Is the Seal Hunt Economically Viable?

Studies by independent researchers have concluded that the hunt is not economically viable.

Over the years, the Canadian government has subsidized the seal hunt in many ways, to the tune of millions of Canadian dollars. Subsidies have taken the form of market research support, seal product (e.g., seal oil) research and development, trade missions, efforts to end trade bans, efforts to fight the Canadian seafood boycott, and direct sealing assistance, such as the use of Coast Guard icebreaker ships to break paths in the ice for sealing boats and rescues of sealing boats stuck in the ice.

What is the level of demand for seal pelts? In 2006, pelt prices were inflated, with Carino paying $100 for many pelts. Then they were caught burning pelts - apparently they hoped to trick people into thinking the seal hunt was an economic boon for Newfoundland and Magdalen Islands fishermen/sealers. In 2007, the price declined back to a more normal level.

In 2008, the prices offered for pelts were low enough and the price of petroleum (needed for getting boats to the seals) high enough, that many sealers stayed home. Others said they would be happy just to break even.

Read a report on The Economics of the Canadian Sealing Industry (published in 2001) , by the Canadian Institute for Business and the Environment (CIBE)

The report analyses the subsidies, expenditures and incomes associated with Atlantic Canada's sealing industry.

Even though the report provides "minimum estimates", the total includes hundreds of thousands of dollars in "soft" loans to processing plants, which defaulted when their businesses failed. The chief finding of the report was that the high subsidies have failed to create a viable industry capable of standing on its own.