Seed imports, licence buyback program part of federal support for P.E.I.’s oyster industry

The federal government has announced a series of support measures for Prince Edward Island’s beleaguered oyster industry.

P.E.I. is the largest oyster producer in Eastern Canada and the second-largest in the country, according to 2024 Canadian aquaculture production statistics, the latest data available.

But the industry is facing a major crisis driven by two diseases: MSX and dermo.

In a news release Friday, Ottawa said the support package includes:

• Approval from the Canadian Food Inspection Agency to import broodstock from the U.S. for the development of disease-resistant oysters, with approval for disease-resistant oyster seed imports expected in the coming weeks for aquaculture use in Atlantic Canada. The amount allocated for seed import approvals is expected to be about $1.5 million.
• $4.2 million to help P.E.I. oyster growers buy disease-resistant hatchery seed, allowing them to restock and rebuild future harvests.
• Up to $6 million for a one-time licence buyback program, administered by Fisheries and Oceans Canada, for wild oyster harvesters who choose to exit the industry.
• $130,000 to develop a comprehensive strategy for the Atlantic oyster industry focused on disease management, supply, markets, processing and support for affected workers.
• A customer support program from Farm Credit Canada that will work with growers to find operational solutions, including options to adjust loan payment schedules and reduce short-term financial pressures.

Peter Warris, executive director of the P.E.I. Aquaculture Alliance, said transitioning away from natural seed collection to the use of hatchery seed will be key to the industry’s recovery.

“The Oyster Aquaculture Transition Fund, delivered by the P.E.I. Aquaculture Alliance, will assist Island oyster farmers with the increased expense of purchasing hatchery seed,” Warris was quoted as saying in the news release.

WATCH | P.E.I. grower throws out $100K of dead oysters in 1 day as disease devastation continues:

P.E.I. grower throws out $100K of dead oysters in 1 day as disease devastation continues

Many oyster growers in western P.E.I. are reporting 100 per cent mortality in their cages as they pull them up after the winter. The Island has been hit hard by two oyster diseases, MSX and dermo, in recent years. CBC’s Nancy Russell has that story.

MSX was first detected in several P.E.I. waterways in 2024, followed by the discovery of dermo the next year. While neither disease poses a risk to human health, both can be fatal to oyster populations — and people who work in the industry say they’re wiping out the sector.

Many oyster growers on the Island recently reported mortality rates of nearly 100 per cent in their cages as they pull them up after the winter.

The widespread losses have forced some oyster harvesters to travel long distances to find healthy oysters, while others say they are struggling to stay financially afloat.

The P.E.I. government has announced some supports for the industry in the wake of the diseases’ detection, including millions of dollars in wage subsidies and a retraining fund for fishers. The province has, however, been calling on the federal government to step up with help.

Friday’s announcement marks Ottawa’s most significant intervention since the crisis began.

According to the release, as of September 2025, the Canadian Food Inspection Agency declared that both MSX and dermo are present — or very likely to be present — across all of Eastern Canada, including New Brunswick, Nova Scotia, Newfoundland and Labrador, Quebec and P.E.I.

Since the outbreak began, the release states that Fisheries and Oceans Canada and the CFIA have delivered more than 17,000 diagnostic tests and invested $1 million in research.