MarineHarvestCanada.com

Wharfside In This IssueMH Canada Q2 2012 – Good Progress in Production, but Margins Challenging . . . 1

MHC now Supplying Certified Salmon! . . . . 2

Forklift Operator will retire “when they chase me out of the plant” . . . . . . . . . . . . . . . . 3

Coming soon to a computer near you - email in “the cloud” . . . . . . . . . . . . . . . . . . . . . 3

Diana Pickwick Retires with Great Memories and New Friends . . . . . . . . . 4

Last Crop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Come out to our Salmon Barbeques . . . . . . . 5

Firing up the BBQ for a Great Cause . . . . . . . 5

Sayward Bike Rodeo . . . . . . . . . . . . . . . . . . . . 5

Great weather and great fun at the 16th Annual BC Aquaculture Slo-Pitch Tournament! . . . . . . . . . . . . . . . . . . 6

August 2012

CANADA

Please email comments, articles and ideas to Ian Roberts, Communications Manager

at ian.roberts@marineharvest.com

Comments about this Newsletter?

Did you Know?If two flies reproduced without predators

for a year, the resulting mass of flies would be the size of the earth!

Trivia time!Which of the following animals

has the longest recorded life span – the termite, chimpanzee, Indian elephant

or freshwater oyster?

Including the

margins from

sales MH Canada

reported a loss of

CAD 7.4 million

for the second

quarter of 2012 on

a harvest volume

of 10,569 MT. As

the consolidated

result of the first

quarter was break-even, the result Year To Date

(YTD) is equally a loss of CAD 7.4 million.

Given the current market situation the result,

as unsatisfactory as it may be, is in line with

expectations. In spite of the loss cash flow for the

quarter was good at CAD 12.4 million; we are

financially healthy!

Sales and MarketPrices were fairly stable

during the second

quarter but decreased

in the second half of

June on increasing

volumes out of Chile

and ample supply of

Sockeye from Alaska.

This trend has continued into July. Price back

to plant was CAD 4.42/kg as compared to CAD

6.48 /kg in Q2 last year. The negative influence

on net price due to the effects of kudoa should

be behind us now. Going forward kudoa will

have minimal effect as only one moderately

affected farm remains to be harvested. Average

HOG size was an impressive 5.56 kg, the result of

improved growth. Superior rate was 88 %.

Farm Production We have seen continued good growth in this

quarter, with a biomass production of 10,815

MT, which was 6 % above budget. YTD we stand

at 21,162 MT produced. Av. monthly mortality in

the quarter was 0.7%. High predator mortality

in the Port Hardy area and some BKD in the

Klemtu farms are the main causes. Measures

have been taken to prevent predator mortality

next winter. The IHN outbreak at a farm of a

competitor near Tofino has been contained in

that area and there have been no positives on the

East coast of the Island. The fish health situation

at all Marine Harvest farms has remained good

through this quarter.

The good growth

performance resulted

in a cost to stock of

CAD 2.81/kg, 3 %

better than budget

and we have every

expectation for this

trend to continue.

Processing Both plants functioned well during the quarter

with a primary processing cost of CAD 0.43/kg,

right on budget. Plant hygiene has been good

with Klemtu and PH VA meeting standards all

MH Canada Q2 2012 – Good Progress in Production, but Margins Challenging

By Vincent Erenst, Managing Director

Continued on page 2

MarineHarvestCanada.com

The bar has been raised for British

Columbia’s largest agricultural export.

Marine Harvest Canada (MHC), has

now achieved the Global Aquaculture

Alliance’s Best Aquaculture Practices (BAP)

certification at five marine salmon farm sites.

Third party audits of the BAP Salmon Farms

standard will continue at all remaining MHC

salmon farms.

Successful certification of these additional

sites will guarantee a continuous supply of

certified product for Marine Harvest Canada

customers.

“We are extremely pleased to have

achieved this certification milestone

which demonstrates our commitment to

environmental integrity and continual

improvement throughout our operations,”

states Clare Backman, Sustainability Director.

This announcement is an important step

in the company’s interest in receiving a

full “4 star rating” from BAP, which will

include certification of all its salmon farms,

processing plants, feed mill suppliers and

freshwater hatcheries.

The Global Aquaculture Alliance, the

leading standards-setting organization for

aquaculture seafood, is an international,

non-profit trade association whose Best

Aquaculture Practices program provides

comprehensive, metrics-based certification

for aquaculture facilities -- including farms,

hatcheries, feed mills and processing plants.

For more information visit www.gaalliance.

org and http://www.marineharvestcanada.

com/aquaculture_company_supplying_

certified_salmon.php

three months and PH primary falling slightly

behind for one month out of three.

In the middle of July we suspended VA

production as a result of increasingly

unfavourable contracts for fillets. We will

monitor the market situation going forward and

revisit this situation monthly.

Safety We have had one LTI during the quarter and 12

Minor Incidents (YTD 3 and 40). These results

are similar to those of last year meaning the

downward incident trend of the last 4 years has

not continued. Before anything else we must

focus on safety; we want everybody to come

home safe every time!!

Most MH Canada staff has completed

the Brainsafe course. Feedback from the

participants has been overwhelmingly

positive. We must now insure that what was

learnt becomes part of our culture and day to

day activities. A follow up program is being

developed and will be delivered this fall.

Outlook Market wise we expect the third quarter to

be the most challenging this year with prices

in North America potentially hitting very low

levels. In 2013 worldwide growth of production

will be much less than in 2011 and 2012. Hence

experts expect the market to get better going

forwards.

In the meantime we need to get through the

remainder of this year. Continued good growth

and tight cost control will help us to get through

this down cycle.

2

MHC now Supplying Certified Salmon!

Continued from page 1 “MH Canada Q2 2012 – Good Progress in Production, but Margins Challenging”

MarineHarvestCanada.com 3

Forklift Operator will retire “when they chase me out of the plant”

Coming soon to a computer near you - email in “the cloud”

By Gina Forsyth

It’s not unusual for people in their late 60s to kick back, relax, and enjoy their retirement after a life filled with successful, not

to mention, tiring work. However, that’s not for Ken Edgar, Forklift Operator at Marine Harvest’s processing plant in Klemtu, which is located on the northern coast of mainland BC.

Since 2005, Ken has been the full-time forklift operator at the processing plant. He’s responsible for moving pallets of packaged salmon from the processing line to Vancouver-bound trailers. He also unloads pallets and empty totes from the incoming trailers. While he received his forklift ticket after he was hired, he brought many years of work experience to the position. “I enjoy the people at work,” says Ken, adding that if he gave up work now, his life would have less meaning.

Prior to this job, Ken spent years at the aluminum smelter in Kitimat, was a

commercial fishermen as well as a logger. Following two years on the Kitasoo/Xai’xais Band-owned harvest boat ‘Alexis Jane’, Ken applied for a position at the plant.

Ken was born in Bella Bella but is a member of the Kitasoo/Xai’xais Band. He and his brothers and sister were brought up in the Klemtu area, where his father worked for many years in the fish cannery.

Ken and his wife Barbara have five grandchildren and one great-grandchild. When not at work, Ken relaxes by fishing and spending lots of time with the grandchildren.

By Gina Forsyth

Cloud computing. It’s a phrase you may have heard.

Well – get ready – you’ll soon experience it firsthand. What is it, you ask? Glad you asked. Wikipedia defines it as “the delivery of computing and storage capacity as a service to a heterogeneous community of end-recipients”. Say what?!

Steve Mooney, IT Manager, explains it more simply, “Cloud computing is basically software as a service - the bringing together of infrastructure and shared services.”

This global Marine Harvest initiative, driven by significant cost savings, was studied carefully before the decision was made to move ahead. Furthermore, “a great deal of research went into choosing which company

we wanted to launch us into the cloud. Marine Harvest Norway negotiated directly with Microsoft and the two companies agreed upon a monthly fee based on the total number of users for using their Office 365 software,” states Steve.

The date for the official rollout is yet to be determined, although a small number of pilot users in Marine Harvest Canada as well as Scotland, Norway and the other BUs are already using the new system. “This gives us the chance to kick the tires and make sure that when we’re ready to expand the rollout to everyone, that we’ve got solid experience behind us,” he says.

An advantage of cloud computing is its scalability. “If we need to add a significant number of users, it’s easily and quickly handled through this system. If down the road we need to decrease the number of

users, that’s simple to do and we don’t have hardware or software sitting idle afterwards,” explains Steve.

Although there will be a certain amount of learning involved once company email is moved to the cloud, Steve doesn’t foresee this new system being a major challenge for anyone to overcome.

A concern for some has been the security of their data. However, the contract with Microsoft includes clauses that legally bind it to ensure that all Marine Harvest data is kept confidential. “We’re certainly not the only corporate client using Microsoft 365. More and more companies are regularly moving towards this form of computing just like we are and cloud computing simply wouldn’t exist if company-specific information was accessible to anyone outside our company,” concludes Steve.

Ken Edgar

MarineHarvestCanada.com

At Diana Pickwick’s retirement party held last month near Port McNeill, there was a statement echoed by many who’ve had the pleasure of working with her. “We’ll miss the baking,” stated many staff.

While there’s no doubt that Diana can bake a mean banana loaf amongst other tasty

treats, it isn’t her baking that she wants to be remembered for. “I’m a mother and grandmother, so baking is just a part of life,” says Diana, humbly.

Indeed, Diana’s storied career at Stolt Sea Farm and Marine Harvest is something to be very proud of. For over 20 years, she

has been an integral part of the company’s production team, with a specific expertise in caring for its brood stock. For 18 years, she had also remembered every single employee’s birthday by presenting them with a card and small gift. Oh, and then there’s the relationships she’s built not only with her peers but with the many visitors to her farm site.

“I still keep in touch with many yachters that have visited,” she says, smiling at the memories. Even in retirement she’ll keep in touch with many tourists-come-friends. This includes a couple from Bremerton, Washington who have since visited Diana at her house for dinner and whom Diana has stayed with at their home. “I’m going to join them for a week next year when they make their way to Alaska,” she says, adding that she wouldn’t have had an opportunity to meet so many great people if she wasn’t “out there on the water”.

Diana insists her working career isn’t over – she still has “lots of energy.” “I’m just ready to spend more time with family, in my garden and trying to perfect that game called golf.”

“I must admit that I do have one regret,” she adds. “That is, I’m sorry that I didn’t get into this career at a younger age.”

We would agree, because having Diana’s talents for 20 years just doesn’t seem long enough.

4 Answer: The freshwater oyster at 80 years. (50 years for termites and chimpanzees and 70 years for Indian elephants)

Diana Pickwick Retires with Great Memories and New Friends

Last CropThe last crop from Thurlow farm is now complete. These were some of the first fish to be harvested after following the “Law of the Farm” and satiation fed right from the

beginning. It’s good to see how fast (and BIG) our fish can grow.

Submitted by Craig Sherman

MarineHarvestCanada.com 5

The Campbell River Fire Fighters, Marine Harvest and Superstore teamed up on July 1st for the benefit of the BC Professional Fire Fighters’ Burn Fund. Over $1800.00 was raised by serving over 400 happy customers a Marine Harvest barbequed salmon burger and a side dish. Thanks to all the people who made a donation to this worthy cause.

In the photo (l-r): Seth Hildebrand (Fire Prevention Officer), Debra Rogers (Alarm Room Operator/Burn Fund Rep), Scott Kratzmann (Firefighter), Adam Clarkson (Superstore), Ian Roberts (Marine Harvest Canada), Tyler Saxby (Firefighter)

For the past few years, Marine Harvest has donated a bike to the Sayward RCMP Bike Rodeo in support of the Sayward School PAC. This year’s winner of the MHC bike was Garrick. Garrick is pictured here with Sayward RCMP member Debra McAfee.

March 17 Vanier Park, Courtenay Y.A.N.A / St Joseph’s Hospital Foundation

April 14 Spirit Square, Campbell River John Howard Society

May 26 Port Hardy Cancer Society - Relay for Life

May 30 Spirit Square, Campbell River Head Injury Society

June 23 Vanier Park, Courtenay Cancer Society - Relay for Life

June 30 Dick Murphy Park, CR Dragon Boat Society

July 1 Robert Ostler Park, CR BC Firefighters Burn Fund

July 14 Centennial Pool, CR Salmon Kings Swim Society

July 27 Coastline Mazda, CR Hospice Society

August 18 OrcaFest, Port McNeill Harvest Food Bank

September 9 Nunn’s Creek Park, CR SPCA - Paws for a Cause

Done!Done!Done!Done!Done!Done!Done!Done!Done!

Please stop by, enjoy a salmon burger and help support the following charities and societies at the following events in 2012:

Come out to our Salmon Barbeques

Sayward Bike Rodeo

Firing up the BBQ for a Great Cause

MarineHarvestCanada.com

Curtis M was totally confident in his tutu.

6

bit.ly/MHCanadatwitter.com/MHCanada facebook.com/MHCanada

Great weather and great fun at the 16th Annual BC Aquaculture Slo-Pitch Tournament!

Gerry encourages Joe to take the “walk of shame”

MHC’s ‘Red Snappers’ were not Division A or B winners!

MHC’s ‘Salmon Kings’

looking stylin’!

MHC’s ‘Upchucks’ were

Division B winners!

More photos can be seen at http://www.farmfreshsalmon.org/salmon-farming-photos

Yeah, we’re not sure either?

MHC’s ‘Something Fishy’ were definitely in the spirit!

MHC’s Tania McDonald and Brandon

McColl were Division B MVPs

Now that’s just showing off!