Russia's fish producers feeling profit squeeze as pressures mount to reduce exports

News 13:57 13/09/2014
(seafood.com) Staff training and modernization of the fishing fleet are expected to be the main objectives of the Russian fishing industry in the coming years, according to statements, made by experts during the recently closed VIth International Congress of Fishermen, which was held in Vladivostok, center of Russia's fishing industry.

According to Sergei Darkin, governor of Primorsky Krai, the current modernization of the Russian fishing fleet has already started, while the Primorsky region is expected to be the base of future Russian fishing fleet, which will be built during the next 2-3 years.
Experts also said that despite the fleets' modernization, the situation in the industry remains complicated, mainly due to the ever growing production costs.
According to German Zverev, president of the Russian Association of Pollock Producers, despite the ever growing volume of fish catch, the profits of the industry in recent years has significantly declined.
If in 2009 total industry profits increased by 2.5 times, compared to 2008, than in 2010 by 10%, while in 2011 the growth was only 2-3%.The main hopes for future industry profits are traditionally associated with exports of Russia's fish production abroad, which are currently estimated at about 1.4 million tons per year, valued at US $3.7 billion. At the same time, in accordance with statements of Andrew Krayniy, head of Rosrybylovstvo, in addition to providing of support for the modernization of the domestic fishery fleet, the Russian government plans to address the issue of middlemen trading quotas, and then reselling them to actual fishing companies.
Finally, among other things, there are plans to introduce of a ban on the imports of fishery products to Russia, in which the content of glaze icing does not comply with Russian standards.
This is expected to help to increase the share of Russian fish in the domestic market up to 80%.

 

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