ESTONIA
Freshwater sector suffers more than the pelagics industry from the impact of Covid-19
Processors of high-value freshwater species seek relief Estonia exports species like perch and pike-perch to markets in Europe and North America. These are destined mainly for hotels and restaurants, a segment that was among the worst affected by the pandemic. Pelagic processers were spared the worst as their markets were less influenced.
T
he coronavirus has had widespread impacts on the fisheries sector. An FAO report finds how aquaculture production is affected by the closure of markets, the shutdown of the Horeca sector, and restrictions on flights and cargo movements. Fisheries production, for instance, may suffer from the imposition of sanitary measures on board that make fishing difficult, crews may not be able to join their vessels due to travel restrictions, and the necessary supplies of bait or ice may not be available. In the processing sector issues with cross border transport, uncertain supply of raw materials, and market restriction are among the challenges companies must face.
Pandemic’s impact expected on resource management as well Covid-19 is also likely to have an impact on fisheries management and policy as stock assessments, fisheries observer programmes, and science and management meetings may be postponed or cancelled. Measures to support the different elements in the supply chain extend from expanding government purchases of seafood to maintain demand and prevent a slump in prices, through extending credit and microfinance facilities to fish farmers to ensuring smooth passage of goods at ports, rail terminals, and at border crossings. A survey of small-scale fishers
across 12 countries carried out by researchers at the University of Aveiro in Portugal showed that between March and June 2020 they suffered losses of between 20 and 100 with fishers in northern Europe and those targeting highvalue species particularly affected. The loss of the Horeca market, lack of tourists, price declines, and the closure of international markets were cited as the main impacts of the pandemic. The closure of the international Horeca market had a particular influence on the fishers, processors, and exporters of high value freshwater species from Estonia. In general, the export value of seafood products in nearly all categories declined— fresh, frozen, filleted, dried, salted, or smoked fish, and crustaceans— with reductions ranging from -17 to -43. Valdur Noormagi, the head of the Estonian Fisheries Association is deeply troubled by these developments. Over four fifths of Estonia’s fisheries production is exported, he says, and while exports of Baltic herring and sprat have continued, those of freshwater fish have collapsed. Baltic herring and sprat are exported in frozen blocks mostly to Ukraine, where Estonian products have a dominant share of the market. This trade was less affected by the pandemic than the Horeca market in Europe and North America which absorbs much of the high value freshwater fish fillets. This market segment seized up with the first wave of the coronavirus, recovered
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Valdur Noormagi, head of the Estonian Fisheries Association, is concerned about the impact of the Horeca market’s closure on producers and processors of high value freshwater species.
slightly in summer, but then broke down again and has not recovered since. There are two peaks for the fish business, says Mr Noormagi, before Easter and before Christmas, and the timing of the pandemic could not have been worse as it started just before Easter and has continued since then. All the freshwater fish that should have been exported is now sitting in freezers. Coldstore capacity has been fully utilised and this is an additional expense for processors at a time when incomes are low. The problem is compounded by companies’ reluctance to shed labour yet at the same time they are unable to offer work.
Support for producer organisations cannot be used in freshwater sector The EU has introduced measures intended to assist the sector
including a new state aid framework and by clarifying the existing possibilities under the EMFF, but according to Mr Noormagi these benefits are not available to freshwater fish processors. The EMFF measures apply to producer organisations, he says, and in Estonia POs exist only in the pelagic sector. The freshwater fish processors, which number some 35-40 companies, are not organised into a PO, so they do not have access to this support. Eduard Koitmaa from the Ministry of Rural Affairs cites the special compensation measure available to processors of fishery and aquaculture products to mitigate the economic shock of a fall in sales turnover caused by the COVID-19 outbreak. Under these measures, processors can apply for compensation for a drop in sales between February and December 2020. To qualify, the decline must be attributable to the pandemic.
