca/fish](https://novascotia.ca/fish/) or in-person at their Shelburne office (1575 Lake Road, Shelburne, NS B0T 1W0) or Halifax office (1800 Argyle Street, Suite 607, Halifax, NS B3J 3N8).

   - Pay a license fee (historically $100–$500, to be confirmed). Payments can be made online using Visa, MasterCard, American Express, Interac® Online, or debit card via an account at [novascotia.ca](https://novascotia.ca/).

   - Applications will be reviewed to ensure qualifications, with a focus on preventing speculative “suitcase buyers.”

 

3. Required Documentation:

   - A comprehensive business plan addressing the above criteria.

   - Proof of company registration in Nova Scotia.

   - For processors, facility details (e.g., equipment, location) to meet health and safety standards enforced by [Nova Scotia Environment](https://novascotia.ca/nse/).

   - Additional documents may be requested during the review.

 

4. Support Resources:

   - Contact the Department at [fisheries-licensing@novascotia.ca](mailto:fisheries-licensing@novascotia.ca) or (902) 875-7439 for guidance.

   - Engage with the [Nova Scotia Seafood Alliance](https://www.nsseafoodalliance.ca/) for industry insights and networking.

 

5. Key Considerations:

   - Licenses come with increased accountability, including higher fines for violations and enhanced monitoring.[](https://halifax.citynews.ca/2025/05/13/nova-scotia-to-lift-licensing-moratorium-for-buyers-and-processors-in-seafood-sector/)

   - Federal DFO quotas (e.g., [DFO Groundfish Management](https://www.dfo-mpo.gc.ca/fisheries-peches/ifmp-gmp/groundfish-poisson-fond/index-eng.html)) limit harvest volumes, so align your business plan with available supply.

   - Develop markets for groundfish (e.g., redfish, halibut) to mitigate risks from low-demand species like silver hake.[](https://atlanticfisherman.com/emerging-commercial-redfish-fishery-a-chance-for-n-s-industry-to-do-some-really-good-things/)

 

Strategies for Local Businesses to Capitalize

 

- Start Planning Now: Develop a robust business plan targeting high-value species like halibut or redfish. Research markets using the [Nova Scotia Seafood Export Directory](https://nsseafood.com/directory).

- Leverage Local Expertise: Partner with fishermen and existing processors to understand supply chains and stock availability. Attend industry events hosted by the [Seafood Producers Association of Nova Scotia](https://www.seafoodproducersns.ca/).

- Focus on Sustainability: Align with DFO’s precautionary approach to appeal to eco-conscious markets. Highlight sustainable practices in your business plan to strengthen applications.

- Mitigate Risks: Diversify products to include non-groundfish (e.g., scallops) to buffer against groundfish supply constraints. Monitor global trade issues, like Chinese tariffs, via [BNN Bloomberg](https://www.bnnbloomberg.ca/).[](https://www.bnnbloomberg.ca/business/company-news/2025/05/13/nova-scotia-to-lift-licensing-moratorium-for-buyers-and-processors-in-seafood-sector/)

 

Conclusion: Partner with Harbourview Lending & Consulting

 

The lifting of the groundfish moratorium is a historic opportunity for Nova Scotia’s businesses to tap into a recovering sector with global potential. While challenges like slow cod recovery and market uncertainties remain, species like redfish and halibut offer immediate prospects for growth. By preparing now and navigating the application process strategically, local entrepreneurs can drive economic prosperity in coastal communities.

 

Harbourview Lending & Consulting is committed to helping new and existing businesses succeed in this venture. Our expert team offers tailored business planning, market analysis, and regulatory guidance to ensure your application is competitive and your operations are sustainable. Contact us at ryan@harbourviewlc.com or visit www.harbourviewlc.com and schedule a consultation to start shaping your future in Nova Scotia’s seafood industry. Let’s rebuild this iconic sector together!

 

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Sources:

 

Note: Verify application details with the [Nova Scotia Department of Fisheries and Aquaculture](https://novascotia.ca/fish/) closer to August 1, 2025, as processes may evolve. For groundfish stock updates, consult DFO’s [Science Advisory Reports](https://www.dfo-mpo.gc.ca/csas-sccs/index-eng.htm).

 
 
 

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