The new trilateral agreement on mackerel catch-share allocations in the Northeast Atlantic (NEA) has not ended the long-running dispute over how much of the lucrative catch each coastal state should be entitled to, but there’s little doubt that inter-state relations are more harmonious.
In March, after more than four years of failed negotiations, the European Union (EU), Norway and the Faroe Islands agreed on a five-year catch-share management plan. For the time being, Iceland remains outside of the agreement and it should be noted that upon its announcement Icelandic fishery officials voiced their disproval about the allocations within the trilateral deal as well as the way it was brokered. Nevertheless, a strategy exists within the new plan should the country join at a later date that would give it access to an unallocated reserve amount of 15.6 percent of the total allowable catch (TAC).
Meanwhile, the EU has 58.4 percent of the TAC, the Faroes has 14.93 percent and Norway has 26.67 percent. The three parties have agreed to abide by these shares through 2018.
There is further good news on the way for the sector as the International Council for the Exploration of the Sea (ICES) is expected to announce a big increase in the NEA mackerel TAC in the second half of May. Many stakeholders are anticipating the upward revision could be as high as 1.2 million metric tons (MT).
In October last year, ICES recommended the 2014 catch should not exceed 889,886 MT, up from 542,000 MT last year. However, it said this advice was temporary and that it would be scientifically benchmarking the stock this year as it felt its previous analysis was no longer reliable. If the council does decide upon a TAC of 1.2 million MT then the EU would end up with a quota of 611,000 MT, Norway 279,000 MT and the Faroes 156,000 MT.
While the pelagic industry would universally welcome such improved catch levels, it’s very likely it will also have to contend with increased downward pressure being exerted on mackerel prices. However, there is renewed optimism in the sector and the opportunity to again call the fish sustainable and the stock responsibly managed should support future sales, confirmed traders.
Overall, mackerel prices so far this year are an improvement on those seen a year ago. For example, the average price paid for Norwegian frozen whole mackerel in the first-quarter of this year was NOK 11.92 (USD 2, EUR 1.45), which is NOK 2.23 (USD 0.38, EUR 0.27) more than in Q1 2013. China, the Netherlands and Japan were Norway’s biggest mackerel markets during this period.
The value of Norway’s mackerel exports in 1Q 2014 increased by 40 percent, reaching NOK 661 million (USD 111.2 million, EUR 80.3 million), despite a 14 percent increase in the volume exported.
In total, the Scandinavian country exported 54,000 MT of mackerel products in the quarter with the Norwegian Seafood Council claiming that the demand for mackerel was good in several markets.
