Eurofish magazine 2 2015

www.euroďŹ shmagazine.com

ISSN 1868-5943

April 2 / 2015 C 44346

April 2 / 2015

Visit E SEG UROFISH , 21-2 Brussels, at 3 Ap 7-14 ril 44,

Eurofish Magazine

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Perch, the most valuable coastal species Events: Brussels seafood show expands further Projects: Super cooling may increase quality Aquaculture: Alternatives to fishmeal and fish oil in feed is a member of the FISH INFO network

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In this issue

Estonia successfully explores new markets The last 15 months have been somewhat turbulent for the Estonian fisheries sector. A country that produces far more seafood than it can consume domestically, Estonia has to export its products. In January last year, Russia, one of the sector’s most important markets closed its doors to several companies after inspections by its authorities. This was followed in August by a ban on imports of several fish and seafood products from the EU, which has also disproportionately affected the Estonian fisheries sector. On the brighter side disruptions in traditional markets have prompted efforts to look for new destinations for Estonian fish and seafood. Lately, products from Estonia have found their way to several countries in Africa, to Japan and to China. Other parts of the sector have also seen positive development. Perch, one of the most valuable freshwater species, has seen a resurgence in catches, and attempts are now being made to farm it. In the aquaculture sector a new producer organisation is developing a range of products and investing in marketing and awareness creation to get domestic consumers to start consuming locally cultivated salmonids.

Read more from page 40 and 62 Seafood Expo Global (SEG), the world’s leading trade fair for the seafood sector, opens to the public on 21 April. This year the event is expected to be bigger than ever as an additional space, Hall 8, at the Brussels Expo, the fair venue, will also accommodate exhibitors. Arguably, more than any other European seafood trade show SEG is the event to participate in for all those in the seafood sector. The variety of products, services, and equipment that is on display from all around the world make this a particularly rewarding event to attend. Companies, and even authorities use the fair to launch new products, services, and policies. Of course, the flip side is that with so much happening at the fair one has to pick and choose. Companies from Eurofish member countries will be well represented with pavilions in many cases and as individual stands in others. Products from these companies are unique in many respects and contribute greatly to the diversity that is on display at the SEG. Read more on page 12 The ComFish project, which held its concluding meeting at the end of January 2015, demonstrated the importance of communication between stakeholders to address some of the issues facing the fisheries sector. Among its conclusions is that more scientific data is needed to support policy decisions in fisheries. Better science will not only make for more robust policy, but may also allow improved assessment of the policy. The project also showed that changes in behaviour cannot be expected from the fishermen alone, but that other stakeholders also needed to adapt if viable solutions are to be found. Stakeholders from different sea basins also had different priorities, more scientifically founded information on ecosystems and fish stocks in the Atlantic; better cooperation and enforcement of rules in the Mediterranean and Black seas. Read more on page 24 Aquaculture: Production of fishmeal and fish oil is estimated to be on the way up again after a couple of years with lower hauls in Latin America, the primary production area for the species that are converted to meal and oil. Over two thirds of global meal and almost three quarters of oil production go into fish feed, but feed producers are increasingly looking at other sources, including slaughter waste and trimmings from the fish processing industry. In addition, more and more non-fish alternatives are being incorporated into the production of feed. In general these can be products of plant origin, other marine organisms such as algae, or meat and bone meal from terrestrial animals. While all of these currently have different problems associated with them, their use is likely to increase particularly if prices for fishmeal and fish oil keep rising. Read Dr Manfred Klinkhardt’s article on page 26

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Table of News 6 International News

Events 12 Seafood Expo Global, Seafood Processing Global, Brussels, 21-23 April 2015 Pris d’elite finalists from Denmark, Estonia, Lithuania, Norway among others 12 Albania, 7-1444 Seafood processing generates vital jobs 13 Italy, 11-2221, 11-2321, 11-2421 Connecting with potential partners, domestic and international 14 Croatia, 9-4237 Growth through EU membership 14 Denmark, 4-5915, 4-5927, 4-6015 Several new products will be launched at SPG 16 Turkey, 11-2101, 11-2201, 11-2301, 11-2110 Exporters explore new markets in west and east 16 Norway, 5-301, 5-313, 5-413, 5-513, 5-401, 4-5957, 4-5857 Seafood from Norway’s cold clear waters 17 Latvia, 11-2376 and 11-2551 Balancing markets to the East and to the West 18 Estonia, 5-129 Expansion of products and markets is adding to the bottom line 20 Spain, 7-1417, 7-1433, 7-1439, 7-1517, 7-1525, 7-1533, 7-1617, 7-1621, 7-1625 Autonomous communities well represented at Spanish pavilion 20 Salmon Showhow, Copenhagen, 11 February 2015 Adding greater value to trimmings

Projects 24 ComFish final meeting, Brussels, 30 January 2015 Stimulating innovative thinking to deliver creative solutions 25 Danish companies form network around super chilling Trials show super chilling fish may improve quality

Aquaculture 26 Sustainable fishing is gaining importance for fishmeal, too The aquafeed industry seeks viable alternatives

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Contents Estonia 32 Ban, currency depreciation hit seafood exports to traditional markets Estonia uses the crisis to create a more competitive fisheries sector 34 Estonian Rural Development Foundation Funding the sustainable development of rural Estonia 36 Hunt-Fish Group combines exports of fish and game Perch fillets air freighted to Switzerland 38 Pärnu Laht works to secure raw material supplies Embarking on a new project – farmed perch 40 Fisheries and aquaculture in Estonia Russian sanctions inspire search for new markets 46 Compensating for uncertain markets Troubled waters for Estonian sprat 48 Ecofarm develops and sells products from farmed and wild fish An aquaculture PO with an interest in small pelagics 50 Japs catches, processes, and sells European perch and pike-perch Vertical integration enables complete control of quality 52 Making the most out of a few products Extending the market for sprat and Baltic herring

Worldwide Fish News

54 DGM Shipping earns coveted award at Prodexpo Using sprats to make highly value-added items

Bulgaria

page

8

China

page

8

Denmark

page

7

Ecuador

page

11

European Commission pages

6, 8

France

page

6

Iceland

page

10

Italy

page

10

Latvia

page

9

Malta

page

6

New Zealand

page

9

Russia

page

10

Spain

pages

Sweden

page

6

Turkey

page

8

10, 11

56 Avektra expands its factory and product line The unceasing search for new markets

Technology 59 iTub rents out insulated containers to the fishing industry Plastic bins as a service rather than a product

Trade And Markets 60 Seabass and seabream production growth in Turkey throttled back Turkish expansion strategy set to pay off

Guest Pages: Valdur Noormägi 62 The Estonian Association of Fishery marks its 20th anniversary in October 2015 Investments in research for greater value addition

Service 65 Diary Dates 66 Imprint

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[ NEWS INTERNATIONAL ]

Världsnaturfonden WWF SMARTA FISKEREDSKAP HÅLLBART FISKE

WWF stĂśdjer utvecklingen av smarta fiskeredskap som minskar onĂśdiga bifĂĽngster.

WWF arbetar fÜr att minska illegalt fiske och den mängd fisk som dumpas Üverbord.

Välj MSC, ASC och KRAV Ladda ned FISKGUIDEN! Vill du ha gott samvete när du äter fisk? Hüll utkik efter märkningarna MSC, ASC och KRAV. WWF stÜdjer dessa certifieringar frün tredje part som bästa tillgängliga miljÜval fÜr konsumenter. Genom att välja certifierade fiskar och skaldjur bidrar du till en mer hüllbar konsumtion.

MSC – Marine Stewardship Council

FISKGUIDEN

2015

;

EUs GEMENSAMMA FISKERIPOLITIK WWF jobbar fĂśr den gemensamma fiskeripolitiken utan skadliga subventioner och fĂśr hĂĽllbara fĂśrvaltningsplaner fĂśr alla fiskarter.

MSC är en global organisation som tar fram standarder fÜr vildfüngade certifierade fisk- och skaldjursprodukter.

ASC – Aquaculture Stewardship Council

MILJÖMÄRKT FISK Genom att välja miljÜ märkt fisk kan du bidra till ekosystem i balans.

ASC grundades 2010 och certifierade de fÜrsta fiskodlingarna 2012. Exempel pü arter som stegvis certifieras är odlad hajmal, tilapia och lax.

KRAV WWF.SE

choices and also encourages more farms to raise their fish with less negative environmental and social impacts. The methodology underpinning the guide was developed by a consortium of NGOs and is still being improved and updated. Today, these seafood guides are available in 18 countries around the world. The guide uses a traffic light system of colours to classify the sustainability of fish as good (green), bad (red), or could be better (yellow).

The red list unfortunately is the longest in the Swedish edition.

• FISKGUIDEN 2015

The recently updated Swedish Seafood Guide points seafood lovers to sustainably farmed and fished seafood. New in this edition is the sustainably farmed shrimp, which joins tilapia, pangasius, and salmon on the list of products that have been certified to the Aquaculture Stewardship Council’s (ASC) sustainable standards.

Since the ASC’s launch in 2012, 127 farms have been certified and some 2,000 products are available globally that have been produced to this standard. The guide helps consumers make responsible

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Sweden: Farmed shrimp can now be eaten with a clean conscience

KRAV är en nationell certifiering och stür fÜr en hüllbar livsmedelsproduktion.

Scanna QR-koden och ladda ned WWFs mobilapp till din telefon!

Världsnaturfonden WWF, Ulriksdals Slott, 170 81 SOLNA. Telefon 08-624 74 00

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Swedish consumers interested in sustainability should study the WWF seafood guide.

Malta: Investment package of EUR29m to boost Maltese ďŹ sheries sector The Maltese maritime, fisheries and aquaculture sectors will get a EUR 29m investment package, the EU Commissioner for Environment, Maritime Affairs and Fisheries, Karmenu Vella announced on 6 March 2015. In accordance with the European Maritime and Fisheries Fund Regulation (EMFF) and the reformed Common Fisheries

Policy, the package includes EUR 23m of EU funding. It will aim to strengthen the economic viability of businesses in the sector through smart, green, innovative and resource efficient fisheries and aquaculture. As part of the Maltese fisheries operational programme to achieve long term economic and environmental sustainability, the

efforts will be focused on improving infrastructure; providing fishermen with new skills and opportunities to improve and develop further their business models; encourage and stimulate consumption towards lesser known species.

Of the EUR 29m budget, EUR 14.9m will be invested in promoting

environmentally sustainable, resource efficient, innovative, and competitive knowledge based fisheries and aquaculture. EUR 10.1m will go towards supporting the implementation of the Common Fisheries Policy, EUR 1.6m for implementing of the Integrated maritime policy, and EUR 0.5m for fostering marketing and processing.

between 2010 and 2014, or 18.808 and 14.823 tonnes, respectively.

Contrary to imports, the export increased four-fold during the same period from 2.296 to 10.096 tonnes. While the average price of imported hake only changed slightly from 2010 to 2014, a 47ď&#x2122;&#x201A;

decrease on the average export price was observed. The main reason for this significant decrease is the high volume of hake exported to Spain (90ď&#x2122;&#x201A; of Spainâ&#x20AC;&#x2122;s fresh hake is imported from France) where the price had fallen significantly.

Hake popular in France Hake is the fifth most consumed fish in France. The species reached the second highest sales volume at French auctions in 2014, and the first-sale value of hake was almost EUR 40 million in 2014, up 30ď&#x2122;&#x201A; compared to 2013. However, the price of hake

decreased moderately - the average first-sales price fell from 2,56 EUR/kg in 2012 to 2,50 EUR/kg in 2013 and 2,47 EUR/kg in 2014 according to EUMOFA figures.

Quota and production increases of French hake resulted in a 22ď&#x2122;&#x201A; decrease of imports by volume

European Commission and EIB launch new advisory service for European Structural and Investment Funds A new advisory service on financial instruments for the European Structural and Investment Funds was launched by the European Commission and the European Investment Bank (EIB) on 19 January 2015. As part of the EU Investment Plan, the service aims to enhance the expertise of 6

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the stakeholders and managing authorities. An advisory platform will be established to facilitate the development of financial instruments by the Member States and the managing authorities. In addition to the platform, a multiregional assistance initiative will be launched later this year. The

aim of the initiative is to facilitate the use of financial instruments from two or more Member States, which share similar investment priority areas. For the launch of the platform and the better design of the instruments a two-day high level conference was organised where European Commission

Vice-President Jyrki Katainen responsible for Jobs, Growth and Competitiveness, Commissioner for Regional Policy Corina Cret¸u, and EIB Vice-President Wilhelm Molterer were present. During the event exchange of experience and best practice were discussed by Member States and regions. www.eurofishmagazine.com

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[ NEWS INTERNATIONAL ] Denmark: New BioMar feed for sturgeon bred for meat According to FAO statistics global aquaculture production of sturgeon has grown from 26,400 tonnes in 2008 to 64.800 tonnes in 2012. This is an increase of 145 led by growth in production in Iran (2180 growth), Viet Nam (900 growth), Bulgaria (194 growth), and China (158 growth). With new sturgeon farms appearing all across Europe and Asia, BioMar has produced a whole new range of sturgeon feed products to meet the growing demand. We have been researching sturgeon nutrition and providing caviar farmers in traditional caviar markets, such as France, Italy, and Russia with quality feed for over 20

years, and now we have decided to extend our long-lasting partnership to the growing number of farmers who dedicate their livelihoods to a fish with such a long-life cycle, says Henrik Aarestrup, Global Marketing Director from BioMar. The feed ranges include a hatchery feed range for larval stages and another for its fry stages with highly digestible products with high levels of protein, phospholipids, vitamins, and the only probiotic approved by the European Food Safety Authorities for inclusion in fish feed that improves survival and reduces occurrence of deformities across fish species.

In addition, BioMar also offers two selections of grower feeds providing different digestible levels, enabling farmers the possibility to optimise feed performance in accordance with temperature fluctuations and changing farming conditions like seasonal changes.

We have traditionally produced sturgeon feed focused on high quality caviar, but have seen a steady increase in production of sturgeon for meat as an important supplement to the caviar.

Therefore, a new, cost-effective grower feed especially for farmers producing sturgeon meat has also been introduced, says Michel Autin, Technical Director from BioMar.

Michel Autin, Technical Director for BioMar West Med has been working with sturgeon nutrition for close to two decades.

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[ NEWS INTERNATIONAL ] Bulgaria: EU discard ban comes into effect in the Black Sea According to a regulation from the European Commission Bulgarian fishermen may no longer discard catches in the Black Sea. The discard ban takes effect 1 January 2015.

The EC states that these are necessary measures in order to preserve a good ecological balance in the sea. The discard of catches is a significant loss of resources and has a negative influence on their sustainable usage, as well as on the economic feasibility of the fisheries

in the region. However, the ban will take effect gradually between 2015 and 2019, giving the fishermen an adaptation period.

Nevertheless, in the Black Sea the landing obligation for sprat is compulsory from the beginning of 2015. All sprat caught in the Black Sea must be landed regardless of the fish quality. The minimum size of sprat for human consumption is 7 cm, and all the

catches under this size have to be stored and accounted for separately. Sprat is among the main species caught along the Bulgarian shore of the Black Sea. In 2013, landings of sprat amounted to EUR 1.2 million, up 8, compared to the previous year’s EUR 1.1 million. In the same period, in terms of volume sprat caught by the Bulgarian fishermen increased from 2,830 tonnes in 2012 to 3,794 tonnes in 2013.

Turkey’s youth increasingly want seafood Turkey’s youth – urban, affluent, and health-conscious – are an underappreciated market for seafood, according to an industry expert at the recent North Atlantic Seafood Forum in Bergen, Norway. Gulin Kan, from Innovation Norway, said nearly three-quarters of Turkey’s population lives in cities, and young Turks have the

incomes and busy schedules that cause them to eat out more often.

Couple that with greater attention paid to health by youth than previous generations did, and that creates a potentially large seafood market for exporters throughout Europe.

Although Turkey’s per capita consumption of seafood (about

8 kilos) is low relative to many European countries, its economic growth is high, averaging 5 annually over the last decade. Domestic production, like sea bream and sea bass, is rising rapidly, but there is need for imported frozen products in restaurants and fresh seafood at retailers.

China: Becoming the world’s largest salmon market Speaking at the recent North Atlantic Seafood Forum in Bergen, Norway, Ole Leroy CEO of Marine Harvest, a leading salmon producer and marketer, sees China eventually overtaking the United States as the world’s largest salmon

consuming country. This is owing to China’s relatively high GDP growth and its population of urban, consumption-oriented youth.

The US is currently the largest salmon market despite, as Leroy

noted, its relatively low per capita salmon consumption, which could delay but not prevent its preemption by China. In contrast, the EU market is mature, with less potential for long-term growth.

Turkish rainbow trout subsidised – according to EC ruling Following an extended investigation instituted at the request of Danish trout farmers, the European Commission has found the complaints of subsidised Turkish exports of certain rainbow trout to the EU to be justified. As a result, countervailing duties of between 6.7 and 9.5 will be charged on EU imports of such trout, the specific amount 8

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depending on the Turkish exporting company. Kilic, the largest exporter, received the highest levy, 9.5, while imports from other exporters who cooperated with the investigation (providing confidential business information) will be subject to lower rates. Exporters that refused to cooperate with the EC are also subject to the high-end 9.5 duty.

The investigation, which initially included an antidumping complaint that was later withdrawn, was filed on January 3, 2014, by the Danish Aquaculture Association. The complaint as amended alleged unfair government subsidies for Turkish exports, in violation of EU rules and of Turkey’s obligations as a member of the World Trade Organization.

EU aquaculture production shrinks in relation to the world According to the latest report on the Economic Performance of the EU Aquaculture Sector aquaculture production in EU28 reached EUR 3.4 billion and 1,108 million tonnes in 2012. According to the report over 70 of the entire aquaculture production stems from Spain (24), the United Kingdom (19), France (19), and Greece (10). In terms of volume, Mediterranean mussel is the main species produced in the EU28, while oyster, Atlantic salmon, seabass, seabream, trout are the most produced species in terms of value.

The main producer of salmon in the EU is the United Kingdom with 88 per cent of the value. Seabream and seabass are mainly produced by Greece – 53 of the value. Oysters are mainly produced in France – 89, whereas Spain is the main producer of Mediterranean mussels – 43 of the volume. Trout is the main species produced in freshwater accounting for 43 of the value and 48 of the volume. Trout is produced mainly by Italy (28 of the total), France (18) and Denmark (14). Despite the good performance of the EU aquaculture sector and the increased volume and value in absolute terms, the report also reveals that the overall relative importance of the EU aquaculture sector at a global level has declined. Compared to other regions of the world, where the production has increased faster than in Europe, for the period 1990-2012 the EU aquaculture sector performance declined from 6 to 2 of global volume and from 9 to 3 of global value. www.eurofishmagazine.com

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[ NEWS INTERNATIONAL ] Latvian Presidency priorities presented to EP committees During the last two weeks of January 2015, Latvian ministers held a series of meetings to outline their priorities during Latviaâ&#x20AC;&#x2122;s EU Council Presidency to the various parliamentary committees. One important area which was discussed was fisheries. The Presidencyâ&#x20AC;&#x2122;s major priority was to put the new Common

Fisheries Policy into practice, with a special focus on competitiveness and sustainability. For Agriculture Minister Jaâ&#x20AC;&#x2019;nis Duâ&#x20AC;&#x2019; klavs there was a pressing need to agree on the landing obligation regulation, in order to make the discard ban work. Besides this there was also a need to push for progress on the multi-annual

management plans, to establish the maximum sustainable yields for all stocks.

Minister Jaâ&#x20AC;&#x2019;nis Duâ&#x20AC;&#x2019;klavs also added that the legislators would have to build on the results which had already been achieved so far by the inter-institutional task force and that the Baltic Sea

multiannual plan if agreed upon, could become an example for future management plans. Mr Duâ&#x20AC;&#x2019;klavs also announced that a special effort would be made to negotiate fisheries partnership deals with third countries, especially Mauritania, whose fisheries agreement with the EU expired in December 2014.

New Zealand: South PaciďŹ c strengthens commitment to sustainability The South Pacific Regional Fisheries Management Organisation (SPRFMO) passed a series of important conservation and enforcement measures to reinforce its commitment to sustainable fisheries in the region during its annual meeting held in Auckland, New Zealand on 2-6

February 2015. The (SPRFMO) is an inter-governmental organisation, committed to a long-term conservation and sustainable use of the fisheries resources of the South Pacific Ocean.

The main topic of focus was the quota and conservation

measures for jack mackerel in 2015. A quota of 360,000 tonnes, which was within the recommended limit of the Scientific Committee, was agreed. The EUâ&#x20AC;&#x2122;s share (28,100 tonnes) is a slight increase from last year and was welcomed by Member States and representatives of the EU

fleet. Another area of focus was strengthening its monitoring and compliance functions with the implementation of the EU proposed Compliance and Monitoring Scheme, under which two boats were added to the list of Illegal, Unreported, and Unregulated (IUU) vessels.

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[ NEWS INTERNATIONAL ] Russia: Federal Agency for Fishery, Eurofish discuss areas of collaboration Aina Afanasjeva and Ekaterina Tribilustova from Eurofish, held a meeting with Ilya Vasilievich Shestakov, Vice-Minister of the Ministry of Agriculture and the Head of the Federal Agency for Fishery. Potential areas of cooperation between the agency and Eurofish were discussed as well as medium-term opportunities collaborating not only with the authorities in Russia, but also with Russian

industry. These could, for example, be conducting studies of European markets that are of interest to Russian exporters, or organising B2B meetings, workshops or seminars on specific mutually agreed topics.

The potential of Russian research institutes could also be used more effectively for implementing joint activities in, for example, the area of aquaculture, a strategically important sector.

Ilya Shestakov, Vice Minister of the Russian Ministry of Agriculture

Spain: EFCA assists Member States in the implementation Italy: Selling fish online, straight of the landing obligation from the boat On 5 March 2015 the Euro- rolling out new data network The actions of the EFCA in 2014 pean Fisheries Control Agency adopted its annual report for 2014, outlining the activities undertaken by the agency during the last year. The focus of the EFCA in 2014 was to assist the European Commission and the EU Member States in preparing for the monitoring of the landing obligation. Among the main activities carried on by the EFCA were building common capacities, fostering cooperation,

systems, adding modules for training fisheries’ Inspectors and finding synergies with Member States for joint monitoring efforts for the landing obligation. An expanded cooperation approach with the Member States called PACT (Partnership, Accountability (compliance), Cooperation and Transparency) was approved to facilitate the control and inspection of species not included in the programme.

resulted in 12.600 inspections (a 20 increase compared to the previous year), 850 fisheries inspectors trained, and five Joint Deployment Plans implemented.

In a seminar on the landing obligations held earlier in March, the Agency confirmed its interest to continue and extend its cooperation with the Member States to strengthen interregional cooperation.

Icelandic lumpfish fishery MSC certified As the first country ever Iceland’s lumpfish has been MSC certified as a sustainable and well-managed fishery. Over 300 small boats make up the first MSC certified lumpfish fishery in the world, which is important for Iceland, but also for the lumpfish. The Icelandic lumpfish fisheries have been relatively stable since 1990, where other lumpfish stocks have faced challenges. The reason for the relative stable Icelandic lumpfish, is due to control by various measures that include 10

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restrictions regarding the number of licenses and nets, a fishing season of three months, and limitations on vessel and mesh sizes. The MSC Manager for the North Atlantic, Gisli Gislason says, lumpfish roe is an important product for European markets and this is the first lumpfish fishery in the world to be MSC certified. This is the only traditional fishery in Iceland exclusively performed by small vessels. Close cooperation between the authorities and the small boats association is

vital to protect the marine environment and ensure lumpfish stocks are stable for the future.

MSC certification provides independent reassurance for consumers around the world that the lumpfish roe comes from a sustainable fishery. Inside the Icelandic Exclusive Economic Zone, lumpfish has been harvested for centuries. The female lumpfish has been exported as a luxury caviar to European countries, but now the Chinese market is also showing a growing interest for the fish.

Fishermen in the municipalities of Molfetta, Bisceglie, and Giovinazzo in Italy have received support and advice from the FLAG Terre di Mare to enable them to sell their catch online using tools like What’s App and Facebook. Photos of the catch are first sent to a group of people interested in buying and then placed on Facebook, where people can order and buy the fish.

The FLAG advised the fishermen about the regulations and legal requirements in order to sell from non-traditional stores or at typical outdoor markets.

For customers this is a new way of shopping for the fresh fish.

Now they can go on Facebook, and see what the “Fish of today” is, and order from today’s catch.

At the same time, the customers are in direct contact with the fishermen and follow their development creating closer ties to the local community. Within 18 hours of the catch fishers can sell their fish directly to the consumer while respecting health and safety regulations. Similar schemes are also operating in Denmark and Germany. www.eurofishmagazine.com

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[ NEWS INTERNATIONAL ] Ecuador's export of shrimp to the EU exceeds Thailand's The beginning of 2015 brought major changes for exporters of shrimp to the EU. While Ecuador will continue to avail itself of preferential duties in 2015 under the EU’s Generalised System of Preferences (GSP+), Thailand lost its preferential tariff in January 2015, and duties on frozen shrimp exports to the EU will

triple, from 4,2 to 12. In 2014, EU shrimp imports from Ecuador (EUR 601 million) surpassed those from Thailand (EUR 180 million) significantly. Ecuador is among the countries with shrimp production throughout the year, but in most shrimp producing countries production is low during part of the year.

Nevertheless, on the European market and other major markets demand for shrimp decreased.

The Argentina red shrimp has experienced a decline in prices in the European market due to the end of the peak consumption period and the arrival of large amounts of ground-frozen Pleoticus muelleri (which is

cheaper compared with frozenon-board shrimp). In Asia due to the Chinese New Year in mid-February shrimp demand increased, with a decline thereafter. The market situation in Europe and Asia reflected negatively on Argentina red shrimp prices, which reduced more than USD 0.50/kg.

Progress on farming of hake seen in Spain Scientists at the Spanish Institute of Oceanography report significant progress in large-scale farming of hake (Merluccius merluccius), although significant challenges remain to be overcome. Hake is one of Spain’s most important seafoods, for

both fishermen and consumers, and with fishing quota restrictions, there is potentially a large pay-off for successful farming enterprises.

The problems, however, include fish feed constraints. Specifically,

hake feed only on moving prey, and conventional fish feed does not move by itself. Feeding hake beyond their larval stage (where they eat microscopic plankton) requires the development of fish feed that “moves” (or at least looks to a hake like

it is moving). Spain’s hake consumption in 2013 exceeded 187,000 tonnes, at a wholesale price of about EUR15/kilo, so the benefits of overcoming this interesting challenge in a multi-billion euro market are huge.

Visit us at Seafood Processing Global (Brussels), 21–23 April 2015, Hall 4-6155 www.eurofishmagazine.com

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[ EVENTS ] Seafood Expo Global, Seafood Processing Global, Brussels, 21-23 April 2015

Pris d’elite finalists from Denmark, Estonia, Lithuania, Norway among others

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he world’s most international seafood fair, the Seafood Expo Global (SEG) and the co-located Seafood Processing Global (SPG) in Brussels, will throw open its doors again to the public for the 23rd time this year from 21-23 April.

The event is probably the biggest and most important in a calendar crowded with seafood events.

Last year the organisers, Diversified Business Communications, have announced, there were over 1,700 exhibitors from 77 countries and visitors from 150 countries.

The extent of the participation is perhaps not surprising considering the EU is the world’s largest

market for seafood. Demand in the EU cannot be met by domestic supply so imports are critical; in some categories such as whitefish, import dependency is 89, while overall the EU imports more than three fifths of its seafood requirements. In 2014 the EU imported 4.5m tonnes of seafood worth EUR15.2bn, a 4 increase in value and a 5 increase in volume compared to 2013. Events such as the SEG and SPG play an important role in this commerce as they showcase products and services from around the world providing a comprehensive overview of developments in the global seafood trade.

For the seafood processing industry the import of raw material is essential to ensure a steady supply of products for the domestic and international markets. These products vary from the simple to the highly complex and many of them will be on display at Seafood Expo Global, where some of them have been selected as finalists in the Prix d’Elite contest. The endorsement as a finalist alone is enough to generate interest in a product and winners in the different categories can expect extensive marketing and promotion of the successful item, which in turn leads to higher sales. Winning in the contest is thus both an award in itself as well as a source of

several collateral benefits. Among the finalists are four from the Eurofish member countries, Estonia (DGM Shipping), Lithuania (JSC Iceco), Norway (Salmon Brands), and Denmark (Vilsund Blue). Altogether there are 37 finalists from 11 countries, the overwhelming majority in Europe. The winners will be selected at a ceremony on 21 April in Auditorium 2000 at 18.15.

For more information visit http:// www.seafoodexpo.com/global.

Albania, 7-1444

Seafood processing generates vital jobs

A

lbania’s seafood industry sector is small but heavily export-oriented, with close trade ties to its European neighbors. In addition to a growing fishery, aquaculture investment is active, and seafood processing provides thousands with employment. Domestic consumption of seafood is low but potentially large as economic development continues, making Albania a potential market for other European exporters. Although Albania’s seafood industry is a small share (less than 1) of its GDP, it is regionally important, accounting for more than 4,200 jobs in many coastal areas and along its numerous 12

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inland rivers and lakes. Albania enjoys a significant trade surplus in fishery products: in 2014, exports of EUR34.4 million exceeded imports of EUR21.6 million by EUR12.8 million. Albania’s chief seafood trading partners are Italy, Spain, and Greece.

Albania’s seafood exports tend to be of high quality, in part because domestic consumers have relatively low incomes and buy less expensive products (including Albania’s entire freshwater fish and shellfish production). Inland aquaculture of species such as carp and trout is a growing sector, and these products also are destined mainly for

the domestic market. The processing sector is quite large (currently 9 factories and growing), requiring imported raw material to keep it operating at capacity, providing a growing market for foreign exports to Albania of unprocessed fish. Investment in this sector has enabled Albania to produce high quality products for export, although currently its export markets remain mainly concentrated in nearby Italy and Greece.

Among the largest Albania processors are the firms Koral and Rozafa. Koral processes about 1,500 tonnes a year, about two thirds of which comes from

imported raw material. Its contracts with several harvesting vessels in the Adriatic ensures high quality products. Likewise, Rozafa processes fish from Adriatic harvesters as well as imported raw material, and its exports meet quality standards in European markets.

More information is available from the company websites www. koralfish.com and www.rozafa.al, and from the Agricultural Production and Trade Policy Directorate of the Ministry of Agriculture, Rural Development and Water Administration, in Tirana, which will also be represented at the SEG at booth number 7-1444. www.eurofishmagazine.com

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[ EVENTS ] Italy, 11-2221, 11-2321, 11-2421

Connecting with potential partners, domestic and international

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he Italian pavilion has been a consistent feature at Seafood Expo Global for several years. Italian companies will also be participating in strength at the Seafood Processing Global, where they will exhibit their expertise in engineering design and applications for the seafood industry. The Italian seafood sector is highly diverse with companies catching, processing, and farming a number of species including finfish, cephalopods, and shellfish. Italy is a net importer of seafood. It has a large domestic market and a per capita consumption that is higher than

the EU average and much of the domestically produced seafood is traded within the country itself. For many traders therefore the SEG is as much an opportunity to meet and discuss business with partners and potential partners from within Italy, as it is to look for opportunities outside. Technology companies will be exhibiting as usual in Hall 4, where the SPG is located. Italian engineering companies have expertise in several areas including refrigeration and freezing, processing and packaging equipment, water treatment technologies, and all kinds of fishing gear.

In areas related, for example,

to the shellfish sector, such as grading, cleaning, processing and packaging, or depuration and storage, Italian companies are exporting their products

around the world. For more information about the Italian presence at SPE and SPG visit the event organiser’s website, www.seafoodexpo.com.

AQUACULTURE EXHIBITION IN DENMARK 7, 8 AND 9 OCTOBER 2015 AALBORG CONGRESS & CULTURE CENTRE

”Don’t worry – it’s so easy to get to Aalborg” DanAqua is the exhibition of the future for the fish farming sector. It focuses on recirculation and offers producers and suppliers to the aquaculture sector an outstanding opportunity to come into contact with potential customers from all corners of the world.

DanFish is one of the world’s most important exhibitions for equipment and services for the fisheries industry and a unique forum for networking. In 2013, DanFish welcomed 300 exhibitors from 22 countries and more than 13,000 visitors.

danaqua.net

danfish.com

Contact: Lasse H. Jessen, tel. +45 9935 5509, lhj@akkc.dk · Else Herfort, tel. +45 9935 5518, ehe@akkc.dk

www.eurofishmagazine.com

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[ EVENTS ] Croatia, 9-4237

Growth through EU membership

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he Croatian fish products industry has taken full advantage of the country's accession to the EU in 2013, including enhanced access to a huge market for its exports, incentives to produce high quality products for a wide variety of consumers, and EC assistance through the European Maritime and Fisheries Fund. Today Croatia is becoming a success story in harvesting, aquaculture, processing, and trade. Croatia’s wise use of EMFF assistance cannot be overstated. Fleet rationalization, port development, and future aquaculture expansion are but a few areas that Croatia has been working on in alliance with the EC. For example, the vast majority of Croatia’s fishing fleet consists of older vessels under 12 m in length, with inefficiant engines and other equipment.

And there are simply too many of them. Croatia is following the lead from Brussels in decommissioning many of these vessels.

Croatia also is improving its many ports, by modernising

infrastructure to allow greater access to the ports (by land and by sea) and to attract investment in fish processing and other onland activities. This aids in the processing sector’s production and shipment of higher quality seafood products. Like other Mediterranean countries, Croatia has a growing aquaculture sector producing sea bream and bass, tuna, and other species.

Competition in foreign markets is tight but that only serves to boost the industry’s attention to product quality.

Recently the aquaculture sector, which has been slowed by uncertainty over future returns from a production process that takes several years to yield marketable result. Tuna and bream production is rising, but farming of other species has remained stagnant in recent years. Infrastructure development will help Croatia overcome these challenges. The harvesting sector, concentrated in Adriatic waters, has benefitted from the growth of Producer Organizations, or

cooperatives, of which there are almost 20, representing nearly 500 fishermen. These PO’s help fishermen get better prices for their catch, encourage quality improvement, and some even have extended forward into processing, thereby keeping more of the consumer’s fish euro in the fisherman’s pocket.

enlarge its trade ties throughout Europe and beyond. At the SEG Croatian companies will be exhibiting at the Croatian Chamber of Economy pavilion with samples of their products.

For more information contact: Mr. Zoran Radan, Croatian Chamber of Economy, +385 45 61 555, zradan@hgk.hr, www.hgk.hr

With innovative use of EMFF assistance, improving ties to markets abroad, and a focus on product quality, the Croatian fish products industry is growing and taking full advantage of its EU membership, with plans to

Denmark, 4-5915, 4-5927, 4-6015

Several new products will be launched at SPG

D

anish Fish Tech Group is the shortcut to more than 55 Danish companies that are all world-class suppliers and advisors to the fish and seafood industry. At SPG 2015 twenty Danish companies will showcase their solutions and services to the international fish and seafood industry. Among them is Semi-Staal 14

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A/S that is presenting a project to increase a shrimp producer’s capacity by 75 percent by doubling the eight sorting stations and thereby removing the bottlenecks in the production. The new elements will be designed to perfectly match the old ones and the execution of the project is expected to take two to three weeks.

Another company Blücher is introducing a new drainage concept that minimizes bacteria in food production. The new range of drains and drainage channels in stainless steel is designed without corners and cavities that can harbour bacteria. The drainage concept has been developed in cooperation with the company’s clients in the global food industry and the

European Hygienic Engineering & Design Group (EHEDG) so that the system meets the requirements of the market.

Another Danish company Hans Jensen Engineering is launching a new cooling and freezing solution at SPG 2015. The tunnel allows fish manufacturers to simultaneously freeze fish with different freeze www.eurofishmagazine.com

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[ EVENTS ] a completely new design of the drainage openings which makes the belt ideal for products such as shrimp.

times and this increases the production capacity and cuts costs for cooling. The freezer has a capacity of up to 20 tonnes per hour and enables, for example, one product to be frozen for two hours and another product for five hours. This means that fish processors can make use of all the space available

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in the tunnel at all times instead of having to stop the production between different products.

Yet another new product will be launched by Scanbelt, which the company claims is the most hygienic on the market. The new conveyor belt that is ideal

for shrimp production due to the unique design of the drainage holes. The reverse side of the belt is designed with large open areas and angles larger than 90 degrees so that the belt is easy to clean and maintain and there is no build-up of bacterial contamination. In addition, the belt has

The following Danish companies will be exhibiting at SPG 2015: A/S Dybvad St책lindustri, Alectia A/S, Beck Pack Systems A/S, Bl체cher, Boleto ApS, Cabinplant A/S, Glud og Marstrand A/S, Hans Jensen Engineering, Hvalpsund Net A/S, IRAS A/S, Kaj Olesen A/S, Kyocera Unimerco Tooling A/S, NTF-Aalborg A/S, Pescatech A/S, Runi A/S, ScanBelt, Semi-Staal A/S, Smurfit Kappa Denmark A/S, System Cleaners A/S, Uni-Food Technic A/S. For more information contact: Halldor Halldorsson, Business Development Manager, Danish Fish Tech Group, +45 21 22 95 60, Halldor.halldorsson@dkexport.dk

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[ EVENTS ] Turkey, 11-2101, 11-2201, 11-2301, 11-2110

Exporters explore new markets in west and east

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urkish seafood exports have been climbing steadily since 2009, according to the Turkish Seafood Promotion Committee, when in value terms they amounted to USD340m. In 2013 they were more than USD550m and in the first seven months of 2014 they had already reached almost USD400m. Capture fisheries and aquaculture both contribute to seafood production in Turkey. Capture production declined 17 in 2012 and again by 14 in 2013 to reach 339,000 tonnes, while aquaculture production over the same period increased 12 and then 10 to reach 233 thousand tonnes. The most commonly farmed marine species are European seabass

and gilthead seabream, and in freshwater it is rainbow trout.

These are also the species that are most widely exported. Traditionally Europe has been the most important destination for Turkish exports, but exporters are increasingly looking at other markets including Russia, USA, and parts of Asia.

Turkish producers are also slowly but surely moving up the value chain. Whole gutted fish are still exported, but increasingly companies are exporting portionsized fish in MA packaging, fillets, even frozen ready meals that combine a fillet of fish with vegetables and a sauce, and that just need to be warmed up in the oven or a

microwave to give a complete and nutritious meal. Some companies are also experimenting with upmarket canned products, where pieces of fish are combined with different sauces. As producers focus on greater added value they are also looking at diversifying into other species. Meagre (Argyrosomus regius), dentex (Dentex dentex), blue-spotted seabream (Pagrus caeruleostictus) and pink dentex (Dentex gibbossus) are some of the new species that are being farmed in the sea. In the freshwater sector portion sized rainbow trout, a product mainly destined for the EU, has been hit with countervailing duties that will affect exports to the EU of all chilled, frozen and smoked whole

fish of less than 1.2 kg, headless fish of less than 1 kg, and fillets of less than 400 g.

The Turkish pavilion at SEG Brussels will host some 15 companies displaying a variety of products both farmed and wild, freshwater and marine, and, highly processed and otherwise.

Chefs will offer visitors freshly prepared samples throughout the day, providing a glimpse of the famous Turkish hospitality.

For more information about the companies exhibiting contact: General Secretariat of Istanbul Exporters Associations, Tel.: +90 212 454 0500, iib@iib. org.tr

Norway, 5-301, 5-313, 5-413, 5-513, 5-401, 4-5957, 4-5857

Seafood from Norway’s cold clear waters

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he Norwegian pavilion at the Seafood Expo Global will represent a range of products and services within the seafood sector, an area that is the country’s largest export earner

after the oil and metal industries.

Seafood also plays a vital role in the domestic economy, employing several thousand people and providing jobs in remote coastal communities, where other avenues

Keepepititcoforl,esh ke

of employment may be limited.

While salmon and sea trout are perhaps the best known species farmed in Norway, other species such as cod and halibut are also cultivated, as are blue mussels.

Much of the fish that is farmed is exported to countries around the world with salmon topping the list by a huge margin. Over 1m

tonnes of salmon were exported in 2013, three fourths of which went to destinations in the EU with a value of NOK26.5bn. The importance of the European market for Norwegian salmon farmers cannot be underestimated and some of the companies represented at the Norwegian pavilion are connected with the salmon industry.

INTER FRESH CONCEPTS BV. info@icepackxl.nl Tel.:+31252340687 16

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[ EVENTS ] Cod, mackerel, herring, and sea trout are also important exported species. Cod exports for example amounted to NOK7.2bn in 2014 or 12 of the total export value,

while mackerel (NOK4.1bn), herring (NOK2.7bn), and sea trout (NOK2.3bn), were the next most valuable export earners. Fish is exported in different product

forms as whole fish, fillets (both of which can be fresh or frozen), as well as salted and dried products.

Several companies at the pavilion are trading in wild fish.

For more information about the companies exhibiting at the Norwegian pavilion contact Lin Li, lin. li@innovasjonnorge.no; Tel.: +47 22 00 27 30, at Innovation Norway.

Latvia, 11-2376 and 11-2551

Balancing markets to the East and to the West

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atvian processors, while still very dependent on their traditional markets in the east are increasingly looking at Western Europe to sell their products. How to supply to two very different markets? In Latvia’s case it is by expanding its product line to meet the demands of a wide variety of consumers. Many consumers, East and West, are familiar with canned sprats in oil, for example, but Western consumers are not as fond of them as consumers from Eastern Europe are.

Therefore, Latvian processors have begun experimenting, as one processor puts it, with new products made from traditional species to make headway in nontraditional markets.

For example, pelagic fish such as sprats or mackerel – still canned or in other airtight containers – but with tomato or other sauces, are a growing export to the West. Frozen products for the restaurant and other institutional trade are also a growth area. The volume of seafood exported to Russia and other eastern markets is still stable in volume terms (but falling in value), so this means expansion in the Latvian processing sector.

Latvia’s processing sector is concentrated along its coastline, in or near cities and towns such as Liepaja, Ventspils, and Roja. Here, the seafood industry is an important part of the economy. Processing provides at least 5,000 jobs, and more than EUR200 million in export value. Canned fish remains the largest product segment, but in an effort to expand into Western markets, as well as the growing hotel/ restaurant sector in the Baltic region, Latvian processors are increasing their production of frozen and fresh seafood.

Latvia’s fishing sector includes just over 700 vessels, mostly inshore vessels – a declining number due to catch restrictions under the EU Common Fisheries Policy. For some species, www.eurofishmagazine.com

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AQUA NOR 2015 The most important venue for the aquaculture industry

FOLLOW THE SHOAL TO TRONDHEIM 18 – 21 AUGUST

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[ EVENTS ] such as cod and salmon, economic forces (weak markets, high competition) rather than policy restrictions explain declining catches. There also is some distant-water fisheries activity, such as those off the African coast, which helps provide incomes and also expands the variety of species available for processing and export. However large-scale vessels are also declining in number, due in part to the EU decommissioning programme. Many of the 600-plus inshore vessels are quite small (5 m or less) and are not able to go to alternative fishing grounds when the fishery in local waters is poor. But they are culturally important, even a tourist attraction, and some vessel

owners expand into tourism or other activities (e.g., recreational angling for hire) during bad economic times in the fishery.

The marine fisheries of the Baltic Sea and the Gulf of Riga provide most of the fish processed for export. The freshwater fisheries in Latviaâ&#x20AC;&#x2122;s interior provide seafood (pike, river lampreys) that is almost entirely consumed domestically. In both coastal and inland areas, aquaculture has grown slightly in the last decade, due in part to support from the European Fisheries Fund. While Russia and other CIS countries remain important to Latvia, the West is where growth lies, and Latvian companies large and

small are finding innovative ways to expand into those markets.

Several of these companies will be exhibiting at the Latvian pavilion at the SEG 2015, where it will be possible to view and sample their products.

For more information contact: Mr. Didzis Smits, Canned Fish LV, +371 2636 4252, didzis.smits@ cannedfish.lv, www.cannedfish.lv

Estonia, 5-129

Expansion of products and markets is adding to the bottom line

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ike other Baltic countries, Estonia has long been a seafood exporting nation, as it produces more than it can consume. Russia and other CIS markets have traditionally been important, but Estonia is increasingly looking westwards (Europe, North America, and beyond) for future market growth. The Russian ban on imported foods does not include canned and most preserved fish, which allows Estonia to continue exports of its traditional products to Russia (and to other CIS members, which have not joined Russia in the ban). However, as with most foreign exporters to Russia, the falling value of the rouble has made it costly for Russian buyers of Estonian products, and total revenues have fallen. The complete loss of sales of frozen products to Russia, however, has hit hard: frozen sprats exports from Estonia to Russia in 18

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2013 totaled 35,000 tonnes, at up to EUR500 per tonne. Thus, expansion into other (Western) markets is key to Estoniaâ&#x20AC;&#x2122;s future success.

Fortunately, with a long history of exporting seafood, Estonian exporters have made a good start: Estonia exported fishery products to 60 countries in 2014. The challenge, made more acute by the Russian ban, is finding ways to expand in those markets. Exports of frozen sprat and herring to African markets are on the rise, as are exports to the Balkans and other Central European markets. Since the ban, Estonian seafood exports to Japan and China have begun. Participation in seafood trade fairs around the world has been stepped up, because of the value of promoting Estonian brands and new products. With help from the European Fisheries Fund, Estonia has invested more than

EUR100 million into state-of-theart technology and equipment in the seafood processing sector. This allows exporters to meet the stringent health and safety requirements in the EU, US, and other markets, in an area where consumers are particularly attentive to product quality.

Investments are also being made in energy efficiency, resource sustainability, assessments of

and reductions in environmental impacts of harvesting processing, and aquaculture, and other areas. This adds to product cost, and it remains to be seen whether price-conscious consumers are willing to pay for more secure quality and less adverse environmental impacts, but the investments are being made nonetheless. Aquaculture plays a limited role in the seafood industry of Estonia, and www.eurofishmagazine.com

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SEE YOU AT SEAFOOD EXPO GLOBAL Pelagic species: Blue whiting Sardinella Silver smelt Sardine Mackerel Horse mackerel Sprat Herring Sandeel

Happy People Healthy Food Respect for Environment

FISHING FOR FOOD Stand number: 4149 - hall 9

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[ EVENTS ] many fish farms are very small enterprises. Competing with largescale, established farms in other countries is difficult. Some Estonian fish farms have opted to grow less common species and find niche markets for these products.

In addition, investments have been made in utilising by-products of the processing of pelagic fish.

Fish waste is being used to make fish oils, feed, medicines, and even perfume. The investments in new products are costly and risky,

but the potential market growth could be immense. Estonian processors already make and market more than 2,700 different seafood products, some of which will be displayed at the Estonian National Pavilion during SEG.

For more information contact: Valdur Noormagi, Estonian Association of Fishery, +372 622 13 00, kalaliit@online.ee, www.kalaliit.ee

Spain, 7-1417, 7-1433, 7-1439, 7-1517, 7-1525, 7-1533, 7-1617, 7-1621, 7-1625

Autonomous communities well represented at Spanish pavilion

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he Spanish pavilion at Seafood Expo Global (SEG) is a combined stand representing the fisheries and processing sector in many of the Spanish autonomous communities. These are Andalusia, Asturias, the Canary Islands, Cantabria, Catalonia, and of course Galicia. The federal ministry of agriculture and the Basque ministry of environment will also have their own booths in the pavilion. At 43 kg per capita Spain has the highest rate of fish and seafood consumption in the EU except for Portugal. Supporting this level of consumption is the domestic production of seafood, capture and aquaculture, as well as imports.

Spain also has a highly developed processing industry that converts

fin fish, shellfish, and cephalopods into a variety of fresh, frozen, and canned products mainly for the domestic market, but also for export. The volume and value of exports have stayed more or less stable the last few years at roughly 1 million tonnes with a value of EUR3bn. Imports too have hovered around 1.5m tonnes valued at approximately EUR5bn. Two thirds of Spanish imports are from countries outside the EU, while three fourths of the exports are to EU countries. For the Spanish seafood sector the SEG and similar events are critical fora to meet buyers and suppliers. Indeed during the years of the economic crisis the seafood sector was one of the few positive stories in the Spanish economy as

exports, after declining slightly in 2009 increased each year thereafter until 2013. The Spanish fisheries, aquaculture, and processing sectors are also an important source of employment, providing jobs for about 57,000 people, perhaps a quarter of all jobs in the sector in

the EU. Many of these positions are in areas where the sector may be the only or almost the only source of employment such as in Galicia and Andalusia. The economic footprint of the sector in Spain is vast and will be reflected in the variety of companies at the Spanish pavilion.

Salmon Showhow, Copenhagen, 11 February 2015

Adding greater value to trimmings Each year, Marel, a global provider of processing systems and solutions for the meat, poultry, and fish industries, holds an event to demonstrate the latest developments in its salmon processing equipment. Called Salmon Showhow, the event combines equipment demonstrations with seminars on technical subjects such as automation or traceability for the attendees.

M

arel’s Salmon Showhow 2015, the 14th edition of the event and the second to be held at the purpose-built facility, Progress Point, in Kastrup near the Copenhagen airport drew over 300 visitors, a 20 increase in numbers

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compared to last year. Fish in general, and salmon in particular, is an important part of the company’s economy contributing to about 15 of the revenue in 2013. At the Salmon Showhow this year a wide range of machines was on display covering

the whole value addition chain from primary to tertiary processing. In addition to slicing machines it was possible to see desliming and de-heading, grading, filleting, trimming, pinbone removal, fillet washing, salt dispensing, portion cutters,

and a marinade dispenser, among other equipment.

Grading by colour The filleting machine MS2730 which was launched in 2011 was www.eurofishmagazine.com

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Salmon from the family company

Norfisk Berlin GmbH Boschweg 6 12057 Berlin

www.norfisk.de

Visit us at SEG in Brussels 21-23 April, Hall 5 Stand 5-301 05_News_EV.indd 21

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[ EVENTS ]

The RevoPortioner has been successfully used in the poultry and red meat industry and is now being deployed to add value to fish cut-offs, bits and pieces, and trimmings.

further developed in 2013 with the addition of a back trim tool. This year it was presented at the Salmon Showhow with an additional refinement. A belly trim function has been added creating a highly automated filleting line. With a back and belly trim you naturally need to trim the fish less, says Stella Björg Kristinsdóttir, Marketing Manager Fish Industry, but the speed falls to 18 fish a minute compared to 25 fish a minute for the version without the belly trim.

This line is set for release in 3rd quarter this year. A machine that was on display although it is still being developed was the SensorC Colour Grader which is currently being tested by a well-known producer. This machine can be used for different purposes. For example, the grader detects the colour of the fillet identifying blemishes such as melanin or blood spots and sorts the fillets accordingly. It can also be used to grade fillets by colour following the different nuances of pink found on the Salmofan, a standard industry reference used to identify the colour shade of salmon flesh. The machine can also be used to link the colour of the fillet to the fish that comes from different cages and to the type of feed that is given to the fish, which would allow greater control over the colour. The colour grader will also be launched in 3rd quarter.

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A skinning machine that skins the fillet head first was also being demonstrated. According to Ms Kristinsdóttir this is the first of its kind on the market and it has the advantage of being both fast and gentle in its operation. Skinning the fillet head first means that the fish does not have to be turned around when it leaves the filleting machine as at this stage too the fish is processed in the head first position. Having a skinner that removes the skin from the fillet head first reduces the manual handling of the fish as it proceeds from the filleting to the skinning machine. A skinner that processes the fish tail first would, on the other hand, call for the fillet to be turned round after it leaves the filleting machine and then again before the portioning machine, as most portioning machines also need the fillet to be fed head first. On display were also two different applications of a portioning device, one with a grader and the other with a sorting device. These showed how the portions can be graded by weight in the first case and how unwanted cuts could be sorted away in the second.

Growing demand for portions necessitates more value addition for trimmings The increasing popularity of portions on many markets has resulted

in larger volumes of trimmings, which are a valuable resource.

Converting trimmings and cutoffs into products is the RevoPortioner, which uses fish meat as raw material pressing it into shapes with a portioning drum. A puff of air releases the shapes onto a belt which transports them to be further processed, frozen, marinated, coated etc. The machine can be used to add value to scraps of fish that might otherwise go into the production of fishmeal or fish oil.

The machine is a three-dimensional former that can make patties or balls or any other shape. Although the machine is not new, having been used for many years in the red meat and poultry sector, over the last two years the company has been pushing it into the seafood segment. At HB Grandi, an Icelandic company, the RevoPortioner is used to process off cuts and trimmings from the cod processing lines. Among the advantages is that there is no need to use binding agents to get the pieces to stick together, which results in a pure seafood product. Batter and breading can also be applied to the shapes to add further variety to the products.

Marel has a lot of experience with slicers and this was reflected in the number of slicers that were on display. But perhaps the highlight was the I3300 retail pack system, an extremely sophisticated system that can work with either a fixed weight or a fixed number of slices.

What is unique however is that the machine does not need to place the slices on a board, but can drop them on a belt, from where they can be placed in vacuum pouches or a thermoformed trays. For highvolume producers the savings on boards, both economic and environmental, can be considerable.

Innova ties it all together Binding all the different pieces of equipment in a line, or indeed

in a factory, together is Marel’s Innova software suite. Innova not only ensures that the different machines talk to each other, but also produces feedback and warnings about machine and operator performance. It monitors quality control processes throughout the value chain collecting user defined information to generate reports and to analyse trends. The software can also be used to maintain full product traceability, a critical requirement today, by documenting the origin of the product and each subsequent step it goes through, so that in the case of a recall it is possible to identify the stage in the production process responsible for the fault.

Innova can also be adapted to deal with software and hardware from other suppliers as well as to link factories at different locations together.

By monitoring the entire production stream from fish grading to palletizing, Innova reduces the risk and expense of incomplete pallets and faulty labelling, as well as enables shorter product turnaround times.

At the Salmon Showhow the versatility of Innova could be witnessed through simulations of the control room in real plants with the results displayed on screens so that visitors could see the records from the filleting line, the trimming line, and from individual pieces of equipment. Innova thus records all the data being generated in a factory and serves it up on request.

The Salmon Showhow this year also featured two services that Marel is offering. The company is encouraging its customers to enter into service contracts, which will mean regular customer visits to identify potential weaknesses in the system and to take the necessary measures to prevent breakdowns and the consequent downtime. The other service is a financing solution through De Lage Landen, a subsidiary of Rabobank. Buying equipment from Marel has never been easier. www.eurofishmagazine.com

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27/03/15 7:56 PM

[ PROJECTS ] ComFish final meeting, Brussels, 30 January 2015

Stimulating innovative thinking to deliver creative solutions “Resolving key fisheries issues through targeted communication” was the title of the final meeting of the EU funded ComFish project, which took place on Friday, 30 January 2015 in the Museum of Natural Sciences in Brussels and which was attended by over 100 fisheries experts from 21 countries. The participants included scientists, NGOs, fishermen, fisheries industry representatives and policy-makers.

T

he event gave the participants an opportunity to listen to presentations about the future of European and world fisheries, how the scientific advice is provided to policy makers, as well as to find out more about challenges in different fishing regions in Europe and how improved communication between stakeholders could provide for some of the solutions.

After opening remarks by Jacque Fuchs, DG Research, key presentations were made by Bernhard Friess, a director in DG Maritime Affairs and Fisheries, Lahsen Ababouch, Director, Fisheries and Aquaculture Policy and Economics Division, FAO, and Eskild Kirkegaard, Chair of the ICES Advisory Committee.

More scientific data is needed to support fisheries policy decisions Proactive communication addresses prevention and preparation for a crisis, whereas reactive communication attempts to mitigate the impacts of an existing crisis. Both communication forms have different functions and objectives. Analysis has shown that more scientific data is needed to support fisheries policy decisions. Having such data may have a positive impact on future agreements and satisfaction 24

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concerning fisheries related performance of governments, industry and NGOs. Finally, changes of behaviour and conduct should not only to be expected from fishermen.

Furthermore, possible solutions to challenges in fisheries for Baltic, Black Sea, Mediterranean, North Atlantic and North Sea regions were presented by project partners. The fisheries challenges and solutions were discussed from different perspectives: management, political, legal, environmental, scientific and socio-economic interests. In some cases, communication can serve to facilitate positive outcomes, in other instances communication itself (or lack thereof) was seen as a challenge that needed unique solutions.

Engage fishermen in co-management For example mixed fisheries is primarily of immediate interest for the North sea and Baltic regions.

The latter is also faced with the immediate challenge of the consequences of the discard ban. The Black sea and the Mediterranean regions emphasised the need for more robust international rules and cooperation (for example protection of the ecosystem and common standards) as well as improvements in communication infrastructure and methodologies. The Atlantic

region highlighted the need for more knowledge on ecosystems, fish habitats and climate change.

There were however also many common challenges and solutions.

These were related to the need to have more reliable fisheries data, the need to engage stakeholders in co-management of their resources and improvements to fishery management plans. For example, the need for more transparency, simpler and flexible rules was strongly echoed in the Baltic, Mediterranean and Black sea regions.

The second part of the conference was dedicated to specific thematic workshops, to address four key issues in EU fisheries: a) Improving the EU-Mediterranean/ Black sea dialogue; b) Fisheries co-management – can it work? c) Engaging stakeholders to improve management measures (focus on by-catch); d) Sustainable fisheries- labelling issues and the power of the consumer.

How trustworthy are fishery product labels?

The latter was of particular interest, considering the new European regulation on wild fish and aquaculture consumer labels that will give a new added value and would open new market expectations. Moreover, the new normative also considers as voluntary information on ethics, social

or environmental conditions, nutritional facts, date of catch or landing.

Under certain circumstances, this supplementary information would give similar information level as an ecolabel, although this last system guarantees a linkage between the stock status and the correspondent fisheries. However, although the new regulation was adopted on 13th December 2014, it seems that in some countries no specific campaign has been carried out to promote awareness on the scope of this new regulation. Another important issue is that the information placed on the label should be easily readable and clearly understood by the consumer.

Actions to be taken The “Communication in fisheries” project raised questions, identified challenges, has built scenarios and last but not least, it has shared its outputs with the public. The purpose is not to provide easy solutions, but an opportunity for reflection and thought, to stimulate innovative thinking and to contribute to finding the right answers.

For more information please contact: Paul Pechan ComFish coordinator Ludwig Maximilians University, Munich pechan@ifkw.lmu.de www.eurofishmagazine.com

27/03/15 10:31 AM

[ PROJECTS ] Danish companies form network around super chilling

Trials show super chilling fish may improve quality A group of Danish companies with a joint interest in super chilling have formed a network that has recently conducted trials at -1°C with fresh salmon and cod. The purpose of the trials was to evaluate if the quality of the fish could be improved or its shelf life extended.

T

he shelf life of cod super chilled to -1°C is extended by one day for each five days of storage as the relative rate of spoilage decreases with lower temperature. Thus, super chilled fish equates to a product that has been stored for a shorter duration than a conventionally stored product and is therefore of higher quality. In turn, the extended shelf life of super chilled fish enables it to be delivered to more remote customers with no impact on the quality at the time of delivery.

The challenge of super chilling or super cooling is to reduce the temperature as much as possible without reaching the point of partial freezing as that causes the texture of the fillet to deteriorate. Another challenge is that the surface of the fish can become dry due to the sub-zero chilling (freezing). Fresh fish is sold largely on the basis of its appearance – a clear shiny surface – and a dull look can reduce the price even though the eating quality may be improved.

The point of irreversible partial freezing is about -1.6°C for cod and initial trials have been conducted at Norway Seafoods in Grenå at -1°C with cod fillets and whole salmon. The www.eurofishmagazine.com

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network participants evaluated the quality after 5 and 10 days of storage. The surface of some of the fish was covered in an attempt to protect it from drying.

The results from these first tests suggest that this method looks promising and should be further explored.

Is super chilling the future of fresh fish storage?

The next step in the trial will be to export the fish by truck. There are plenty of practical issues to be considered in the whole value chain if super chilling at -1°C is the future storage method for high quality fresh fish. The network will also find out how the fish is evaluated by buyers in France and Spain to be sure that they also take advantage of the improved quality. Network participants will be present at the Eurofish booth (7-1444) at the seafood exposition in Brussels, 21-23 April.

The network project is supported by the Danish Green Development and Demonstration Programme, and is co-funded by the EU. The ten partners in the network represent the whole value chain: A. Espersen A/S (Processor), Blue Water Shipping A/S

(transport), Claus Sørensen A/S (cold storage), Eurofish (International Organisation, technical advice), KH OneStop A/S (refrigeration trailers), Nagel Denmark A/S (transport), Norway Seafoods (in Denmark, processor), Royal Greenland A/S (processor), Seagain A/S (product

J.P. Klausen & Co.A/S

development), Danish Technological Institute.

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Eurofish Magazine 2 / 2015

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27/03/15 10:31 AM

[ AQUACULTURE ] Sustainable fishing is gaining importance for fishmeal, too

The aquafeed industry seeks viable alternatives Although the price of fishmeal tended to fall during the course of 2014, and further progress was made with regard to reducing the share of fishmeal in aquafeed, the situation on the fishmeal market is still tense. Supply remains scarce and prices are still high. In spite of this, most feed producers are optimistic that supplies to aquaculture will be secure in future, too.

F

ollowing an 18 drop in the fishmeal production of the five most important producing countries in 2013 compared to the previous year, and a 26 decrease in the production of the two main producers Peru and Chile from 1.15 m tonnes to 0.855 m. tonnes, there was reason for cautious optimism again in 2014. It was possible to increase the Peruvian fishing quota for anchovies in the winter season 2014 by one quarter to a good 2.5 m t. Although the catches were initially not as high as expected the announcement alone was already sufficient to temporarily send the fishmeal price plummeting. In January 2013 the price for a tonne of fishmeal was sometimes at an all-time high of over 1,900 USD. In the first six months of 2014, however, it gradually fell and in June even touched the 1,500 level. Analysts give several reasons for this development. On the one hand, demand from the shrimp industry was lower than usual because a lot of companies are still suffering from the consequences of the EMS epidemic. And on the other hand, a lot of importers delayed their buying decisions because instable weather conditions with unusual water temperatures at the beginning of the year led to fears of lower demand. China, in particular, kept purchases of

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fishmeal very low at the beginning of the year.

Catch fluctuations and sporadic falls in industrial fishery landings were normal and no cause for real concern, said Enrico Bachis from the International Fishmeal and Fish Oil Organisation (IFFO) whose members represent nearly 60 of worldwide fishmeal and fish oil production and 80 of world trade thereof.

These fisheries, which supply the major share of raw materials for fishmeal production, are in the meantime on the whole well managed almost everywhere.

The IFFO sustainability standard guarantees that the raw material comes from secure resources and not from IUU fishing. Only three categories of fish were generally considered for the production of fishmeal: r *OEVTUSJBM êTI TQFDJFT UIBU BSF not accepted for human consumption because they are too small, have too many bones, are not sufficiently tasty, or are unknown to a lot of consumers (e.g. sandeels) r 'JTI UIBU BSF FEJCMF CVU XIPTF use for human nutrition is limited because of a lack of the necessary logistics or because their use is not cost-effective or it is impossible to achieve the necessary prices (e.g. Pacific anchoveta)

Enrico Bachis, IFFO. The IFFO’s sustainability standard “Responsible Supply“ guarantees that raw materials for fishmeal come from safe resources.

r 7 BMVBCMF DPOTVNQUJPO êTI PG which more were caught than can be absorbed by the markets or whose quality is insufficient.

Such fishes are often then processed to fishmeal. The share of the catch that is used for fishmeal varies from species to species. For herring it is on average 10, for sardinella 15, jack mackerel and horse mackerel 20, pilchard (sardine) 25, blue whiting 30, sprat 40 and capelin nearly 50.

After the industrial fish catches of the five most important fishmeal producing countries were still below 10 m t in 2012 and 2013 the IFFO is expecting a slight increase again to 11.2 m t in 2014. The final

annual results for 2014 are not yet available but from January to June the five main producers already produced over 1.1 m t fishmeal – more than in 2012 and 2013. However, even this increased volume is still nearly one third behind the results of 2009, 2010 and 2011.

The expected increase in 2014 might thus relieve the tension on the supply market slightly but it is ultimately little more than the much quoted mere drop in the ocean. Without an even stronger use of slaughter waste and trimmings the fishmeal industry would already now no longer be in a position to satisfy the growing demand for fishmeal. According to IFFO-figures the share of slaughter waste in raw materials www.eurofishmagazine.com

27/03/15 11:02 AM

[ AQUACULTURE ] a significant decrease, as in the previous year it was even higher at 78. This is already a clear indication of a shift in the use of fish oil: more and more fish oil, particularly the high-quality Omega 3-rich types, is being used directly by human beings. The share of fish oil that is used for fish oil capsules and other nutraceuticals has risen from 19 to 22.

Jan Sverre Røsstad, Vice President BioMar. The price of fishmeal has risen threefold in the last decade, that of fish oil even about fivefold.

for fishmeal is currently already about 40 per cent and today’s forecasts expect it will rise to 50 per cent by the year 2022. This will probably be necessary to be able to supply the rapidly

growing aquaculture sector with sufficient feed in the future, too.

Already now, about 68 of worldwide fishmeal production goes to aquaculture; the share of fish oil is even higher at 74. And that is

Share of marine resources in salmon feed has fallen further Salmon and other salmonids are in addition to shrimps and marine fish species the biggest consumers of fishmeal and fish oil in aquaculture. But although the available quantity of fishmeal has been constant

for years and is even showing a tendency towards a downward trend, salmon production is steadily rising. The explanation behind this rather surprising phenomenon lies in the composition of the salmon feed, as it contains less and less fishmeal. In 2009 standard feed for salmon still consisted of about 30 fishmeal whereas today the share of fishmeal is around 20. This already constituted a tremendous success, said Jan 4WFSSF 3 TTUBE UIF 7JDF 1SFTJdent of feed producer BioMar in March 2014 in his lecture at the North Atlantic Seafood Forum (NASF) in Bergen. BioMar sells aquafeed for more than 30 fish and seafood species in over 60 countries and generated sales of 1.1 billion euros in 2012. Salmon

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[ AQUACULTURE ]

Despite occasional decreases the price of fishmeal will probably continue to rise in the long run. The price of soy meal is also increasing noticeably.

Total production of fishmeal worldwide and share of the most important producer countries. Overall volume has been constant for years with a slight downward trend.

is the most important fish species for the company, accounting for about two thirds of sales.

Røsstad said the annual average increase in demand for salmon feed was 6. In spite of limited fishmeal resources he was very optimistic that the feed industry would be able to meet the growing demand in the future. Raw material supply to the aquafeed industry has in recent years become more independent of marine resources like fishmeal and fish oil and this process would become stronger in the long term. Feed manufacturers worldwide are confronted with 28

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the problem of finding viable alternatives for fishmeal and fish oil. Not only on account of the limited supply but also due to drastically increased prices.

The price of fishmeal has risen threefold in the last decade, the price of fish oil almost fivefold.

In the wake of these developments the price of soy meal, one of the most common fishmeal alternatives, has also risen strongly. At the start of the millennium soy meal cost below 250 USD per tonne, but in the meantime the price has reached a good 500 USD, i.e. more than twice that.

The total annual volume of feeds that are produced worldwide for aquaculture is currently nearly 45 m t. Based on provisional estimations that would mean that 66.5 m t fish, shellfish and crustaceans were farmed. Although aquatic feeds account for only 5 of the total feed volume that is used worldwide particularly for agricultural uses, this share is likely to increase disproportionately in the coming years. Based on the current state of knowledge, in spite of conceivable alternatives it will not be possible to do completely without fishmeal and fish oil. Probably demand will even rise when the farming of new species with high protein requirements such as tuna begins on a large scale. And fishmeal and fish oil will continue to be indispensable in fry production.

In the early development phase even the young of vegetarian species often have high protein requirements that are best met with fishmeal.

exactly these which fulfil the special requirements. r 0UIFS NBSJOF SBX NBUFSJBMT that could be isolated from algae for example. The available quantities are still too low for industrial applications, however, the techniques are too expensive, and appropriate technologies for commercial preparation are lacking. r "OJNBM SBX NBUFSJBMT TVDI BT bone or blood meals. Their usage would be sustainable but consumer acceptance is currently low.

IFFO standard “Responsible Supply“ for sustainable industrial fishing

The general trend towards more sustainability in the industrial fishery, too, which among other things is expressed in certification according to the IFFO standard “Responsible Supply” (RS), could at least temporarily serve to additionally exacerbate raw material The production of fish feed was problems. More and more feed today much more knowledge- producers are committing thembased than ever before, said selves to the exclusive use of cerRøsstad. In Norway alone the feed tified fishmeal in their feeds. The industry had invested about 1 bil- problems the fishing fleets somelion NOK, or about 125 m euros, times have to face today could in research and development in be seen in 2014 in the example of the last decade. In his estima- the Peruvian industrial fishery. tion Norway’s salmon industry Although theoretically sufficient had been able to save about three fishes were available the vestimes that amount in production sels often remained in harbour costs through the partial substi- because the stocks had moved tution of fish meal. In Røsstad’s southwards in search of deeper opinion large resources that can be cooler water layers due to the considered as alternatives for fish- unusually high water temperatures. Industrial fishery is prohibmeal are: r 1MBOU SBX NBUFSJBMT GSPN ited there, however, within a 10 sea agriculture. They would be mile zone. And in the accessible available in the necessary fishing regions the management quantities but the quality authorities forbade the fishery for and the price were not always several days because the share of right. In addition, consumers young fishes in the catches was reject genetically engineered too high. Such developments that raw materials but it is often are difficult to foresee inevitably www.eurofishmagazine.com

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[ AQUACULTURE ] reduce landings of raw materials for the fishmeal factories but they also show how seriously the topic sustainability is taken in the world’s most important fishmeal region.

The most important fish species for fishmeal producers in Peru is the Peruvian anchovy Engraulis ringens, also called anchoveta.

About 84 of all landings consist of this fish species for which transferable fishing quotas were introduced in 2010. Peru has for over a decade tried to achieve a more sustainable anchoveta fishery. In 2001 satellite monitoring was introduced on large fishing vessels, in 2003 monitoring and control programmes at sea and on land began, and since 2008 there have been

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maximum catch levels per ship (Leg. Dec. Nr. 1084). The breakthrough came in Peru only with the introduction of transferable fishing quotas however. These are divided up according to fishing shares and capacities of the vessels in earlier years. Since then the fishery has been more plannable, and work on board has become safer. The fishmeal producers can select and purchase the raw materials more specifically, and the quality of their products has risen noticeably since then. Fishmeal in Prime and Super Prime Quality today accounts for about three quarters of total production. The introduction of the quota system led to consolidation of the industry and the industrial fishery has become more profitable.

Importantly, the pressure on the resources is now lower because the fishing quotas are based solely on the condition of the fish stocks that are monitored by Instituto del Mar del Perú (IMARPE). A study by the University of British Columbia which compared fisheries management in 53 states put Peru in first place in 2008.

In the medium term the increasing sustainability of the industrial fishery in the South East Pacific will probably lead to less anchoveta being fished and less fishmeal being produced. With that, Peru and Chile, the main producer countries, will have lower quantities available for export which will further reduce supply on the world market.

Consumer concerns complicate the search for alternatives Even with the available fishmeal alternatives feed producers are often pushed to their limits because useful substances are rejected by consumers for very different reasons. This applies in particular to genetically modified raw materials but also to some animal materials. Sufficient soy is produced worldwide but the share of GM-free soy is decreasing all the time.

In the most important producer countries like Brazil, the USA or Argentina over 90 of agricultural land is in the meantime used for the production of genetically modified soy beans.

This makes for huge problems

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[ AQUACULTURE ]

Origin and share of the most important components of salmon feed. The proportion of marine resources has clearly decreased in recent years.

for Europe’s feed producers when buying their raw materials because consumers strictly reject genetically modified components in food production.

Bottlenecks in fish oil supply are an even greater risk than for fishmeal. Here too, alternatives exist, but for similar reasons as in the case of fishmeal and other reservations they cannot be used fully at the moment: r "MUIPVHI GFSNFOUFE NJDSPPSganisms contain the necessary DHA and EPA fatty acids their production is still much too expensive. r .JDSPBMHBF XPVME BMTP CF TVJUable but it will take years until sufficient capacities for the production of the necessary quantities have been built up. r (FOFUJDBMMZ NPEJêFE WFHFUBCMF oils would be the most elegant, least costly, and probably the quickest solution but there is hardly any acceptance among the public for this path.

And so in the end the only thing feed producers can do is stretch the available fish oil through dilution with vegetable oils. In the meantime, however, the options offered by this method are largely exhausted.

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The problems with which the industrial fishery and the fishmeal industry are confronted in Europe were clearly portrayed

by Esben Sverdrup-Jensen, CEO of the Danish Pelagic Producers Organisation (DPPO), at NASF 2014. The companies in his organisation fish both industrial fish and fish for human consumption with 11 large trawlers (3 more are just being built). Together they hold more than 80 of the Danish fishing quota for pelagic fish species. In 2013 their TAC allowed them 400,000 t of fish, and about 175,000 t of this total were used directly for human consumption. Here, too, a trend becomes visible: that more and more fish is being used directly for human consumption… which further decreases the available raw materials volume for the fishmeal factories. In order to get sound stock data, reliable fishing quotas and a certain planning security the DPPO cooperates closely with fisheries scientists. In this context the international disputes over the mackerel and herring in the North East Atlantic were not exactly helpful. To ease the situation in the fishmeal industry Esben Sverdrup-Jensen demanded that

Esben Sverdrup-Jensen, CEO Danish Pelagic Producers Organisation.

DPPO cooperates with fisheries scientists to make fishing quotas more reliable.

all ecologically and scientifically reasonable resources be used. His organisation thus welcomes the discard ban that came into being with the reform of EU Common Fisheries Policy because it can be expected to enable the use of raw material quantities that were so far unused. Apart from that, the DPPO is examining the possible usage of boarfish stocks (Capros aper).

In the subsequent panel discussion at NASF 2014 Audum Lem (FAO) pointed out what great changes organisations such as the IFFO and numerous companies in the fishmeal industry had recently undergone. In the past they would sooner have acted defensively and tried to reject the accusations of their critics and NGOs. In contrast, they were today much more transparent and tried to enter into dialogue with the public. Perhaps that is why statements by Egil Magne Haugstad (Pelagia) led to open

controversy in the discussion. He claimed that there were still some “dark zones” within European fisheries. When determining catch weight, for example, there were various different methods of weighing and not all of them were as accurate as they should be. He accused the Icelandic fishery of partly “drying” blue whiting at sea to achieve a 10 to 15 lower landing weight. Other fishermen filleted their catches at sea and then based the calculated catch volume on too high yields. And when fish were moved from one ship to another the opportunity was often taken to reduce the catch weight. The black sheep in the industry were creative when looking for loopholes to avoid controls. For that reason fisheries controls were urgently in need of improvement. Most other participants in the panel discussion considered these accusations exaggerated, however. The current control system was strict enough and quite sufficient. MK www.eurofishmagazine.com

27/03/15 11:02 AM

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27/03/15 11:02 AM

ESTONIA

Ban, currency depreciation hit seafood exports to traditional markets

Estonia uses the crisis to create a more competitive fisheries sector Since last year Olavi Petron has had to deal with a series of critical issues in the fisheries sector with international repercussions.

In January 2014 Russian veterinary authorities found that some Estonian fish processing factories did not comply with their standards and rescinded the plants’ export permits. In August sanctions imposed by the west on Russia sparked a ban on imports of certain fisheries products to Russia from the EU, which also affected Estonian processors. The ban is still in place and the Estonian authorities are using different strategies to assist the sector.

How have western sanctions on Russia and the counter sanctions imposed by Russia on EU (and other) countries affected the Estonian seafood sector? What steps are being taken by the administration to mitigate the loss of this important market for the fishing and processing sector?

I should say that the crisis for us probably started in January last year when the Russian authorities inspected our factories and declared several of them unfit to export to the Customs Union. This was followed by the political crisis in the eastern part of the Ukraine, which led to sanctions being imposed on Russia, and Russian counter sanctions on western countries in August. It is perhaps important to put the crisis in perspective. The economic sectors that have been affected are only a part of what is a wider security crisis. In fact in economic terms only 2 of the Estonian trade has been affected, though of course some sectors such as agriculture and specifically dairy and fisheries have been more affected than others. However, so far in the fisheries sector, while companies have been affected none of them has been bankrupted, though profits are down and the uncertainty of the situation makes it difficult to 32

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plan and make investments. The situation for fishermen regarding Baltic herring was stable last year because POs (producer organisations) have facilities and storage for freezing and storing fish.

Without this storage the situation could be much more complicated.

From the government’s side the companies in the short term can draw on storage aid, and they are also getting support to find new markets and this is where I feel efforts need to be concentrated.

This support allows companies to attend trade fairs in countries where they can promote themselves and their products. Russia has been a geographically and culturally close, and in some senses the easiest market for us. However, we do not know whether, even if the political situation were to calm down and the sanctions and counter sanctions were to be lifted, the veterinary authorities in Russia who have stopped exports from several factories to Russia will reverse this decision. If we are to evaluate the chances of this happening then it is better to be conservative and decide that we do not know how long this situation will last. Companies need therefore to plan accordingly and start to establish themselves on other markets. These efforts have already

Olavi Petron, Deputy Secretary General for Fisheries Policy and Foreign Affairs, Ministry of Agriculture, Estonia

begun and companies are exporting to new markets in Africa, as well as to Japan, and are trying to increase the volumes to existing markets such as Ukraine and Moldova, where despite the currency devaluation Estonian fish is a relatively cheap product and people can still afford it.

The need to penetrate new markets should also trigger the development of new and innovative products and in this context the discussion about a potential new factory to make high value

components from fish, such as fish oil for human consumption or fish protein isolates is relevant. Broadening the range of products we can offer should also help widen the customer base.

Greater added-value, getting more from less, is a priority for fisheries administrators as well as the industry. How can the administration contribute to the goal of increased value addition?

We are directing some money from the EU funds into innovation www.eurofishmagazine.com

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and into building partnerships between the scientists and the producers. Our idea of course is that they start to look into all the possibilities in the production chain. For example, using mussels and algae to offset emissions from aquaculture, or using the waste and offcuts from fish processing, or even extracting the fats and other potentially useful material from waste water in a processing plant. There is an environmental benefit, but also an economic one as you are reducing your cost, and in this sense I think the idea of looking into each part of the production chain is quite interesting.

From the governmentâ&#x20AC;&#x2122;s side this is what we can do â&#x20AC;&#x201C; direct some money and then hope that it is used for this purpose.

The fishermen have understood the value of this and what they are doing is clever. As everything stems from the fish they have been investing in quotas, and in addition they are improving their fishing gear, and concentrating on quality in the whole value chain starting from the vessels, to the production and the distribution.

We are also encouraging them to study the potential of a factory that could make fishmeal and fish oil but more importantly make higher value products that can be used in the nutraceutical, pharmaceutical, and even cosmetic industries. And once they have decided and declared themselves ready to invest in it themselves, then we are prepared to put some money into it depending on the conditions and the amount.

Increasing the contact between the different stakeholders, industry, environmental groups, the administration, and researchers can contribute to a well-functioning and profitable sector. What www.eurofishmagazine.com

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are the measures that need to be implemented to create this kind of cluster?

The Estonian fishing community is small as are the other stakeholders, such as environmental groups, and therefore it is quite easy to involve them. In addition there is the Fisheries Council, which gives advice to the minister, and which meets at least four times a year. Estoniaâ&#x20AC;&#x2122;s thoughts on the European Maritime and Fisheries Fund were discussed here, and when we were creating the national strategic plans, then we had strategy meeting groups, where environmentalists and scientists were involved. So I think we already have quite a good dialogue. Of course it could be better, particularly as environment and agriculture are organised into two separate ministries, which is a bit of an administrative burden.

I do agree that we need to keep environmental groups on board and encourage their participation because at the moment our main environmental consultants are the scientists rather than the environmental groups. Closer involvement with local environmental groups may also help in instances such as the recent one where an environmental NGO from outside Estonia made some critical and, in our opinion, unfounded remarks about our inland fisheries. Such claims will be easier to rebut if the rebuttal can be corroborated independently.

The CFP seeks to remove or reduce the barriers preventing the growth of the EU aquaculture sector. How will this emphasis on fish farming at the EU level promote its development in Estonia?

With regard to aquaculture we have already developed a strategy.

Our aquaculture producers are

mainly supplying the Estonian market and mostly with rainbow trout. We are still waiting for our production to go up because there have been several investments in the last few years, in new facilities and equipment and so far we have not seen the rise in production that we expected. But the facilities are there, the money is being monitored, there are fish farms, and the fish is in them, so it has to come. The strategy showed us quite clearly the marketing possibilities for locally-produced fish.

The red fish market is very competitive and if we are to prevail on this market then the first argument is the freshness of the product compared to that of imports.

We also have to make people more aware of the local farming industry, which is what Ecofarm, a producer organisation in the farming

sector is doing. It is also making vacuum packages out of smoked farmed fish which is an innovative way of marketing the product on the local market as this increases the shelf life and allows the fish to be distributed to inland areas.

We also want the farmers to make investments in technologies that will benefit the environment using the opportunities offered by the EMFF. This is also in keeping with the recommendations on sustainable aquaculture in the Baltic made by HELCOM, of which Estonia is a member. Currently fish farmers are paying for every kilogram of nitrogen and phosphorus they release into the environment and these charges will be reduced if they invest in technology that removes these pollutants from the water.

www.globalgap.org/aquaculture

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Estonian Rural Development Foundation

Funding the sustainable development of rural Estonia The Estonian Rural Development Foundation was established in 1993 with funds from various donors that became available when the country became independent. Today, the foundation is using these funds to implement programmes that support the economic development of rural Estonia.

T

he Rural Development Foundation (RDF) is housed in a painstakingly restored old building overlooking the lake in the town of Viljandi, a couple of hours south of Tallinn. The foundation was formed from the merger of two funds, the Agriculture and Rural Life Credit Foundations and the Rural Life Guaranteeing Foundation, and has an equity of EUR39m. This sum is used to support business activities in rural areas and thereby promote the economic development of these areas.

Four main areas of activity The RDF has different tools to achieve its objectives. Madis Reinup, one of the members of the foundation’s three-person management board, explains that the organisation has four broad areas of activity: issuing guarantees for companies that are taking a credit or other debt obligation; loans; management of the Estonian Agriculture and Rural Economy Advisory Service; support for students of rural economics as well as awards for rural entrepreneurs. The guarantee obligations currently stand at EUR54,4m in different business sector. The agriculture sector has the lion’s share at 40 followed by commerce and storage at 14. Guarantees for the aquaculture sector are in fact only 0,8, almost the smallest of 34

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all the sectors. The RDF guarantee scheme provides a guarantee to a bank that is issuing a credit to an entrepreneur. Up to 80 of the value of the credit subject to a maximum of EUR2.5m per borrower can be guaranteed by the foundation. In 2013 the guarantee portfolio amounted to EUR53m.

There are also other conditions regarding the guarantee, for example, the business (unless it is food processing) has to be based outside Tallinn.

It is in fact the bank which is issuing the credit that evaluates the application and decides whether it requires a guarantee. If the company cannot offer adequate collateral the bank will approach the RDF, where experts will evaluate the project and decide whether a guarantee can be issued. Guarantees are not cheap, says Mr Reinup.

The client will pay perhaps 5 on his loan and, on average, an additional 2.8 for the guarantee. However, our guarantee covers projects that, from a financial point of view, are more risky. The best investments are those, where the entrepreneur has capital, and there are no banks involved. The second best are the ones where the entrepreneur borrows from the banks, but has enough collateral. Then in the third category are those who probably do not have enough collateral, and the projects are more risky, which makes the loan a lot

more expensive, but still the RDF will guarantee these loans.

The foundation thrives in times of crisis Once the guarantee is issued RDF will not monitor the company on a day to day basis but perhaps once a quarter... In 2015 things may be worse as a result of the crisis in the agriculture sector brought on by the ban on exports to Russia, which absorbs almost a fifth of Estonia’s agricultural exports. On the other hand the more general economic crisis triggered in 2008 has made banks very much more cautious about lending. As a result the RDF has seen a steep increase in the number of guarantee contracts, which jumped from 82 in 2008 to 340 in 2011, falling slightly to 323 in 2013. Some of these clients are in fact less risky than the average RDF client, which could mean that the quality of the EUR54,4m portfolio increases. It seems sometimes that the fortunes of the companies move in the opposite direction to the fortunes of the foundation.

Any kind of crisis which has an impact on the agricultural or other rural sectors, whether financial, economic, or commercial, brings more clients to the foundation as banks react and decide that they can only make loans with a guarantee. Another contradiction that can be seen is that the loans RDF guarantees are often for the purchase of

equipment that make companies more efficient, a development that invariably leads to job losses. That is where giving guarantees to new enterprises (a trade-off between risk and new jobs) becomes very important, when developing rural areas.

The foundation also has a lending scheme under which it loans money to banks. For agriculture and aquaculture RDF has a special lending scheme whereby it loans money to the banks for them to lend it further to companies.

This is a relatively modest scheme which lends a few million euro a year in long-term loans to SMEs. Here, the limits are EUR1.5m per company and a maximum term of 25 years with a fixed interest rate. Over and above this scheme which goes through banks the foundation also lends directly to distressed companies. This too is a relatively small amount of around EUR2.5m a year and a total portfolio of EUR6.5m in 2013. The maximum amount is half a million euros at a rate of 4-5. The difference between lending directly and guaranteeing a loan from a bank is profound. A million euro can be used to lend one million euro, but can guarantee loans up to five million, enabling huge multiplier effects. As Madis Reinup says, with an equity of almost EUR40m we could easily have a portfolio of EUR160m instead of today’s www.eurofishmagazine.com

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EUR55m. However, our high liquidity in the current situation means that banks are more than happy to work with us.

Financial instruments have an important role to play The foundation manages financial instruments co-funded by the EMFF. This money is used together with funding from a bank to give long term loans to projects such as those in the aquaculture sector, which have a long gestation period.

The projects now being funded with these financial instruments include recirculation systems and the processing facility for an aquaculture Producer Organisation.

Even with the co-funding banks are sometimes reluctant to lend money – partly a consequence of

the Basel III commitments, which force banks to be more conservative. Another reason is that banks are uncertain themselves about the direction of the economy and are therefore reluctant to commit themselves.

The Ministry of Agriculture has completed a study to identify where market failures are preventing the flow of funding. It shows that loans of less than EUR100,000 are of no interest to banks and in sectors, where loans are very long term. The foundation will use EUR10m for fisheries/aquaculture and EUR38m for agriculture from EMFF/EAFRD to remedy these failures. Depending on the financial instruments chosen by policymakers, the foundation will perhaps run a guarantee fund with very low

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interest rates of, for example, 1 for young entrepreneurs just entering the field or for activities in certain sectors. Mr Reinup is a keen supporter of the financial instruments as it will enable the foundation to be more flexible and creative in lending money, which from a tax payer’s view point is a preferable alternative to

financial support. There is always an element of risk in the kind of activity that the RDF specialises in. Despite this the Rural Development Foundation is financially self-sufficient and cover all its expenses. It is therefore very sustainable in contrast to most state foundations, which need periodic injections of capital.

Rural Development Foundation (Maaelu Edendamise Sihtasutus) Oru 21 71003 Viljandi Estonia Tel.: +372 648 4064 Fax: +372 648 4065 mes@mes.ee www.mes.ee

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Management Board: Raul Rosenberg, Andres Vinni, Madis Reinup Equity capital: EUR38.8m Main activities: Providing SMEs with guarantees for credit/other debt obligations; loans Main business sectors: Agriculture, storage, bioenergy, service sector industry

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Hunt-Fish Group combines exports of fish and game

Perch fillets air freighted to Switzerland The Hunt-Fish group has a track record selling perch fillets to buyers in the Swiss retail sector. At the end of last year the company together with perch fishermen invested in a processing facility to produce fresh perch fillets thereby removing two links in the value chain.

T

he Estonian fishing sector comprises several different segments, high seas, Baltic sea, coastal fishing, and inland fishing. In terms of tonnage the Baltic Sea is the most important fishing area for Estonian fisherman, but there are significant commercial fisheries in coastal and inland waters too. In the coastal fishery herring, perch, smelt and flounder are among the most commercially significant species. In inland waters catches of perch, pike, roach and eel support the fishery. One of the most interesting species from a commercial point of view both in the coastal and the inland fishery is the European perch (Perca fluviatilis). This fish is highly sought after on markets in Switzerland and France.

Perch from Lake Peipsi, and the Baltic Sea In Estonia the main single source of perch is the large freshwater Lake Peipsi. Catches of perch went from 800 tonnes in 2009 to 783 tonnes in 2014. Catches in coastal waters of the Baltic Sea amount to about 900 tonnes.

Perch is a lucrative fish because of the demand from Swiss supermarkets and several Estonian companies both big and small are processing the fish into fillets and exporting them fresh and frozen.

One of the companies involved 36

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in this business is Hunt-Fish, which was established recently

by Allan Veltmann. The company’s processing facility was commissioned in 2014 and here, in addition to perch, Mr Veltmann processes pikeperch and pike.

The processing facility is very new, but Mr Veltmann has been in the fish trading business for several years, buying fish from processors, controlling the quality and size specifications, and selling them. This experience contributed to the decision to invest in a processing facility. Here the filleting is all done by hand to maximise the yield and the factory complies with the strictest quality standards. This is one of the factors that has enabled the company to export to the demanding Swiss market, another is the quality of the raw material which the company buys only from equally quality conscious suppliers, and finally, as Mr Veltmann says, is the service that the company provides. We always respond to the customer’s requirements with regard to quality and size, says Mr Veltmann, and judging by the demand it seems they are satisfied with me.

Fishers are partners in processing factory Hunt-Fish is now looking at expanding the product range so that the company can offer

Mr Veltmann, Hunt-Fish CEO, does his best to accommodate customer’s requests and specifications.

a wider variety of items in different kinds of packaging, different sizes and under different brands. With a brand new factory I think there are a number of possibilities, says Allan Veltmann, and I also see that there is a lot of volatility in the business, markets are changing, products are evolving, people are moving and therefore one needs to be driving these changes rather than just responding to them.

Mr Veltmann’s business model is unusual in the sense that the fishermen are partners in the processing plant and supply some of the fish that is processed there. Raw material also has to be obtained from other suppliers to keep up with demand.

Production amounts to a tonne of fillets a day, if the weather conditions are favourable. Being a wild product, the supply of fresh fillets is dependent on the ability of the fishermen to go out and fish, and if the weather is inclement this may not be possible. Having the fishermen as partners gives me greater credibility in negotiations with potential customers, says Mr Veltmann, as the fishers have a vested interest in keeping the factory supplied with the highest quality raw material.

New packaging, product formats being developed The fillets from Hunt-Fish are usually sent by road to Switzerland, www.eurofishmagazine.com

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ESTONIA

a journey that takes 3 days. Within a maximum of four days after the fish has been processed it is on display at the fish counter in a supermarket. The fillets are packed under ice in 5 kg or 3 kg boxes and are despatched every Monday and by Wednesday it is in Basel, says Mr Veltmann, and the fillets have a total shelf life of 10 days. In the Easter period when demand for perch fillets is particularly strong the company even flies the fish to Switzerland.

In this case the fish is processed during the day, air freighted off in the evening and by the next morning the fish is on display.

Today most of the company’s fish comes from the Baltic Sea, where

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the stock situation is stable, but increasingly Hunt-Fish customers are asking for certification of the stock to Marine Stewardship Council (MSC) standards to ensure that the product is from a sustainable fishery. Mr Veltmann is naturally trying to accommodate this request as well, but is aware that it will be a process that will have to be initiated with the backing of all the stakeholders, which is going to take time and effort. In the meanwhile HuntFish has ambitious plans to start producing in MA packaged retail packs and to explore the possibility of making ready products. But smoking the fish, for example, will call for significant investments in

machinery and will be a major step forward from the chilled fillets that the industry has been delivering for the last 20 years.

Hunt-Fish also has another business supplying game, moose, wild boar, and deer that is hunted in

the Estonian forests. This however contributes only about a third of the company’s turnover, a figure that Mr Veltmann would like to increase, but for the moment he is putting most of his efforts into building up the fish side of the business.

Hunt Fish Group Papiniidu 5 EE 80042 Parnu Estonia Tel.: +372 682 5812 Fax: +372 442 9545 huntfish@huntfish.ee www.huntfish.ee

Chief Executive Officer: Allan Veltmann Products: Fresh, frozen fillets of perch; also game Markets: Switzerland Buyers: Retail sector

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Pärnu Laht works to secure raw material supplies

Embarking on a new project – farmed perch Estonian independence in 1991 led to the creation of a number of private companies in the fisheries sector. Among them was Pärnu Laht which started its operations processing the freshwater fish perch and pike-perch and selling the fillets to Western Europe. Since then the company has faced a number of ups and downs and today is working on the farmed production of perch.

A

fter a long period of fluctuating supplies Ott Sool, chairman of Pärnu Latt decided to switch from trading perch to farming it. We felt we had to solve the raw material problem ourselves, says Mr Sool, as supplies from the wild are so unstable, both in terms of availability and price, but also with respect to size and quality. There is now a fry system, an incubation system, and two broodstock systems in place. The two broodstock systems will ensure that the market can be supplied with raw material for 9 months.

To deliver all 12 months of the year will call for a third broodstock system, on which the company has already working. The first batch of eggs has already hatched resulting in some half a million fry. These are now being on-grown at a former eel farm, a solution that is less than ideal since the farm is not designed for perch. However, on-growing the first batch has led to an understanding of some of the problems, and changes have been made to improve things for the next batch. As Ott Sool says, there is little point in investing in a new on-growing facility unless there is an assured supply of fingerlings. Since importing fingerlings is not possible as the suppliers are located too far away, the company will rely on its own broodstock.

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Multiple batches of eggs to be hatched this year This year three batches of eggs will be produced, one from each of the two brood stocks and one to be taken from the wild. Each batch should result in about 600,000 fingerlings, a quantity that should enable a full year’s production. In parallel the company has plans to collect a broodstock of pike-perch, because pike-perch farms are being established across Europe, according to Mr Sool, and they will need a supply of fingerlings if they do not have their own hatcheries. Perch is a rapidly-growing fish that requires just six months to grow from a 2 g fingerling to a

100-150 g fish, which is the size needed to produce a decent fillet. Already some Swiss buyers have shown an interest in the product, but Mr Sool is not ready to sign any contracts as he cannot yet guarantee an uninterrupted supply of fillets. Over the next 18 months he hopes to have a production of between 50 and 70 tonnes of fish. In the meanwhile, a new filleting facility is being designed. Potential buyers of the fillets are also demanding a factory that will be at least IFS certified. The new plant will be smaller than the old one and will be built in one of the rooms that was used as a coldstore in the past. It will be designed to accommodate a

maximum of 15 workers including 12 filleting personnel and should be completed by the end of 2015.

Perch require water at a temperature of 23 degrees to grow optimally and therefore farming them effectively can only be done in a closed recirculation system. In the hatchery the water is recycled three times in the space of an hour and the system has a capacity of 1.5m fry per cycle. The perch need to be sorted from the time they are 3 g in size to prevent cannibalism. If a basin has a mix of big and small fish the big ones will feed off their siblings, so it is important to grade them early and frequently to prevent this from becoming a problem. Grading is

Pärnu Laht’s recirculation system was designed and built by a Lithuanian company with experience in the production of systems for pike-perch fry, as Danish, Norwegian and Latvian offers were too expensive. www.eurofishmagazine.com

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needed which the company gets from the municipal supply. The volume of fresh water pumped into the system varies from 3 to 5 cubic m a day depending on the amount of fish there is in the system. The company would like to collaborate more closely with university scientists so that both the researchers and the company can gain a better understanding of the fish and the system in which they are growing. One issue in Farming perch is a new activity for Pärnu Laht and has meant a steep learning curve says Ott Sool, Chairman of the Board.

also necessary to ensure that when the fish reach market size and are being harvested they are more or less the same size as this will ensure consistent fillet sizes too. On the Swiss market the preferred sizes are 15-20 g and 20-30 g and getting satisfactory volumes of just these sizes is difficult to obtain with wild fish, which tend to vary in size more than farmed fish. On other markets, such as those in Sweden and Finland, however, there is a preference for bigger fillets. Here, the company is looking to sell frozen fillets in the sizes 40-60 g, 60-80 g and 80+ g.

wild fish, where the yield swings between 25 and 40 depending on the season. Getting the broodstock to eat pelleted feed was also difficult. As a wild carnivorous fish perch are used to eating live prey and the broodstock showed no interest in the pellets that were showered on them. Finally live prey were introduced into the tanks and the fish started feeding. Now the fish have acclimatised themselves to captivity and today they even feed on chopped Baltic herring.

Experimenting with feeds for the highest yields

Cooperation between scientists and industry would have mutual benefits

Farming perch is a completely new activity for Pärnu Laht and has meant a steep learning curve. Feed for the larvae, for example, during the first 8-10 days after hatching is artemia, which is gradually replaced with dry feed. However, the type of dry feed that gives the best growth has been a question of trial and error as there are no feeds developed specifically for perch. The company has therefore tried feeds designed for pikeperch, trout, and sturgeon finally deciding on a type that gave a yield of 43 when the fish was filleted.

We expect to maintain that yield throughout the year, says Mr Sool, something that is not possible with

The recirculation system that Pärnu Laht uses was designed and built by a Lithuanian company with experience in the production of systems for pike-perch fry. Offers from Norway, Denmark, even Latvia were too expensive, says Mr Sool, who is happy with the way the system has functioned to date.

If something goes wrong anywhere in the system, it is wired to send a signal to a mobile phone, so that immediate action can be taken.

The consequences of not receiving timely intimation of a problem can be disastrous, so these safeguards are vital. Although the water in the system is cleaned and recirculated, regular infusions of fresh water are

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particular concerns the broodstock which must be renewed regularly to maintain the quality of the eggs and the larvae. Fish to renew existing broodstock can be taken from the wild and go through the long process of acclimatisation, or they can be bred from the fish that are grown in the tanks. The advantages and disadvantages of these and other farming processes can best be investigated by scientists and industry working together.

Pärnu Laht Ltd Chairman of the Board: Mr. Ott Sool Activity: Perch farming Products: Fresh perch fillets Volumes: 50-70 tonnes (2016 est.)

Markets: Switzerland

Karusselli 24b 80015 Pärnu Estonia Tel.: +372 447 5840 Fax: +372 443 3214 laht@laht.ee

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Fisheries and aquaculture in Estonia

Russian sanctions inspire search for new markets The fisheries sector in Estonia comprises marine and inland fisheries, freshwater aquaculture, and a processing industry. The marine fishery is further subdivided into the catches from the high seas, and the Baltic Sea. The former are sourced in the North-West Atlantic (NAFO), the North-East Atlantic (NEAFC), and Svalbard. The Baltic Sea fishery has two main components, a coastal fishery and an offshore pelagic fishery. In terms of volumes of fish caught, around two thirds of the total Estonian landings come from the Baltic Sea pelagic fishery, where the main species are Baltic herring and sprat. This is followed by the distant water landings, the coastal fishery in the Baltic Sea, and finally the inland fishery.

Baltic herring and sprat are Estonia’s main fisheries in terms of volumes. Far more is caught than can be consumed at home so much of the catch is exported.

T

he distant water fleet has gradually reduced in size over the years from 10 vessels in 2005 with a total gross tonnage of 11.5 thousand tonnes to just 5 vessels in 2013 with a gross tonnage of 7,700 tonnes. Of the five vessels, three target primarily northern prawn (Pandalus borealis) but also catch fish, while the

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other two exclusively catch fish.

The vessels are owned by three companies. In the Svalbard area the shrimp fishery is managed by limiting the number of fishing days but in NAFO and NEAFC areas the main fisheries are limited by the tonnage that may be caught. In the NAFO area Estonian quotas have hardly changed

over the five years to 2015 at about 3,000 tonnes.

Redfish species dominate Estonian NAFO quotas In 2015 too quotas have been maintained at the same level. The biggest quotas are for redfish species which

at 2,085 tonnes in 2015 amount to 70 of the Estonian quotas in NAFO. In the NAFO convention area several zones have been identified as particularly vulnerable to gears with bottom contact and are closed to bottom fishing activities.

These restrictions have been put in place mainly to protect seamounts, sponges, and sea pens (colonies of www.eurofishmagazine.com

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Estonian high seas catches, tonnes 2011

2012

2013

2014

North-West Atlantic (NAFO)

7,146

3,444

4,533

3,387

North-East Atlantic (NEAFC and Svalbard)

5,318

5,340

7,422

7,463

South-West Atlantic

2,126

3,206

0

0

Total

14,590 11,990 11,956

10,850

Source: Ministry of Agriculture, Estonia

Baltic herring and sprat frozen into blocks is an important export item from Estonia to countries in the east including Ukraine, Russia, and Belarus. Currency depreciation in the region and the tensions with Russia have affected supplies to the area.

small polyps). Over the years the closed areas have been extended, and in addition their number has increased, so that today (2015) there are 19 such areas. These closures are due to be reviewed in 2016. The most important quotas in the NAFO area for Estonia are those for redfish species which in 2015 amounted to over 2,000 tonnes, or 70 of the total. Northern prawn (Pandalus borealis) has in the past been the most important species, and management of this fishery in the NAFO 3M fishing area was by the number of fishing days and in the NAFO 3L fishing area by quotas. Both stocks are in poor shape however and are not expected to improve in the near future. As a result, in 2015 Estonia has no quota in NAFO 3L for this species, down from 96 tonnes in 2013, and has no allocation of fishing days in NAFO 3M, which has been the case since 2011. In the NEAFC convention area Estonian quotas were 459 tonnes in 2014 a 25 increase over 2013. www.eurofishmagazine.com

08_ESTONIA.indd 41

Herring and sprat catches in the Baltic Sea decline The Baltic Sea fishery is divided into a coastal fishery and an offshore trawl fishery. The trawl fishery targets Baltic herring, sprat, and cod, of which sprat and Baltic herring are the most significant in terms of volume. Baltic herring (Clupea harengus membras L.) is a subspecies of Atlantic herring inhabiting the Baltic Sea and forming local populations. Herring can be either spring-spawning or autumn-spawning, though the numbers of the latter are less than 5 in all parts of the Baltic Sea. There are four herring stocks in the Baltic of which two are of interest to Estonia. These are the Central Baltic herring stock and the Gulf of

Riga stock. In 2015 Estonia has herring quota of 18,363 tonnes in the Central Baltic and a further 17,908 tonnes in the Gulf of Riga. Between 2009 and 2014 Estonian catches of herring in the Central Baltic have fallen by 35 from 20,000 tonnes to 13,000 tonnes, while in the Gulf of Riga Estonia’s catches over the same period fell from 17,000 tonnes to 11,000 tonnes. In 2014 Estonia landed 40 of the catch while Latvia landed the remainder. In the Gulf of Riga herring is fished only by Estonian and Latvian fishermen.

Unlike Baltic Sea herring, Baltic Sea sprat is considered a single stock throughout the Baltic Sea. In 2015 Estonia has a quota of 25,000 tonnes of sprat or about 11.5 of the TAC. Poland (30), Sweden (19),

The increase was due primarily to an increase in the mackerel quota to 262 tonnes. The most important species are Atlantic mackerel and redfish species, which together accounted for over 75 of the quota in 2014.

Total distant-water catches in 2014 fell by about 10 compared to 2013 to around 11,000 tonnes. For Estonian deep water catches the most important species in terms of volumes is the northern prawn (Pandalus borealis) followed by redfish species (Sebastes spp.) and Greenland halibut (Reinhardtius hippoglossoides). Small quantities of several other species are also caught by the fleet. In general as shrimp quotas have shrunk to nothing in the NAFO area, fishers are turning their attention to the Barents Sea where the Estonia North East Arctic cold water prawn fishery was certified to the Marine Stewardship Council sustainability standard in November 2013.

Please visit us: SPG-Brussels, 21-23 April 2015, Hall 4, Stand 6201 Eurofish Magazine 2 / 2015

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Ain Soome, Head of Fishery Economics Department, Ministry of Agriculture, Estonia

Hannes Ulmas, Head of the Market Regulation and Trade Bureau, Department of Fisheries Economics, Ministry of Agriculture of Estonia

and Latvia (14) are the countries with the biggest shares of the 214,000 tonne TAC. Between 2008 and 2013 total catches of sprat in the Baltic Sea have declined from 381,000 tonnes to 272,000 tonnes though the catch in 2013 represented an 18 increase compared to the year before. Sprat abundance is linked to that of cod its main natural enemy so that if cod is abundant there will be fewer sprat and vice versa. Estonia also has a small quota of cod in the Eastern Baltic, which in 2015 is 1,150 tonnes or 2 of the TAC. Estonian catches of cod in 2013 amounted to 250 tonnes, an 11-year low, out of a total of 31,400 tonnes.

Ain Soome and some catches of those vessels is landed in Estonia.

The companies behind the Baltic Sea trawling fleet are grouped into three producer organisations, the Estonian Trawling Association based in Tallinn with 5 members, the Estonian Fishing Association PO in Audru with 6 members, and the Estonian Commercial Fishermen Association in Haapsalu with 5 members. Together they represent more than 90 of the Estonian fishing quotas for sprat and herring. All the three POs have processing facilities where the sprat and herring can be graded and frozen into blocks mainly for export markets in the east, Russia, Ukraine, Belarus, etc., or salted and marinated. Since already over 90 of the Estonian quotas for herring and sprat are covered by the POs, the only way to increase the volume of fish to Estonia, says Hannes Ulmas from the Ministry of Agriculture, is by having transnational POs, that have members from other member states, for example Finland or Lithuania, and, crucially, that they are represented in the annual production

Among the most contentious reforms of the Common Fisheries Policy was the introduction of a discard ban. The idea behind landing all fish that is caught is to encourage fishermen to use more selective gear that would only catch the targeted species. The ban came into force at the beginning of 2015 and also applies to the Estonian mixed herring and sprat fishery as well to the cod 42

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and salmon fishery. The mixed herring and sprat fishery and the cod fishery are by and large clean, says Ain Soome from the Ministry of Agriculture, without any significant bycatch of other species.

Salmon is mainly caught as a bycatch in coastal fishery. Estonia, even before the discard ban was imposed, had a regulation forbidding the discard of fish that was dead, so Mr Soome feels that for Estonian fishers the discard ban will not make a big difference.

Estonian fishing companies buy vessels in neighbouring states The Estonian trawling fleet comprises 36 vessels that catch primarily sprat and herring but also small volumes of other species. The number of vessels has declined steadily since 2008 when the fleet had 64 vessels. The vessels target sprat, herring, smelt and cod, of which the volumes of sprat are the biggest. Estonian companies have also been investing in vessels of other Member States in the Baltic Sea region, says

and marketing plans that the POs are expected to draw up.

Intervention mechanisms that support POs to store fish for human consumption, when, for instance, market conditions push prices below a threshold determined by national authorities in consultation with the POs, will be phased out at the end of 2018. Activities will then be fully implemented through the production and marketing plans. In Estonia there was a strong feeling among the authorities that public money should be available in case of crises in third countries, so that producers had a safety net if their market suddenly disappeared. We wanted a support level of 5 of the annual turnover of the PO for this storage mechanism, says Mr Soome, but finally it was decided to keep the level at 2. The storage mechanism was particularly relevant with respect to the Russian market, which closed suddenly at the beginning of 2014, when restrictions were imposed on exports to countries of the Customs Union. These were then extended later in August 2014 www.eurofishmagazine.com

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as part of the counter sanctions imposed by Russia, a big importer of Estonian block-frozen pelagics, against the EU. Estonian processors have been exploring possibilities in other markets, but this is a long process and when a market disappears almost overnight then the storage mechanism is a measure that can be implemented very rapidly in support of the affected producers.

EFF brought several benefits to Estonian fisheries Estonia is now in the process of finalising its operational programme and Mr Soome hopes that by the second half of the year it will be possible to open support measures foreseen in the European Maritime and Fisheries Fund (EMFF), the successor to the European Fisheries Fund (EFF). As the EFF winds down he sees the establishment of POs in general as one of its more notable successes. Another benefit has been the scrapping mechanism, which allowed Estonia to relatively quickly bring capacity in line with the resource. This probably would have happened in any case with the move to individually traded quotas (ITQs), but the support for scrapping enabled the fleet to be balanced with available fish resources faster. Mr Ulmas

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Fyke nets being hauled aboard in Lake Peipsi, the most important body of water for the inland fishery of perch and pike-perch.

adds that the creation of the fisheries local action groups was another significant feature of the EFF as they contributed to local development along the coast. The EFF has also been used to support the interaction between scientists and fishermen with the creation of a Fisheries Information Centre.

This centre can carry out research and develop projects that will add to knowledge of fisheries and ultimately benefit the fisherman.

The centre has also organised several information meetings and

meetings with certification bodies to discuss the possibility of having perch and pike-perch fisheries certified to the Marine Stewardship Council standard.

Herring and perch are the most important coastal fishery species The coastal fishery employs about 2,000 people a figure that has increased steadily since 2008, when it was about 1,500, and has some 1,470 vessels up to 12 m in length.

The impact of the financial and economic crisis contributed to the increase in the number of coastal fishers, as the contracting economy pushed people into alternate occupations. However, only about 10ď&#x2122;&#x201A; of these are full time coastal fishermen. The coastal fishery catches a huge variety of species, but only three or four of these, herring, perch, smelt, and pike-perch are important for the value they generate. The coastal fishery in the Baltic Sea is split between the Gulf of Finland, Gulf of Riga, Pärnu Bay,

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the Väinameri Sea and the Central Baltic area around the Estonian islands of Saaremaa and Hiiumaa.

The fishing gear for the coastal fishery is mainly trap nets and gill nets, though in some areas longlines and seines are also used. Pärnu Bay is the most important area for the coastal fishery in terms of catch volumes and value, with herring and perch dominating the catches.

Saaremaa Island has the highest number of coastal fishermen.

marketing plans and the question is whether coastal fishermen can (or want to) meet all the requirements for a producer organisation.

It may be more feasible for them to act collectively in these areas, particularly as the volumes are not very large. We are encouraging the fishermen, not necessarily to form a PO, says Ain Soome, but to come together and find joint solutions, such as a common processing plant, by offering them a higher rate of support than if they were to do it alone.

Many coastal fishermen sell their products as fresh fish and the administration would like to see a greater focus on value addition amongst the fishermen themselves as this will lead to higher incomes. This could, for example, be smoking, filleting, or marinating, but it could also be that fishermen get together and have a common processing facility, and joint marketing of the product.

This would suggest that coastal fishermen should get together and form POs, but as Mr Ulmas points out, forming a PO also includes certain responsibilities. Some of these can be demanding such as the creation of production and

First-sale prices of pike-perch, perch fall in 2014 Estonia’s inland fisheries are based primarily on the fisheries in the two lakes, Peipsi and Võrtsjärv.

The overwhelming majority of the freshwater catch is from Lake Peipsi, and the adjoining body of water, Lake Lämmi, where catch volumes in 2014 were about 2,500 tonnes, a figure that has stayed more or less constant since 2009.

Averaging the catch of the five years to 2014 by species shows that perch is about 40 of the volume

followed by pike-perch (25), bream (22), and roach (8). Trap nets, gill nets and Danish seines are the main gears used by the approximately 370 fishers, who use the lake. The fishing season is from January to October, though there are restrictions placed on the use of certain gears in some months.

The highest catches are typically in September. The value of the catch in 2014 dropped by nearly a quarter to EUR3.8m from EUR5.3m in 2012, due to a fall in the average first-sale price of the most valuable species, pike-perch and perch.

The lakes lie on the Estonian Russian border and are shared by both countries. Fisheries management on the lakes is decided at meetings of the Estonian-Russian Fishing Commission, where quotas for the different species are set. In 2014 quota uptake on the Estonian side of the three most important species perch, pike-perch, and bream, was 87, 80, and 74 respectively.

Fisheries in Lake Peipsi are regulated both on inputs (number of gears, fishing period, mesh size, etc.) as well as on outputs (quotas), which are determined by the size and composition of fish stocks.

1200

1000

Tonnes

800

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0 2009

2010 Bream

2011 Perch

Total catch from the Lakes Peipsi, Lämni, and Võrtsjärv

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Pike-perch

2012 Pike

2013

2014

Burbot

Other

Catches in Lake Võrtsjärv amounted to 238 tonnes in 2014, a yearon-year decrease of 10. The proportion of bream, pike-perch and pike has increased from about a third of the total catch in 2002 to 86 in 2014. The main fishing gears used are trap nets, which were responsible for 83 of the total catch, and gill nets.

The most valuable fish in the lake in terms of its unit price is eel. However, catches of eel after declining by a third in 2009 to 13.6 tonnes were unchanged in 2014 at 13.3 tonnes. This drop is mainly due to a less vigorous restocking effort since the early 2000s, when the price of glass eels increased drastically. Pre-grown eels, and elvers are introduced each year into the lake though the number has been falling. Despite this the stock of eel together with stocks of most other species are assessed as being in a moderately good state in 2015 with the exception of perch, which is low. The pikeperch stock is assessed as high.

Ambitions to increase supply of farmed fish to the domestic market The aquaculture sector in Estonia produces several species (eel, crayfish, carp, rainbow trout, surgeon, Arctic char), but the volumes though gradually increasing are still modest at less than 750 tonnes.

Although this production represents an increase, some parts of the Estonian administration were hoping that there would be a more significant rise in production as several investments in technology, mainly in recirculation systems, have been made with support from EU funds. However, problems, such as disease, may have held back the increase in volumes.

In the new (2014-2020) period the plan is not to support investments in capacity, but to support investments in quality and energy www.eurofishmagazine.com

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Some fin fish farmers have joined together in a producerâ&#x20AC;&#x2122;s organisation that is experimenting with different products for the domestic market.

efficiency. Rainbow trout dominated farmed output accounting for almost two thirds, while the rest was made up of other species.

However, in past years rainbow trout has accounted for four fifths of the total farmed production, so the overall increase in production can mainly be attributed to an increase in the volumes of other species produced.

Altogether some 50 companies are involved in fish farming about half culturing finfish and the rest crayfish. Rainbow trout is grown both in raceways and more recently in recirculation systems.

The Estonian aquaculture strategy 2014-2020 has a vision for the sector to build up a leading position on the domestic market and to successfully export species that suit local farming condition and have a high demand on export markets. Some of the fish farming companies have joined together to form a producer organisation (PO), Ecofarm, that will process, market, and sell the fish of its members, as well as develop new www.eurofishmagazine.com

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products. The products will be sold on the domestic market and will be accompanied by dissemination campaigns that inform consumers of the existence and benefits, such as extreme freshness, of Estonian farmed fish.

While a PO can take care of the sales and marketing of the fish, what is interesting for buyers is the volumes that the PO can deliver.

Increasing this, says Hannes Ulmas, is possible only if existing members increase their production or if the PO gains new members. According to Ain Soome it is probably more realistic for a PO to gain new members. For the individual farmer an increase in production is often tied to getting credit, which is not easy in the current economic climate, or it could depend on better knowledge about and management of the recirculation system, which is a sophisticated technology that calls for knowhow, training, and experience before it can be made to perform optimally around the year. In general though it would be better if more farms joined the PO,

says Mr Soome, as having a common processing facility with high capacity is more efficient than each individual farmer having his or her own small facility. Also, the PO can probably get better prices for the production as well as better prices for inputs if it is dealing in large volumes. The government therefore supports the development of POs, in Ecofarmâ&#x20AC;&#x2122;s case, by supporting the processing plant with EU funds. The authorities would also consider further support if the PO produces a production and marketing plan for the year.

In general the administration in Estonia is keen to phase out support altogether, but is well aware that this will not work as long as some countries are keeping them. We would rather see a more competitive sector that can manage without support or at least make it more market based, says Mr Soome, but these conditions would have to be the same both across the EU and within countries and sectors.

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Compensating for uncertain markets

Troubled waters for Estonian sprat Political uncertainty is an obstacle to the smooth running of Estonia’s sprat and herring production. Still, the future looks bright with possibilities. We explore these developments from the point of view of the Estonian Fishing Association, the largest of the three Estonian producer organisations.

F

ounded in 2005, the Estonian Fishing Association (EFAPO) is a producer organisation representing five trawling companies operating in Estonian waters and Pärnu Rannakalurid, an organisation of 200 coastal fishermen from the Pärnu area. The trawling companies own 12 trawlers, and the Pärnu fishermen own more than 160 boats. Members also have three trawlers based in Finland, fishing the Finnish quota. All of this ensures that the plant has a constant supply of fish.

The EFAPO inaugurated a processing and freezing facility in 2011, which provides storage for up to 3,200 tonnes of frozen fish and can freeze up to 200 tonnes of fish in a 24-hour period. Located in Pärnu County, the plant is well situated logistically. The plant cost EUR 6 million, about half of which was funded by the European Fisheries Fund. The plant runs two shifts of eight people each. It has HACCP certification and a traceability

system in compliance with EU requirements.

Members of the cooperative hold 48 of Estonia’s historical sprat fishing rights and 43 of the Baltic herring fishing rights. Pärnu fishermen take 6,000–8,000 tonnes of Baltic herring annually. Estonian production includes frozen blocks as well as marinated sprat and herring. Different products are made by each of the three Estonian producer organisations. Membership in the organisation has stabilised since it was founded. Most fishing companies already belong to one of Estonia’s three POs, and those that do not have already made a conscious decision not to join.

Estonian sprat is better quality All Baltic herring is of similar quality, but sprat fished by Estonia in its own waters is of higher quality.

The fishing grounds are close to the coast, allowing fast offloading, which leads to fresher fish that are

Mart Undrest, Managing Director of the Estonian Fishing Association, Eesti Kalapüügiühistu TÜ 46

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frozen sooner after being caught.

Sailing to the fishing grounds takes approximately three hours each way, plus six to ten hours spent fishing. Other countries, like Finland, do not have such immediate access to their fishing grounds, and the fish are not frozen as soon after being caught. It should be noted that partly or wholly Estonianowned companies own vessels that entitle them to use Lithuanian (ca.

500 tonnes) and Finnish (ca. 10,000 tonnes) quotas. This increases the overall Estonian catch.

Since 2008, quotas for sprat and herring have been reduced from approximately 70,000 tonnes to approximately 55,000 tonnes. At the same time, fishing capacity has fallen, with a reduction in the number of vessels. Mart Undrest, managing director of EFAPO, believes that the quotas have been well utilised during the past two years and speaks positively of the flexibility that has been built into the system.

Unused quota can be reassigned to the following year, and they can

Aleksander Konopelko, Director of Prizma Ukraine, one of the biggest distributors of fish in Ukraine.

even be traded. Quota swaps have taken place with their Finnish and Latvian partners, improving management of the fishery.

The consequences of uncertainty in Ukraine Although Latvia and Belarus are among Estonia’s main markets, Ukraine is Estonia’s largest market for sprat and herring, accounting for more than half of exports. With the Crimea and eastern Ukraine lost as markets, importers of Estonian sprat and herring must concentrate their efforts in the western and central areas of the country. Despite prudent planning, the upheaval in Ukraine means that work is done on a week-by-week basis, responding to market demands.

Mart Undrest says that, if the situation remains more or less stable and there are no new sanctions or war, the Estonian fishing industry will not face any major hardships; still he recognises that things can change at a moment’s notice.

According to Ukraine’s largest importer of sprat and herring, sprat is imported from Baltic countries, including Estonia, Lithuania, Finland, and Sweden. He prefers, however, dealing with the Estonian producer organisations because they ensure stability in price, quality, and management.

Sprat and herring are mostly imported as frozen blocks and sold to local producers, who make a large range of products, including marinated, salted, smoked and oiled, and smoked and spicy, www.eurofishmagazine.com

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The ban on exports of block-frozen fish to Russia has hurt all of Estonia’s producer organisations.

among others. Since the fall of the Ukrainian hryvnia, sprat’s affordable price has increased its popularity. Another development in Estonia’s favour has been the loss of more than 50 of the Ukrainian fishing fleet in the Crimea. The demand for domestic product has been taken up by Estonian suppliers. Altogether, Mart Undrest is saddened by the developments in Ukraine, but believes that if stability can be achieved, the situation will prove advantageous for Estonian suppliers.

Shrinking Russian market A further source of uncertainty has been the Russian ban on seafood imports from the EU and Norway, which was implemented last August. Since then, Estonia has been unable to sell its frozen products there, which amount to about 30,000 tonnes, or nearly half of Estonian sprat and herring exports. Much of it has found its way to Ukraine. One positive point is that canned fish products have not been banned. Finding alternatives for these products, however, would not be easy.

Currently, a study is being conducted into ways of giving added value to sprat and Baltic herring.

The initial task is to consider an innovative design for a factory with a minimum, 24-hour production www.eurofishmagazine.com

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The ban on exports of block-frozen fish to Russia has hurt all of Estonia’s producer organisations.

capacity of 300 tonnes. It should be able to process up to 50,000 tonnes of raw material – sprat and Baltic herring – a year, although other species, including round goby, bream, and white bream, will provide up to 5 of the output.

Running costs, return on investment, premium protein standards, and innovation each have equal weight in the planning. Although the quantity of the raw materials is small, the aim is to produce the most valuable product possible.

EFAPO has been criticised for producing a relatively inexpensive product for the eastern market, rather than making products of greater value for sale in Estonia.

They have been encouraged to look into derivatives from the fish, such as omega-3, proteins, lipids, and collagens. Although the current facilities would continue to be used for human consumption, the study is considering whether it would be profitable to build a factory for turning sprat and herring into animal feed and fishmeal. All three POs are behind the idea.

Detailed mapping exercise Danish and German vessels fish off the Estonian coast, and it is hoped they can be convinced to bring their catches to such a facility. With 300,000 tonnes of Baltic Sea catches being processed as

fishmeal and animal feed, Mart Undrest believes there is a chance to get part of it to land in Estonia, thereby saving the cost and time of sailing farther to land it. Such a plan would also help ensure their livelihoods in case of a real regional crisis. The question is whether the catches, in vessels of at least 500 tonnes and up to 1,000 tonnes, can be landed quickly enough. Currently, few ports in Estonia can handle such huge volumes and large vessels. The logistics must also be considered: How far are they from the fishing grounds? And what are the initial costs? Is water and electricity available? And finally, can it be done profitably? In the long term, however, basing a business plan on crisis situations, is short-sighted. It is necessary to develop innovative

plans to provide high-quality fish for human consumption.

All of the producer organisations are working with new markets.

EFAPO is already sending fish to Africa and China, and is searching for additional markets. Some companies are working with individually quick frozen (IQF) foods, where each piece is frozen separately, not in blocks for markets in both east and west. According to Mart Undrest, everyone is trying to find an extra edge that will lead to a larger share of the eastern market.

He sees these trends continuing for the next couple of years.

Future bright despite uncertainty Mart Undrest reflects that it has been a good three and a half years in the new building. What’s more, the cooperation between producer organisations has proven to be very helpful. Having three POs encourages competition and so increases the will to work even harder. They see that, at least at the moment, there is enough fish for everyone. The POs have supported each other in tough times.

Says Mart Undrest, “These buildings have safeguarded us in many ways, and that has proven to be very useful to the fishermen”.

William Anthony

Estonian Fishing Association Eesti Kalapüügiühistu TÜ Peterburi tee 2F 11415 Tallinn, Estonia Tel: +372 50 23 860 info@estofish.ee www.estofish.ee/ Managing Director: Mart Undrest, Activity:A producer organisation representing five trawling companies operating in Estonian waters and 200 coastal fishermen from the Pärnu area.

Facilities:Refrigeration and processing plant (2011) in Pärnu County; 3,200 tonnes storage for frozen fish; freezing capacity of 200 tonnes of fish in a 24-hour period.

Products:Sprat and Baltic herring; block frozen and prepared products, including marinated, salted, and smoked Markets:Ukraine, Russia, Latvia, and Belarus No. of employees: More than 20 Eurofish Magazine 2 / 2015

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Ecofarm develops and sells products from farmed and wild fish

An aquaculture PO with an interest in small pelagics Ecofarm is a producer organisation for the Estonian aquaculture sector. Led by Oleg Epner it is in the process of implementing a swathe of new ideas that add value to fish farmed in Estonia, which can be sold on the domestic as well as international markets.

A

gutted sturgeon, Arctic char, large freshwater trout, and a large trout fillet all are locally produced by the members of Ecofarm and processed at the PO’s newly-established facility. A relatively young PO, Ecofarm was established to improve both the volumes and the sales of Estonian farmed fish.

Domestic production needs to replace imports The Estonian aquaculture sector with a total production of 730 tonnes is relatively small something that both the Estonian and the European authorities would like to change. Modest volumes of several species (trout, carp, eel, crayfish, sturgeon, Arctic char) are produced, of which production of trout amounts to almost two thirds of the total. One of the main constraints the sector is facing is competition with marine farmed fish. If the freshwater aquaculture sector is to grow it has to fight back. Mounting a successful challenge to imported fish starts with understanding the consumer and finding out why he/she makes certain choices.

In Viljandi, a small town a couple of hours away from Tallinn, a fishrelated event was held in February on the lake that was attended by a few thousand people. This was the ideal opportunity to learn 48

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Ecofarm is working on developing export markets for its products and has started exporting to Latvia and Finland with hopes to enter the Swedish market soon, says Director Oleg Epner.

about consumers’ preferences and also market some of Ecofarm’s products. Mr Epner made three significant discoveries during the course of the event, which he hopes to exploit to promote his members’ farmed fish. The first was that consumers are generally unaware of the existence of a freshwater fish farming sector in Estonia. This suggests the need to create awareness of the sector and the advantages it offers in terms of freshness of the product compared to fish that is imported. He

also learned that people increasingly prefer products that have to be processed as little as possible.

Instead of whole round fish, the fish should be gutted, and instead of whole fish, consumers prefer fillets.

Packaging, taste critical for product acceptance Finally, Mr Epner also discovered that in the case of smoked fish the taste and the packaging could make a difference. The smoked

sturgeon has a relatively low salt content of maximum 1.8, which highlights the taste of the fish without drowning it. The salt content can be low because the fish does not need to have such a long shelf life compared with imported products. The packaging, a vacuum pack to keep the product fresh, seemed also to be popular amongst consumers. Ecofarm is a PO for fish farmers, but that is not preventing Mr Epner from developing agreements with other parts of the sector. Among his ideas is www.eurofishmagazine.com

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a more realistic target. More farms producing larger volumes is also in the interest of the PO as it has access to a wider range of raw material. If I want large trout fillets I need a producer of a fish that weighs perhaps 1,800 g, says Oleg Epner. Currently there is perhaps one such producer in Estonia and his prices are much higher than the PO can afford.

A selection of Ecofarm’s vacuum packed products keeping the product fresh and visible, is popular amongst consumers.

one to try and develop products based on Baltic herring. The supply of raw material should not be a problem as Ecofarm is located a few meters from Estofish, one of Estonia’s three pelagic PO’s. The herring is headed, tailed, and gutted and exported to customers in Ukraine and Belarus. Ecofarm is also contemplating going a step further and filleting this fish as there is a market for these too.

Currently Ecofarm has five members and the application from a sixth member is being assessed.

These represent about a third of the 17-20 finfish farms in Estonia.

The advantages of being part of a recognised PO are many, but it also involves a degree of cooperation and some loss of autonomy, which, according to Mr Epner, many fish farmers are reluctant to countenance. Membership of a PO is also more attractive for more recently established companies, as older ones typically have lower production costs, established markets, and have therefore less of an incentive to join a PO. A PO can take over the product development, production, sales and marketing of the fish, and because it can offer bigger and more consistent volumes than an individual fish farmer, a PO is more interesting as a partner, for example, for a retail chain. As Mr Epner says, a www.eurofishmagazine.com

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big buyer might need five tonnes of fish a day, while an individual fish farmer may be able to supply one tenth of that. POs can also negotiate on behalf of their members for feed or other inputs, again securing better prices because of the larger volumes, which also give better prices for the freight. A PO can get a higher proportion of support for building a processing facility than an individual processor, so the POs’s costs are usually lower. Another important reason to join a PO is the stability it offers.

The PO makes a 1, 2, or 3 year production plant which defines how much fish it will take from each of its members. If the producer has a firm contract to sell a certain volume of fish, then he can concentrate on other issues, such as improving the technology or the management of the farm or expansion into new species.

Domestic fish could partly meet demand While some EU countries are trying to develop their fish farming industries to the point where domestic farmed production can meet up to 75 of domestic demand, Mr Epner feels that for Estonia, the industry with the help of support programmes, the administration, and the implementing agencies 50 would be

Ecofarm currently sells mainly on the domestic market, but the Russian counter sanctions which banned imports of EU agricultural products into Russia have had consequences for the fish market in Estonia. Prices of meat products that normally compete with fish are lower reducing the demand for fish. Ecofarm is working on developing export markets for its products and has in fact started exporting to Latvia, and Finland and hopes to enter the Swedish market soon. For the moment it is mainly fresh product that is being exported as those markets can then further process the fish, for example, by smoking it, in line with local tastes. Producing a taste that will appeal to the Estonian market is difficult enough, let alone creating one that will be popular abroad.

Successful product development usually takes a large team of people, says Mr Epner, while

at Ecofarm we have perhaps two to three. This group is now being challenged by one of the PO’s customers to come up with an exciting new product based on trout.

New project has multiple objectives Mr Epner feels that greater public awareness of the domestic fish farming industry can lead to more fresh locally-farmed fish being consumed. He is currently working on a project, the goal of which is to get school students in an entire county to start eating 200 g of locally produced fresh fish a week, instead of imported frozen fish. While fish farmers support the project Mr Epner has also enlisted other companies dealing with whitefish. The point is not to make money, but to create awareness of the domestic farming sector, to offer some kind of product that uses off cuts from the industry and thereby reduce waste, as well as to provide students with nutritious food.

An aquaculture PO in name Ecofarm has an interesting business model that does not rule out cooperation with producers of wild fish.

Whether this will contribute to the goal of increasing farmed fish production in Estonia, or distract from it, remains to be seen.

Ecofarm TO Lemmetsa Audru vald 88311 Pärnumaa Estonia Tel: +372 5883 9011 assistent@ecofarm.ee www.ecofarm.ee Director: Mr Oleg Epner Species: Rainbow trout, Arctic char, sturgeon, Baltic herring

Product form farmed: Whole gutted, fillets, fresh or smoked Product form wild: Headed and tailed and gutted, frozen Markets: Estonia, Finland, Sweden (for farmed); Ukraine, Belarus (for wild) Employees: 12 Volumes: Up to 2400 tonnes per year

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Japs catches, processes, and sells European perch and pike-perch

Vertical integration enables complete control of quality Japs is among Estonia’s leading companies in the fish processing sector in terms of the quantities of raw material processed and the number of employees. The company is vertically integrated with its own fishing vessels, processing facilities, as well as marketing, sales and distribution.

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uropean perch (Perca fluviatilis) and pike-perch (Sander lucioperca) are two highly valued fish species that are exported from Estonia mainly as fresh and frozen fillets. Catches of European perch are primarily from the Lake Peipsi and the coastal Baltic Sea. The relative abundance of perch has been a mixed blessing for the company.

Arved Soovik, the owner and Helle Nuut, the sales manager say that the market is not big enough to absorb all the fish that is being caught, which has pushed prices down a little.

The market for perch is in Europe Japs exports some 90 of its production, which apart from European perch and pike-perch also includes Baltic herring, eel and pike. Volumes of the latter are, however, much smaller than those of the first two. The company’s markets are in Europe of which Switzerland, Italy, France, and Germany, are the most important. With the appreciation of the dollar against the euro Japs is now also considering exporting to the United States, a market with which it has not been working for a couple of years.

Japs tries to supply fish all the year around clients appreciate this. Pike-perch however is a seasonal fish. European perch too is 50

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Japs is one of Estonia’s leading fish processors specialising in freshwater species.

seasonal, however when the winter is mild, as it has been this year (2014/2015) the water in the Pärnu Bay and the Lake Peipsi does not freeze and the fish can be caught all the year around. This has both advantages and disadvantages, says Ms Nuut. On the one hand we can catch more, but on the other there is more fish in the market and demand, particularly for frozen fillets, is stable. But for fresh fillets the market is more buoyant. Fresh fillets amount to roughly two-thirds of the company’s production, while frozen cover the remainder. In either case the fillets can be with skin on or skin off. The company also does limited quantities of whole fish, as well as gutted and scaled fish. Fresh fillets are typically packaged in three and five kg

boxes on ice, while the types of packaging for frozen fillets can be vacuum packages or individually quick frozen (IQF) pieces in a polybag.

The company’s customers are mainly importers in the destination countries who are responsible for the distribution to the final buyer. But increasingly producers are shipping directly to the final customer, says Helle Nuut. This is not the only change that Japs is experiencing. In general the last few years has seen an increase in the number of producers – both fishermen and processing units – partly due to the availability of support from the European Union, which has meant an increase in competition. This development is not restricted to

Estonia, but can also be seen in other countries, such as Poland.

However, most of these producers cannot offer the same quality and stability that Japs has built up since it was established in 1992.

In addition to competition within Estonia, the economic crisis on many of the company’s markets has led consumers to explore cheaper species of fish. Perch and pike-perch are expensive because they are wild-caught and because most of the processing work is still done by hand. Other white fish species that are farmed in other parts of the world are often cheaper alternatives and in the current economic climate the company can feel this. The market for fresh and frozen European perch and pike-perch fish fillets is not a big one and for many years www.eurofishmagazine.com

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Whole fish as well as gutted and scaled fish are among the products being processed at the Japs facility.

Helle Nuut, Sales Manager, Arved Soovik, Director. The abundance of perch is a mixed blessing as prices are pushed down.

Japs has been working with essentially the same group of clients in the different countries. We do not place all our eggs in the same basket, says Ms Nuut, yet at the same time we have to acknowledge that the international market for these species is a modest one and the number of traders is limited. Japs has seen changes in its partners with some pulling out of the business or selling their companies to other entities.

Fish sourced from other vessels too Japs is one of the biggest companies dealing with European www.eurofishmagazine.com

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perch and pike-perch in Estonia.

Unlike many other companies it is directly involved in each step of the value chain â&#x20AC;&#x201C; catching, processing, and marketing and sales â&#x20AC;&#x201C; thanks to its own vessels and quotas, large processing facilities, and network of customers. We can control each step of the production and ensure the quality from the time the fish is caught to the time the fillet arrives at the customer.

Because of the volume of fish the company needs to process it cannot depend solely on fish caught by its own vessels, but has investments in other fishing companies, from whom it can

buy fish. The resource is strictly managed by the authorities, who have effectively enforced the rules governing the resource with the result that large pikeperch of around 1 kg are not uncommon. The stocks in the Lake Peipsi, and in the coastal waters of the Baltic Sea are managed slightly differently. Lake Peipsi is shared with Russia and each year the annual TAC is decided. In the Lake Peipsi limits are placed on the volume of fish that can be taken as well as on the number of nets that can be used, while in the Baltic Sea the restriction is only on the number of nets and the mesh size, and not on the volume of fish that can be caught. Catches from the Baltic Sea have been increasing over the last couple of years and even in areas which have not seen particularly good catches over the last years, such as the areas off the islands Saaremaa and Hiumaa, are now showing signs of recovery.

Sometimes the company also has to import fish to meet its commitments. In this case the perch typically comes from Sweden or Finland, while pike-perch may be imported from Poland. Japs has built up a reputation for flexibility, but has had to deal with the seasonality of the raw material, which means that the

labour force also has to fluctuate with the season. This is sometimes difficult to manage and so the company has settled on a work force of 77 people which should enable a degree of continuity both in the high season and the low. Automation is not really an option as the fish is wild, and so comes in a variety of sizes, which makes it unsuitable for machinery. In addition, in the spring season the fish has roe which is an additional challenge for a machine. Besides manual filleting gives a better yield, says Ms Nuut.

Introducing the Swiss to Baltic herring Japs also produces Baltic herring which it catches in the spring and processes into frozen fish, gutted fish, or fillets and is also producing canned roll mops through a daughter company.

The company is actually trying to sell Baltic herring on the Swiss market, but it is an uphill job, as the product is unknown there and, compared to white fish, has quite a strong taste. Breaking into markets with new products, especially those from a species the target is completely unfamiliar with, is never easy. One can only hope that the Swiss discover a liking for the fish, which will make all the effort worthwhile.

Japs AS J.W. Jannseni 36 a 80041 Parnu Estonia Tel.: +372 445 9600 Fax: +372 445 9610 japs@japs.ee www.japs.ee Director: Arved Soovik

Sales Manager: Ms Helle Nuut Activities: Fishing, processing, sales and distribution Main products: Perch, pike-perch Product forms: Fresh and frozen ďŹ llets Markets: Switzerland, Italy, France, and Germany Employees: 77

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Making the most out of a few products

Extending the market for sprat and Baltic herring The Estonian Trawling Association (ETA) is one of Estonia’s three producer organisations. Its factory, which processes sprat and Baltic herring, went on stream at the end of August 2010. Now, the organisation is looking to increase its capacity, enlarge its use of automation, and extend a quay that will improve the offloading of catches.

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TA is based at Paldiski, not far from Tallinn, on the site of a former Soviet submarine base and naval training facility, which is now an industrial estate and port. It has five members who fish with small trawlers and represent about 8,000 tonnes of the national quota for Baltic herring and sprat.

Looking to increase capacity Currently, average in-season production is approximately 10,000 metric tonnes, which has remained stable over the past three or four years. Freezing capacity is 180 tonnes per 24 hours for a single species and 140 metric tonnes for assorted species.

Storage capacity is 2,500 metric tonnes for assorted products and 3,000 tonnes for a single product.

A new factory is planned that will increase capacity, which will in turn increase the need for more fish. After the planned expansion, freezing capacity will increase to more than 200 tonnes. Currently, the catches are unloaded two kilometres from the factory, requiring them to be moved by truck. If permission to extend the quay is granted, it will be possible to pump the fish directly from the boats.

Block frozen Baltic sprat and herring for the Eastern European 52

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market are the organisation’s main products. Other products include spicy marinated and salted fish, and individually frozen headed-and-gutted herring, which has proven popular in Ukraine. ETA produces dried products as well, including smelt, roach, and pike. The fish are salted for four to five days and then dried in special ovens, so they contain nothing but salt.

Salted sprat, a typical product for the Romanian market, has a salt content of 27. It is eaten as a snack and is especially popular in autumn as an accompaniment to the young Romanian wines, which are drunk with the salted fish. The shelf life of spiced products is three months. For salted products, it is six months, owing to the high salt content.

The importance of knowing your markets Nearly all (99) of the organisation’s production is exported.

Main markets include Ukraine, Kazakhstan, and Russia. Small but growing markets include Latvia, Lithuania, Israel, the Balkan countries, with minor sales to Finland. The remainder is sold to Estonian producers. Ukraine buys both spicy sprat and frozen blocks for production. Because of the two- to three-week delivery time by railroad, Kazakhstan buys only frozen products. At least 95

Mauno Leppik, Managing Director, Estonian Trawling Association

of sales to Romania is salted sprat.

Before the ban on the import of fresh products, the company used to sell large quantities of frozen blocks to Russian canneries, but currently they sell only readyto-eat products, mostly spicy sprat. Russia is part of a Customs Union, which includes Belorussia and Kazakhstan. Ukraine is not part of the Customs Union. ETA’s customers are almost exclusively wholesale distributors, although in Ukraine, they sell directly to retail markets, who buy bulkpacked sprat and sell it in stores by weight.

Krapesk is a well-known brand in Russia, Ukraine, and Kazakhstan.

ETA retained the brand name and logo, which belonged originally to one of the organisation’s founding members, because of

its recognition value, based on a well-established reputation in key Russian, Ukrainian, and Kazakh markets. The expansion of the facilities will increase the need for fish. PO members are not obliged to sell their fish to the organisation, although most do. ETA will have to go further afield to satisfy the demand and purchase raw material from sources outside the organisation. For example, in May they buy coastal sprat, which are not caught using trawl nets but special nets used by coastline fishermen, who are not members of the PO. Surplus fish are sold to other producers.

A well-established workflow The fish, mostly a mix of herring and sprat, are graded mechanically www.eurofishmagazine.com

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The fish is pumped from the vessel and then loaded into bins that are placed in refrigerated trucks, which carry the fish to the factory.

into four categories, while separating the two species, sprat typically being smaller than herring. The graded fish are sent for specialty processing or pumped into the freezing equipment, where they are shock-frozen for approximately two hours into 15 kg blocks, with an internal temperature of minus 18 °C. Each freezer can handle one tonne of raw material at a time.

The frozen blocks are conveyed mechanically to the packaging line where they are either loaded directly on pallets or are wrapped in special packaging material, with polypropylene on the inside and paper on the outside. The bulk of the production, ca. 70, is frozen blocks. After the fish is packed, it is labelled with date and product name.

Shelf life is added later. Palletising, weighing, and transport to storage is mechanised. Data is collected to allow traceability to assure freshness.

Dedicating quotas to high-quality catches Depending on the water temperature, the production season can run from September/ October until April/May. The organisation reserves its quota www.eurofishmagazine.com

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for the period of autumn/winter/ spring because, in summer, fish feed on a diet of plankton, giving them a much softer texture, which causes their stomachs to break easily. Further, the diet causes the flesh to taste bitter. In autumn, they stop feeding in the cold water. Fish caught in January have less fat and a firm texture, leading to longer shelf life.

Because sprat and herring are fatty fish, they must be handled and produced quickly.

Some Finnish companies use fish caught in summer for fishmeal, where a soft texture is not important, but ETA reserves its quota for high-quality fish for human consumption.

According to Mauno Leppik, ETA managing director, the facility runs around the clock during high season. He says, “When the fish are coming in, we work. Even on Christmas Eve, people are working, because we need to produce when the fish are coming in.

During the three-to-four month downtime, we mainly do repair and renovation”.

Because they would like to put more effort into high-volume products, including frozen and marinated fish, the company

plans to reduce the amount of manual labour and increase the amount of automation by investing in machinery, in particular to speed the freezing process, standardise the mixing of spices, and increase the efficiency of filling the buckets. The heading and gutting process is now automated. The production is currently limited, but it has great potential in the Ukrainian market. Meeting the demand for ready-to-eat products is one of the main reasons behind the investment. Machinery will be added to pack smaller buckets, for example 800 g, which they did previously but discontinued because the production was too labour intensive. Automation will allow the company to better utilise the space and avoid using 25–30 of the space for manual work, which involves many people working on low-turnover products.

Seeking certification in the future In the future, the organisation will probably seek certification of its stocks’ sustainability by

the Marine Stewardship Council (MSC) or a similar body. Outside certifications are less important to the organisation now because its main markets do not require them. It is anticipated that the number of Estonian national controls now in place will simplify future certification.

Mauno Leppik strongly believes that attending exhibitions is one of the best ways to market and sell products. He says, “You can see what others are doing and get an idea of the products that are being developed. And it’s a good place to meet existing and potential customers”. Last year, he attended shows in Kazakhstan and France, and this year, he has already attended the show in Moscow. Later this year, he will go to Uzbekistan and Brussels. Members of the producers’ organisations often collaborate on a stand and attend the shows together reducing the costs. The fishing sector in Estonia is now well represented on the international stage. And Brussels is big.

If you are not in Brussels, you’re not in the fish business”.

William Anthony

Estonian Trawling Association (Eesti Traalpüügi Ühistu) Peterburi mnt 2F 11415 Tallinn Estonia Tel.: +372 600 2929 info@traalpyyk.ee www.traalpyyk.ee Managing Director: Mauno Leppik Activity: A producer organisation representing five trawling companies operating in the Baltic sea

Facilities: Freezing and storage for 2,500 tonnes. A new factory is planned that will increase capacity Products: Sprat and Baltic herring; block frozen and prepared products, including marinated, salted, and dried; individually frozen headed-andgutted herring Markets: Ukraine, Kazakhstan, and Russia, Latvia, Lithuania, Israel, Balkan countries, Finland

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DGM Shipping earns coveted award at Prodexpo

Using sprats to make highly value-added items DGM Shipping is a successful processor of Baltic herring and sprat. Three years ago the company was nominated for the Prix dâ&#x20AC;&#x2122;Elite at the European Seafood Exposition in Brussels for one of its products. This year the company has just returned from Prodexpo in Moscow with a Gran-Prix for a similar creation.

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stablished in 1994 as a fishing company, DGM Shipping expanded a decade later by building a processing plant to add value to the catch.

The company has significant quotas of cod, Baltic herring and sprat. The fish was frozen and exported in blocks to Russia, Ukraine, Belarus, and other Commonwealth of Independent States (CIS) countries where local companies canned or otherwise processed the fish. Today the facility produces fresh and frozen Baltic sprat and herring as well as preserves and marinated fish most of which is exported to other EU countries, as well as Russia, Ukraine and other parts of the CIS.

Eastern markets interested in Scandinavian-style marinades Many of the approximately 90 companies in the fish processing sector in Estonia use Baltic sprat and herring as their raw material. The fish is typically frozen and exported in blocks to the CIS countries. DGM Shipping is different in this regard as much of its production is further processed, that is, not just frozen into blocks but made into fillets, preserved or marinated.

The product that won the award at Prodexpo was based on a fillet 54

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of sprat. The fish is caught by the companyâ&#x20AC;&#x2122;s own vessels, where the fish is very carefully handled to ensure the best quality raw material. Back at the factory the fish is filleted by machine and the fillets are salted and spiced and allowed to mature. While different products can be manufactured from the mature fillets, the prize-winning product was one that had been marinated in a solution of sugar and herbs.

The sweet marinade is popular in Scandinavia, but unusual in Eastern Europe, where marinades tend to be savoury. Developing a suitable package for this delicate product was also a challenge. The company elected to place the product in a tray sealed with a foil that can be peeled off.

A plastic lid allows the tray to be closed once the foil has been removed. The award at Prodexpo took into account not only the product, but also the sophistication of the packaging.

Ilja Gorohhov, Development Director, says that the traditional savoury taste of marinated products sold in Eastern Europe is still very popular, but the sweeter Scandinavian marinade is making headway there too. The company has a chain of shops in Estonia where it sells its products and these function also as a testing ground for whenever it launches something new. Customers are

Ilja Gorohhov, Development Director, says marinated products sold in Eastern Europe are more savoury than Scandinavian marinades, which are sweeter.

encouraged to give their opinion about new products and the company uses this feedback to modify and improve its recipes.

As it owns each step of the value chain, from the raw material to the final distribution and sales point, it can exercise complete control over the product, ensuring that it is the highest quality.

The most recent product that the company has developed is a fish cake. What is unusual about this product is the high proportion of fish (70ď&#x2122;&#x201A;) that it contains. The fish in the cake is a mixture of salmon, Baltic herring, and cod, which is combined with carrot and onion in a recipe developed by the company. The salmon,

which is imported from Norway, is added in small quantities to the cake to add some colour and some taste.

Sanctions force a revision in strategy DGM Shipping has been affected by the political problems between Russia and the EU. The sanctions have prevented the export of frozen fish to Russia and have forced the company to look for new markets and consider new strategies as their very survival was at stake. The company has hit upon supplying salted fish to the Ukraine in the form of 10-litre barrels filled with sprat, www.eurofishmagazine.com

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salt, and spices. The company has quotas for about 3,900 tonnes of fish of which about half is sprat.

The herring is used mainly to freeze and sell to processors in Ukraine, Romania, and Moldova as well as Estonia, who smoke and can it.

As a vessel owner DGM Shipping is a member of the Estonian Trawling Association (Eesti Traalpüüigi Ühistu), a Producer Organisation. This enables them to take part in projects which are publicly co-funded as well as to gain access to information and participate in discussions about the business. The company does not supply the PO with fish, but processes its catch at its own facilities. While the company has a small quota for cod, currently Baltic cod is undersized and underweight and therefore not worth very much, so most resources are going into the capture of Baltic herring and sprat before the season closes in April/May. In summer there is no fishery and the company has to fish enough raw material in the season (October/November to April/May) to cover the summer period as well. About 30 of the catch goes into the production of highly value added products like the fish cakes and the company aims to increase this proportion each year, so that finally the entire catch will be used for the production of these items.

Exploring the potential of canned products in Central Asia Developing and manufacturing the products is of course only part of the challenge, they also have to be sold. Today the company is selling into EU markets such as the Baltic States, and Germany, as well as the United www.eurofishmagazine.com

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States and Israel. In the latter two countries the company is targeting the large Russian communities, which are familiar with similar products and which could provide a launching pad to distribute the product to other market segments. In the East the company has started looking at Kazakhstan and Uzbekistan, not only for the products that it is already manufacturing, but also to explore the potential for exports of canned products. Not, however, traditional aluminium cans, says Mr Gorohhov, but plastic containers similar to the one that was used for the prizewinning product, that can be sterilised in an autoclave giving a 12-month shelf life just like a traditional metal can.

place the matured fillets into trays, which are then filled with the marinade, sealed and sent into storage. In another part of the factory is a processing line to make the fish cakes. This is also used to produce another product, whole breaded sprats that

are cooked and frozen. At the time of eating they need only to be warmed to give a snack that can be consumed with a drink.

This unrelenting focus on value addition will stand the company in good stead in both good times and bad.

DGM Shipping AS Vana-Narva mnt. 18A EE 74114 Maardu, Harjumaa Estonia Tel.: +372 6386983 Dgmship.office@gmail.com http://briis.eu/ Development Director: Mr Ilja Gorohhov Products: Marinated, salted,

Briis, the brand under which the company sells its products has been registered internationally.

As a result the company does not want to produce under private label. In Estonia the production is sold directly to the retail chains to avoid the costs of using intermediaries, but on other markets such as the US it is not possible as there the company needs partners in distribution and logistics to get the product on to supermarket shelves.

whole breaded, or block frozen sprats, and herring, fish cakes Markets: Baltic States, Germany, United States, Israel Raw material: Quotas for 3,900 tonnes of Baltic sprats and herring Vessels: Two trawlers Local distribution: Chain of fish shops

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Avektra expands its factory and product line

The unceasing search for new markets Avektra is a 15-year-old Estonian company specialised in processing Norwegian salmon and trout, which is frozen, smoked and marinated for sale on markets in Western Europe.

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vektra started in 2000 as a trader of fish products, mainly whitefish such as hake and other species, as well as salmon. After researching different possibilities for expansion the company decided to establish a processing unit.

Salmon gradually replaces other fish in assortment In 2006, the company built a factory in Tallinn in the Technopark for the production of processed fish. Today the company has expanded the facility to accommodate an increase in production.

Our numbers have improved each year, says Gennadi Smelov, the Commercial Director, whether you look at profits, turnover, or production. One of the reasons behind this development was the increasing role salmon played in the company’s product assortment. Salmon was increasingly interesting for us, explains Mr Smelov, not only because of its popularity on the domestic market, but also because it was highly sought after in the countries of the Commonwealth of Independent States (CIS), Russia, Ukraine, and Belarus.

The new processing facility was equipped with the help of EU funds, which the company used to buy brand new machinery from well-known names on the market.

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This year (2015) too the company will use European funds to invest in an additional filleting line for salmon as well as a smokehouse to process salmon, sea trout, and possibly also mackerel. EU funds, to which the company has already applied twice, and now plans to apply for a third time, have been extremely useful, says Mr Smelov.

However, as the products increased in sophistication it became more difficult to sell them on its former markets in the CIS countries. Our main products, salmon portions and fillets, are difficult to sell on the Russian market, but demand is high there for salmon by-products, including belly flaps, trimmings, and back bones, says Mr Smelov.

Demand was so strong that the company not only supplied the by-products from its own salmon production, but also bought from other companies.

By-products, however, only constitute some 10 of Avektra’s business. The bulk of the production is of frozen salmon portions and fillets, and marinated products. Part is sold locally, but most, about 90, is being exported, primarily to Sweden, but also Denmark, Finland, Germany, Spain, and Portugal. All the raw material is

purchased fresh from Norway, as this is what the customers specify.

Deliveries from Norway to Tallinn take two to three days and the processing itself takes another two days so that the final product is made from a very fresh fish.

Salmon prices have climbed steeply in the last few months.

Gennadi Smelov, Commercial Director, Avektra

Asia replaces Russian market for by-products Today, with the imposition of sanctions and counter sanctions, the situation has changed again and it is currently impossible to sell any of the company’s products to Russia. This poses another challenge, says Mr Smelov, but it also has pushed the company into looking for other markets. We have discovered that parts of Asia, for example, China and Vietnam, are markets for these by-products.

New machinery in the processing facility was equipped with support from EU funds. This year Avektra plan on investing in another filleting line for salmon. www.eurofishmagazine.com

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A selection of Avektra’s vacuum packed portions marinated in different BBQ sauces.

Mr Smelov mentions that in December 2014 they reached almost EUR6 per kilo for size 4-6 kg. That prices go up over this period is not unusual in itself as Christmas is approaching, but the extent of the increase last year was a surprise. While he would prefer to fix the price with a long term contract both with suppliers and buyers, since that would give a degree of stability, it is not always possible. In that case one just has to be flexible, he says, as our primary focus is to meet our customers’ requirements. Today about half his customers buy on the spot market, while the other half has longer contracts. Customers that buy only one or two times per month prefer to buy on the spot market, which is understandable, but there are others who buy weekly or even more frequently, yet who still prefer to use the spot market. For the local market Avektra produces salted and marinated salmon. The salted product is not popular on western European markets, where smoked and marinated products are more common.

Products sold through intermediaries Most of the company’s products go ultimately to the supermarket chains. However, the company sells not directly to the chains, but to importers. In Germany, for www.eurofishmagazine.com

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example, Mr Smelov says, it seems “just impossible” to sell directly as the retailers have special companies who buy and supply them and who have the contracts with the producers like Avektra. The structure is similar in Sweden.

All Avektra’s exports to Sweden are sold through supermarkets there, but the contracts are signed with importers. In general, the company sells its products under private label. Detailed specifications of the product are discussed at the outset with the customer so that the company knows precisely what and how to process and package the product. During these discussions the company will contribute with its own ideas and experiences to the final specifications. In a year about 1,600 tonnes of fish are processed of which 80 is salmon and the rest sea trout. The company usually only processes sea trout when the price is right, as typically it is more expensive than salmon, says Gennadi Smelov, but there are periods when the price falls to an acceptable level and then we buy it.

Ruslan Grabovoi, Director of Production and Quality, adds that the company may start buying more sea trout as the Japanese market has shown a lot of interest in this species smoked and sliced. The fish is redder than salmon, which appeals to the Japanese, and a potential customer from Japan

Ruslan Grabovoi, Production and Quality Department Director, Avektra

will soon be visiting the new processing plant. The smoked items have generated interest among potential customers in Germany, Denmark, Sweden and France already and the company is hopeful of converting this interest into actual contracts. In Estonia too the company supplies its frozen and smoked products to the local supermarket either directly or through intermediaries, both its own brand and items made under private label.

Smoked products are also frozen The shelf life of smoked products is on average 24 days, more if the product has a higher salt content or if it has been treated with

preserving agents. Some customers, usually, but not only, those who are located some distance from Estonia, prefer the product smoked and frozen, to be quite sure that the shelf life is sufficient for their requirements.

Avektra like all salmon processors needs to work constantly on developing new markets and finding new clients. Competition is very stiff in this business, Mr Smelov point out, particularly from Poland, and if we do not move forward we risk becoming irrelevant. The expansion of the processing facility and the launch of new product lines should ensure that this will not be the company’s fate any time in the near future.

Avektra Punane 72A EE 13619 Tallinn Estonia Tel.: +372 602 47 77 info@avektra.ee www.avektra.ee Commercial director: Gennadi Smelov Production and quality department director: Ruslan Grabovoi

Products: Frozen fillets, portions, loins; smoked, marinated, salted fish Fish: Salmon (80%), sea trout Packaging: Vacuum packaged, MAP Certification: IFS Volumes: 1,600 tonnes (raw materials) per year Markets: Sweden, Denmark, Finland, Germany, Spain, and Portugal Processing facility: 2,500 sq. m Fleet: Two big trucks, three smaller vehicles Employees: 45

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Investments in trout farming sharply boost species production European Seafood Exposition: Has a new name from 2014 Events: Brussels seafood show expands further Aquaculture: Which newmay species todayquality show the most potential?

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by Eurofish Magazine.

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Tel.: +45 333 777 55 Fax: +45 333 777 56 info@eurofish.dk

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[ TECHNOLOGY ] iTub rents out insulated containers to the fishing industry

Plastic bins as a service rather than a product One of the most ubiquitous pieces of equipment used by the fish and seafood industry is the plastic tub. They are used for storage, for transport, for salting and marinating, and for collecting waste. Tubs come in a variety of shapes and sizes and are also made of different materials depending on the use to which they are put, and the environment in which they are deployed, for example, containers used on board may need to be more robust than those intended for a land-based facility.

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lastic tubs are typically made of polyethylene and are built to withstand all the demands placed on them. As a result they may last 10-12 years if handled properly.

Most companies do not buy their complete requirement of tubs at one go, but in smaller batches every two or three years. There are however other models whereby companies do not buy their own tubs, but instead use a service that allows them to rent a number of tubs for a certain period of time. The service company owns the tubs and is responsible for their maintenance and if necessary can also arrange for delivery, pick up, and cleaning.

Tracking through embedded chips One of the leading manufacturers of plastic tubs, Promens of Iceland, has joined forces with three Norwegian fishing companies to start a service called iTUB, which rents tubs to the European fishing industry for use at sea and on land. The tubs are tough insulated containers designed for use in the fishing and fish processing industries and feature rounded corners and edges to facilitate cleaning. The tubs are equipped with GPS chips that are automatically read by factory- or vehicle-based transceivers, which in turn send the data to a central database, where it can be accessed www.eurofishmagazine.com

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by users over the Internet. The whole system runs with Promens’ proprietary MIND software. MIND is automatic tracking and management system ensures traceability and real-time tracking of the container. It also monitors the continuous temperature measurements in the surroundings of the container.

Currently there are three types of insulated tubs that can be rented of 460 l, 660 l and 700 l capacity with drainage holes and hoisting grips.

The largest tub is also supplied with a lid and is specially designed for the herring industry.

Among the advantages of iTUB are that it reduces the capital expenditure of a company, allowing it to invest the money that would otherwise have been spent on tubs in some other equipment. Renting tubs means that it is also easy and quick to increase or decrease a company’s stock of tubs. At times of peak demand a company can order more tubs. Hilmar Gudmundsson, the Managing Director at iTUB, says a company may have a stock of say 500 tubs, but for three months in the year might need an additional 300 tubs. This extra capacity then can be rented instead of bought. This is a much more flexible solution, as the tubs can be returned again after three months saving the company from having to invest in largely superfluous capacity. Renting tubs

Managing transport is a key part of the iTUB network. The company collects empty tubs from fish buyers, cleans them and ships them back to users.

is unlikely to ever replace owning tubs, but the two systems will coexist and complement each other, feels Mr Gudmundsson, as companies’ needs change over time. Some companies indeed prefer to outsource the ownership and control of the tubs leaving iTUB to manage the stock. And whether their needs are great or modest, iTUB can respond to them. There is no limit on the size of companies that can make use of the service, emphasises Mr Gudmundsson, some of our clients rent just a few tubs, while others rent thousands.

The bigger the network the greater the savings The tubs themselves are hygienic and easy to store, stack, and transport, and, being recycleable, are environmentally more benign than

containers that are not. The company currently has rental locations in Norway, Denmark, France, the UK, and Iceland, and is planning to expand the number of locations in the future as demand for the service grows. The bigger the network of clients using iTUB the greater are the potential savings as tubs are transported from one end of Europe to another and back full of product in both directions.

For more information contact: Hilmar Gudmundsson Managing Director iTUB Iceland Gunnarsbraut 12 IS-620 Dalvik Phone: +354 460 5041 itub@promens.com www.itub.no Eurofish Magazine 2 / 2015

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[ TRADE AND MARKETS ] Seabass and seabream production growth in Turkey throttled back

Turkish expansion strategy set to pay off The Turkish seabass and seabream industry has been steadily increasing production volumes for the last decade or so, to the point where Turkey is now the world’s major producer of seabass and is also closing the gap on the Greek seabream sector. At the beginning of 2015, it now appears that the production growth stage of the Turkish expansion is winding down and the focus is instead switching to turning production into profit.

The fourth quarter of 2014 continued to be a stable period for Turkish seabass and seabream producers. Average prices (domestic and export) for both species were stable during the last 60

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number of factors have contributed to the Turkish success. For one thing, Turkey’s major competitor, the Greek industry, has been struggling to maintain profitability for some years now, while the economic crisis has severely restricted access to credit. Meanwhile, the Turkish sector has received substantial investment and government support, on top of its existing advantage in terms of production costs. This has allowed Turkish exporters to price their product well below their Greek counterparts in many cases, leading to a steady influx of Turkish fish into established and emerging markets alike. More recently, the Russian ban on imports of seafood products from a range of Western nations, including Greece, has played into Turkish hands.

Although, prior to the ban, Turkey was already the major supplier to the Russian market, the difficulty that Russian imports are facing obtaining other species, such as salmon, appears to have boosted demand for Turkish bass and bream substantially.

Turkish exports of seabass and seabream to Spain, Italy, the UK and other countries have been increasing at the expense of Greek suppliers.

quarter of the year. The end of year festivities period in Europe boosted the exports in the latter part of December. Seabream sales were strong for 300-400g and 400-600g fish during December and 2013-generation seabream stocks were cleared out by most producers.

Vegetable-based feeds may prolong grow out According to industry experts one of the main challenges remaining for Turkish seabass and seabream

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producers in 2015 are bio-technical problems associated with decline in quality of fish feeds.

As the global prices for fishmeal and oil increase, feed producers tend to use lower priced alternatives (e.g. soya meal and oil), which have a negative impact on quality of fish feed in terms of feed conversion ratios (FCR) and fish growth rates. Poorer FCRs and growth rates are expected to increase rearing periods and production costs. Lower fish growth rates and longer grow out periods may create some bottlenecks for

supply of 300-400g and 400-600g fish, which are most in demand by international markets. At the same time this situation can create an advantage for producers with shorter grow out periods.

In Greece, meanwhile, companies continue to focus on debt servicing strategies and corporate restructuring in an attempt to return to profitability.

Progress is being made, however, and this year there have been a number of reports of reduced losses. Medium-sized www.eurofishmagazine.com

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companies remain mostly profitable however. Though there are multiple underlying factors, higher international prices for gilt-head seabream, the primary export species, have eased pressure on margins. Although Greece has exported less fish overall in 2014, compared with last year, the higher price level has more than compensated, at least in the case of bream. For bass, the situation is somewhat less positive, as the average export price this year for fresh whole fish is lower than 2013, and volumes are approximately flat as of September. This is no doubt related to the greater penetration of cheaper Turkish seabass into traditionally Greek markets than there has been in the case of seabream.

Italy has segments for Turkish, Greek and Italian fish Greek producers will have been somewhat relieved by the resilience of the Italian market in 2014, which has traditionally been the most important destination for Greek bass and bream.

Italian figures show approximately the same quantity of fish imported from Greece this year, at marginally higher prices, particularly for seabream. This is despite the relatively slower recovery of the Italian economy compared with the rest of the Eurozone, although the slight reduction in domestic production in 2014 should also be taken into account. Also, Italian buyers are apparently not immune to the allure of cheaper Turkish fish, and the Turkish share of supply for both bass and bream continues to increase year by year. In this sense, many retailers use three product categories for the farmed fish; the large www.eurofishmagazine.com

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Cromaris

[ TRADE AND MARKETS ] volume and low priced Turkish origin, Greek product as standard, and Italian product, which is somewhat larger sized as the top product. In addition is the wild product, which is priced at twice the top domestic price level.

Spain is another market that is increasingly supplied by Turkey, mainly at the expense of their Greek competitors. In 2014, Turkish fish accounted for just more than 29 of the total fresh seabass and seabream imported into Spain from January to September. In 2012, this proportion was only 18. In the same timeframe, the Greek share has dropped from 73 to around 54, while a substantial increase in imports from France was also noticeable in 2014. In general, demand appears to be improving on the Spanish market. French retailers are focusing on promoting domestically-produced bass and bream this year and demand for imported farmed fish appears to be weakening. However, it should be kept in mind that a significant part of the French bass and bream market, particularly for bream, is supplied by capture fisheries, for which up-to-date price and production data is much more difficult to obtain, although price levels in general are quite high. France also exports wild bass to Italy.

Imports of Greek fish into the UK, particularly of seabream, have fallen drastically in 2014, while Turkish-origin imports have more than doubled. Demand appears to be firm on the German market, although here also we may observe a steady shift in importer preference toward cheaper Turkish fish. A similar trend is evident on the US market, where imports of Turkish more than doubled in 2014.

The seabass and seabream farming sector needs to invest in research, marketing, product diversification, and data collection to lay the ground for future growth.

Stable production could mean higher prices as markets pick up

Several improvements necessary to secure the sector’s future

Juvenile production data for the major bass and bream producers suggest that production growth, for at least the next two years, will be approximately flat for seabream and likely to be negative for seabass. This is in large part due to the reversal of the Turkish industry’s previously rapid growth. The future effect on the market is difficult to predict precisely, but strong growth in many emerging markets and evidence of slow recovery in many established ones suggests that demand is now outstripping supply. This in turn should see prices rise, which will bring some relief to cash-strapped Greek producers.

It is the Turkish industry, however, that is set to reap the greatest benefits if sustained high price levels are indeed the result of tightening supply. Turkish fish is now present in large quantities in almost all the major markets, and Turkey is the dominant supplier to many important emerging markets including Russia, where the import ban will continue to represent a lucrative opportunity for Turkish exporters for as long as it lasts. In the short term, the usual cyclical pattern should see prices for both bass and bream trend upwards in early 2015.

Despite the more positive outlook, many challenges remain for the bass and bream sector. At a workshop that took place as part of Aquaculture Europe 2014 in October, a wide range of different stakeholders within the industry came together to try and identify the key issues that need to be addressed. Although a diverse selection of different topics were discussed, participants emphasised the need for increased investment in research and development activities; better collaboration and collective marketing strategies; product diversification; improved data collection and dissemination; and better environmental management regulations and practices.

The general feeling amongst the participants at the workshop was that, although the sector has struggled with profitability for some time now, and has thus been distracted from addressing these issues by the need to ensure its basic survival, it is now time to take proactive steps towards laying a more stable foundation to support and encourage the sustained growth of the industry in the future.

FAO Globefish Eurofish Magazine 2 / 2015

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The Estonian Association of Fishery marks its 20th anniversary in October 2015

Investments in research for greater value addition The Estonian Association of Fishery (Eesti Kalaliit) represents fishers, farmers, and fish processors as well as wholesalers and retailers. The association promotes the interests of its members at the national and European levels and works to maintain and improve the competitiveness of the industry. Of late the sector has had to cope with several challenges, including the ban on exports of certain products to Russia, increasing competition from around the Baltic, and the need to find new markets and encourage innovation. Valdur Noormägi offers his views on how the sector is responding.

In the European seafood sector there is increasing focus on adding more value to the raw material to obtain higher prices. In this regards what trends can be seen in the Estonian processing sector and how is the Estonian Association of Fishery encouraging this development?

Strong export-orientation has ensured the competitiveness and economic success of the Estonian fisheries sector. Estonia sells fishery products to 60 countries.

The business plan of an Estonian fisherman is simple: maximum added value must be rendered to each fish caught by us and fishery product made from it. During the past seven years, we have invested more than 100 million euros in the sector. Our industries have stateof-the-art technology, whereby we have managed to compete effectively with other countries in the Baltic Sea region. We have experience and professional employees, who put their hearts into their work. Estonia is at the top of the European fisheries sector.

How have western sanctions on Russia and the counter sanctions imposed by Russia on EU (and other) countries affected the Estonian seafood sector? As an organisation representing the 62

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Valdur Noormägi, Chairman, Estonian Association of Fishery. Estonian producers need to be active in different markets overseas.

interests of the fishing and aquaculture industry, what steps is the Estonian Association of Fishery taking to mitigate the loss of this important market?

Lennar Meri, the former President of Estonia, has said, “The situation is shitty, but it is our future fertilizer!”

I do not feel that the sanctions of the European Union and other countries against Russia have had a direct impact on the fisheries sector; unfortunately, the counter-sanctions of Russia have been effective. As from 6 August 2014, a complete ban on exporting live, fresh or chilled fish; frozen fish; fish fillet and fish mince; smoked

fish; seafood delicacies; shrimp; lobster to the Russian Federation became valid. Currently, it is possible to sell canned fish and preserved fish to Russia. Simply put, sale of Estonian sprat and spiced Baltic sprat is possible for companies that have been granted permission by Rosselhoznadzor (the Federal Service for Veterinary www.eurofishmagazine.com

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Over the last seven years over EUR100m has been invested in the fisheries sector giving it the most recent technology and the ability to compete effectively with other producers in the Baltic Sea region.

and Phytosanitary Surveillance of Russia). Sales of other fish products to Russia is at a standstill due to the embargo. While in the previous years, approx. 35,000 tonnes of frozen Baltic sprat and Baltic herring were exported to Russia at the price of 450 to 500 euros per tonne, this option is not available at the moment. Finding an alternative market for such a quantity, while maintaining the same price level, is very difficult.

As sale of frozen Baltic sprat and Baltic herring to Russia is not possible due to the embargo, we have been on an active lookout for alternative markets. First quantities for 2014 totalled 1,500 tonnes to the African continent – Ghana, Benin and Nigeria. Export to Central-Europe and the Balkans has increased. Export of frozen fish to Ukraine and Customs Union countries is on the rise. The first containers of sprats were shipped to the Japanese market, and frozen Baltic sprat and Baltic herring to the Chinese market. With the embargo, the Russian government put their fish processors in a very difficult position, since frozen Baltic sprat and Baltic herring exported by Estonian companies were used as raw material for the Russian canned fish industry. The www.eurofishmagazine.com

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Russians have not been able to acquire raw materials due to the embargo imposed by their own government, and they have been forced to close down factories. Ten years ago, former Russian Prime Minister Chernomyrdin said these prophetic words “We wanted the best, but it turned out as always!”

What would you say are the main threats and the main opportunities facing the Estonian processing sector today? What does the sector need to do to combat these threats and how can it best exploit the opportunities?

The Estonian fisheries sector should make maximum use of the opportunities offered to the sector by the European Maritime and Fisheries Fund. The cooperation between the sector and the state must be very constructive in using the opportunities provided by the fund and negotiating the terms.

We must avoid a situation, where the fund would become a social aid programme for the fisheries sector. In using European funding, great attention is paid to enforcing rules, not to performance.

Unfortunately, we have officials who cannot comprehend what

business is. The arbitrary actions of these officials in interpretation of laws and establishing restrictions on the activities of companies based on personal ambitions is limited to boosting their own egos. In my opinion, the weakest link of legislation is the complete lack of impact analysis. Inability often stands behind this omission.

The persons concerned just do not know what or how to measure, and what should be used as a basis for comparison. That is true for both in the European and the local context.

As a small country, Estonia has to be very active on foreign markets. Risks on different markets must be divided into reasonable sections. We must not be dependent on one market. The collapse on the Russian market is a classic example of what not to do.

The Estonian Association of Fishery has regularly visited the Brussels seafood show as well as seafood shows in other parts of the world to explore the potential of other markets for Estonian seafood. Which would you say are the most promising markets and why? While attending exhibitions is one way of showcasing Estonian seafood what other tools are used to promote the sector and its products internationally?

The Estonian Association of Fishery has participated on international trade fairs in Europe, North America, China, Japan, Russia, etc. I regard the Brussels expo the event of the year for the fisheries sector. We have received the most contacts and agreements, and new export opportunities in Brussels. I find the African market promising. Africa’s economic growth is impressive and with the economic growth, the financial soundness of the population in terms of consuming fishery

products is growing as well. The Balkans are also emerging. I think that seafood consumption is on the rise, as people’s income is increasing and they prefer to have a healthy diet. Seafood consumption is a rising trend!

In a globalised industry like the seafood trade, innovation is one of the important factors that contribute to a successful company. Which are the areas where the Estonian seafood processing industry has been particularly innovative and which are the fields in which more needs to be done? What are the kinds of products you think have the most potential?

Estonia, unlike other countries in the Baltic Sea region, has used Baltic sprat and Baltic herring mainly for human consumption, not for producing animal feed.

Sorted, good quality and good frozen and packaged Baltic sprat and Baltic herring is used as raw material in canned fish factories, and the price per tonne for this product is one the rise. In 2007, a tonne cost € 250, the current tonne price is € 500 and demand exceeds supply. All of this was made possible thanks to skilled investments, in the course of which, fish processing complexes based on modern and state-of-the-art technologies were established by using the opportunities provided by the European Fisheries Fund.

Baltic sprat and Baltic herring are still cheap raw materials. Science must be implemented to add value to cheap raw materials. Baltic sprat and Baltic herring, including by-products, could be used as raw material for producing ingredients for fish fats, fish oils, medicines and perfume products.

While investments are major and research-intensive, the result is sure to pay off economically.

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We, in Estonia, say that with fish, a fisherman is also selling trust.

That means good product quality, timely deliveries and a wide selection of fishery products. It is important that a good story accompanies good fishery products. While most people are familiar with the history of Tallinn sprats, the fact that Estonia is the largest shrimp fisher in Europe comes as news to most. Estonian bass is held in high esteem in Switzerland, our perch fillet is popular in North America, and Baltic herring rolls produced by us are consumed in Australia.

A high-quality product is not enough. We need to come up with a story to go with the product. Competition in the seafood industry is intense. You can differentiate yourself from the general landscape by good and high-quality products that have a great story to go with them. This guarantees success on markets.

Consumer tastes and demands are constantly evolving, a dynamic situation to which processors have to adapt. Over the last few years what would you consider the most important changes in terms of product development that the processing industry has initiated and what further changes can be expected in the future?

The selection of fish products is extremely rich in Estonia. Over 2,700 different fishery products in 4,200 different packages are sold in Estonia. Changes in the processing industry are still driven by consumers. The consumer decides which fishery product are to be produced and what must be cast out of the product range of fish processors. The popularity of different salmon and rainbow trout products has increased in Estonia.

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to prepare without any specific cooking skills. The consumer is afraid of using freshwater fish in food. It makes sense â&#x20AC;&#x201C; expensive raw materials makes one worry more. The consumer is very pricesensitive at the moment. Cheaper fishery products continue to be purchased. Industries are focused on the price sensitivity in its product development. This is not an easy task; while no compromises may be made in quality, the price of the product must still be acceptable to the consumer. We expect a rise in fish consumption on the Estonian market. Before the economic boom, per capita fish consumption in Estonia was 22 kg, currently, it is only 11 kg. There is plenty of room for improvement.

Policy related to the trade in fish with third countries is largely determined at the European level. What are the priorities for the Estonian Association of Fishery in terms of extra-European fisheries and aquaculture trade, and how does the Association influence policy directions in Brussels?

Most fish stocks are located in third countries. The European Union should be very active and flexible, so that it would be possible to enter into free trade agreements with third countries. The European Union is one of the largest seafood consumers and the European consumer would benefit from the free trade agreements. It should be possible to exchange fishing quotas between the member states of the European Union without excessive red tape and time losses. The European Union should give Member States greater freedom in making fisheries-related decisions.

The need to more closely integrate the research community in to product development,

greater value addition, energy efficiency, and reduced environmental impact among others, can be seen in the seafood sector in a number of countries.

How does the Estonian seafood industry compare in this respect? Is closer integration desirable and if so how can it be pursued?

Innovation, energy efficiency, reduction of environmental impact and involving science in the fisheries sector are the keywords for the coming years. I would divide this field into two: energy efficiency and reduction of environmental impact effect the management of the overhead costs of companies; innovation and involvement of science effect product development and creating added value in products. Together, the activities increase the competitiveness of companies. Unfortunately, the consumer sets the limits. The scope of investments depends on the price of the product, i.e. the sum of money that the consumer is willing to pay for the product. Currently, the consumer prefers the price rather than quality or added value. As consumption increases, companies have an opportunity to include innovation into product development.

The aquaculture sector in Estonia is highly fragmented with a few big producers and a number of small companies. This results in uneven quality, inefficiencies of scale, and an inability to supply large volumes. What would be the best way to increase product quality and volumes so that the sector can start to seriously compete with imports?

The Estonian aquaculture sector is still in its formative stage. There are no aquaculture companies, whose production exceeds 500 tonnes per year in Estonia. Here, you

are a major company if you grow 300 tonnes of fish per year. In essence, these are family enterprises for whom fish farming is a way of life and a hobby, not business. Such companies find it very difficult to compete with Scandinavian fish on the market; the cost price of fish farmed in Estonia exceeds the price of imported products, such fish is not acceptable to the consumer in terms of its price.

For Estonian fish farmers, I see promise in farming new species, like perch, eel, catfish (African catfish) and sturgeons. Major investments have to be made into traditional fish farming (rainbow trout and salmonidae), so that the cost price of the product would be competitive with Scandinavian fish. One does not need to be a major fish farmer in terms of quantities â&#x20AC;&#x201C; returns can be achieved as a small company as well.

The Estonian Association of Fishery will celebrate its 20th anniversary this year. In a few words, how would you sum up the major achievements of the association over this period, and what are the main goals for the immediate future?

October 30 marks the 20th anniversary of the foundation of the Estonian Association of Fishery. The Estonian Association of Fishery, which represents fishers, fish farmers, fish industries, as well as fish wholesalers and retailers. This unity is also the secret to our long-time success.

We are a viable fisheries representative organisation that the state of Estonia considers an equal partner. In cooperation with the state, the Estonian Association of Fishery has created a stable economic environment, where it is possible to develop and ensure economic sustainability for the coming decades. www.eurofishmagazine.com

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DAIRY DATES

21-23 April 2015 Seafood Expo Global & Seafood Processing Global Brussels, Belgium Tel.: +1 207 842 5504 customerservice@divcom.com www.seafoodexpo.com

27-26 May 2015 Polfish Gdansk, Poland Tel.: +48 58 554 93 62 monika.pain@mtgsa.com.pl polfishtargi.amberexpo.pl 20-29 May 2015 World of Seafood Bangkok, Thailand Tel.: +65 6500 6712 l.how@koelnmesse.com.sg www.worldofseafood.com

21-27 June, 2015 The International Symposium on Genetics in Aquaculture Santiago de Compostela, Spain Tel.: +34 982 822428 Fax: +34 982 822428 info@isga2015.com www.isga2015.com

5-7 October 2015 Conxemar Vigo, Spain Tel.: +34 986 433 351 Fax: +34 986 221 174 conxemar@conxemar.com www.conxemar.com

18–20 August 2015 Aqua Nor Trondheim, Norway Tel.: +47 73 56 86 40 Fax: +47 73 56 86 41 mailbox@nor-fishing.no www.nor-fishing.no

8-9 October 2015 International Fisheries Stakeholders Forum

20th Anniversary of the FAO Code of Conduct Vigo, Spain Tel.: +39 06 5705 4744 jose.estorscarballo@fao.org www.fao.org

24-26 August 2015 Vietnam Fisheries International Exhibition Ho Chi Minh, Viet Nam Tel.:+84 8 62 81 04 42 Fax:+84 8 62 81 04 50 tienloc@vasep.com.vn www.vietfish.com.vn 7-8 September, 2015 VII Worldwide Tuna Conference “Vigo 2015” Vigo, Spain Tel.: +34 986 469301 Fax: +34 986 469269 tunaconference@anfaco.es www.anfaco.es

7-9 October 2015 DanFish International Aalborg, Denmark Tel.: +45 9935 5555 info@akkc.dk www.danfish.com

10-15 October 2015 Anuga Cologne, Germany Tel.: +49 221 821-2240 Fax: +49 221 821-9934 anuga@koelnmesse.de www.anuga.com

26-30 May, 2015 World Aquaculture Jeju Island, Korea Tel.: +32 9 233 4912 mario@marevent.com www.easonline.org

2-3 June 2015 Growth in Blue Bio-economy Torshavn, Faroe Islands Tel.: +298 35 30 30 Asmundur.Gudjonsson@fisk.fo www.norden2015.fo

2-10 September 2015 Seafood Expo Asia Wanchai, Hong Kong Tel.: +1 207 842 5504 customerservice@divcom.com www.seafoodexpo.com

20-23 October 2015 Aquaculture Europe Rotterdam, The Netherlands mario@marevent.com www.marevent.com

15-19 June, 2015 10th Baltic Sea Science Conference Riga, Latvia Tel.: +371 67601995 anda.ikauniece@lhei.lv www.bssc2015.lv

5-9 September 2015 World Seafood Congress Grimsby, UK Tel.: +44 1472 252300 wsc2015@seafish.co.uk www.wsc2015.com

4-6 November 2015 China Fisheries & Seafood Show Quingdao, China seafoodchina@seafare.com www.chinaseafoodexpo.com

A d d y o u r e v e n t t o w w w. E u r o f i s h M a g a z i n e . c o m

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ISSN 1868-5943

April 2 / 2015 C 44346

Steen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41

Visit EUR OFIS SEG H , 21-2 Brussels, at 3 Apri 7-14 44, l

W. van der Zwan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Estonia Perch, the most valuable coastal species

Events: Brussels seafood show expands further Projects: Super cooling may increase quality Aquaculture: Alternatives to fishmeal and fish oil in feed is a member of the FISH INFO network

Eurofish Magazine

13__Imprint_LoA.indd 66

eurofishmagazine.com

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27/03/15 11:15 PM

SUSTAINABLE FISHERIES Recognized as one of the worldâ&#x20AC;&#x2122;s most abundant sources of wild seafood, Alaska sets the global standard for its precautionary approach to science-based ďŹ sheries management, and has done so for over 50 years. Since 1959, when Alaska ďŹ rst became a state and took over the management of its ďŹ sheries, the constitution has mandated that ÂŤFish...be utilized, developed and maintained on the sustained yield principle.Âť By proactively ensuring a healthy, wild and sustainable harvest, Alaska has helped preserve and protect its superior seafood for generations to come.Â

Q Q Q Q Q Q Q Q Q Q SUPPLY SOURCES Q Q Q Q Q Q Q Q Q Q Crustaceans

Salmon slicers

Delivering Quality for 30 years Delivering Quality for 30 years

21/23 April 2015

BRUSSELS ASMI â&#x20AC;&#x201C; HALL 6

Booths n°1126-1127-1143

SALMON-SLICERS worldwide

Ristic AG Am Espen 15, D-90559 Oberferrieden Tel.: 0 91 83 / 40 90, Fax: 0 91 83 / 4 09 49 Web: www.ristic.com, E-Mail: info@ristic.com

Insulated containers

SĂŚplast tubs have been the premium brand since 1984.

We are proud of our reputation and we intend to live up to it for the next 30 years.

RUDOLF MAASS + PARTNER GMBH RĂśntgenstraĂ&#x;e 12 21493 Schwarzenbek Tel.: +49 4151 866 955 Fax: +49 4151 867 188 info@maass-slicers.de www.maass-slicers.de

For more information see our website:

www.promens.com/saeplast

Polystyrene compressors

SALMCO Technik GmbH Reinskamp 1 D-22117 Hamburg Tel.: +49-40-713 14 72 Fax : +49-40-712 98 70 Internet: www.salmco.com E-Mail: info@salmco.com

Rental Containers House advertisement

RENT A TUB

Thermal conditioning

Visit the Alaska companies at the ASMI pavilion â&#x20AC;˘ Alaska Seafood Cooperative

â&#x20AC;˘ Glacier Fish

â&#x20AC;˘ Spring Tide Seafood

â&#x20AC;˘ Arctic Storm Management Group

â&#x20AC;˘ Icicle Seafoods

â&#x20AC;˘ Triad Fisheries

â&#x20AC;˘ Arrowac Fisheries

â&#x20AC;˘ Icy Strait Seafoods

â&#x20AC;˘ Trident Seafoods

â&#x20AC;˘ Blue North Trading

â&#x20AC;˘ Ocean Beauty Seafoods

Excellent stacking strength

â&#x20AC;˘ Bornstein Seafoods

â&#x20AC;˘ PaciďŹ c Harvest Seafoods

Reduced capital expenditures

â&#x20AC;˘ Clipper Seafoods

â&#x20AC;˘ PaciďŹ c Seafood

â&#x20AC;˘ Copper River Seafoods

â&#x20AC;˘ Seafood Producers Cooperative

â&#x20AC;˘ Dana F. Besecker

â&#x20AC;˘ Signature Seafoods

â&#x20AC;˘ E & E Foods

â&#x20AC;˘ Silver Bay Seafoods

www.euroďŹ shmagazine.c

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Rental service in Europe of 460L plastic tubs

Contact: info@alaskaseafood.org

ALASKA SEAFOOD MARKETING INSTITUTE http://sustainability.alaskaseafood.org www.alaskaseafood.org

Enhanced ability to react to peaks in demand EuroďŹ sh Member Countries at the European Seafood Exposition EcoFishMan

EcoďŹ shman discusses draft of new ďŹ sheries management system

Fully recyclable and reusable packaging

Interview with Anne Christine Brusendorff, ICES General Secretary is a member of the FISH INFO network

ÂŽ

www.itub.no Email: itub@promens.com

www.alaskaseafood.org

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ISSN 1868-5943

April 2 / 2015 C 44346

April 2 / 2015

Visit E SEG UROFISH , 21-2 Brussels, at 3 Ap 7-14 ril 44,

Eurofish Magazine

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Perch, the most valuable coastal species Events: Brussels seafood show expands further Projects: Super cooling may increase quality Aquaculture: Alternatives to fishmeal and fish oil in feed is a member of the FISH INFO network