The recommendation from the International Council for the Exploration of the Sea (ICES) that there should be a substantial cut in catches of Barents Sea cod (Gadus morhua) in 2015 has brought some much-needed optimism to the Norwegian whitefish sector.
In June, ICES’ scientists announced that on the basis on the joint Russian-Norwegian Fisheries Commission management plan, next year’s total allowable catch (TAC) for Barents Sea and Norwegian Sea cod should be set at 894,000 metric tons (MT), down from 993,000 MT this year and 1 million MT in 2013. The two countries will officially announce the quota in the fourth quarter of this year, but as they have closely followed ICES’ advice in the past, stakeholders reckon there’s little reason to suggest that this large reduction won’t be implemented.
Norway’s whitefish companies are desperately hoping the smaller quota will drive prices upward. Cod prices have fallen by more than 20 percent in the past two years as a result of Norway landing and exporting considerably larger volumes but not finding sufficient new markets to absorb the greater supply. While the export figures have looked strong for Norway as a whole, the low prices have undoubtedly challenged the livelihoods of many of its fishermen and fishing communities.
In the first quarter of this year, the country’s fresh cod exports were valued at NOK 770 million (USD 125.6 million, EUR 92.4 million), a year-on-year increase of 66 percent. But to achieve this total, the volumes exported increased by 15,000 MT to 37,000 MT. Similarly, the value of its frozen cod exports in Q1 increased 58 percent year-on-year to NOK 657 million (USD 107.1 million, EUR 78.9 million), but the volume exported rose by 14,000 MT to 36,000 MT.
Only time will tell if a supply decrease of around 10 percent or 100,000 MT will lead to a better balance in the industry. There are a lot of hopes in Norway resting on such an outcome, said one leading whitefish trader.
For the time being, Norwegian fishermen will take no comfort from the latest minimum landing price for cod, which is unilaterally implemented by Norges Rafisklag (the Norwegian Fishermen's Sales Organization or NFSO). In cooperation with the fishing industry, NFSO recently decided to leave the floor price for cod of all sizes unchanged for the rest of this year with fishermen to receive a minimum of NOK 14 (USD 2.29, EUR 1.68) per kilogram (kg) for fish weighing 6 kg and over. The price for cod between 2.5 kg and 6 kg is NOK 11.25 (USD 1.84, EUR 1.35), then NOK 10.25 (USD 1.67, EUR 1.23) for fish between 1 kg and 2.5 kg and NOK 9 (USD 1.47, EUR 1.08) for cod smaller than 1 kg.
ICES also suggested a 10 percent increase in the Barents Sea haddock quota and a 12.9 percent reduction in the saithe quota. If implemented, the 2015 commercial catches of these two important species will not exceed 165,000 MT and 122,000 MT, respectively.
