(IntraFish) The Norwegian fishing industry welcomed the news of a proposed increase in the cod quota for 2013.
However, fishermen and suppliers should be careful to keep minimum prices for fresh landings relatively low this year, to avoid a steep drop as volumes increase in 2013, an industry representative said.
As Norwegian industry parties meet to negotiate fresh landing prices in September, it is important that indications are given to the market that there will not be any price increases this autumn, only to be followed by a drop next year, said Geir Ystmark, director at the Norwegian Seafood Federation (FHL).
Such a scenario could make buyers hesitant, Ystmark said.
The 2012 cod season started in late 2011, resulting in high volumes on the market already by January. If the same happens for the 2013 season, pressure could increase on prices, Ystmark said.
According to him, the biggest challenge facing the industry will be to keep prices even across all cod markets.
If the minimum price becomes too high this autumn, it will no longer be profitable to produce fillets. This would in turn increase volumes of products such as salted fish and klippfish (bacalao), depressing prices for those markets.
“The market is marked by economic uncertainty and high availability. It’s therefore important that we spread exports across many different markets,” he said.
One question has been whether Norway should introduce the ‘quota bank’ arrangement it uses for herring catches to cod, so that vessels could take up to 10 percent of next year’s quota already this year. On this front Ystmark commented that provisions have been made to stimulate more cod fishing during the autumn through a by-catch arrangement and a fresh fish scheme.
He kept a good outlook for next year. “Norwegian fishermen have seen that there a good supply of fish and higher quotas compensate for lower prices." If the industry plays its cards well, it will be able to build up its markets to absorb the higher quotas, he said.