War in Ukraine
The cost of conflict The impact of the invasion affects every sector in the global economy, and seafood is no exception BY SANDY NEIL
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It can seem odd to be discussing the ‘price of fish’ at a �me like this,” said the UK’s seafood authority, Seafish, as Europe faced up to war and an unfolding humanitarian crisis, “but seafood is one of the most heavily traded commodi�es, and the horrific events taking place in Ukraine will impact on businesses and consumers in the UK, Europe and beyond.” Nobody can fail to be aware of the human cost of war. But what about the economic cost? The impacts, such as the loss of Ukrainian, Russian, and Belarussian markets, plus the rise in feed and fuel prices, pale in comparison to the suffering felt on the ground. They will only become clearer each day the figh�ng con�nues, and for a long �me a�erwards. From the perspec�ve of the aquaculture sector, following the earlier challenges posed by both Covid and Brexit, the future is once more uncertain. “The situa�on in Ukraine is both very serious and unclear,” said the Norwegian Seafood Council on Thursday 24 February, the day the first Russian missiles struck Ukraine. “It is expected that exports to Ukraine will be challenging, and that interna�onal sanc�ons and counter-sanc�ons will affect interna�onal trade, also for Norwegian seafood exports to the Eurasian Economic Union (EEU).” The EEU consists of Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia, to which salmon, trout, herring and mackerel are Norway’s main exports. Moscow imposed a ban on food imports from Norway, the UK, the United States, Iceland and the European Union in 2014, in retalia�on
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War in Ukraine (Sandy Neil).indd 34
for general sanc�ons imposed by the West a�er Russian troops annexed Crimea. However, Norwegian exports of salmon, trout and other fish had crept in through Belarus, where it was reprocessed and labelled as local seafood. Overall, Russia accounted for just 0.2% of the total value of Norwegian seafood and related exports in 2021, worth NOK 248m (£21.8m), with exports to Russia consis�ng mainly of salmon smolts and feed ingredients. Norway is Europe’s largest exporter of seafood to Ukraine, however. Although small, volumes are not insignificant at NOK 2.2bn (£185m) a year. Trade has been growing since the two countries signed a free trade agreement 10 years ago. Following the invasion, Norwegian seafood companies immediately faced difficul�es. SalMar, one of Norway’s largest salmon farming companies, had fish cargo on its way to Ukraine, but the shipments were turned around Opposite from top: Civilians just prior to Russia launching its invasion. evacua�ng Irpin, near Kyiv; Tavish Sco� “We took ac�on in advance and sent the trucks to other markets before they reached the border,” CEO and owner Gustav Witzøe says.
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11/04/2022 15:36:21
