According to a recent annual economic report from the European Commission, the European Union fishing fleet’s gross profits are projected to grow this year to an estimated EUR 1.67 billion (USD 1.73 billion), which would mark an increase over the past two years.
Compiled by the Scientific Technical and Economic Committee for Fisheries (STECF), the commission’s “2024 Annual Economic Report on the European Union fishing fleet” attributes this year’s upturn to many factors, including higher average first-sale prices, lower fuel prices, and a decrease in fuel consumption.
The report specifically outlined that for 2024, it anticipates a 3.1 percent increase in landed weight compared to 2022’s confirmed total of 3.49 million metric tons (MT). This would also represent a 6 percent increase on 2023’s unconfirmed total.
This, combined with estimated lower ex-vessel prices, should lead to an anticipated 2.4 percent rise in landed value compared to 2022 and a 7 percent increase compared to 2023, according to the report.
The report also estimates gross value-added totals of EUR 3.9 billion (USD 4.1 billion) for the fleet, which would be up 16 percent on 2022 and 12 percent on 2023, respectively. The nearly EUR 1.7 billion (USD 1.76 billion) in gross profit would be a 12 percent rise compared to 2022, and an 18 percent jump from 2023. Estimated net profits for the fleet will amount to EUR 844 million (USD 884.8 million), which would be 56 percent more than 2022 and 53 percent up on last year.
Besides higher first-sale prices, lower fuel prices, and a decrease in fuel consumption, the report also attributes the upturn to improvements in the sustainability of E.U. fish stocks, which it said have been largely driven by measures to reduce fishing effort over the past few years. Though these measures led to some short-term sacrifices in the form of lowered or canceled quotas, this has proven economically beneficial this year, according to the commission.
Moving to less fuel-intensive fishing techniques has also brought about environmental benefits while decreasing costs, according to the report.
“The prosperity of our fisheries sector is crucial for thriving coastal communities. While the sector shows signs of recovery from the energy crisis, we must continue working on stock recovery for more resilient fisheries communities,” European Commission Vice President Maroš Šefčovič said. “We must also double our efforts to transition toward low carbon energy uses and less energy-demanding vessels, gear, and fishing methods. The E.U. will continue doing our utmost to support a competitive and sustainable sector.”
Overall, 2024 is expected to be a year of recovery for the industry after the past few turbulent years, according to the commission, which said that overall values should be close to 2021 levels and much improved on 2022’s.
However, though the report paints a positive economic picture for 2024, it also highlighted several challenges faced by the E.U. fleet, including aging vessels and a lack of young entrants into the industry. Additionally, it said the number of inactive vessels continues to increase and now represents 25 percent of the E.U. fleet register.
It also said that the robustness of the projection depends on the long-term stability of key markets, pointing out that since 2020, markets have been far from stable.
“In particular, the [long-term effects] of Covid-19, Brexit, and the war in Ukraine make any projection difficult to make,” it said.
Regardless, the E.U.’s balanced approach to quota-setting that led to a successful 2024 was the same strategy the bloc said it took toward negotiations for next year. The bloc has secured 2025 agreements for stocks in the Atlantic Ocean, as well as the Mediterranean, North, Baltic, and Black seas.
“For the commission and me personally, it was important to reach an agreement that is both balanced and responsible – preserving fishers’ livelihoods in the long term and improving the chances for stock recovery,” E.U. Commissioner for Fisheries and Oceans Costas Kadis said.
