The low market price of Atlantic cod (Gadus morhua) is the primary concern for Norway’s whitefish sector at present. In the last two years, prices have plummeted as a result of Norwegian and Icelandic fishermen (Europe’s leading cod suppliers) landing and exporting considerably larger volumes — all within their agreed catch limits.
Norway, as the main supplier from the Northeast Arctic cod stock with its record quota of 1 million metric tons (MT), set a new cod export record in 2013 with 231,000 MT, which was 63,000 MT more than the previous year. However, large decreases in cod prices — as much as 20 percent — have put fishermen in a “challenging situation,” confirmed Jack-Robert Moller, U.K. director of the Norwegian Seafood Council (NSC).
This year, the joint Russia-Norway cod quota has been set at 993,000 MT, of which Norway owns 443,735 MT. Therefore the sector is resigned to another year of diminished prices, although the NSC reported a slight lift (3 percent) in fresh cod prices in January despite Norway exporting 8,775 MT of whole fish, 93 percent more than in January 2013.
Norwegian fishermen can also take some comfort from the very cautious increase in the minimum landing price for cod, unilaterally implemented by Norges Rafisklag (the Norwegian Fishermen’s Sales Organization) in December. As a result, in 2014, fishermen are receiving a minimum of NOK 14 (USD 2.28, EUR 1.67) per kilogram (kg) for fish weighing 6 kg and over, and NOK 11.25 (USD 1.83, EUR 1.34) for fish between 2.5 kg and 6 kg.
Last year, they received a minimum of NOK 13.25 (USD 2.16, EUR 1.58) per kg for cod weighing 6 kg and over, and NOK 10.50 (USD 1.71, EUR 1.25) for fish between 2.5 kg and 6 kg. But it should be noted these prices were around 22 percent lower than they were in 2012.
The problem facing the fishermen and the broader whitefish industry remains that the cod supply is too great for the market to absorb and prices will not pick up until major new markets are opened up or the total allowable catches (TACs) are drastically reduced, explained a leading cod exporter.
In the last seven years, the supply of Norwegian cod has doubled and the stock is on a “stable” level, which means similar market conditions should be expected in the next few years, says Benedicte Nielsen, sales manager with Norges Rafisklag. She also pointed out that as much as 75 percent of Norway’s cod is traditionally landed by May and this also creates supply issues.
Looking ahead, Norwegians are hoping the development of niche markets will lift the cod sector and skrei in particular offers plenty of potential, says Nielsen.
Skrei is a migratory Norwegian cod, only available between January and April each year. Currently, Norway supplies the market with between 4,000 MT and 5,000 MT of skrei per year, and the good news for catchers and exporters is the fish is becoming increasingly popular in upscale European restaurants. Skrei also comes at a premium price, much of which is attributed to clearly defined handling procedures, but it does offer an opportunity for growth, said Nielsen.
March 14, 2014
