Much of the offshore groundfish fishery is based in ice-free ports in Nova Scotia and Newfoundland. Inshore prices, on the other hand, are generally based on prevailing market prices. In contrast, the selling side typically consists of many independent fishermen, none of whom is considered to be sufficiently large to influence prices. Sometimes it is suggested that fish harvesang and processing should be separated to give the harvesting sector more independence and to allow fishermen to bargain for a price that represents the real cost of fish. New fishing licences for the inshore cannot be issued to companies involved in the processing sector, a policy which, some would argue, impedes competitiveness.
Some offshore plants buy some of their fish from the inshore.
The inshore tends to produce mainly fresh whole and filleted fish, and salted and dried products. In contrast, the offshore produces mainly frozen fillets and blocks, but may also produce fresh whole and filleted fish. Some offshore fish plants have secondary processing for the manufacture of cooked and breaded products. The inshore typically provides more fishing jobs, but fewer jobs in fish processmg than the offshore. Changes in fish allocations to thc inshore sector, variations in inshore catch levels or changes in the quantities of fish processed have significant consequences for the viability of hundreds of small fishing communities in the region for which the fishery is the basis of existence.