Outlook for Key Markets

• The economic situation is improving in the United States as shown by the main economic and financial indicators in recent months. The unemployment rate has fallen 0.8 percentage points since last September to 8.2%. The upturn in the American economy should be reflected in the Canadian economy and help exporters relative to the strength of the loonie. The U.S. remains the principal export market for Canadian seafood with 62% of the total value of exports in 2011.
• In terms of the Euro zone, it is expected that several economies will contract this year, although the European recession is proving to be more moderate than expected. For the U.K., forecasts call for almost zero growth in 2012 because of the Euro zone problems and the imposition of austerity measures in its budget. The European Union represents the main export market for Canadian shrimp.
• Japan, a major market for snow crab, will return to a growth position in 2012, with production resuming and reconstruction getting underway following last year’s earthquake. In China, although the economy has begun to slow, robust growth above 8% is nonetheless expected for this year. China is an expanding market for Canadian seafood, with exports reaching a record $355 million in 2011.
• Analysts predict that the Canadian dollar will remain close to parity with respect to the US dollar during 2012. The strength of the Canadian dollar is a determining factor of demand and the price received by Canadian fishers, particularly for species for which the price is set in international markets.

^f : forecasts as of April 2012