The continued recovery of whitefish stocks in U.K. waters is certainly reason for celebration. And yet from a commercial perspective, the revival has come at a time when many important European export markets remain economically weak and fishing powerhouses like Norway and Iceland are landing and exporting considerably larger volumes. These elements have combined to send prices into freefall.
The Scottish Fishermen’s Federation (SFF) confirms the poor market prices, particularly of Atlantic cod (Gadus morhua) and haddock (Melanogrammus aeglefinus) are having “a severe impact” on the Scottish fleet. The Federation has therefore been urging fishermen, producer organizations, processors, government, retailers and foodservice companies to work together to find ways of stimulating domestic demand for local fish.
In January and February, North Sea cod was sold for as little as GBP 1.20 (USD 1.79/EUR 1.37) per kilogram (kg) on some Scottish markets and haddock for not a lot more, according to traders. Prices were more than double that level in the corresponding months of 2012.
As far as the U.K. industry is concerned, Norway as the main supplier from the Northeast Arctic cod stock with its record quota in 2013 of 1 million metric-ton (MT) quota (up 33 percent on the 2012 season) and Iceland with its 196,000 MT (an increase of 22.5 percent) are the two biggest contributors to its current price problem. But the Eurozone crisis is also playing a major part.
Even taking into account the lower prices, it is widely thought that in the current economic climate the increased supply is too great for markets to absorb. Furthermore, it’s accepted that last autumn many buyers, anticipating a significant price drop, slowed their whitefish buying to focus on selling their higher-priced inventories.
In the longer-term, a prolonged period of low prices should prove good news for struggling southern European markets like Portugal, Spain and Italy, which traditionally consume large volumes of salted cod. Consumption in these countries has dropped sharply in recent years due to high prices paired with their economic troubles, but cheaper fish could quickly win consumers back.
The situation in the Norwegian whitefish sector has been no different than in Scotland, with fishermen reporting a 30 percent decrease in prices this year.
In December 2012, Norges Rafisklag (the Norwegian Fishermen's Sales Organization) and the fishing industry agreed on the minimum prices for cod through to 21 April, which Norges Rafisklag Managing Director Trygve Myrvang says reflected “a very difficult European market.”
Prices were reduced to the following levels: NOK 13.25 (USD 2.36, EUR 1.78) per kg for fish over 6 kg; NOK 10.50 (USD 1.83, EUR 1.41) for 2.5 kg to 6 kg; NOK 9.50 (USD 1.66, EUR 1.28) for 1 kg to 2.5 kg; and NOK 8 (USD1.40, EUR 1.07) for fish less than 1 kg.
In terms of trade, the Norwegian Seafood Council confirms the “extremely low prices” have resulted in substantial growth in the volume of its cod exports, which achieved a total value of NOK 997 million (USD 174.2 million, EUR 133.9 million) in the first two months of this year, an increase of NOK 77 million (USD 13.5 million, EUR 10.3 million) year-on-year. But sources close to the industry say the Scandinavian country still needs to open up new whitefish markets.
The latest figures from the International Council for the Exploration of the Sea reveal the spawning stock biomass of North Sea cod increased by 250 percent from 2006 to 2012.
