Nova Scotia clears the way for kelp farming, an untapped market that could be worth millions

Nova Scotia will allow shellfish farmers to add kelp to aquaculture leases in a move to get an industry started that could be worth nearly $40 million in the next three to five years, according to an economic analysis released this week. 

Until now, farming the flowing yellow-orange seaweed has been approved only as a pilot project in the province. Michelle Samson, director of aquaculture with Premium Seafoods in Cape Breton, was among the first.

“Last year, we had a ton of kelp. It was awesome,” Samson told CBC News.

Like other seaweeds, kelp can be processed — often dried and crushed — and used as an additive to food, health and beauty products. But farming kelp is in the very early stages.

“Last year, we outperformed other sites in Nova Scotia. But why? We don’t really know that yet,” Samson said. “It will be really interesting to see once we get growers farming kelp in Nova Scotia.”

The Ecology Action Centre, an environmental group based in Halifax, released an economic analysis on the potential impact in Nova Scotia of capturing about 10 per cent of the existing North American market.

‘That’s really good business’

Arlin Wasserman, the co-author of the analysis and the founder and managing director of Changing Tastes consultancy, said it could translate into $38 million for farmed and processed kelp in the next three to five years.

“That’s a really good business,” Wasserman told CBC News.

Wassermen presented his findings this week at an event sponsored by the Ecology Action Centre in Lunenburg, N.S. He said the province is “exceptionally well positioned” to gain a significant share of a $200-million regional market in Canada and the United States.

“Because of the natural resource, how close we are to population centres, there’s a history and an infrastructure for the seafood industry,” Wasserman told the crowd of provincial officials, aquaculture operators and environmentalists.

Wasserman urged the province to act fast to take advantage of North American market demand which the report predicted could reach 53 million kilograms annually in just a couple of years.

The report said Nova Scotia should aim for about 1,080 hectares of farmed ocean, estimating it could produce 5.4 million kilograms of kelp within three to five years.

What must happen to kick-start industry

The report noted an additional $20 million in local economic activity is possible from the purchase of goods and services, increased tourism, new jobs and wage creation. It estimated another $111 million could be added in manufacturing processed products.

But all of this is a long way from today.

Charlene LeBlanc runs the LeBlanc Seeded Lines, a land-based kelp seedling business in Lower West Pubnico.

LeBlanc said more lease approvals are needed to move the industry forward.

“I do hear a lot of frustration that people are waiting and waiting and they keep getting promises to have leases added, especially those who have existing shellfish leases,” she said. “And they’re still waiting.”

Shannon Arnold, associate director of marine programs at the Ecology Action Centre, is also involved in a pilot project in Mahone Bay, outside Halifax.

Speeding up approvals

Arnold said it’s time to speed up approvals.

“Right now, it’s taking a few years to get folks on the water to get those permits in place. The government has committed to right-sizing the regulations for marine plants and shellfish farming,” Arnold said. 

“We want to work with them to make that happen so that Nova Scotia doesn’t get left behind by our neighbouring jurisdictions who are very keen on kelp as well.”

This week, the Nova Scotia Department of Fisheries and Aquaculture informed the aquaculture industry that it will allow amendments to existing shellfish licences to add kelp as a species.

Susan Corkum-Greek, Nova Scotia’s minister of economic development, said the province will have to work with federal departments to develop the kelp business. She said her department has “voiced some pretty strong concerns” about “tie-ups” at Fisheries and Oceans Canada.

“We don’t want to be ready to go and still have hurdles,” Corkum-Greek said.

Samson said kelp is new to the government and growers, but she’s been at it for three years.

She said kelp is a perfect fit to farming sea scallops, her company’s main aquaculture business, which has busy seasons in spring and fall. Kelp is a winter crop harvested in May.

“It’s a really great opportunity for shellfish growers and Nova Scotia to possibly keep people all year long, which is really great,” she said.

Optimism for kelp

Samson said she’s optimistic about the prospects.

“We finally have some hatcheries that are producing. We have some leases that are able to put kelp on their lease and see how it grows — which is great. So I think this will really be a test year for kelp in Nova Scotia.”

Premium Seafoods in Arichat has been experimenting with growing kelp.