Russian fishermen strengthen market position

By

Dmitry Fedotov

Published on
June 12, 2012

There’s a bit of information I’ve got from the Russia’s Pollock Association.

Based on results of fish processing in the Far East currently reported, a clear trend of increase of value added processing becomes visible.?

According to the study, during 2011 Far Eastern fishing companies increased production volumes (in metric tons) by 11 percent, while profit raised by 22 percent. One of main reasons for it is development of coastal fishing enterprises and increase of their output, especially for salmon production.?

In 2010 the volume of fish production in the Far East declined from the previous year by 2 percent in tons and 1.7 percent in dollars, and showed strong dependence of Far East fishing industry on seasonal factors and logistic services.

?However, financial results of 2011 improved a poor performance of the previous year, and, comparing average prices for salmon in 2009 and in 2011, I see the stronger market power of the Russian fishing companies. If in 2009 logistical issues led to falling prices for salmon and reduced the share of fishing companies in the final cost of production, in 2011 the situation is different. In the past year fishermen took a stronger position, and experts expect this trend to be continued in for 2012.?

Another trend is that Russia’s authorities develop the concept of coastal fisheries development. Vasily Sokolov, Deputy Head of Federal Agency for Fishery, in his recent interview emphasized that considerable attention must be paid to the concept aimed to increasing the volumes of fish processed by Russian companies in the domestic market, and development of fish processing at the coastal enterprises.

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