Russian fisheries require technological facelift
Monday,27 February,2012 21:23:29
“Today in Russia there is no modern high-tech industry to meet modern standards of processing and catching, delivery and storage of fish and fish products,” this is how German Zverev, president of the Pollack Catching Association and Chairman of the Far-Eastern Fishery Associations Coordinating Council originally began his speech at the All-Russian Fisheries Congress.
Among the key factors for successful industrialization and development of the Russian fishing industry German Zverev called import of various technologies and equipment from other countries, which would allow Russian fisheries to operate efficiently. He believes, and his opinion this can hardly be denied, that today it is more beneficial to buy up-to-date technologies and equipment abroad.
Among other things, and it’s important, he proposed introducing more favorable terms for importing of the fishing boats built abroad into Russia.
As I learned, this program (if realized) can remain in force till 2017, so now it’s a high time for foreign ship-building companies to start expecting orders from Russia.
Russian herring catch can be increased 10-fold
Monday,27 February,2012 07:59:45
As I’ve learned from insider information, in 2012 the herring quota in the Karaginsky subzone (Kamchatka peninsula) can be increased to 128.6 thousand metric tons. It is almost a 10-fold increase from current quota (13 thousand metric tons).
This decision is based on aerial surveys data, autumn and winter fishing monitoring, etc.
Historically (since 2005) industrial fishing of herring in the Karaginsky subzone has been banned due to low population.
Now the Corfo-Karaginsky herring population is increasing. Scientists even offered to allow fishing to Russian fishing companies from other regions as in their opinion, local fishermen of Kamchatka may not cope with great volumes.
Of course this faces some opposition from local fishing companies, who state that they have sufficient catching capacities.
The point is that in order to utilize a new higher quota for herring, the companies should carry out considerable works in the shortest possible time since for those years when catching was very limited, facilities has fallen into decline, and boats have been converted for different needs.
So at the moment the fishing companies do need investments into reconstruction, rebuilding and purchasing of new equipment.
And I’m absolutely sure that the investments will pay out very soon. If you have something to offer or learn details, just contact me.
Russian fisheries up for longer-term quotas
Wednesday,22 February,2012 14:24:39
According to the latest statement of First Deputy Prime Minister Victor Zubkov, which I’ve read today, the government is considering a bold step: increase an area’s allotment period for fisheries up to 20 years and quotas to 10 years.
Zubkov believes that one of the most important conditions for the development of Russian fishing industry is decision about catching quota allocation for 10 years, and fishing areas allocation – for 20 years.
This shall provide companies with a good background in fishing with security and wide horizon for investment in infrastructure. It is a challenge to select effective fisheries, which should get a priority access to the aquatic resources.
The Russian government is not planning any changes to the existing rules, moreover, it’s ready to consider extending the terms of quota distribution contracts for up to 20 years,” said Zubkov.
In my personal view it is a very positive development and way of thinking. Fishing industry is an investment intensive business, and having a clear horizon/security is critical for decisions whether to invest in infrastructure or not.
Shall this initiative come true, I expect a good kick-start for Russian businesses to invest in quality infrastructure.
Who is up for an investment?
Russian Far Eastern fishery 2013 outlook
Tuesday,21 February,2012 08:50:22
Experts of PFRC (Pacific Fisheries Research Center) presented a preliminary catches forecast in the Far Eastern region in 2013.
According to the PFRC press release, in the next year a preliminary total amount of recommended catch can reach 3.54 million metric tons (excluding Pacific salmon and freshwater fish). Of this the shares of various sea recourses are as followed:
fish at about 2,879 thousand metric tons;
crustaceans at about 64,000 metric tons
; mollusks at 341,000 metric tons
; algae at 221,000 metric tons
; and some smaller parts of other aquatic biological resources.
This is 55,800 tons less than the total amount of recommended catch approved for 2012.
A main reason for decline is a natural fluctuation of fish, pollock in particular. So, volume of allowable catch of this species in the Far Eastern basin was decreased by 131.8 thousand metric tons.
Of course, the numbers are rather indicators. However, they give us a clear trend for planning next year’s business.
China, South Korea largest buys of Russian fish
Tuesday,21 February,2012 08:52:39
In 2011, more than 80 percent of the total Russian seafood export volume went to markets of China, South Korea and Japan. The first two states are the leaders in value and volumes of products imported from Russia.
As reported by the Public Relations Centre of Russian Fishery’s Department, last year the total value of fish and seafood from Russian fishing companies sent to South Korea exceeded USD 1 billion. Of the 565,000 tons of aquatic bio-resources a share of Alaska pollock was 335,000 metric tons (59 percent) and milt and roes at around 46,000 metric tons (8.2 percent). Smaller part of the total export were crabs at more than 18,000 metric tons (about 3.3 percent)
, Alaska pollock fillets at more than 20,000 metric tons (about 3.6 percent)
and Pacific herring at 23,000 metric tons (4.1 percent).
But it’s China that holds the first place in the list of countries to which Russian fish and seafood is exported. Last year PRC imported 665,000 metric tons of various fish products (valued over USD 790 million).
It is largely expected (and I support this opinion) that China will be the largest buyer of seafood from Russia over short to medium term, however currently it’s being mainly used for processing and reselling to Japan, Europe and the United States.
With an upward trend of Chinese wages however over long term, the processing in China may decrease unless it will be supported by the domestic consumption.
Room for growth for Russian exports
Tuesday,14 February,2012 07:51:47
Imported fish and sea products will not supplant those of the Russian companies.
The process of import substitution on the Russian seafood will continue after Russia's accession to the World Trade Organization. This opinion was recently expressed by Andrew Krainiy, the head of Federal Agency for Fishery.
In January-November 2011 export of Russian fish products increased compared to the previous year by 6.9 percent, while imports, by contrast, declined by 10 percent. At once statistics shows increase of internal consumption.
And this process will continue: share of domestic fish production on the Russian market will be growing.
As for prospects of exports of Russian sea products, I believe there is a room for further growth. Why? Because Russian fishing and fish-processing companies possess all the necessary facilities for that, and the whole industry is being facelifted. My forecast: expect more value-added sea products from Russia in mid-term, not only raw material supply.