News

Government of Canada backs Atlantic oyster industry

This news release was originally published by ACOA on May 8, 2026. We are sharing the full text here for reference. All rights remain with the original publisher.

News release

Federal support will help affected growers buy oyster seed, rebuild supply and protect one of Canada’s signature industries

May 8, 2026 · Charlottetown, Prince Edward Island · Atlantic Canada Opportunities Agency (ACOA)

In recent years, PEI’s oyster industry has faced a series of significant challenges, with the latest threat coming from the spread of two diseases, which have led to high mortality rates in oysters and substantial losses for the entire sector. As a result, the stability of local businesses and the livelihoods of growers, harvesters, and processors across the Island and the region are increasingly at risk.

A healthy and sustainable oyster industry is essential to families and communities, as well as to the economy and cultural heritage. Recognizing the serious challenges facing the sector, the federal government is providing support to help oyster harvesters and fishers adapt, restock, and rebuild.

The Government of Canada’s support for Atlantic Canada’s oyster industry includes:

1. The Canadian Food Inspection Agency (CFIA) has approved the import of broodstock from the U.S. for the development of disease resistant oysters, with approval for disease-resistent oyster seed to follow in the coming weeks for aquaculture use in Atlantic Canada. The amount allocated for seed import approvals is expected to be approximately $1.5 million.

2. Helping PEI growers cover the cost of disease-resistant oyster seed through a new investment of more than $4.2 million, helping affected growers in PEI put more young oysters in the water, rebuild future harvests, and keep our oyster supply strong for years to come.

3. Supporting active wild oyster harvesters by launching a one-time license buy-back for affected licences. Fisheries and Oceans Canada (DFO) is dedicating up to $6 million to support wild harvesters who choose to participate in this program. DFO will engage with the wild oyster industry and licence holders to craft program details.

4. Investing $130,000 to develop a comprehensive strategy for Atlantic Canada’s oyster industry in response to the growing threat of MSX and Dermo diseases, focused on disease management, supply, markets, processing, jobs, training, and practical options for affected workers and businesses.

5. Farm Credit Canada (FCC) is launching a Customer Support Program (CSP) for the oyster sector. FCC will work with customers to come up with solutions for their operations including options to adjust loan payment schedules and reduce short-term financial pressures.

The Government of Canada will continue working with all levels of government, industry partners, growers, harvesters, and processors on practical solutions to help our oyster industry restock, rebuild, and remain synonymous with Atlantic Canada for generations to come.

This announcement was made by the Honourable Sean Fraser, Minister of Justice and Attorney General of Canada, and Minister responsible for the Atlantic Canada Opportunities Agency; the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food; the Honourable Joanne Thompson, Minister of Fisheries; Bobby Morrissey, Member of Parliament for Egmont; and Kent MacDonald, Member of Parliament for Cardigan.

Quotes

“We recognize the impact this disease has had on families and businesses connected to PEI’s oyster industry. Our government is committed to working with growers, producers, innovators, and researchers to ensure this essential industry continues on a prosperous and sustainable path.”

– The Honourable Sean Fraser, P.C., K.C., Member of Parliament for Central Nova, Minister of Justice and Attorney General of Canada, and Minister responsible for the Atlantic Canada Opportunities Agency

“The oyster industry is facing serious challenges with MSX and Dermo. I have heard first-hand from the wild oyster industry about how these diseases are impacting their livelihoods. The license buy-back will support affected wild oyster harvesters as they decide what comes next. Wild oysters are an iconic species deeply tied to fishing traditions, communities and culture and I will continue to support the industry.”

– The Honourable Joanne Thompson, Minister of Fisheries

”Ensuring the sustainability of PEI’s oyster industry is critical to not only the economy, but the well-being and livelihoods of fishers, producers, and growers across Atlantic Canada. We are working diligently across government departments, with the province, and industry, to ensure support is provided to all those affected. ”

– The Honourable Heath MacDonald, Member of Parliament for Malpeque, and Minister of Agriculture and Agri-Food

“People around the world associate high quality oysters with Prince Edward Island. As one of our premium exports, it has become an icon of our food economy, a beacon for tourism, and a source of great pride for our rural communities. That is why we are committed to a strong, long-term future for the industry.”

– Bobby Morrissey, Member of Parliament for Egmont

“Our oyster industry is woven into Prince Edward Island’s coastal communities, our traditions and our economy. When major challenges arise, we stand with the growers, harvesters, and processors who have built this industry. With targeted federal support to restock, rebuild supply, and strengthen long-term resilience, we’re protecting a signature Island industry for generations to come.”

– Kent MacDonald, Member of Parliament for Cardigan

”The PEI oyster industry has undergone an unprecedented period of successful development since 2009; driven by industry innovation and diligence, supported by federal and provincial investments. MSX and Dermo have caused worsening economic impacts since 2024, and the industry must transition away from natural seed collection to the use of hatchery seed. The Oyster Aquaculture Transition (OAT) Fund, delivered by the PEI Aquaculture Alliance, will assist Island oyster farmers with the increased expense of purchasing hatchery seed.”

– Peter Warris, Executive Director, Prince Edward Island Aquaculture Alliance

“The PEI Shellfish Association welcomes the announcement of this much-needed federal support for the wild oyster industry. Since 2024, when MSX was first detected in our waters, we have been communicating with government on behalf of our members and investing in practical steps to put our industry back on a sustainable path. Our wild fishers want to work, adapt, and be part of the solution. This includes meaningful investment not only for those leaving the industry, but also for those fighting to keep it alive.”

– Jolene Millar, Executive Director, PEI Shellfish Association

Quick facts

Multinucleated Sphere Unknown (MSX) and Dermo (also known as Perkinsosis) pose no risks to human health or food safety, but they can cause decreased growth rates and increased oyster mortality. They do not affect other bivalves in this area, including mussels, scallops, or clams.
MSX was first confirmed in PEI in July 2024, and Dermo was first confirmed in PEI in July 2025.
As of September 2, 2025, the Canadian Food Inspection Agency (CFIA) declared the waters of Eastern Canada (i.e., New Brunswick, Newfoundland and Labrador, Nova Scotia, PEI, and Quebec) as areas where both MSX and Dermo are present or very likely to be present.
The CFIA’s decision to allow the import of American oyster (Crassostrea virginica) seed and broodstock from specific premises in the U.S. into Atlantic Canada for aquaculture use is based on scientific risk assessments in collaboration with Fisheries and Oceans Canada (DFO), informed by expert consultations and site visits in Canada and the United States, and ongoing collaboration with domestic and U.S. partners including the U.S. Department of Agriculture (USDA).
These assessments support risk-based importation of oyster seed and broodstock, including testing, and biosecurity measures. This allows the CFIA to take a controlled, risk-based approach that protects Canada’s aquatic resources while supporting the oyster sector.
Since July 2024, DFO, in partnership with the CFIA, has delivered more than 17,000 diagnostic tests, invested $1 million in research, and brought federal and provincial experts together to strengthen disease response and preparedness.
The Fisher Assistance Program and Aquaculture Farm Assistance Program provide confidential counselling services to the industry, their families, and employees. Confidential services are available free of charge 24 hours a day by calling a counselling coordinator 902-894-8006 or toll-free 1-800-736-8006.
The Prince Edward Island Aquaculture Alliance (PEIAA) was formed in 1998 to enhance the development of the shellfish industry, and to protect the interest of the growers, processors, packers and marketers of aquaculture products in PEI.
The $4.2 million funding announced today is provided through the Atlantic Canada Opportunities Agency’s (ACOA) Business Development Program (BDP).

Associated links

Prince Edward Island Aquaculture Alliance

Contacts

Jeremy Bellefeuille
Director of Communications
Office of the Minister of Justice and Attorney General of Canada and Minister responsible for the Atlantic Canada Opportunities Agency
Jeremy.bellefeuille@justice.gc.ca

Media Relations
Atlantic Canada Opportunities Agency
mediaroom-salledesmedias@acoa-apeca.gc.ca

Peter Warris
Executive Director
Prince Edward Island Aquaculture Alliance
ed@aquaculturepei.com

Jolene Millar
Executive Director
PEI Shellfish Association
Jwilliamstc@eastlink.ca

Source: ACOA. Original article available here.