eurofish magazine 2 2015

is a member of the FISH INFO network

www.eurofi shmagazine.com ISSN 1868-5943 April 2 / 2015 C 44346

EU

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Euro

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Aquaculture: Alternatives to fi shmeal and fi sh oil in feed

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www.eurofishmagazine.c C 44346

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www.eurofishmagazine.com

In this issue

The last 15 months have been somewhat turbulent for the Estonian fisheries sector. A country that produc-

es 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 inspec-

tions by its authorities. This was followed in August by a ban on imports of several fish and seafood prod-

ucts 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 market-

ing 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 Brus-

sels 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, ser-

vices, 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 fisher-

ies. 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. Stakehold-

ers 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 Mediter-

ranean 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 trim-

mings 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 fish-

meal and fish oil keep rising. Read Dr Manfred Klinkhardt’s article on page 26

Estonia successfully explores new markets

Eurofish Magazine 2 / 2015 3

02_In_This_Issue.indd 3 27/03/15 11:32 PM

http://issuu.com/action/page?page=40





4 Eurofish Magazine 2 / 2015

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 alternativesScan the QR code to access the Eurofish

Magazine website (www.eurofishmagazine.

com), where you can also sign up to receive

the Eurofish Magazine newsletter.

03_TOC.indd 4 27/03/15 11:29 PM
















http://www.eurofishmagazine.com

Eurofi sh Magazine 2 / 2015 5

ContentsEstonia

32 Ban, currency depreciation hit seafood exports to traditional markets

Estonia uses the crisis to create a more competitive

fi sheries sector

34 Estonian Rural Development Foundation

Funding the sustainable development of rural Estonia

36 Hunt-Fish Group combines exports of fi sh and game

Perch fi llets 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 fi sh

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

54 DGM Shipping earns coveted award at Prodexpo

Using sprats to make highly value-added items

56 Avektra expands its factory and product line

The unceasing search for new markets

Technology

59 iTub rents out insulated containers to the fi shing 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

Worldwide Fish News

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 10, 11

Sweden page 6

Turkey page 8

03_TOC.indd 5 27/03/15 11:30 PM


































Hake is the fi fth most con-

sumed fi sh in France. Th e spe-

cies reached the second highest

sales volume at French auctions

in 2014, and the fi rst-sale value

of hake was almost EUR 40 mil-

lion in 2014, up 30 compared to

2013. However, the price of hake

decreased moderately - the aver-

age fi rst-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 fi gures.

Quota and production increases

of French hake resulted in a 22

decrease of imports by volume

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 47

decrease on the average export

price was observed. Th e main rea-

son for this signifi cant decrease is

the high volume of hake exported

to Spain (90 of Spain’s fresh

hake is imported from France)

where the price had fallen signifi -

cantly.

Hake popular in France

www.eurofi shmagazine.com6 Eurofi sh Magazine 2 / 2015

[ NEWS INTERNATIONAL ]

Sweden: Farmed shrimp can now be eaten with a clean conscienceTh e recently updated Swedish

Seafood Guide points seafood

lovers to sustainably farmed and

fi shed seafood. New in this edition

is the sustainably farmed shrimp,

which joins tilapia, pangasius,

and salmon on the list of products

that have been certifi ed to the

Aquaculture Stewardship Coun-

cil’s (ASC) sustainable standards.

Since the ASC’s launch in 2012,

127 farms have been certifi ed and

some 2,000 products are available

globally that have been produced

to this standard. Th e guide helps

consumers make responsible

choices and also encourages

more farms to raise their fi sh with

less negative environmental and

social impacts. Th e methodol-

ogy 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. Th e

guide uses a traffi c light system

of colours to classify the sustain-

ability of fi sh as good (green), bad

(red), or could be better (yellow).

Th e red list unfortunately is the

longest in the Swedish edition.

A new advisory service on fi nan-

cial 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

the stakeholders and managing

authorities. An advisory platform

will be established to facilitate the

development of fi nancial instru-

ments by the Member States

and the managing authorities. In

addition to the platform, a multi-

regional assistance initiative will

be launched later this year. Th e

aim of the initiative is to facilitate

the use of fi nancial 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.

European Commission and EIB launch new advisory service for European Structural and Investment Funds

Th e Maltese maritime, fi sheries

and aquaculture sectors will get a

EUR 29m investment package, the

EU Commissioner for Environ-

ment, Maritime Aff airs and Fisher-

ies, Karmenu Vella announced on

6 March 2015. In accordance with

the European Maritime and Fish-

eries Fund Regulation (EMFF) and

the reformed Common Fisheries

Policy, the package includes EUR

23m of EU funding. It will aim to

strengthen the economic viabil-

ity of businesses in the sector

through smart, green, innovative

and resource effi cient fi sheries and

aquaculture. As part of the Maltese

fi sheries operational programme

to achieve long term economic and

environmental sustainability, the

eff orts will be focused on improv-

ing infrastructure; providing fi sher-

men with new skills and opportuni-

ties to improve and develop further

their business models; encour-

age and stimulate consumption

towards lesser known species.

Of the EUR 29m budget, EUR 14.9m

will be invested in promoting

environmentally sustainable, re -

source effi cient, innovative, and

competitive knowledge based

fi sheries and aquaculture. EUR

10.1m will go towards supporting

the implementation of the Com-

mon Fisheries Policy, EUR 1.6m

for implementing of the Integrated

maritime policy, and EUR 0.5m for

fostering marketing and processing.

Malta: Investment package of EUR29m to boost Maltese fi sheries sector

Vill du ha gott samvete när du äter

fisk? Håll utkik efter märkningarna

MSC, ASC och KRAV. WWF stödjer

dessa certifieringar från tredje part

som bästa tillgängliga miljöval för

konsumenter. Genom att välja certi-

fierade fiskar och skaldjur bidrar du

till en mer hållbar konsumtion.

Välj MSC, ASC och KRAV

KRAVKRAV är en nationell

certi fiering och står

för en hållbar livsmedelsproduktion.

MSC – Marine Stewardship Council

MSC är en global organisation som tar

fram standarder för vildfångade certi-

fierade fisk- och skaldjursprodukter.

ASC – Aquaculture Stewardship Council

ASC grundades 2010 och certifierade

de första fiskodlingarna 2012. Exem-

pel på arter som stegvis certifieras är

odlad hajmal, tilapia och lax.

;

WWF.SE• FISKGUIDEN 2015

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

Världsnaturfonden WWF

HÅLLBART FISKEWWF arbetar för att

minska illegalt fiske

och den mängd fisk

som dumpas överbord.

EUs GEMENSAMMA FISKERIPOLITIKWWF jobbar för den gemensamma

fiskeripolitiken utan skadliga sub-

ventioner och för hållbara förvalt-

ningsplaner för alla fiskarter.

MILJÖMÄRKT FISK

SMARTA FISKEREDSKAPWWF stödjer utvecklingen

av smarta fiskeredskap som

minskar onödiga bifångster.

Genom att välja miljö -

märkt fisk kan du bidra

till ekosystem i balans.

Ladda ned FISKGUIDEN!

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

FISKGUIDEN

2015

Swedish consumers interested in sustainability should study the

WWF seafood guide.

04_News_INT.indd 6 27/03/15 11:33 PM

marel.com/superiorfilleting · [email protected]

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Superior salmon filleting Performance taken to a new level

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. Th is is an increase of

145 led by growth in produc-

tion in Iran (2180 growth),

Viet Nam (900 growth), Bul-

garia (194 growth), and China

(158 growth). With new stur-

geon 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 nutri-

tion and providing caviar farm-

ers in traditional caviar markets,

such as France, Italy, and Rus-

sia with quality feed for over 20

years, and now we have decided

to extend our long-lasting part-

nership to the growing number

of farmers who dedicate their

livelihoods to a fi sh with such a

long-life cycle, says Henrik Aare-

strup, Global Marketing Director

from BioMar.

Th e feed ranges include a hatch-

ery feed range for larval stages

and another for its fry stages with

highly digestible products with

high levels of protein, phospho-

lipids, vitamins, and the only pro-

biotic approved by the European

Food Safety Authorities for inclu-

sion in fi sh feed that improves

survival and reduces occurrence

of deformities across fi sh species.

In addition, BioMar also off ers

two selections of grower feeds

providing diff erent digestible lev-

els, enabling farmers the possibil-

ity to optimise feed performance

in accordance with temperature

fl uctuations 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 impor-

tant supplement to the caviar.

Th erefore, a new, cost-eff ective

grower feed especially for farm-

ers 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.

www.eurofi shmagazine.com



04_News_INT.indd 7 27/03/15 11:33 PM

http://issuu.com/action/openurl?url=marel.com/superiorfilleting

According to a regulation from the

European Commission Bulgarian

fi shermen may no longer discard

catches in the Black Sea. Th e dis-

card ban takes eff ect 1 January 2015.

Th e EC states that these are neces-

sary measures in order to preserve

a good ecological balance in the

sea. Th e discard of catches is a sig-

nifi cant loss of resources and has

a negative infl uence on their sus-

tainable usage, as well as on the

economic feasibility of the fi sheries

in the region. However, the ban will

take eff ect gradually between 2015

and 2019, giving the fi shermen an

adaptation period.

Nevertheless, in the Black Sea

the landing obligation for sprat

is compulsory from the begin-

ning of 2015. All sprat caught in

the Black Sea must be landed

regardless of the fi sh quality. Th e

minimum size of sprat for human

consumption is 7 cm, and all the

catches under this size have to be

stored and accounted for sepa-

rately. Sprat is among the main

species caught along the Bulgar-

ian 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 mil-

lion. In the same period, in terms

of volume sprat caught by the

Bulgarian fi shermen increased

from 2,830 tonnes in 2012 to 3,794

tonnes in 2013.

EU aquaculture production shrinks in relation to the world

Turkey’s youth – urban, affl u-

ent, and health-conscious – are

an underappreciated market for

seafood, according to an industry

expert at the recent North Atlantic

Seafood Forum in Bergen, Nor-

way. Gulin Kan, from Innovation

Norway, said nearly three-quar-

ters 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 pre-

vious 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 eco-

nomic growth is high, averag-

ing 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.

Turkey’s youth increasingly want seafood

Bulgaria: EU discard ban comes into effect in the Black Sea

According to the latest report on

the Economic Performance of the

EU Aquaculture Sector aquacul-

ture production in EU28 reached

EUR 3.4 billion and 1,108 mil-

lion 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.

Th e main producer of salmon in

the EU is the United Kingdom

with 88 per cent of the value. Sea-

bream and seabass are mainly

produced by Greece – 53 of the

value. Oysters are mainly pro-

duced 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 Den-

mark (14). Despite the good

performance of the EU aquacul-

ture sector and the increased vol-

ume 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 aquacul-

ture sector performance declined

from 6 to 2 of global volume

and from 9 to 3 of global value.

Following an extended investiga-

tion instituted at the request of

Danish trout farmers, the Euro-

pean Commission has found

the complaints of subsidised

Turkish exports of certain rain-

bow trout to the EU to be justi-

fi ed. As a result, countervailing

duties of between 6.7 and 9.5

will be charged on EU imports of

such trout, the specifi c amount

depending on the Turkish export-

ing company. Kilic, the largest

exporter, received the highest

levy, 9.5, while imports from

other exporters who cooperated

with the investigation (provid-

ing confi dential business infor-

mation) will be subject to lower

rates. Exporters that refused to

cooperate with the EC are also

subject to the high-end 9.5 duty.

Th e investigation, which initially

included an antidumping com-

plaint that was later withdrawn,

was fi led on January 3, 2014, by

the Danish Aquaculture Associa-

tion. Th e complaint as amended

alleged unfair government subsi-

dies for Turkish exports, in viola-

tion of EU rules and of Turkey’s

obligations as a member of the

World Trade Organization.

Turkish rainbow trout subsidised – according to EC ruling

Speaking at the recent North

Atlantic Seafood Forum in Bergen,

Norway, Ole Leroy CEO of Marine

Harvest, a leading salmon pro-

ducer and marketer, sees China

eventually overtaking the United

States as the world’s largest salmon

consuming country. Th is is owing

to China’s relatively high GDP

growth and its population of urban,

consumption-oriented youth.

Th e US is currently the largest

salmon market despite, as Leroy

noted, its relatively low per cap-

ita salmon consumption, which

could delay but not prevent its

preemption by China. In con-

trast, the EU market is mature,

with less potential for long-term

growth.

China: Becoming the world’s largest salmon market



8 Eurofi sh Magazine 2 / 2015

04_News_INT.indd 8 27/03/15 11:33 PM

During the last two weeks of

January 2015, Latvian ministers

held a series of meetings to out-

line their priorities during Lat-

via’s EU Council Presidency to

the various parliamentary com-

mittees. One important area

which was discussed was fi sher-

ies. Th e Presidency’s major prior-

ity was to put the new Common

Fisheries Policy into practice,

with a special focus on competi-

tiveness and sustainability. For

Agriculture Minister Ja‒nis Du‒

klavs there was a pressing need

to agree on the landing obliga-

tion 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 Ja‒nis Du‒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

Du‒klavs also announced that

a special eff ort would be made

to negotiate fi sheries partner-

ship deals with third countries,

especially Mauritania, whose

fi sheries agreement with the EU

expired in December 2014.

Latvian Presidency priorities presented to EP committees

Th e South Pacifi c Regional Fish-

eries Management Organisa-

tion (SPRFMO) passed a series

of important conservation

and enforcement measures to

reinforce its commitment to

sustainable fi sheries in the region

during its annual meeting held in

Auckland, New Zealand on 2-6

February 2015. Th e (SPRFMO) is

an inter-governmental organisa-

tion, committed to a long-term

conservation and sustainable use

of the fi sheries resources of the

South Pacifi c Ocean.

Th e 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 recom-

mended limit of the Scientifi c

Committee, was agreed. Th e EU’s

share (28,100 tonnes) is a slight

increase from last year and was

welcomed by Member States

and representatives of the EU

fl eet. Another area of focus was

strengthening its monitoring and

compliance functions with the

implementation of the EU pro-

posed Compliance and Monitor-

ing Scheme, under which two

boats were added to the list of

Illegal, Unreported, and Unregu-

lated (IUU) vessels.

New Zealand: South Pacifi c strengthens commitment to sustainability

Delivering Quality

for 30 Years

Since 1984 our engineers and designers have worked hard to make sure that Sæplast tubs meet the toughest demands from our wide range of customers. We constantly strive to improve the design of our tubs for better handling and increased safety, thereby raising the value of our customers’ products.

PROMENS DALVÍK

years30

One of our new products is a tub with a hatch-built lid. This lid comes in handy when the collected products must be kept, as much as possible, under a sealed cover. This feature will increase the safety and freshness of a wide range of fish, as well as any other food product.

Promens Welcomes You to Our Stand 4-6001 at the Seafood Processing Global in Brussels 21–23 April 2015




04_News_INT.indd 9 27/03/15 11:33 PM

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Aina Afanasjeva and Ekaterina

Tribilustova from Eurofi sh, 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 coop-

eration between the agency and

Eurofi sh were discussed as well as

medium-term opportunities col-

laborating not only with the author-

ities in Russia, but also with Russian

industry. Th ese could, for example,

be conducting studies of European

markets that are of interest to Rus-

sian exporters, or organising B2B

meetings, workshops or seminars

on specifi c mutually agreed topics.

Th e potential of Russian research

institutes could also be used more

eff ectively for implementing joint

activities in, for example, the area of

aquaculture, a strategically impor-

tant sector.

Russia: Federal Agency for Fishery, Eurofi sh discuss areas of collaboration

As the first country ever Ice-

land’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 impor-

tant for Iceland, but also for the

lumpfish. The Icelandic lump-

fish fisheries have been rela-

tively 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

restrictions regarding the num-

ber of licenses and nets, a fish-

ing 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 Euro-

pean markets and this is the first

lumpfish fishery in the world

to be MSC certified. This is the

only traditional fishery in Ice-

land exclusively performed by

small vessels. Close cooperation

between the authorities and

the small boats association is

vital to protect the marine envi-

ronment and ensure lumpfish

stocks are stable for the future.

MSC certification provides inde-

pendent reassurance for con-

sumers around the world that

the lumpfish roe comes from a

sustainable fishery. Inside the

Icelandic Exclusive Economic

Zone, lumpfish has been har-

vested for centuries. The female

lumpfish has been exported as a

luxury caviar to European coun-

tries, but now the Chinese mar-

ket is also showing a growing

interest for the fish.

Icelandic lumpfi sh fi shery MSC certifi ed

On 5 March 2015 the Euro-

pean Fisheries Control Agency

adopted its annual report for

2014, outlining the activities

undertaken by the agency dur-

ing the last year. Th e focus of the

EFCA in 2014 was to assist the

European Commission and the

EU Member States in preparing

for the monitoring of the land-

ing obligation. Among the main

activities carried on by the EFCA

were building common capaci-

ties, fostering cooperation,

rolling out new data network

systems, adding modules for

training fi sheries’ Inspectors

and fi nding synergies with Mem-

ber States for joint monitoring

eff orts for the landing obliga-

tion. An expanded coopera-

tion 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.

The actions of the EFCA in 2014

resulted in 12.600 inspections

(a 20 increase compared to

the previous year), 850 fisher-

ies inspectors trained, and five

Joint Deployment Plans imple-

mented.

In a seminar on the landing obli-

gations held earlier in March, the

Agency confi rmed its interest to

continue and extend its coopera-

tion with the Member States to

strengthen interregional coop-

eration.

Spain: EFCA assists Member States in the implementation of the landing obligation

Fishermen in the municipalities

of Molfetta, Bisceglie, and Gio-

vinazzo 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 peo-

ple can order and buy the fish.

The FLAG advised the fisher-

men 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 custom-

ers 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 con-

sumer while respecting health

and safety regulations. Similar

schemes are also operating in

Denmark and Germany.

Italy: Selling fi sh online, straight from the boat

Ilya Shestakov, Vice Minister of the Russian Ministry of Agriculture



10 Eurofi sh Magazine 2 / 2015

04_News_INT.indd 10 27/03/15 11:33 PM

Scientists at the Spanish Insti-

tute of Oceanography report sig-

nificant progress in large-scale

farming of hake (Merluccius

merluccius), although signifi-

cant challenges remain to be

overcome. Hake is one of Spain’s

most important seafoods, for

both fishermen and consumers,

and with fishing quota restric-

tions, there is potentially a large

pay-off for successful farming

enterprises.

Th e problems, however, include

fi sh feed constraints. Specifi cally,

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 develop-

ment of fish feed that “moves”

(or at least looks to a hake like

it is moving). Spain’s hake con-

sumption 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.

Progress on farming of hake seen in Spain

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




The beginning of 2015 brought

major changes for exporters of

shrimp to the EU. While Ecua-

dor 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 Janu-

ary 2015, and duties on frozen

shrimp exports to the EU will

triple, from 4,2 to 12. In 2014,

EU shrimp imports from Ecua-

dor (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 consump-

tion period and the arrival of

large amounts of ground- frozen

Pleoticus muelleri (which is

cheaper compared with frozen-

on-board shrimp). In Asia due

to the Chinese New Year in

mid-February shrimp demand

increased, with a decline there-

after. The market situation in

Europe and Asia reflected nega-

tively on Argentina red shrimp

prices, which reduced more

than USD 0.50/kg.

Ecuador's export of shrimp to the EU exceeds Thailand's

04_News_INT.indd 11 27/03/15 11:33 PM

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[ EVENTS ]

www.eurofishmagazine.com12 Eurofish Magazine 2 / 2015

Albania’s seafood indus-

try sector is small but

heavily export-oriented,

with close trade ties to its Euro-

pean 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 eco-

nomic development continues,

making Albania a potential mar-

ket for other European export-

ers. 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

Seafood processing generates vital jobs

Albania, 7-1444

inland rivers and lakes. Alba-

nia 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. Alba-

nia’s chief seafood trading part-

ners are Italy, Spain, and Greece.

Albania’s seafood exports tend

to be of high quality, in part

because domestic consum-

ers have relatively low incomes

and buy less expensive prod-

ucts (including Albania’s entire

freshwater fish and shellfish pro-

duction). Inland aquaculture of

species such as carp and trout is

a growing sector, and these prod-

ucts also are destined mainly for

the domestic market. The pro-

cessing sector is quite large (cur-

rently 9 factories and growing),

requiring imported raw material

to keep it operating at capac-

ity, 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 pro-

cessors 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 con-

tracts with several harvesting

vessels in the Adriatic ensures

high quality products. Like-

wise, 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 Produc-

tion and Trade Policy Director-

ate 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.

The world’s most interna-

tional seafood fair, the Sea-

food Expo Global (SEG)

and the co-located Seafood Pro-

cessing Global (SPG) in Brus-

sels, 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, Diversi-

fied 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 consider-

ing the EU is the world’s largest

market for seafood. Demand in

the EU cannot be met by domes-

tic supply so imports are criti-

cal; in some categories such as

whitefish, import dependency is

89, while overall the EU imports

more than three fifths of its sea-

food requirements. In 2014 the EU

imported 4.5m tonnes of seafood

worth EUR15.2bn, a 4 increase

in value and a 5 increase in vol-

ume 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.

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

Seafood Expo Global, Seafood Processing Global, Brussels, 21-23 April 2015

For the seafood processing indus-

try the import of raw material is

essential to ensure a steady supply

of products for the domestic and

international markets. These prod-

ucts 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 promo-

tion of the successful item, which

in turn leads to higher sales. Win-

ning 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 Euro-

fish member countries, Estonia

(DGM Shipping), Lithuania (JSC

Iceco), Norway (Salmon Brands),

and Denmark (Vilsund Blue). Alto-

gether 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.

05_News_EV.indd 12 27/03/15 7:55 PM

[ EVENTS ]

The Italian pavilion has

been a consistent feature

at Seafood Expo Global

for several years. Italian com-

panies will also be participating

in strength at the Seafood Pro-

cessing Global, where they will

exhibit their expertise in engi-

neering design and applications

for the seafood industry. Th e

Italian seafood sector is highly

diverse with companies catch-

ing, processing, and farming

a number of species including

fi nfi sh, cephalopods, and shell-

fi sh. Italy is a net importer of

seafood. It has a large domestic

market and a per capita con-

sumption 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 opportu-

nity to meet and discuss busi-

ness with partners and potential

partners from within Italy, as it

is to look for opportunities out-

side. Technology companies will

be exhibiting as usual in Hall 4,

where the SPG is located. Ital-

ian engineering companies have

expertise in several areas includ-

ing refrigeration and freezing,

processing and packaging equip-

ment, water treatment technolo-

gies, and all kinds of fi shing gear.

In areas related, for example,

Connecting with potential partners, domestic and international

Italy, 11-2221, 11-2321, 11-2421

to the shellfi sh 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.

www.eurofi shmagazine.com Eurofi sh Magazine 2 / 2015 13

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 po-tential customers from all corners of the world.

danaqua.net

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.

danfish.com

AQUACULTURE EXHIBITIONIN DENMARK

”Don’t worry – it’s so easy to get to Aalborg”

Contact: Lasse H. Jessen, tel. +45 9935 5509, [email protected] · Else Herfort, tel. +45 9935 5518, [email protected]

7, 8 AND 9 OCTOBER 2015 AALBORG CONGRESS & CULTURE CENTRE

05_News_EV.indd 13 27/03/15 7:55 PM

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[ EVENTS ]


The Croatian fish products

industry has taken full

advantage of the coun-

try's accession to the EU in 2013,

including enhanced access to

a huge market for its exports,

incentives to produce high qual-

ity products for a wide variety of

consumers, and EC assistance

through the European Maritime

and Fisheries Fund. Today Croa-

tia is becoming a success story

in harvesting, aquaculture, pro-

cessing, and trade. Croatia’s wise

use of EMFF assistance cannot

be overstated. Fleet rational-

ization, 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 decommis-

sioning 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 on-

land activities. This aids in the

processing sector’s production

and shipment of higher qual-

ity seafood products. Like other

Mediterranean countries, Croa-

tia 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 sec-

tor, which has been slowed by

uncertainty over future returns

from a production process that

takes several years to yield mar-

ketable result. Tuna and bream

production is rising, but farming

of other species has remained

stagnant in recent years. Infra-

structure development will help

Croatia overcome these chal-

lenges. The harvesting sector,

concentrated in Adriatic waters,

has benefitted from the growth

of Producer Organizations, or

Growth through EU membership

Croatia, 9-4237

c ooperatives, of which there

are almost 20, representing

nearly 500 fishermen. These

PO’s help fishermen get better

prices for their catch, encour-

age quality improvement, and

some even have extended for-

ward into processing, thereby

keeping more of the consumer’s

fish euro in the fisherman’s

pocket.

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

enlarge its trade ties through-

out 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, [email protected], www.hgk.hr

Danish Fish Tech Group

is the shortcut to more

than 55 Danish com-

panies 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 interna-

tional fish and seafood indus-

try. Among them is Semi-Staal

Several new products will be launched at SPG

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

A/S that is presenting a project

to increase a shrimp producer’s

capacity by 75 percent by dou-

bling the eight sorting stations

and thereby removing the bot-

tlenecks 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 intro-

ducing a new drainage concept that

minimizes bacteria in food pro-

duction. The new range of drains

and drainage channels in stain-

less steel is designed without cor-

ners and cavities that can harbour

bacteria. The drainage concept

has been developed in coopera-

tion 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

05_News_EV.indd 14 27/03/15 7:55 PM

[ EVENTS ]

times and this increases the pro-

duction capacity and cuts costs for

cooling. The freezer has a capac-

ity of up to 20 tonnes per hour and

enables, for example, one prod-

uct 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

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 drain-

age 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 contam-

ination. In addition, the belt has

a completely new design of the

drainage openings which makes

the belt ideal for products such

as shrimp.

The following Danish companies

will be exhibiting at SPG 2015:

A/S Dybvad Stålindustri, Alectia

A/S, Beck Pack Systems A/S, Blücher,

Boleto ApS, Cabinplant A/S, Glud og

Marstrand A/S, Hans Jensen Engi-

neering, Hvalpsund Net A/S, IRAS

A/S, Kaj Olesen A/S, Kyocera Uni-

merco Tooling A/S, NTF-Aalborg

A/S, Pescatech A/S, Runi A/S, Scan-

Belt, Semi-Staal A/S, Smurfit Kappa

Denmark A/S, System Cleaners A/S,

Uni-Food Technic A/S.


Halldor Halldorsson, Business

Development Manager, Danish

Fish Tech Group, +45 21 22 95

60, Halldor.halldorsson@dk-

export.dk

www.eurofishmagazine.com Eurofish Magazine 2 / 2015 15

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[ EVENTS ]


Turkish seafood exports

have been climbing steadily

since 2009, according to the

Turkish Seafood Promotion Com-

mittee, 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 fish-

eries and aquaculture both con-

tribute to seafood production

in Turkey. Capture production

declined 17 in 2012 and again

by 14 in 2013 to reach 339,000

tonnes, while aquaculture pro-

duction over the same period

increased 12 and then 10 to

reach 233 thousand tonnes. The

most commonly farmed marine

species are European seabass

Exporters explore new markets in west and east

Turkey, 11-2101, 11-2201, 11-2301, 11-2110

Keep it cool, keep it freshKeep it cool, keep it fresh

INTER FRESH CONCEPTS [email protected] Tel.:+31252340687

and gilthead seabream, and in

freshwater it is rainbow trout.

These are also the species that

are most widely exported. Tra-

ditionally 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 com-

panies are exporting portion-

sized fish in MA packaging, fillets,

even frozen ready meals that com-

bine 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 up-

market 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 (Argy-

rosomus 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 com-

panies 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

The 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 pro-

viding jobs in remote coastal com-

munities, where other avenues

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 impor-

tance of the European market for

Norwegian salmon farmers can-

not be underestimated and some

of the companies represented at

the Norwegian pavilion are con-

nected with the salmon industry.

05_News_EV.indd 16 27/03/15 7:56 PM

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[ EVENTS ]


AQUA NOR 2015

aqua-nor.no

FOLLOW THE SHOAL TO TRONDHEIM18 – 21 AUGUST

The most important venue for the aquaculture industry

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), her-

ring (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 Nor-

wegian pavilion contact Lin Li, lin.

[email protected]; Tel.: +47

22 00 27 30, at Innovation Norway.

Eurofish Magazine 2 / 2015 17

Latvia, 11-2376 and 11-2551

Balancing markets to the East and to the West

Latvian 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 Lat-

via’s case it is by expanding its product line to

meet the demands of a wide variety of con-

sumers. Many consumers, East and West, are

familiar with canned sprats in oil, for exam-

ple, 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 prod-

ucts 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 prod-

uct 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,

05_News_EV.indd 17 27/03/15 7:56 PM

http://issuu.com/action/openurl?url=www.aqua-nor.no

[ EVENTS ]


Estonia, 5-129

Expansion of products and markets is adding to the bottom line

Like other Baltic countries,

Estonia has long been a sea-

food exporting nation, as it

produces more than it can con-

sume. Russia and other CIS markets

have traditionally been important,

but Estonia is increasingly looking

westwards (Europe, North Amer-

ica, and beyond) for future mar-

ket 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 mem-

bers, which have not joined Russia

in the ban). However, as with most

foreign exporters to Russia, the fall-

ing value of the rouble has made it

costly for Russian buyers of Esto-

nian 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

2013 totaled 35,000 tonnes, at up

to EUR500 per tonne. Thus, expan-

sion into other (Western) markets

is key to Estonia’s future success.

Fortunately, with a long history of

exporting seafood, Estonian export-

ers 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 Euro-

pean markets. Since the ban, Esto-

nian 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

such as cod and salmon, eco-

nomic forces (weak markets, high

competition) rather than policy

restrictions explain declining

catches. There also is some dis-

tant-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 num-

ber, due in part to the EU decom-

missioning programme. Many of

the 600-plus inshore vessels are

quite small (5 m or less) and are

not able to go to alternative fish-

ing grounds when the fishery in

local waters is poor. But they are

culturally important, even a tour-

ist attraction, and some vessel

owners expand into tourism or

other activities (e.g., recreational

angling for hire) during bad eco-

nomic 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 Latvia’s interior provide sea-

food (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 pavil-

ion at the SEG 2015, where it will

be possible to view and sample

their products.


Mr. Didzis Smits, Canned Fish

LV, +371 2636 4252, didzis.smits@

cannedfish.lv, www.cannedfish.lv

EUR100 million into state-of-the-

art technology and equipment in

the seafood processing sector. This

allows exporters to meet the strin-

gent health and safety requirements

in the EU, US, and other markets, in

an area where consumers are par-

ticularly attentive to product quality.

Investments are also being made

in energy efficiency, resource

sustainability, assessments of

and reductions in environmental

impacts of harvesting process-

ing, 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 qual-

ity and less adverse environmental

impacts, but the investments are

being made nonetheless. Aqua-

culture plays a limited role in the

seafood industry of Estonia, and

05_News_EV.indd 18 27/03/15 7:56 PM

Happy PeopleHealthy FoodRespect for Environment

FISHING FOR FOOD Stand number: 4149 - hall 9 wvanderzwan.nl

SEE YOU ATSEAFOODEXPOGLOBALPelagic species:

Blue whiting

Sardinella

Silver smelt

Sardine

Mackerel

Horse mackerel

Sprat

Herring

Sandeel

05_News_EV.indd 19 27/03/15 7:56 PM

http://issuu.com/action/openurl?url=www.wvanderzwan.nl

[ EVENTS ]


Marel’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

compared to last year. Fish in gen-

eral, 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 process-

ing. In addition to slicing machines

it was possible to see desliming and

de-heading, grading, fi lleting, trim-

ming, pinbone removal, fi llet wash-

ing, salt dispensing, portion cutters,

and a marinade dispenser, among

other equipment.

Grading by colour

Th e fi lleting machine MS2730

which was launched in 2011 was

Salmon Showhow, Copenhagen, 11 February 2015

Adding greater value to trimmingsEach year, Marel, a global provider of processing systems and solutions for the meat, poultry, and fi sh 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.

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

The Spanish pavilion at Sea-

food Expo Global (SEG) is

a combined stand repre-

senting the fi sheries and process-

ing sector in many of the Spanish

autonomous communities. Th ese

are Andalusia, Asturias, the Canary

Islands, Cantabria, Catalonia, and

of course Galicia. Th e federal min-

istry of agriculture and the Basque

ministry of environment will also

have their own booths in the pavil-

ion. At 43 kg per capita Spain has

the highest rate of fi sh and seafood

consumption in the EU except for

Portugal. Supporting this level of

consumption is the domestic pro-

duction of seafood, capture and

aquaculture, as well as imports.

Spain also has a highly developed

processing industry that converts

fi n fi sh, shellfi sh, and cephalopods

into a variety of fresh, frozen, and

canned products mainly for the

domestic market, but also for

export. Th e 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 hov-

ered around 1.5m tonnes valued at

approximately EUR5bn. Two thirds

of Spanish imports are from coun-

tries 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. Th e Spanish fi sheries,

aquaculture, and processing sec-

tors 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. Th e economic foot-

print of the sector in Spain is vast

and will be refl ected in the variety of

companies at the Spanish pavilion.

many fi sh farms are very small

enterprises. Competing with large-

scale, established farms in other

countries is diffi cult. Some Esto-

nian fi sh farms have opted to grow

less common species and fi nd

niche markets for these products.

In addition, investments have

been made in utilising by- products

of the processing of pelagic fi sh.

Fish waste is being used to make

fi sh oils, feed, medicines, and

even perfume. Th e investments in

new products are costly and risky,

but the potential market growth

could be immense. Estonian pro-

cessors already make and market

more than 2,700 diff erent seafood

products, some of which will be

displayed at the Estonian National

Pavilion during SEG.


Valdur Noormagi, Estonian Asso-

ciation of Fishery, +372 622 13 00,

[email protected], www.kalaliit.ee

05_News_EV.indd 20 27/03/15 7:56 PM

Norfisk Berlin GmbHBoschweg 612057 Berlin

www.norfisk.de

Visit us at SEG in Brussels21-23 April, Hall 5 Stand 5-301

Visit us at SEG in Brussels21-23 April, Hall 5 Stand 5-301

Salmon from thefamily company

05_News_EV.indd 21 27/03/15 7:56 PM

http://issuu.com/action/openurl?url=www.norfisk.de

[ EVENTS ]


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, Market-

ing 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 pro-

ducer. This machine can be used

for different purposes. For exam-

ple, 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 col-

our 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.

A skinning machine that skins the

fillet head first was also being dem-

onstrated. According to Ms Kristin-

sdóttir 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 skin-

ner 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 por-

tions 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 por-

tions on many markets has resulted

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.

in larger volumes of trimmings,

which are a valuable resource.

Converting trimmings and cut-

offs into products is the RevoPor-

tioner, 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 fur-

ther 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-dimen-

sional 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 push-

ing 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 advan-

tages 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 high-

volume producers the savings on

boards, both economic and envi-

ronmental, 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 warn-

ings 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 prod-

uct traceability, a critical require-

ment today, by documenting the

origin of the product and each sub-

sequent 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 fac-

tories at different locations together.

By monitoring the entire produc-

tion stream from fish grading to pal-

letizing, 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 versa-

tility of Innova could be witnessed

through simulations of the control

room in real plants with the results

displayed on screens so that visi-

tors could see the records from the

filleting line, the trimming line, and

from individual pieces of equip-

ment. 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 encour-

aging 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 con-

sequent downtime. The other ser-

vice is a financing solution through

De Lage Landen, a subsidiary of

Rabobank. Buying equipment from

Marel has never been easier.

05_News_EV.indd 22 27/03/15 7:56 PM

05_News_EV.indd 23 27/03/15 7:56 PM

http://issuu.com/action/openurl?url=www.lumarseafood.com

24 Eurofish Magazine 2 / 2015 www.eurofishmagazine.com

[ 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.

The event gave the partici-

pants an opportunity to lis-

ten 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 pro-

vide for some of the solutions.

After opening remarks by Jacque

Fuchs, DG Research, key presen-

tations were made by Bernhard

Friess, a director in DG Maritime

Affairs and Fisheries, Lahsen

Ababouch, Director, Fisheries

and Aquaculture Policy and Eco-

nomics Division, FAO, and Eskild

Kirkegaard, Chair of the ICES Advi-

sory Committee.

More scientific data is needed to support

fisheries policy decisions

Proactive communication ad -

dresses prevention and preparation

for a crisis, whereas reactive com-

munication attempts to mitigate the

impacts of an existing crisis. Both

communication forms have differ-

ent functions and objectives. Analy-

sis has shown that more scientific

data is needed to support fisher-

ies policy decisions. Having such

data may have a positive impact on

future agreements and satisfaction

concerning fisheries related per-

formance of governments, indus-

try 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 part-

ners. The fisheries challenges and

solutions were discussed from dif-

ferent perspectives: management,

political, legal, environmental,

scientific and socio-economic

interests. In some cases, commu-

nication can serve to facilitate pos-

itive 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 pri-

marily of immediate interest for

the North sea and Baltic regions.

The latter is also faced with the

immediate challenge of the con-

sequences of the discard ban. The

Black sea and the Mediterranean

regions emphasised the need for

more robust international rules and

cooperation (for example protec-

tion 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 man-

agement plans. For example, the

need for more transparency, sim-

pler and flexible rules was strongly

echoed in the Baltic, Mediterra-

nean and Black sea regions.

The second part of the confer-

ence 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 reg-

ulation 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 vol-

untary information on ethics, social

or environmental conditions, nutri-

tional 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 correspond-

ent fisheries. However, although

the new regulation was adopted on

13th December 2014, it seems that

in some countries no specific cam-

paign has been carried out to pro-

mote awareness on the scope of this

new regulation. Another important

issue is that the information placed

on the label should be easily read-

able 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 pur-

pose is not to provide easy solu-

tions, but an opportunity for reflec-

tion and thought, to stimulate

innovative thinking and to contrib-

ute to finding the right answers.

For more information please

contact:

Paul Pechan

ComFish coordinator

Ludwig Maximilians University,

Munich

[email protected]

06_Project_PRJ.indd 24 27/03/15 10:31 AM


[ PROJECTS ]

Danish companies form network around super chilling

Trials show super chilling fi sh 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.

The shelf life of cod super

chilled to -1°C is extended

by one day for each fi ve

days of storage as the relative

rate of spoilage decreases with

lower temperature. Th us, super

chilled fi sh equates to a product

that has been stored for a shorter

duration than a conventionally

stored product and is there-

fore of higher quality. In turn,

the extended shelf life of super

chilled fi sh enables it to be deliv-

ered to more remote customers

with no impact on the quality at

the time of delivery.

Th e 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 fi llet to

deteriorate. Another challenge

is that the surface of the fi sh can

become dry due to the sub-zero

chilling (freezing). Fresh fi sh is

sold largely on the basis of its

appearance – a clear shiny sur-

face – and a dull look can reduce

the price even though the eating

quality may be improved.

Th e point of irreversible par-

tial freezing is about -1.6°C for

cod and initial trials have been

conducted at Norway Seafoods

in Grenå at -1°C with cod fi l-

lets and whole salmon. Th e

network participants evaluated

the quality after 5 and 10 days

of storage. Th e surface of some

of the fi sh was covered in an

attempt to protect it from drying.

Th e results from these fi rst tests

suggest that this method looks

promising and should be further

explored.

Is super chilling the future of fresh fi sh

storage?

Th e next step in the trial will be

to export the fi sh by truck. Th ere

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 fi sh. Th e

network will also fi nd out how

the fi sh 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 Eurofi sh booth (7-1444) at

the seafood exposition in Brus-

sels, 21-23 April.

Th e network project is supported

by the Danish Green Develop-

ment and Demonstration Pro-

gramme, and is co-funded by the

EU. Th e ten partners in the net-

work represent the whole value

chain: A. Espersen A/S (Proces-

sor), Blue Water Shipping A/S

www.jpklausen.com

Your one stop supplier for: All kinds of Hoki products

Please also do not hesitate to ask for specialties like: NZ Ling fillets Blue Mackerel Savorin Silver and Blue Warehous Brotola Alfonsino Arrow Squid Southern Blue Whiting.

NEW: Herring Mackerel Saithe Silver Smelt Hake Capensis fillets

NZ Monkfish fillets NZ Dory fillets PatagonianToothfish Once frozen Alaskan Pollock and once frozenPacific Cod.

Please visit us at our stand at the upcomingSEG in Brussels 21-23 April; Hall 5- 213.

J.P Klausen & Co.A/S Phone:+45 6222 2843.Fax:+45 6222 8632


(transport), Claus Sørensen A/S

(cold storage), Eurofi sh (Inter-

national Organisation, technical

advice), KH OneStop A/S (refrig-

eration trailers), Nagel Den-

mark A/S (transport), Norway

Seafoods (in Denmark, proces-

sor), Royal Greenland A/S (pro-

cessor), Seagain A/S (product

development), Danish Techno-

logical Institute.

06_Project_PRJ.indd 25 27/03/15 10:31 AM

http://issuu.com/action/openurl?url=www.jpklausen.com

Following an 18 drop in the

fishmeal production of the

five most important pro-

ducing countries in 2013 com-

pared 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 plum-

meting. 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. Ana-

lysts give several reasons for this

development. On the one hand,

demand from the shrimp indus-

try was lower than usual because

a lot of companies are still suffer-

ing 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

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.

fishmeal very low at the begin-

ning of the year.

Catch fluctuations and sporadic

falls in industrial fishery land-

ings were normal and no cause

for real concern, said Enrico

Bachis from the International

Fishmeal and Fish Oil Organisa-

tion (IFFO) whose members rep-

resent 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 gen-

erally considered for the produc-

tion of fishmeal:

not accepted for human con-

sumption because they are too

small, have too many bones,

are not sufficiently tasty, or are

unknown to a lot of consumers

(e.g. sandeels)

use for human nutrition is lim-

ited 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)

which more were caught than

can be absorbed by the markets

or whose quality is insufficient.

Such fishes are often then pro-

cessed 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 mack-

erel 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. How-

ever, 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 trim-

mings the fishmeal industry

would already now no longer be

in a position to satisfy the grow-

ing demand for fishmeal. Accord-

ing to IFFO-figures the share of

slaughter waste in raw materials

Enrico Bachis, IFFO. The IFFO’s sustainability standard “Responsible

Supply“ guarantees that raw materials for fishmeal come from safe

resources.

[ AQUACULTURE ]


07_AQUACULTURE (AQ).indd 26 27/03/15 11:02 AM

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 world-

wide fishmeal production goes to

aquaculture; the share of fish oil

is even higher at 74. And that is

a significant decrease, as in the

previous year it was even higher

at 78. This is already a clear indi-

cation of a shift in the use of fish

oil: more and more fish oil, par-

ticularly 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 cap-

sules and other nutraceuticals has

risen from 19 to 22.

Share of marine resources in salmon

feed has fallen further

Salmon and other salmonids

are in addition to shrimps and

marine fish species the big-

gest 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 com-

position of the salmon feed, as

it contains less and less fish-

meal. 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

-

dent 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

Jan Sverre Røsstad, Vice President BioMar. The price of fishmeal has

risen threefold in the last decade, that of fish oil even about fivefold.

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[ AQUACULTURE ]



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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.

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.

is the most important fish spe-

cies for the company, account-

ing 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 grow-

ing 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

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 develop-

ments the price of soy meal,

one of the most common fish-

meal alternatives, has also risen

strongly. At the start of the mil-

lennium 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.

exactly these which fulfil the

special requirements.

that could be isolated from

algae for example. The avail-

able quantities are still too

low for industrial applications,

however, the techniques are

too expensive, and appropriate

technologies for commercial

preparation are lacking.

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 addi-

tionally exacerbate raw material

problems. More and more feed

producers are committing them-

selves to the exclusive use of cer-

tified fishmeal in their feeds. The

problems the fishing fleets some-

times have to face today could

be seen in 2014 in the example of

the Peruvian industrial fishery.

Although theoretically sufficient

fishes were available the ves-

sels often remained in harbour

because the stocks had moved

southwards in search of deeper

cooler water layers due to the

unusually high water tempera-

tures. Industrial fishery is prohib-

ited there, however, within a 10 sea

mile zone. And in the accessible

fishing regions the management

authorities forbade the fishery for

several days because the share of

young fishes in the catches was

too high. Such developments that

are difficult to foresee inevitably

The total annual volume of feeds

that are produced worldwide for

aquaculture is currently nearly 45

m t. Based on provisional estima-

tions 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 agri-

cultural uses, this share is likely

to increase disproportionately

in the coming years. Based on

the current state of knowledge,

in spite of conceivable alterna-

tives 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.

The production of fish feed was

today much more knowledge-

based than ever before, said

Røsstad. In Norway alone the feed

industry had invested about 1 bil-

lion NOK, or about 125 m euros,

in research and development in

the last decade. In his estima-

tion Norway’s salmon industry

had been able to save about three

times that amount in production

costs through the partial substi-

tution of fish meal. In Røsstad’s

opinion large resources that can be

considered as alternatives for fish-

meal are:

agriculture. They would be

available in the necessary

quantities but the quality

and the price were not always

right. In addition, consumers

reject genetically engineered

raw materials but it is often

[ AQUACULTURE ]



reduce landings of raw materi-

als 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 con-

sist 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 moni-

toring was introduced on large

fishing vessels, in 2003 moni-

toring and control programmes

at sea and on land began, and

since 2008 there have been

maximum catch levels per ship

(Leg. Dec. Nr. 1084). The break-

through came in Peru only with

the introduction of transferable

fishing quotas however. These

are divided up according to fish-

ing 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 pur-

chase the raw materials more

specifically, and the quality of

their products has risen notice-

ably since then. Fishmeal in

Prime and Super Prime Quality

today accounts for about three

quarters of total production. The

introduction of the quota sys-

tem led to consolidation of the

industry and the industrial fish-

ery 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 (IMA-

RPE). A study by the University

of British Columbia which com-

pared fisheries management in

53 states put Peru in first place

in 2008.

In the medium term the increas-

ing sustainability of the industrial

fishery in the South East Pacific

will probably lead to less ancho-

veta being fished and less fish-

meal being produced. With that,

Peru and Chile, the main pro-

ducer 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 fish-

meal 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 modi-

fied raw materials but also to

some animal materials. Suf-

ficient soy is produced world-

wide 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 agri-

cultural land is in the mean-

time used for the production of

genetically modified soy beans.

This makes for huge problems

[ AQUACULTURE ]



http://issuu.com/action/openurl?url=www.polfishfair.pl

for Europe’s feed producers

when buying their raw materi-

als because consumers strictly

reject genetically modified com-

ponents 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:

-

ganisms contain the necessary

DHA and EPA fatty acids their

production is still much too

expensive.

-

able but it will take years until

sufficient capacities for the

production of the necessary

quantities have been built up.

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 dilu-

tion with vegetable oils. In the

meantime, however, the options

offered by this method are largely

exhausted.

The problems with which the

industrial fishery and the fish-

meal 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 organ-

isation 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 Dan-

ish 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 consump-

tion. Here, too, a trend becomes

visible: that more and more fish

is being used directly for human

consumption… which further

decreases the available raw mate-

rials volume for the fishmeal fac-

tories. 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

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 discus-

sion at NASF 2014 Audum Lem

(FAO) pointed out what great

changes organisations such as

the IFFO and numerous compa-

nies 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 fish-

eries controls were urgently in

need of improvement. Most other

participants in the panel discus-

sion considered these accusa-

tions exaggerated, however. The

current control system was strict

enough and quite sufficient. MK

Origin and share of the most important components of salmon feed. The

proportion of marine resources has clearly decreased in recent years.

Esben Sverdrup-Jensen, CEO Danish Pelagic Producers Organisation.

DPPO cooperates with fisheries scientists to make fishing quotas

more reliable.

[ AQUACULTURE ]



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ESTONIA

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

In January 2014 Russian veterinary authorities found that some Estonian fi sh 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 fi sheries 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.

Ban, currency depreciation hit seafood exports to traditional markets

How have western sanctions on Russia and the counter sanctions imposed by Russia on EU (and other) countries aff ected the Esto-nian seafood sector? What steps are being taken by the adminis-tration to mitigate the loss of this important market for the fi shing and processing sector?

I should say that the crisis for us

probably started in January last

year when the Russian authori-

ties inspected our factories and

declared several of them unfi t to

export to the Customs Union. Th is

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 per-

spective. Th e economic sectors

that have been aff ected are only a

part of what is a wider security cri-

sis. In fact in economic terms only

2 of the Estonian trade has been

aff ected, though of course some

sectors such as agriculture and

specifi cally dairy and fi sheries

have been more aff ected than oth-

ers. However, so far in the fi sheries

sector, while companies have

been aff ected none of them has

been bankrupted, though profi ts

are down and the uncertainty of

the situation makes it diffi cult to

plan and make investments. Th e

situation for fi shermen regarding

Baltic herring was stable last year

because POs (producer organi-

sations) have facilities and stor-

age for freezing and storing fi sh.

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 fi nd new

markets and this is where I feel

eff orts need to be concentrated.

Th is support allows companies

to attend trade fairs in countries

where they can promote them-

selves and their products. Russia

has been a geographically and cul-

turally close, and in some senses

the easiest market for us. How-

ever, 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 hap-

pening then it is better to be con-

servative and decide that we do

not know how long this situation

will last. Companies need there-

fore to plan accordingly and start

to establish themselves on other

markets. Th ese eff orts have already

begun and companies are export-

ing to new markets in Africa, as

well as to Japan, and are trying to

increase the volumes to existing

markets such as Ukraine and Mol-

dova, where despite the currency

devaluation Estonian fi sh is a rela-

tively cheap product and people

can still aff ord it.

Th e need to penetrate new mar-

kets should also trigger the

development of new and innova-

tive products and in this context

the discussion about a potential

new factory to make high value

components from fi sh, such as fi sh

oil for human consumption or fi sh

protein isolates is relevant. Broad-

ening the range of products we can

off er should also help widen the

customer base.

Greater added-value, getting more from less, is a priority for fi sheries 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

Olavi Petron, Deputy Secretary General for Fisheries Policy and

Foreign Affairs, Ministry of Agriculture, Estonia

08_ESTONIA.indd 32 27/03/15 7:57 PM


ESTONIA


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 off set emissions from

aquaculture, or using the waste

and off cuts from fi sh processing,

or even extracting the fats and

other potentially useful material

from waste water in a processing

plant. Th ere is an environmental

benefi t, 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 pro-

duction chain is quite interesting.

From the government’s side this

is what we can do – direct some

money and then hope that it is

used for this purpose.

Th e fi shermen have understood

the value of this and what they

are doing is clever. As everything

stems from the fi sh they have

been investing in quotas, and in

addition they are improving their

fi shing gear, and concentrating

on quality in the whole value

chain starting from the vessels,

to the production and the distri-

bution.

We are also encouraging them to

study the potential of a factory

that could make fi shmeal and fi sh

oil but more importantly make

higher value products that can be

used in the nutraceutical, phar-

maceutical, 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 diff erent stakeholders, indus-try, environmental groups, the administration, and researchers can contribute to a well-function-ing and profi table sector. What

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

Th e Estonian fi shing community

is small as are the other stake-

holders, 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 minis-

ter, and which meets at least four

times a year. Estonia’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 sci-

entists were involved. So I think

we already have quite a good dia-

logue. 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 envi-

ronmental groups. Closer involve-

ment 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 fi sheries. Such

claims will be easier to rebut if the

rebuttal can be corroborated inde-

pendently.

Th e CFP seeks to remove or reduce the barriers preventing the growth of the EU aquaculture sector. How will this emphasis on fi sh farming at the EU level pro-mote 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 facili-

ties are there, the money is being

monitored, there are fi sh farms,

and the fi sh is in them, so it has

to come. Th e strategy showed us

quite clearly the marketing pos-

sibilities for locally-produced fi sh.

Th e red fi sh market is very com-

petitive and if we are to prevail

on this market then the fi rst argu-

ment is the freshness of the prod-

uct compared to that of imports.

We also have to make people more

aware of the local farming indus-

try, which is what Ecofarm, a pro-

ducer organisation in the farming

sector is doing. It is also making

vacuum packages out of smoked

farmed fi sh which is an innovative

way of marketing the product on

the local market as this increases

the shelf life and allows the fi sh to

be distributed to inland areas.

We also want the farmers to make

investments in technologies that

will benefi t the environment

using the opportunities off ered

by the EMFF. Th is is also in keep-

ing with the recommendations

on sustainable aquaculture in

the Baltic made by HELCOM, of

which Estonia is a member. Cur-

rently fi sh 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.

VISIT US AT SEAFOOD EXPO GLOBAL

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GLOBALG.A.P. News Conference at Seafood Expo Global in Brussels22 April 2015, 2.30 - 3.30 p.m. Hall 11, Room 1122, 3rd Floor

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08_ESTONIA.indd 33 27/03/15 7:57 PM

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ESTONIA

Funding the sustainable development of rural EstoniaThe 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.

Estonian Rural Development Foundation

The 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. Th e founda-

tion 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. Th is sum is used to sup-

port business activities in rural

areas and thereby promote the eco-

nomic development of these areas.

Four main areas of activity

Th e RDF has diff erent 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 guaran-

tees for companies that are taking

a credit or other debt obligation;

loans; management of the Esto-

nian Agriculture and Rural Econ-

omy Advisory Service; support for

students of rural economics as

well as awards for rural entrepre-

neurs. Th e guarantee obligations

currently stand at EUR54,4m in

diff erent business sector. Th e agri-

culture 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

all the sectors. Th e RDF guaran-

tee 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 bor-

rower can be guaranteed by the

foundation. In 2013 the guarantee

portfolio amounted to EUR53m.

Th ere are also other conditions

regarding the guarantee, for exam-

ple, the business (unless it is food

processing) has to be based out-

side Tallinn.

It is in fact the bank which is issu-

ing the credit that evaluates the

application and decides whether

it requires a guarantee. If the com-

pany cannot off er adequate col-

lateral the bank will approach the

RDF, where experts will evaluate

the project and decide whether a

guarantee can be issued. Guaran-

tees are not cheap, says Mr Reinup.

Th e client will pay perhaps 5 on

his loan and, on average, an addi-

tional 2.8 for the guarantee. How-

ever, our guarantee covers projects

that, from a fi nancial point of view,

are more risky. Th e best invest-

ments are those, where the entre-

preneur has capital, and there are

no banks involved. Th e second

best are the ones where the entre-

preneur borrows from the banks,

but has enough collateral. Th en in

the third category are those who

probably do not have enough col-

lateral, 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 fi fth 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 portfo-

lio 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 fi nancial,

economic, or commercial, brings

more clients to the foundation as

banks react and decide that they

can only make loans with a guaran-

tee. Another contradiction that can

be seen is that the loans RDF guar-

antees are often for the purchase of

equipment that make companies

more effi cient, a development that

invariably leads to job losses. Th at

is where giving guarantees to new

enterprises (a trade-off between

risk and new jobs) becomes very

important, when developing rural

areas.

Th e foundation also has a lend-

ing scheme under which it loans

money to banks. For agriculture

and aquaculture RDF has a spe-

cial lending scheme whereby it

loans money to the banks for them

to lend it further to companies.

Th is 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 fi xed interest

rate. Over and above this scheme

which goes through banks the

foundation also lends directly to

distressed companies. Th is too

is a relatively small amount of

around EUR2.5m a year and a total

portfolio of EUR6.5m in 2013. Th e

maximum amount is half a million

euros at a rate of 4-5. Th e diff er-

ence 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 fi ve

million, enabling huge multiplier

eff ects. As Madis Reinup says,

with an equity of almost EUR40m

we could easily have a portfolio

of EUR160m instead of today’s

08_ESTONIA.indd 34 27/03/15 7:57 PM


ESTONIA


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

Th e foundation manages fi nan-

cial instruments co-funded by the

EMFF. Th is 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.

Th e projects now being funded

with these fi nancial instruments

include recirculation systems and

the processing facility for an aqua-

culture 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 conserva-

tive. Another reason is that banks

are uncertain themselves about

the direction of the economy and

are therefore reluctant to commit

themselves.

Th e Ministry of Agriculture has

completed a study to identify

where market failures are pre-

venting the fl ow 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. Th e founda-

tion will use EUR10m for fi sher-

ies/aquaculture and EUR38m for

agriculture from EMFF/EAFRD

to remedy these failures. Depend-

ing on the fi nancial instruments

chosen by policymakers, the

foundation will perhaps run a

guarantee fund with very low

Rural Development Foundation (Maaelu Edendamise Sihtasutus) Oru 21

71003 Viljandi

Estonia

Tel.: +372 648 4064

Fax: +372 648 4065

[email protected]

www.mes.ee

Management Board: Raul Rosen-

berg, 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

interest rates of, for example,

1 for young entrepreneurs just

entering the fi eld or for activities

in certain sectors. Mr Reinup is

a keen supporter of the fi nancial

instruments as it will enable the

foundation to be more fl exible

and creative in lending money,

which from a tax payer’s view

point is a preferable alternative to

fi nancial support. Th ere is always

an element of risk in the kind of

activity that the RDF specialises

in. Despite this the Rural Devel-

opment Foundation is fi nancially

self-suffi cient and cover all its

expenses. It is therefore very sus-

tainable in contrast to most state

foundations, which need periodic

injections of capital.

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ESTONIA

Perch fi llets air freighted to SwitzerlandThe Hunt-Fish group has a track record selling perch fi llets to buyers in the Swiss retail sector. At the end of last year the company together

with perch fi shermen invested in a processing facility to produce fresh perch fi llets thereby removing two links in the value chain.

Hunt-Fish Group combines exports of fi sh and game

The Estonian fi shing sector

comprises several diff er-

ent segments, high seas,

Baltic sea, coastal fi shing, and

inland fi shing. In terms of ton-

nage the Baltic Sea is the most

important fi shing area for Esto-

nian fi sherman, but there are sig-

nifi cant commercial fi sheries in

coastal and inland waters too. In

the coastal fi shery herring, perch,

smelt and fl ounder are among the

most commercially signifi cant

species. In inland waters catches

of perch, pike, roach and eel sup-

port the fi shery. One of the most

interesting species from a com-

mercial point of view both in the

coastal and the inland fi shery is

the European perch (Perca fl u-

viatilis). Th is fi sh 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 fi sh because

of the demand from Swiss super-

markets and several Estonian

companies both big and small are

processing the fi sh into fi llets and

exporting them fresh and frozen.

One of the companies involved

in this business is Hunt-Fish,

which was established recently

by Allan Veltmann. Th e compa-

ny’s processing facility was com-

missioned in 2014 and here, in

addition to perch, Mr Veltmann

processes pikeperch and pike.

Th e processing facility is very new,

but Mr Veltmann has been in the

fi sh trading business for several

years, buying fi sh from proces-

sors, controlling the quality and

size specifi cations, and selling

them. Th is experience contrib-

uted to the decision to invest in

a processing facility. Here the fi l-

leting is all done by hand to maxi-

mise the yield and the factory

complies with the strictest quality

standards. Th is is one of the fac-

tors that has enabled the com-

pany to export to the demanding

Swiss market, another is the qual-

ity of the raw material which the

company buys only from equally

quality conscious suppliers, and

fi nally, as Mr Veltmann says, is

the service that the company pro-

vides. 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 satis-

fi ed with me.

Fishers are partners in processing factory

Hunt-Fish is now looking at

expanding the product range

so that the company can off er

a wider variety of items in dif-

ferent kinds of packaging, dif-

ferent sizes and under diff erent

brands. With a brand new fac-

tory I think there are a number

of possibilities, says Allan Velt-

mann, and I also see that there is

a lot of volatility in the business,

markets are changing, products

are evolving, people are mov-

ing 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

fi shermen are partners in the

processing plant and supply

some of the fi sh that is processed

there. Raw material also has to

be obtained from other suppli-

ers to keep up with demand.

Production amounts to a tonne of

fi llets a day, if the weather condi-

tions are favourable. Being a wild

product, the supply of fresh fi llets

is dependent on the ability of the

fi shermen to go out and fi sh, and

if the weather is inclement this

may not be possible. Having the

fi shermen as partners gives me

greater credibility in negotia-

tions with potential customers,

says Mr Veltmann, as the fi shers

have a vested interest in keep-

ing the factory supplied with the

highest quality raw material.

New packaging, product formats being developed

Th e fi llets from Hunt-Fish are usu-

ally sent by road to Switzerland,

Mr Veltmann, Hunt-Fish CEO, does his best to accommodate

customer’s requests and specifi cations.

08_ESTONIA.indd 36 27/03/15 7:57 PM


ESTONIA


a journey that takes 3 days. Within

a maximum of four days after

the fi sh has been processed it

is on display at the fi sh counter

in a supermarket. Th e fi llets 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 fi llets have a total shelf life

of 10 days. In the Easter period

when demand for perch fi llets is

particularly strong the company

even fl ies the fi sh to Switzerland.

In this case the fi sh is processed

during the day, air freighted off

in the evening and by the next

morning the fi sh is on display.

Today most of the company’s fi sh

comes from the Baltic Sea, where

the stock situation is stable, but

increasingly Hunt-Fish custom-

ers are asking for certifi cation

of the stock to Marine Steward-

ship Council (MSC) standards to

ensure that the product is from a

sustainable fi shery. Mr Veltmann

is naturally trying to accommo-

date 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

eff ort. In the meanwhile Hunt-

Fish has ambitious plans to start

producing in MA packaged retail

packs and to explore the possibil-

ity of making ready products. But

smoking the fi sh, for example, will

call for signifi cant investments in

Hunt Fish Group Papiniidu 5

EE 80042 Parnu

Estonia

Tel.: +372 682 5812

Fax: +372 442 9545

huntfi sh@huntfi sh.ee

www.huntfi sh.ee

Chief Executive Offi cer: Allan

Veltmann

Products: Fresh, frozen fi llets of

perch; also game

Markets: Switzerland

Buyers: Retail sector

machinery and will be a major

step forward from the chilled fi l-

lets that the industry has been

delivering for the last 20 years.

Hunt-Fish also has another busi-

ness supplying game, moose, wild

boar, and deer that is hunted in

the Estonian forests. Th is however

contributes only about a third of

the company’s turnover, a fi gure

that Mr Veltmann would like to

increase, but for the moment he

is putting most of his eff orts into

building up the fi sh side of the

business.

08_ESTONIA.indd 37 27/03/15 7:57 PM

http://issuu.com/action/openurl?url=www.peruza.lv


ESTONIA

Estonian independence in 1991 led to the creation of a number of private companies in the fi sheries sector. Among them was Pärnu

Laht which started its operations processing the freshwater fi sh perch and pike-perch and selling the fi llets 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.

Pärnu Laht works to secure raw material supplies

After a long period of fl uc-

tuating 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 avail-

ability and price, but also with

respect to size and quality. Th ere

is now a fry system, an incuba-

tion system, and two brood-

stock systems in place. Th e 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 brood-

stock system, on which the com-

pany has already working. Th e

fi rst batch of eggs has already

hatched resulting in some half a

million fry. Th ese 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 fi rst 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 invest-

ing in a new on-growing facility

unless there is an assured sup-

ply of fi ngerlings. Since import-

ing fi ngerlings is not possible as

the suppliers are located too far

away, the company will rely on

its own broodstock.

Embarking on a new project – farmed perch

100-150 g fi sh, which is the size

needed to produce a decent fi l-

let. 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 fi llets. Over the next 18

months he hopes to have a pro-

duction of between 50 and 70

tonnes of fi sh. In the meanwhile,

a new fi lleting facility is being

designed. Potential buyers of the

fi llets are also demanding a fac-

tory that will be at least IFS certi-

fi ed. Th e 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 fi lleting personnel and should

be completed by the end of 2015.

Perch require water at a tempera-

ture of 23 degrees to grow optimally

and therefore farming them eff ec-

tively can only be done in a closed

recirculation system. In the hatch-

ery the water is recycled three times

in the space of an hour and the sys-

tem has a capacity of 1.5m fry per

cycle. Th e 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 fi sh 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.

Multiple batches of eggs to be hatched this year

Th is 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

fi ngerlings, 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 fi ngerlings if

they do not have their own hatch-

eries. Perch is a rapidly-growing

fi sh that requires just six months

to grow from a 2 g fi ngerling to a

08_ESTONIA.indd 38 27/03/15 7:57 PM


ESTONIA


also necessary to ensure that when

the fi sh reach market size and are

being harvested they are more or

less the same size as this will ensure

consistent fi llet 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 diffi cult to obtain with wild

fi sh, which tend to vary in size more

than farmed fi sh. On other markets,

such as those in Sweden and Fin-

land, however, there is a preference

for bigger fi llets. Here, the company

is looking to sell frozen fi llets in the

sizes 40-60 g, 60-80 g and 80+ g.

Experimenting with feeds for the highest yields

Farming perch is a completely new

activity for Pärnu Laht and has

meant a steep learning curve. Feed

for the larvae, for example, dur-

ing the fi rst 8-10 days after hatch-

ing 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 specifi cally for

perch. Th e company has there-

fore tried feeds designed for pike-

perch, trout, and sturgeon fi nally

deciding on a type that gave a yield

of 43 when the fi sh was fi lleted.

We expect to maintain that yield

throughout the year, says Mr Sool,

something that is not possible with

Pärnu Laht LtdKarusselli 24b

80015 Pärnu

Estonia

Tel.: +372 447 5840

Fax: +372 443 3214

[email protected]

Chairman of the Board: Mr. Ott

Sool

Activity: Perch farming

Products: Fresh perch fi llets

Volumes: 50-70 tonnes (2016 est.)

Markets: Switzerland

wild fi sh, where the yield swings

between 25 and 40 depending

on the season. Getting the brood-

stock to eat pelleted feed was also

diffi cult. As a wild carnivorous

fi sh 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 fi sh started feeding. Now the

fi sh have acclimatised themselves

to captivity and today they even

feed on chopped Baltic herring.

Cooperation between scientists and industry

would have mutual benefi ts

Th e 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. Off ers

from Norway, Denmark, even Lat-

via 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.

Th e 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

needed which the company gets

from the municipal supply. Th e

volume of fresh water pumped

into the system varies from 3 to

5 cubic m a day depending on

the amount of fi sh there is in the

system. Th e 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 fi sh and the system in which

they are growing. One issue in

particular concerns the broodstock

which must be renewed regularly

to maintain the quality of the eggs

and the larvae. Fish to renew exist-

ing broodstock can be taken from

the wild and go through the long

process of acclimatisation, or they

can be bred from the fi sh that are

grown in the tanks. Th e advantages

and disadvantages of these and

other farming processes can best

be investigated by scientists and

industry working together.

Farming perch is a new activity for Pärnu Laht and has meant a steep

learning curve says Ott Sool, Chairman of the Board.

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ESTONIA

Russian sanctions inspire search for new marketsThe fi sheries sector in Estonia comprises marine and inland fi sheries, freshwater aquaculture, and a processing industry. The marine

fi shery 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 fi shery has two main components, a coastal fi shery

and an offshore pelagic fi shery. In terms of volumes of fi sh caught, around two thirds of the total Estonian landings come from the

Baltic Sea pelagic fi shery, where the main species are Baltic herring and sprat. This is followed by the distant water landings, the

coastal fi shery in the Baltic Sea, and fi nally the inland fi shery.

Fisheries and aquaculture in Estonia

The distant water fl eet has

gradually reduced in size

over the years from 10 ves-

sels in 2005 with a total gross ton-

nage of 11.5 thousand tonnes to

just 5 vessels in 2013 with a gross

tonnage of 7,700 tonnes. Of the

fi ve vessels, three target primarily

northern prawn (Pandalus borea-

lis) but also catch fi sh, while the

other two exclusively catch fi sh.

Th e vessels are owned by three

companies. In the Svalbard area

the shrimp fi shery is managed

by limiting the number of fi shing

days but in NAFO and NEAFC

areas the main fi sheries are lim-

ited by the tonnage that may be

caught. In the NAFO area Esto-

nian quotas have hardly changed

over the fi ve years to 2015 at about

3,000 tonnes.

Redfi sh species dominate Estonian NAFO

quotas

In 2015 too quotas have been main-

tained at the same level. Th e biggest

quotas are for redfi sh 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 iden-

tifi ed as particularly vulnerable to

gears with bottom contact and are

closed to bottom fi shing activities.

Th ese restrictions have been put in

place mainly to protect seamounts,

sponges, and sea pens (colonies of

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

catch is exported.

08_ESTONIA.indd 40 27/03/15 7:57 PM


ESTONIA


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. Th ese clo-

sures are due to be reviewed in

2016. Th e most important quotas in

the NAFO area for Estonia are those

for redfi sh 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 fi shery

in the NAFO 3M fi shing area was

by the number of fi shing days and

in the NAFO 3L fi shing area by quo-

tas. 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 fi shing 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.

Th e increase was due primarily to

an increase in the mackerel quota

to 262 tonnes. Th e most important

species are Atlantic mackerel and

redfi sh 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

redfi sh species (Sebastes spp.) and

Greenland halibut (Reinhardtius

hippoglossoides). Small quanti-

ties of several other species are

also caught by the fl eet. In general

as shrimp quotas have shrunk to

nothing in the NAFO area, fi sh-

ers are turning their attention to

the Barents Sea where the Estonia

North East Arctic cold water prawn

fi shery was certifi ed to the Marine

Stewardship Council sustainabil-

ity standard in November 2013.

Herring and sprat catches in the Baltic

Sea decline

Th e Baltic Sea fi shery is divided

into a coastal fi shery and an off -

shore trawl fi shery. Th e trawl fi sh-

ery targets Baltic herring, sprat,

and cod, of which sprat and Baltic

herring are the most signifi cant

in terms of volume. Baltic herring

(Clupea harengus membras L.)

is a subspecies of Atlantic her-

ring inhabiting the Baltic Sea and

forming local populations. Her-

ring 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.

Th ere are four herring stocks in the

Baltic of which two are of interest

to Estonia. Th ese are the Central

Baltic herring stock and the Gulf of

Riga stock. In 2015 Estonia has her-

ring 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 remain-

der. In the Gulf of Riga herring is

fi shed only by Estonian and Lat-

vian fi shermen.

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),

Estonian high seas catches, tonnes2011 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

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

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.

08_ESTONIA.indd 41 27/03/15 7:58 PM

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ESTONIA

and Latvia (14) are the coun-

tries 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 repre-

sented an 18 increase compared

to the year before. Sprat abun-

dance 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.

Among the most contentious

reforms of the Common Fisheries

Policy was the introduction of

a discard ban. Th e idea behind

landing all fi sh that is caught is to

encourage fi shermen to use more

selective gear that would only

catch the targeted species. Th e

ban came into force at the begin-

ning of 2015 and also applies to

the Estonian mixed herring and

sprat fi shery as well to the cod

and salmon fi shery. Th e mixed

herring and sprat fi shery and the

cod fi shery are by and large clean,

says Ain Soome from the Ministry

of Agriculture, without any sig-

nifi cant bycatch of other species.

Salmon is mainly caught as a

bycatch in coastal fi shery. Estonia,

even before the discard ban was

imposed, had a regulation forbid-

ding the discard of fi sh that was

dead, so Mr Soome feels that for

Estonian fi shers the discard ban

will not make a big diff erence.

Estonian fi shing companies buy vessels in neighbouring states

Th e Estonian trawling fl eet com-

prises 36 vessels that catch pri-

marily sprat and herring but

also small volumes of other spe-

cies. Th e number of vessels has

declined steadily since 2008

when the fl eet had 64 vessels. Th e

vessels target sprat, herring, smelt

and cod, of which the volumes

of sprat are the biggest. Estonian

companies have also been invest-

ing in vessels of other Member

States in the Baltic Sea region, says

Ain Soome and some catches of

those vessels is landed in Estonia.

Th e companies behind the Baltic

Sea trawling fl eet 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 Fisher-

men Association in Haapsalu with

5 members. Together they repre-

sent more than 90 of the Esto-

nian fi shing 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 fi sh to Estonia, says

Hannes Ulmas from the Ministry

of Agriculture, is by having trans-

national POs, that have members

from other member states, for

example Finland or Lithuania,

and, crucially, that they are repre-

sented in the annual production

Ain Soome, Head of Fishery Economics Department, Ministry of

Agriculture, Estonia

and marketing plans that the POs

are expected to draw up.

Intervention mechanisms that

support POs to store fi sh for human

consumption, when, for instance,

market conditions push prices

below a threshold determined by

national authorities in consulta-

tion with the POs, will be phased

out at the end of 2018. Activities

will then be fully implemented

through the production and mar-

keting plans. In Estonia there was a

strong feeling among the authori-

ties 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 mecha-

nism, says Mr Soome, but fi nally

it was decided to keep the level at

2. Th e 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. Th ese were

then extended later in August 2014

Hannes Ulmas, Head of the Market Regulation and Trade Bureau,

Department of Fisheries Economics, Ministry of Agriculture of Estonia

08_ESTONIA.indd 42 27/03/15 7:58 PM


ESTONIA


as part of the counter sanctions

imposed by Russia, a big importer

of Estonian block-frozen pelagics,

against the EU. Estonian proces-

sors have been exploring possibili-

ties in other markets, but this is a

long process and when a market

disappears almost overnight then

the storage mechanism is a meas-

ure that can be implemented very

rapidly in support of the aff ected

producers.

EFF brought several benefi ts to Estonian

fi sheries

Estonia is now in the process of

fi nalising its operational pro-

gramme and Mr Soome hopes

that by the second half of the year

it will be possible to open sup-

port measures foreseen in the

European Maritime and Fisher-

ies 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 nota-

ble successes. Another benefi t

has been the scrapping mecha-

nism, which allowed Estonia to

relatively quickly bring capacity in

line with the resource. Th is prob-

ably would have happened in any

case with the move to individu-

ally traded quotas (ITQs), but the

support for scrapping enabled the

fl eet to be balanced with available

fi sh resources faster. Mr Ulmas

adds that the creation of the

fi sheries local action groups was

another signifi cant feature of the

EFF as they contributed to local

development along the coast. Th e

EFF has also been used to support

the interaction between scientists

and fi shermen with the creation

of a Fisheries Information Centre.

Th is centre can carry out research

and develop projects that will

add to knowledge of fi sheries and

ultimately benefi t the fi sherman.

Th e centre has also organised

several information meetings and

meetings with certifi cation bod-

ies to discuss the possibility of

having perch and pike-perch fi sh-

eries certifi ed to the Marine Stew-

ardship Council standard.

Herring and perch are the most important

coastal fi shery species

Th e coastal fi shery employs about

2,000 people a fi gure that has

increased steadily since 2008, when

it was about 1,500, and has some

1,470 vessels up to 12 m in length.

Th e impact of the fi nancial and

economic crisis contributed to the

increase in the number of coastal

fi shers, as the contracting economy

pushed people into alternate occu-

pations. However, only about 10

of these are full time coastal fi sh-

ermen. Th e coastal fi shery 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 gen-

erate. Th e coastal fi shery in the

Baltic Sea is split between the Gulf

of Finland, Gulf of Riga, Pärnu Bay,

Fyke nets being hauled aboard in Lake Peipsi, the most important body of water for the inland fi shery of

perch and pike-perch.

08_ESTONIA.indd 43 27/03/15 7:58 PM

http://issuu.com/action/openurl?url=www.rotogal.com


ESTONIA

the Väinameri Sea and the Central

Baltic area around the Estonian

islands of Saaremaa and Hiiumaa.

Th e fi shing gear for the coastal fi sh-

ery 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 fi shery in terms of catch

volumes and value, with herring

and perch dominating the catches.

Saaremaa Island has the highest

number of coastal fi shermen.

Many coastal fi shermen sell their

products as fresh fi sh and the

administration would like to see

a greater focus on value addition

amongst the fi shermen them-

selves as this will lead to higher

incomes. Th is could, for example,

be smoking, fi lleting, or marinat-

ing, but it could also be that fi sh-

ermen get together and have a

common processing facility, and

joint marketing of the product.

Th is would suggest that coastal

fi shermen 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

Catches in Lake Võrtsjärv amoun-

ted to 238 tonnes in 2014, a year-

on-year decrease of 10. Th e

proportion of bream, pike-perch

and pike has increased from

about a third of the total catch

in 2002 to 86 in 2014. Th e main

fi shing gears used are trap nets,

which were responsible for 83

of the total catch, and gill nets.

Th e most valuable fi sh 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. Th is drop is mainly

due to a less vigorous restocking

eff ort 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. Th e pike-

perch stock is assessed as high.

Ambitions to increase supply of farmed fi sh to

the domestic market

Th e aquaculture sector in Estonia

produces several species (eel,

crayfi sh, carp, rainbow trout, sur-

geon, Arctic char), but the volumes

though gradually increasing are

still modest at less than 750 tonnes.

Although this production repre-

sents an increase, some parts of

the Estonian administration were

hoping that there would be a more

signifi cant rise in production as

several investments in technology,

mainly in recirculation systems,

have been made with support

from EU funds. However, prob-

lems, such as disease, may have

held back the increase in volumes.

In the new (2014-2020) period

the plan is not to support invest-

ments in capacity, but to support

investments in quality and energy

marketing plans and the question

is whether coastal fi shermen can

(or want to) meet all the require-

ments 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

fi shermen, not necessarily to form

a PO, says Ain Soome, but to come

together and fi nd joint solutions,

such as a common processing

plant, by off ering them a higher

rate of support than if they were to

do it alone.

First-sale prices of pike-perch, perch fall in

2014

Estonia’s inland fi sheries are based

primarily on the fi sheries in the

two lakes, Peipsi and Võrtsjärv.

Th e 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 fi gure that has stayed

more or less constant since 2009.

Averaging the catch of the fi ve

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 fi shers, who use

the lake. Th e fi shing season is from

January to October, though there

are restrictions placed on the use

of certain gears in some months.

Th e highest catches are typically in

September. Th e value of the catch

in 2014 dropped by nearly a quar-

ter to EUR3.8m from EUR5.3m in

2012, due to a fall in the average

fi rst-sale price of the most valuable

species, pike-perch and perch.

Th e lakes lie on the Estonian Rus-

sian border and are shared by both

countries. Fisheries management

on the lakes is decided at meet-

ings of the Estonian-Russian Fish-

ing Commission, where quotas for

the diff erent species are set. In 2014

quota uptake on the Estonian side

of the three most important spe-

cies perch, pike-perch, and bream,

was 87, 80, and 74 respectively.

Fisheries in Lake Peipsi are regu-

lated both on inputs (number of

gears, fi shing period, mesh size,

etc.) as well as on outputs (quotas),

which are determined by the size

and composition of fi sh stocks.

0

200

400

600

800

1000

1200

2009 2010 2011 2012 2013 2014

Total catch from the Lakes Peipsi, Lämni, and Võrtsjärv

Tonn

es

Bream Perch Pike-perch Pike Burbot Other

08_ESTONIA.indd 44 27/03/15 7:58 PM


ESTONIA

effi ciency. Rainbow trout domi-

nated 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 fi fths

of the total farmed production,

so the overall increase in produc-

tion can mainly be attributed to an

increase in the volumes of other

species produced.

Altogether some 50 companies

are involved in fi sh farming about

half culturing fi nfi sh and the

rest crayfi sh. Rainbow trout is

grown both in raceways and more

recently in recirculation systems.

Th e Estonian aquaculture strat-

egy 2014-2020 has a vision for the

sector to build up a leading posi-

tion 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 fi sh farming

companies have joined together

to form a producer organisation

(PO), Ecofarm, that will process,

market, and sell the fi sh of its

members, as well as develop new

products. Th e products will be

sold on the domestic market and

will be accompanied by dissemi-

nation campaigns that inform

consumers of the existence and

benefi ts, such as extreme fresh-

ness, of Estonian farmed fi sh.

While a PO can take care of the

sales and marketing of the fi sh,

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 produc-

tion or if the PO gains new mem-

bers. 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 get-

ting credit, which is not easy in

the current economic climate, or

it could depend on better knowl-

edge 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 com-

mon processing facility with high

capacity is more effi cient 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 bet-

ter prices for inputs if it is dealing

in large volumes. Th e government

therefore supports the develop-

ment of POs, in Ecofarm’s case,

by supporting the processing

plant with EU funds. Th e authori-

ties would also consider further

support if the PO produces a pro-

duction and marketing plan for

the year.

In general the administration in

Estonia is keen to phase out sup-

port 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 man-

age 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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08_ESTONIA.indd 45 27/03/15 7:58 PM

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ESTONIA

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.

Compensating for uncertain markets

Founded in 2005, the Esto-

nian Fishing Association

(EFAPO) is a producer

organisation representing fi ve

trawling companies operating in

Estonian waters and Pärnu Ran-

nakalurid, an organisation of 200

coastal fi shermen from the Pärnu

area. Th e trawling companies

own 12 trawlers, and the Pärnu

fi shermen own more than 160

boats. Members also have three

trawlers based in Finland, fi sh-

ing the Finnish quota. All of this

ensures that the plant has a con-

stant supply of fi sh.

Th e EFAPO inaugurated a process-

ing and freezing facility in 2011,

which provides storage for up to

3,200 tonnes of frozen fi sh and can

freeze up to 200 tonnes of fi sh in a

24-hour period. Located in Pärnu

County, the plant is well situated

logistically. Th e plant cost EUR 6

million, about half of which was

funded by the European Fisheries

Fund. Th e plant runs two shifts of

eight people each. It has HACCP

certifi cation and a traceability

system in compliance with EU

requirements.

Members of the cooperative hold

48 of Estonia’s historical sprat

fi shing rights and 43 of the Baltic

herring fi shing rights. Pärnu fi sh-

ermen take 6,000–8,000 tonnes of

Baltic herring annually. Estonian

production includes frozen blocks

as well as marinated sprat and her-

ring. Diff erent products are made

by each of the three Estonian pro-

ducer organisations. Membership

in the organisation has stabilised

since it was founded. Most fi shing

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 qual-

ity, but sprat fi shed by Estonia in

its own waters is of higher quality.

Th e fi shing grounds are close to

the coast, allowing fast offl oading,

which leads to fresher fi sh that are

Troubled waters for Estonian sprat

frozen sooner after being caught.

Sailing to the fi shing grounds takes

approximately three hours each

way, plus six to ten hours spent

fi shing. Other countries, like Fin-

land, do not have such immediate

access to their fi shing grounds, and

the fi sh are not frozen as soon after

being caught. It should be noted

that partly or wholly Estonian-

owned companies own vessels that

entitle them to use Lithuanian (ca.

500 tonnes) and Finnish (ca. 10,000

tonnes) quotas. Th is 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, fi shing capacity has

fallen, with a reduction in the num-

ber of vessels. Mart Undrest, man-

aging director of EFAPO, believes

that the quotas have been well uti-

lised during the past two years and

speaks positively of the fl exibility

that has been built into the system.

Unused quota can be reassigned

to the following year, and they can

Mart Undrest, Managing Director of the Estonian

Fishing Association, Eesti Kalapüügiühistu TÜ

Aleksander Konopelko, Director of Prizma Ukraine,

one of the biggest distributors of fi sh in Ukraine.

even be traded. Quota swaps have

taken place with their Finnish and

Latvian partners, improving man-

agement of the fi shery.

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 eff orts in the western and cen-

tral 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 situ-

ation remains more or less stable

and there are no new sanctions or

war, the Estonian fi shing 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, Lith-

uania, 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, includ-

ing marinated, salted, smoked

and oiled, and smoked and spicy,

08_ESTONIA.indd 46 27/03/15 7:58 PM


ESTONIA


among others. Since the fall of the

Ukrainian hryvnia, sprat’s aff ord-

able price has increased its popu-

larity. Another development in

Estonia’s favour has been the loss

of more than 50 of the Ukrainian

fi shing fl eet in the Crimea. Th e

demand for domestic product has

been taken up by Estonian sup-

pliers. Altogether, Mart Undrest is

saddened by the developments in

Ukraine, but believes that if stabil-

ity can be achieved, the situation

will prove advantageous for Esto-

nian suppliers.

Shrinking Russian market

A further source of uncertainty

has been the Russian ban on sea-

food 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 her-

ring exports. Much of it has found

its way to Ukraine. One positive

point is that canned fi sh products

have not been banned. Finding

alternatives for these products,

however, would not be easy.

Currently, a study is being con-

ducted into ways of giving added

value to sprat and Baltic herring.

Th e initial task is to consider an

innovative design for a factory with

a minimum, 24-hour production

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 invest-

ment, 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 inexpen-

sive product for the eastern mar-

ket, rather than making products

of greater value for sale in Estonia.

Th ey have been encouraged to

look into derivatives from the fi sh,

such as omega-3, proteins, lipids,

and collagens. Although the cur-

rent facilities would continue to

be used for human consumption,

the study is considering whether it

would be profi table to build a fac-

tory for turning sprat and herring

into animal feed and fi shmeal. All three POs are behind the idea.

Detailed mapping exercise

Danish and German vessels fi sh

off the Estonian coast, and it is

hoped they can be convinced to

bring their catches to such a facil-

ity. With 300,000 tonnes of Baltic

Sea catches being processed as

fi shmeal 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. Th e 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. Th e

logistics must also be considered:

How far are they from the fi shing

grounds? And what are the initial

costs? Is water and electricity avail-

able? And fi nally, can it be done

profi tably? In the long term, how-

ever, basing a business plan on

crisis situations, is short-sighted. It

is necessary to develop innovative

plans to provide high-quality fi sh

for human consumption.

All of the producer organisations

are working with new markets.

EFAPO is already sending fi sh to

Africa and China, and is search-

ing for additional markets. Some

companies are working with indi-

vidually quick frozen (IQF) foods,

where each piece is frozen sepa-

rately, not in blocks for markets in

both east and west. According to

Mart Undrest, everyone is trying to

fi nd 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 refl ects that it has

been a good three and a half years

in the new building. What’s more,

the cooperation between pro-

ducer organisations has proven

to be very helpful. Having three

POs encourages competition and

so increases the will to work even

harder. Th ey see that, at least at

the moment, there is enough fi sh

for everyone. Th e POs have sup-

ported each other in tough times.

Says Mart Undrest, “Th ese build-

ings have safeguarded us in many

ways, and that has proven to be

very useful to the fi shermen”.

William Anthony

Estonian Fishing AssociationEesti Kalapüügiühistu TÜ

Peterburi tee 2F

11415 Tallinn, Estonia

Tel: +372 50 23 860

info@estofi sh.ee

www.estofi sh.ee/

Managing Director: Mart Undrest,

Activity:A producer organisation

representing fi ve trawling com-

panies operating in Estonian

waters and 200 coastal fi sher-

men from the Pärnu area.

Facilities:Refrigeration and process-

ing plant (2011) in Pärnu County;

3,200 tonnes storage for frozen

fi sh; freezing capacity of 200

tonnes of fi sh 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

The ban on exports of block-frozen fi sh to Russia

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

has hurt all of Estonia’s producer organisations.

08_ESTONIA.indd 47 27/03/15 7:58 PM


ESTONIA

An aquaculture PO with an interest in small pelagicsEcofarm 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 fi sh farmed in Estonia, which can be sold on the domestic as well as international markets.

Ecofarm develops and sells products from farmed and wild fi sh

A gutted sturgeon, Arc-

tic char, large freshwater

trout, and a large trout fi l-

let all are locally produced by the

members of Ecofarm and pro-

cessed at the PO’s newly-estab-

lished facility. A relatively young

PO, Ecofarm was established to

improve both the volumes and

the sales of Estonian farmed fi sh.

Domestic production needs to replace imports

Th e Estonian aquaculture sec-

tor with a total production of 730

tonnes is relatively small some-

thing that both the Estonian and

the European authorities would

like to change. Modest volumes

of several species (trout, carp, eel,

crayfi sh, 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

fi sh. If the freshwater aquacul-

ture sector is to grow it has to fi ght

back. Mounting a successful chal-

lenge to imported fi sh starts with

understanding the consumer and

fi nding out why he/she makes

certain choices.

In Viljandi, a small town a couple

of hours away from Tallinn, a fi sh-

related event was held in Febru-

ary on the lake that was attended

by a few thousand people. Th is

was the ideal opportunity to learn

also learned that people increas-

ingly prefer products that have to

be processed as little as possible.

Instead of whole round fi sh, the

fi sh should be gutted, and instead

of whole fi sh, consumers prefer

fi llets.

Packaging, taste critical for product acceptance

Finally, Mr Epner also discovered

that in the case of smoked fi sh

the taste and the packaging could

make a diff erence. Th e smoked

sturgeon has a relatively low salt

content of maximum 1.8, which

highlights the taste of the fi sh

without drowning it. Th e salt con-

tent can be low because the fi sh

does not need to have such a long

shelf life compared with imported

products. Th e packaging, a vac-

uum pack to keep the product

fresh, seemed also to be popular

amongst consumers. Ecofarm is a

PO for fi sh farmers, but that is not

preventing Mr Epner from devel-

oping agreements with other parts

of the sector. Among his ideas is

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 Eco-

farm’s products. Mr Epner made

three signifi cant discoveries dur-

ing the course of the event, which

he hopes to exploit to promote his

members’ farmed fi sh. Th e fi rst

was that consumers are gener-

ally unaware of the existence of a

freshwater fi sh farming sector in

Estonia. Th is suggests the need to

create awareness of the sector and

the advantages it off ers in terms

of freshness of the product com-

pared to fi sh that is imported. He

08_ESTONIA.indd 48 27/03/15 7:58 PM


ESTONIA


one to try and develop products

based on Baltic herring. Th e sup-

ply of raw material should not be

a problem as Ecofarm is located a

few meters from Estofi sh, one of

Estonia’s three pelagic PO’s. Th e

herring is headed, tailed, and gut-

ted and exported to customers in

Ukraine and Belarus. Ecofarm is

also contemplating going a step

further and fi lleting this fi sh as

there is a market for these too.

Currently Ecofarm has fi ve mem-

bers and the application from a

sixth member is being assessed.

Th ese represent about a third of

the 17-20 fi nfi sh farms in Estonia.

Th e advantages of being part of

a recognised PO are many, but it

also involves a degree of coopera-

tion and some loss of autonomy,

which, according to Mr Epner,

many fi sh 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 develop-

ment, production, sales and mar-

keting of the fi sh, and because it

can off er bigger and more consist-

ent volumes than an individual

fi sh farmer, a PO is more interest-

ing as a partner, for example, for a

retail chain. As Mr Epner says, a

big buyer might need fi ve tonnes

of fi sh a day, while an individual

fi sh farmer may be able to sup-

ply one tenth of that. POs can also

negotiate on behalf of their mem-

bers 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 proces-

sor, so the POs’s costs are usually

lower. Another important reason

to join a PO is the stability it off ers.

Th e PO makes a 1, 2, or 3 year pro-

duction plant which defi nes how

much fi sh it will take from each

of its members. If the producer

has a fi rm contract to sell a cer-

tain volume of fi sh, then he can

concentrate on other issues, such

as improving the technology or

the management of the farm or

expansion into new species.

Domestic fi sh could partly meet demand

While some EU countries are try-

ing to develop their fi sh farm-

ing industries to the point where

domestic farmed production

can meet up to 75 of domes-

tic demand, Mr Epner feels that

for Estonia, the industry with the

help of support programmes, the

administration, and the imple-

menting agencies 50 would be

Ecofarm TOLemmetsa

Audru vald

88311 Pärnumaa

Estonia

Tel: +372 5883 9011

[email protected]

www.ecofarm.ee

Director: Mr Oleg Epner

Species: Rainbow trout, Arctic

char, sturgeon, Baltic herring

Product form farmed: Whole

gutted, fi llets, 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

at Ecofarm we have perhaps two

to three. Th is group is now being

challenged by one of the PO’s cus-

tomers to come up with an excit-

ing new product based on trout.

New project has multiple objectives

Mr Epner feels that greater public

awareness of the domestic fi sh

farming industry can lead to more

fresh locally-farmed fi sh being

consumed. He is currently work-

ing 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 fi sh a

week, instead of imported frozen

fi sh. While fi sh farmers support

the project Mr Epner has also

enlisted other companies dealing

with whitefi sh. Th e point is not to

make money, but to create aware-

ness of the domestic farming sec-

tor, to off er some kind of product

that uses off cuts from the indus-

try and thereby reduce waste, as

well as to provide students with

nutritious food.

An aquaculture PO in name Eco-

farm has an interesting business

model that does not rule out coop-

eration with producers of wild fi sh.

Whether this will contribute to

the goal of increasing farmed fi sh

production in Estonia, or distract

from it, remains to be seen.

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 fi l-

lets I need a producer of a fi sh 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 aff ord.

Ecofarm currently sells mainly

on the domestic market, but the

Russian counter sanctions which

banned imports of EU agricul-

tural products into Russia have

had consequences for the fi sh

market in Estonia. Prices of meat

products that normally compete

with fi sh are lower reducing the

demand for fi sh. Ecofarm is work-

ing 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 prod-

uct that is being exported as those

markets can then further process

the fi sh, for example, by smoking

it, in line with local tastes. Pro-

ducing a taste that will appeal

to the Estonian market is diffi -

cult enough, let alone creating

one that will be popular abroad.

Successful product develop-

ment usually takes a large team

of people, says Mr Epner, while

A selection of Ecofarm’s vacuum packed products keeping the

product fresh and visible, is popular amongst consumers.

08_ESTONIA.indd 49 27/03/15 7:58 PM


ESTONIA

Japs is among Estonia’s leading companies in the fi sh processing sector in terms of the quantities of raw material processed and the

number of employees. The company is vertically integrated with its own fi shing vessels, processing facilities, as well as marketing,

sales and distribution.

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

European perch (Perca fl u-

viatilis) and pike-perch

(Sander lucioperca) are two

highly valued fi sh species that are

exported from Estonia mainly as

fresh and frozen fi llets. Catches

of European perch are primar-

ily from the Lake Peipsi and the

coastal Baltic Sea. Th e 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 fi sh 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 fi rst two. Th e com-

pany’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 export-

ing to the United States, a mar-

ket with which it has not been

working for a couple of years.

Japs tries to supply fi sh all the

year around clients appreciate

this. Pike-perch however is a sea-

sonal fi sh. European perch too is

Vertical integration enables complete control of quality

boxes on ice, while the types of

packaging for frozen fi llets can

be vacuum packages or individu-

ally quick frozen (IQF) pieces in

a polybag.

Th e company’s customers are

mainly importers in the destina-

tion countries who are responsi-

ble for the distribution to the fi nal

buyer. But increasingly producers

are shipping directly to the fi nal

customer, says Helle Nuut. Th is

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 fi shermen and processing

units – partly due to the avail-

ability of support from the Euro-

pean Union, which has meant

an increase in competition. Th is

development is not restricted to

Estonia, but can also be seen in

other countries, such as Poland.

However, most of these produc-

ers cannot off er 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 fi sh. 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

fi sh 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. Th e mar-

ket for fresh and frozen European

perch and pike-perch fi sh fi llets is

not a big one and for many years

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

seasonal, however when the win-

ter 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 fi sh can be caught

all the year around. Th is has both

advantages and disadvantages,

says Ms Nuut. On the one hand

we can catch more, but on the

other there is more fi sh in the

market and demand, particularly

for frozen fi llets, is stable. But for

fresh fi llets the market is more

buoyant. Fresh fi llets amount to

roughly two-thirds of the com-

pany’s production, while frozen

cover the remainder. In either

case the fi llets can be with skin

on or skin off . Th e company also

does limited quantities of whole

fi sh, as well as gutted and scaled

fi sh. Fresh fi llets are typically

packaged in three and fi ve kg

08_ESTONIA.indd 50 27/03/15 7:59 PM


ESTONIA


Japs has been working with essen-

tially the same group of clients in

the diff erent countries. We do not

place all our eggs in the same bas-

ket, 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 busi-

ness or selling their companies to

other entities.

Fish sourced from other vessels too

Japs is one of the biggest com-

panies dealing with European

perch and pike-perch in Estonia.

Unlike many other companies

it is directly involved in each

step of the value chain – catch-

ing, processing, and marketing

and sales – thanks to its own

vessels and quotas, large pro-

cessing 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

Japs AS J.W. Jannseni 36 a

80041 Parnu

Estonia

Tel.: +372 445 9600

Fax: +372 445 9610

[email protected]

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

fi llets

Markets: Switzerland, Italy,

France, and Germany

Employees: 77

Whole fi sh as well as gutted and scaled fi sh are among the products

being processed at the Japs facility.

buy fish. The resource is strictly

managed by the authorities,

who have effectively enforced

the rules governing the resource

with the result that large pike-

perch of around 1 kg are not

uncommon. The stocks in the

Lake Peipsi, and in the coastal

waters of the Baltic Sea are man-

aged 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 cou-

ple 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 fi sh to meet its com-

mitments. 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

fl exibility, but has had to deal

with the seasonality of the raw

material, which means that the

labour force also has to fl uctuate

with the season. Th is is some-

times diffi cult to manage and

so the company has settled on

a work force of 77 people which

should enable a degree of conti-

nuity both in the high season and

the low. Automation is not really

an option as the fi sh is wild, and

so comes in a variety of sizes,

which makes it unsuitable for

machinery. In addition, in the

spring season the fi sh has roe

which is an additional challenge

for a machine. Besides manual

fi lleting 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 fi sh,

gutted fi sh, or fi llets and is also

producing canned roll mops

through a daughter company.

Th e 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 fi sh, has

quite a strong taste. Breaking

into markets with new products,

especially those from a species

the target is completely unfamil-

iar with, is never easy. One can

only hope that the Swiss discover

a liking for the fi sh, which will

make all the eff ort worthwhile.

Helle Nuut, Sales Manager, Arved Soovik, Director. The abundance of

perch is a mixed blessing as prices are pushed down.

08_ESTONIA.indd 51 27/03/15 7:59 PM


ESTONIA

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 offl oading of catches.

Making the most out of a few products

ETA is based at Paldiski, not

far from Tallinn, on the site

of a former Soviet subma-

rine base and naval training facil-

ity, which is now an industrial

estate and port. It has fi ve mem-

bers who fi sh 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 met-

ric 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

fi sh. After the planned expansion,

freezing capacity will increase

to more than 200 tonnes. Cur-

rently, 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 fi sh directly from the

boats.

Block frozen Baltic sprat and her-

ring for the Eastern European

market are the organisation’s

main products. Other products

include spicy marinated and

salted fi sh, and individually fro-

zen headed-and-gutted her-

ring, which has proven popular

in Ukraine. ETA produces dried

products as well, including

smelt, roach, and pike. Th e fi sh

are salted for four to fi ve 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

fi sh. Th e shelf life of spiced prod-

ucts 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 organisa-

tion’s production is exported.

Main markets include Ukraine,

Kazakhstan, and Russia. Small

but growing markets include Lat-

via, Lithuania, Israel, the Balkan

countries, with minor sales to

Finland. Th e 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

Extending the market for sprat and Baltic herring

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 ready-

to-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 bulk-

packed 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 origi-

nally 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. Th e expansion of the

facilities will increase the need for

fi sh. PO members are not obliged

to sell their fi sh to the organisa-

tion, although most do. ETA will

have to go further afi eld 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

fi shermen, who are not members

of the PO. Surplus fi sh are sold to

other producers.

A well-established workfl ow

Th e fi sh, mostly a mix of herring

and sprat, are graded mechanically

Mauno Leppik, Managing Director, Estonian Trawling Association

08_ESTONIA.indd 52 27/03/15 7:59 PM


ESTONIA


into four categories, while sepa-

rating the two species, sprat

typically being smaller than her-

ring. 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 inter-

nal 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 packag-

ing 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 out-

side. 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. Palletis-

ing, 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 tem-

perature, the production sea-

son can run from September/

October until April/May. Th e

organisation reserves its quota

for the period of autumn/winter/

spring because, in summer, fi sh

feed on a diet of plankton, giv-

ing them a much softer texture,

which causes their stomachs to

break easily. Further, the diet

causes the fl esh to taste bitter. In

autumn, they stop feeding in the

cold water. Fish caught in Janu-

ary have less fat and a fi rm tex-

ture, leading to longer shelf life.

Because sprat and herring are

fatty fi sh, they must be handled

and produced quickly.

Some Finnish companies use fi sh

caught in summer for fi shmeal,

where a soft texture is not impor-

tant, but ETA reserves its quota for

high-quality fi sh for human con-

sumption.

According to Mauno Leppik,

ETA managing director, the facil-

ity runs around the clock during

high season. He says, “When the

fi sh are coming in, we work. Even

on Christmas Eve, people are

working, because we need to pro-

duce when the fi sh are coming in.

During the three-to-four month

downtime, we mainly do repair

and renovation”.

Because they would like to put

more eff ort into high-volume

products, including frozen and

marinated fi sh, the company

plans to reduce the amount of

manual labour and increase

the amount of automation by

investing in machinery, in par-

ticular to speed the freezing

process, standardise the mixing

of spices, and increase the effi -

ciency of fi lling the buckets. Th e

heading and gutting process is

now automated. Th e 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 peo-

ple working on low-turnover

products.

Seeking certifi cation in the future

In the future, the organisation

will probably seek certifi cation

of its stocks’ sustainability by

the Marine Stewardship Council

(MSC) or a similar body. Outside

certifi cations are less important

to the organisation now because

its main markets do not require

them. It is anticipated that the

number of Estonian national con-

trols now in place will simplify

future certifi cation.

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 Kazakh-

stan and France, and this year,

he has already attended the show

in Moscow. Later this year, he

will go to Uzbekistan and Brus-

sels. Members of the producers’

organisations often collaborate

on a stand and attend the shows

together reducing the costs. Th e

fi shing sector in Estonia is now

well represented on the interna-

tional stage. And Brussels is big.

If you are not in Brussels, you’re

not in the fi sh business”.

William Anthony

Estonian Trawling Association (Eesti Traalpüügi Ühistu)Peterburi mnt 2F

11415 Tallinn

Estonia

Tel.: +372 600 2929

[email protected]

www.traalpyyk.ee

Managing Director: Mauno

Leppik

Activity: A producer organisation

representing fi ve 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-and-

gutted herring

Markets: Ukraine, Kazakhstan,

and Russia, Latvia, Lithuania,

Israel, Balkan countries, Finland

The fi sh is pumped from the vessel and then loaded into bins that are

placed in refrigerated trucks, which carry the fi sh to the factory.

08_ESTONIA.indd 53 27/03/15 7:59 PM


ESTONIA

DGM Shipping is a successful processor of Baltic herring and sprat. Three years ago the company was nominated for the Prix d’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.

DGM Shipping earns coveted award at Prodexpo

Established in 1994 as a fi sh-

ing company, DGM Ship-

ping 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. Th e fi sh was frozen

and exported in blocks to Rus-

sia, Ukraine, Belarus, and other

Commonwealth of Independ-

ent States (CIS) countries where

local companies canned or oth-

erwise processed the fi sh. Today

the facility produces fresh and

frozen Baltic sprat and herring as

well as preserves and marinated

fi sh 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 fi sh process-

ing sector in Estonia use Baltic

sprat and herring as their raw

material. Th e fi sh is typically

frozen and exported in blocks

to the CIS countries. DGM Ship-

ping is diff erent in this regard as

much of its production is further

processed, that is, not just fro-

zen into blocks but made into

fi llets, preserved or marinated.

Th e product that won the award

at Prodexpo was based on a fi llet

Using sprats to make highly value-added items

encouraged to give their opin-

ion 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 fi nal distribution and sales

point, it can exercise complete

control over the product, ensur-

ing that it is the highest quality.

Th e most recent product that the

company has developed is a fi sh

cake. What is unusual about this

product is the high proportion

of fi sh (70) that it contains. Th e

fi sh 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. Th e 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 aff ected

by the political problems between

Russia and the EU. Th e sanc-

tions have prevented the export

of frozen fi sh to Russia and have

forced the company to look for

new markets and consider new

strategies as their very survival

was at stake. Th e company has

hit upon supplying salted fi sh

to the Ukraine in the form of

10-litre barrels fi lled with sprat,

Ilja Gorohhov, Development Director, says marinated products sold

in Eastern Europe are more savoury than Scandinavian marinades,

which are sweeter.

of sprat. Th e fi sh is caught by the

company’s own vessels, where

the fi sh is very carefully handled

to ensure the best quality raw

material. Back at the factory the

fi sh is fi lleted by machine and

the fi llets are salted and spiced

and allowed to mature. While

diff erent products can be manu-

factured from the mature fi llets,

the prize-winning product was

one that had been marinated in

a solution of sugar and herbs.

Th e sweet marinade is popular

in Scandinavia, but unusual in

Eastern Europe, where mari-

nades tend to be savoury. Devel-

oping a suitable package for this

delicate product was also a chal-

lenge. Th e 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. Th e award at Prodexpo

took into account not only the

product, but also the sophistica-

tion of the packaging.

Ilja Gorohhov, Development Direc -

tor, says that the traditional

savoury taste of marinated prod-

ucts sold in Eastern Europe is

still very popular, but the sweeter

Scandinavian marinade is making

headway there too. Th e 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

08_ESTONIA.indd 54 27/03/15 7:59 PM


ESTONIA


salt, and spices. Th e company has

quotas for about 3,900 tonnes of

fi sh of which about half is sprat.

Th e 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 Ship-

ping 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, cur-

rently 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 sum-

mer period as well. About 30 of

the catch goes into the produc-

tion of highly value added prod-

ucts 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 com-

pany is selling into EU markets

such as the Baltic States, and

Germany, as well as the United

States and Israel. In the latter

two countries the company is

targeting the large Russian com-

munities, 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 prize-

winning product, that can be

sterilised in an autoclave giving

a 12-month shelf life just like a

traditional metal can.

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 interme-

diaries, 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.

Optimal use of manual labour and automation

In the DGM processing fac-

tory sprat is being processed

with a combination of manual

labour and automated process-

ing. Th e fi sh is placed manually

in a machine which heads, tails,

and guts the fi sh before fi llet-

ing it. Th e fi llets are washed and

placed manually in a mixture

of salt and spices for four days

to mature, while the waste goes

into the production of fi sh meal

and animal feed. At other tables

workers weigh and carefully

DGM Shipping ASVana-Narva mnt. 18A

EE 74114 Maardu, Harjumaa

Estonia

Tel.: +372 6386983

Dgmship.offi [email protected]

http://briis.eu/

Development Director: Mr Ilja

Gorohhov

Products: Marinated, salted,

whole breaded, or block frozen

sprats, and herring, fi sh 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 fi sh

shops

place the matured fi llets into

trays, which are then fi lled with

the marinade, sealed and sent

into storage. In another part of

the factory is a processing line to

make the fi sh cakes. Th is is also

used to produce another prod-

uct, 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.

Th is unrelenting focus on value

addition will stand the company

in good stead in both good times

and bad.

FLAKE ICENUGGET ICE21 − 23 April 2015

Hall 4, Stand 5847

MAJA Ice for fish refrigeration: After the catch, during transport and shipment, for appropriate storage and attractive sales displays: Find your ice solution which totally meets with your special requirements!

MAJA-Flake Ice: -7°C, dry-frozen ice flakes, little mechanical resistance, very good product covering, big surface for great heat exchange.

MAJA-Nugget Ice: -0,5°C, shiny, unregularly shaped ice nuggets, granular structure, appetizing appearance.

Wide range with capacities of 85 kg

to 12 t /24h

Individual possibilities of installation

Ice storage and transport solutions

Automatic dispension and weighing

08_ESTONIA.indd 55 27/03/15 7:59 PM

http://issuu.com/action/openurl?url=www.maja.de


ESTONIA

The unceasing search for new marketsAvektra 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.

Avektra expands its factory and product line

Avektra started in 2000 as

a trader of fi sh products,

mainly whitefi sh such as

hake and other species, as well as

salmon. After researching diff er-

ent possibilities for expansion the

company decided to establish a

processing unit.

Salmon gradually replaces other fi sh in

assortment

In 2006, the company built a fac-

tory in Tallinn in the Technopark

for the production of processed

fi sh. Today the company has

expanded the facility to accom-

modate an increase in production.

Our numbers have improved each

year, says Gennadi Smelov, the

Commercial Director, whether you

look at profi ts, turnover, or produc-

tion. One of the reasons behind this

development was the increasing

role salmon played in the compa-

ny’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.

Th e 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.

Th is year (2015) too the company

will use European funds to invest

in an additional fi lleting 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

diffi cult to sell them on its former

markets in the CIS countries. Our

main products, salmon portions

and fi llets, are diffi cult to sell on

the Russian market, but demand is

high there for salmon by-products,

including belly fl aps, 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.

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 prod-

ucts to Russia. Th is 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.

By-products, however, only con-

stitute some 10 of Avektra’s busi-

ness. Th e bulk of the production is

of frozen salmon portions and fi l-

lets, and marinated products. Part

is sold locally, but most, about

90, is being exported, primar-

ily 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 fi nal product

is made from a very fresh fi sh.

Salmon prices have climbed

steeply in the last few months.

Gennadi Smelov, Commercial Director, Avektra

New machinery in the processing facility was equipped with support

from EU funds. This year Avektra plan on investing in another fi lleting

line for salmon.

08_ESTONIA.indd 56 27/03/15 7:59 PM


ESTONIA


Mr Smelov mentions that in

December 2014 they reached

almost EUR6 per kilo for size 4-6

kg. Th at 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 fi x 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 fl exible, 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 oth-

ers 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. Th e 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

example, Mr Smelov says, it seems

“just impossible” to sell directly as

the retailers have special compa-

nies who buy and supply them

and who have the contracts with

the producers like Avektra. Th e

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 specifi ca-

tions of the product are discussed

at the outset with the customer

so that the company knows pre-

cisely what and how to process

and package the product. During

these discussions the company

will contribute with its own ideas

and experiences to the fi nal spec-

ifi cations. In a year about 1,600

tonnes of fi sh are processed of

which 80 is salmon and the rest

sea trout. Th e company usually

only processes sea trout when the

price is right, as typically it is more

expensive than salmon, says Gen-

nadi Smelov, but there are periods

when the price falls to an accept-

able level and then we buy it.

Ruslan Grabovoi, Director of Pro-

duction 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. Th e

fi sh is redder than salmon, which

appeals to the Japanese, and a

potential customer from Japan

will soon be visiting the new pro-

cessing plant. Th e smoked items

have generated interest among

potential customers in Germany,

Denmark, Sweden and France

already and the company is hope-

ful 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

Th e shelf life of smoked products

is on average 24 days, more if the

product has a higher salt con-

tent or if it has been treated with

preserving agents. Some custom-

ers, 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 suffi cient

for their requirements.

Avektra like all salmon proces-

sors needs to work constantly

on developing new markets and

fi nding 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. Th e 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.

Ruslan Grabovoi, Production and Quality Department Director, Avektra

AvektraPunane 72A

EE 13619 Tallinn

Estonia

Tel.: +372 602 47 77

[email protected]

www.avektra.ee

Commercial director: Gennadi

Smelov

Production and quality depart-

ment director: Ruslan Grabovoi

Products: Frozen fi llets, portions,

loins; smoked, marinated,

salted fi sh

Fish: Salmon (80%), sea trout

Packaging: Vacuum packaged, MAP

Certifi cation: 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

A selection of Avektra’s vacuum packed portions marinated in

different BBQ sauces.

08_ESTONIA.indd 57 28/03/15 9:41 AM


European Seafood Exposition: Has a new name from 2014

Technology: Cooking machinery for the processing industry

ISSN 1868-5943 June 3 / 2013 C 44346

Aquaculture: Which new species today show the most potential?

Investments in trout farming sharply boost

production

Romania

The fisheries and aquaculture sectorin Europe,brought to you by EurofishMagazine.

Eurofish International OrganisationH.C. Andersens Boulevard 44-46

DK-1553 Copenhagen V, Denmark

Tel.: +45 333 777 55Fax: +45 333 777 56

[email protected]




Projects: Super cooling may increase quality



Perch, the most valuable coastal

species

Estonia


21-23 April

08_ESTONIA.indd 58 27/03/15 7:59 PM

http://issuu.com/action/openurl?url=www.eurofishmagazine.com

[ TECHNOLOGY ]

Plastic 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 how-

ever other models whereby com-

panies 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 ser-

vice 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 Nor-

wegian fishing companies to start

a service called iTUB, which rents

tubs to the European fishing indus-

try for use at sea and on land. The

tubs are tough insulated contain-

ers 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

iTub rents out insulated containers to the fishing industry

Plastic bins as a service rather than a productOne 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.

is unlikely to ever replace owning

tubs, but the two systems will co-

exist and complement each other,

feels Mr Gudmundsson, as compa-

nies’ needs change over time. Some

companies indeed prefer to out-

source 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 Gud-

mundsson, 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 trans-

port, and, being recycleable, are

environmentally more benign than

containers that are not. The com-

pany 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 cli-

ents using iTUB the greater are the

potential savings as tubs are trans-

ported from one end of Europe to

another and back full of product in

both directions.


Hilmar Gudmundsson

Managing Director

iTUB Iceland

Gunnarsbraut 12

IS-620 Dalvik

Phone: +354 460 5041

[email protected]

www.itub.no

by users over the Internet. The

whole system runs with Promens’

proprietary MIND software. MIND

is automatic tracking and manage-

ment system ensures traceability

and real-time tracking of the con-

tainer. It also monitors the continu-

ous 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 expendi-

ture of a company, allowing it to

invest the money that would oth-

erwise 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 com-

pany 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.


09_TECH.indd 59 27/03/15 11:04 AM

Seabass and seabream production growth in Turkey throttled back

Turkish expansion strategy set to pay offThe 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.

A number of factors have

contributed to the Turkish

success. For one thing, Tur-

key’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 sub-

stantial investment and govern-

ment 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 counter-

parts in many cases, leading to a

steady influx of Turkish fish into

established and emerging mar-

kets alike. More recently, the Rus-

sian ban on imports of seafood

products from a range of West-

ern 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.

The fourth quarter of 2014 con-

tinued to be a stable period for

Turkish seabass and seabream

producers. Average prices (domes-

tic and export) for both spe-

cies were stable during the last

quarter of the year. The end of

year f estivities period in Europe

boosted the exports in the lat-

ter part of December. Seabream

sales were strong for 300-400g

and 400-600g fish during Decem-

ber and 2013-generation sea-

bream 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

Turkish exports of seabass and seabream to Spain, Italy, the UK and other countries have been increasing

at the expense of Greek suppliers.

producers in 2015 are bio-tech-

nical 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 alter-

natives (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 pro-

duction 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 cre-

ate an advantage for producers

with shorter grow out periods.

In Greece, meanwhile, com-

panies continue to focus on

debt servicing strategies and

corporate restructuring in an

attempt to return to profitability.

Progress is being made, how-

ever, and this year there have

been a number of reports of

reduced losses. Medium-sized

Kil

ic

[ TRADE AND MARKETS ]


10_TM.indd 60 27/03/15 11:22 AM

companies remain mostly

profitable however. Though there

are multiple underlying fac-

tors, higher international prices

for gilt-head seabream, the pri-

mary 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 sea-

bream.

Italy has segments for Turkish, Greek and

Italian fish

Greek producers will have been

somewhat relieved by the resi-

lience of the Italian market in

2014, which has traditionally

been the most important desti-

nation for Greek bass and bream.

Italian figures show approxi-

mately 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 produc-

tion in 2014 should also be taken

into account. Also, Italian buy-

ers 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 retail-

ers use three product categories

for the farmed fish; the large

Stable production could mean higher prices as

markets pick up

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 sea-

bass. 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 sup-

ply. 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 ben-

efits 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 impor-

tant 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.

Several improvements necessary to secure the

sector’s future

Despite the more positive out-

look, 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 iden-

tify the key issues that need to be

addressed. Although a diverse

selection of different topics were

discussed, participants empha-

sised the need for increased

investment in research and devel-

opment activities; better collabo-

ration and collective marketing

strategies; product diversification;

improved data collection and dis-

semination; and better environ-

mental management regulations

and practices.

The general feeling amongst the

participants at the workshop was

that, although the sector has strug-

gled 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 foun-

dation to support and encourage

the sustained growth of the indus-

try in the future. FAO Globefish

volume and low priced Turkish

origin, Greek product as stand-

ard, 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 Tur-

key, 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 Sep-

tember. In 2012, this propor-

tion 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 promot-

ing 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, par-

ticularly for bream, is supplied

by capture fisheries, for which

up-to-date price and produc-

tion 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 mar-

ket, although here also we may

observe a steady shift in importer

preference toward cheaper Turk-

ish 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.

Cro

mar

is

[ TRADE AND MARKETS ]


10_TM.indd 61 27/03/15 11:23 AM

GUEST PAGES

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.

Investments in research for greater value addition

In the European seafood sector there is increasing focus on add-ing more value to the raw mate-rial 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 encour-aging this development?

Strong export-orientation has

ensured the competitiveness and

economic success of the Esto-

nian 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 state-

of-the-art technology, whereby we

have managed to compete effec-

tively with other countries in the

Baltic Sea region. We have experi-

ence 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 sanc-tions imposed by Russia on EU (and other) countries affected the Estonian seafood sector? As an organisation representing the

interests of the fishing and aqua-culture industry, what steps is the Estonian Association of Fish-ery taking to mitigate the loss of this important market?

Lennar Meri, the former Presi-

dent of Estonia, has said, “The sit-

uation 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 coun-

ter-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 pos-

sible to sell canned fish and pre-

served fish to Russia. Simply put,

sale of Estonian sprat and spiced

Baltic sprat is possible for com-

panies that have been granted

permission by Rosselhoznadzor

(the Federal Service for Veterinary

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

markets overseas.

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


12_GuestPage_Last_Page_Intrw.indd 62 27/03/15 11:28 AM

GUEST PAGES

and Phytosanitary Surveillance of

Russia). Sales of other fish prod-

ucts 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 quanti-

ties for 2014 totalled 1,500 tonnes

to the African continent – Ghana,

Benin and Nigeria. Export to Cen-

tral-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 fro-

zen 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

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 oppor-tunities facing the Estonian processing sector today? What does the sector need to do to combat these threats and how can it best exploit the opportu-nities?

The Estonian fisheries sector

should make maximum use of the

opportunities offered to the sec-

tor 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 enforc-

ing rules, not to performance.

Unfortunately, we have officials

who cannot comprehend what

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 consump-

tion 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 pro-cessing industry has been par-ticularly 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


mainly for human consumption,

not for producing animal feed.

Sorted, good quality and good fro-

zen and packaged Baltic sprat and

Baltic herring is used as raw mate-

rial in canned fish factories, and

the price per tonne for this prod-

uct is one the rise. In 2007, a tonne

cost € 250, the current tonne price

is € 500 and demand exceeds sup-

ply. All of this was made possible

thanks to skilled investments, in

the course of which, fish process-

ing complexes based on modern

and state-of-the-art technologies

were established by using the

opportunities provided by the

European Fisheries Fund.


are still cheap raw materials. Sci-

ence must be implemented to

add value to cheap raw materi-

als. 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.

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.

business is. The arbitrary actions

of these officials in interpretation

of laws and establishing restric-

tions on the activities of compa-

nies 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 meas-

ure, 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 mar-

kets. Risks on different markets

must be divided into reasonable

sections. We must not be depend-

ent 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 poten-tial of other markets for Esto-nian seafood. Which would you say are the most promising mar-kets and why? While attending exhibitions is one way of show-casing Estonian seafood what other tools are used to promote the sector and its products inter-nationally?

The Estonian Association of Fish-

ery has participated on interna-

tional trade fairs in Europe, North

America, China, Japan, Russia,

etc. I regard the Brussels expo the

event of the year for the fisher-

ies sector. We have received the

most contacts and agreements,

and new export opportunities in

Brussels. I find the African mar-

ket promising. Africa’s economic

growth is impressive and with

the economic growth, the finan-

cial soundness of the population

in terms of consuming fishery



GUEST PAGES

We, in Estonia, say that with fish,

a fisherman is also selling trust.

That means good product qual-

ity, timely deliveries and a wide

selection of fishery products. It

is important that a good story

accompanies good fishery prod-

ucts. While most people are famil-

iar 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 Swit-

zerland, our perch fillet is popular

in North America, and Baltic her-

ring rolls produced by us are con-

sumed in Australia.

A high-quality product is not

enough. We need to come up

with a story to go with the prod-

uct. 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 pro-cessors have to adapt. Over the last few years what would you consider the most important changes in terms of product development that the process-ing 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 pro-

cessing 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 dif-

ferent salmon and rainbow trout

products has increased in Estonia.

Salmon and rainbow trout are easy

to prepare without any specific

cooking skills. The consumer is

afraid of using freshwater fish in

food. It makes sense – expensive

raw materials makes one worry

more. The consumer is very price-

sensitive at the moment. Cheaper

fishery products continue to be

purchased. Industries are focused

on the price sensitivity in its prod-

uct development. This is not an

easy task; while no compromises

may be made in quality, the price

of the product must still be accept-

able to the consumer. We expect

a rise in fish consumption on the

Estonian market. Before the eco-

nomic boom, per capita fish con-

sumption 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-Euro-pean fisheries and aquaculture trade, and how does the Associ-ation 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 possi-

ble to enter into free trade agree-

ments with third countries. The

European Union is one of the

largest seafood consumers and

the European consumer would

benefit from the free trade agree-

ments. It should be possible to

exchange fishing quotas between

the member states of the Euro-

pean Union without excessive red

tape and time losses. The Euro-

pean Union should give Member

States greater freedom in making

fisheries-related decisions.

The need to more closely inte-grate the research community in to product development,

greater value addition, energy efficiency, and reduced environ-mental impact among others, can be seen in the seafood sec-tor in a number of countries. How does the Estonian sea-food 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 key-

words 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 com-

petitiveness of companies. Unfor-

tunately, the consumer sets the

limits. The scope of investments

depends on the price of the prod-

uct, i.e. the sum of money that the

consumer is willing to pay for the

product. Currently, the consumer

prefers the price rather than qual-

ity or added value. As consump-

tion increases, companies have an

opportunity to include innovation

into product development.

The aquaculture sector in Esto-nia 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 sup-ply large volumes. What would be the best way to increase prod-uct 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 enter-

prises for whom fish farming is a

way of life and a hobby, not busi-

ness. Such companies find it very

difficult to compete with Scan-

dinavian fish on the market; the

cost price of fish farmed in Estonia

exceeds the price of imported prod-

ucts, 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 quan-

tities – 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 anni-

versary of the foundation of the

Estonian Association of Fish-

ery. The Estonian Association of

Fishery, which represents fish-

ers, 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 repre-

sentative organisation that the

state of Estonia considers an

equal partner. In cooperation

with the state, the Estonian Asso-

ciation of Fishery has created a

stable economic environment,

where it is possible to develop

and ensure economic sustain-

ability for the coming decades.



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Projects: Super cooling may increase quality



Perch, the most valuable coastal

species

Estonia


21-23 April

Eurofi sh Magazine eurofi sh.dk

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Perch, the most valuable coastal species

Estonia


21-23 April

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eurofish magazine 2 2015

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