Industry handbook. The White Fish Industry 2015

Transcription

1 Industry handbook The White Fish Industry 2015 The purpose of HAVFISK Industry Handbook is to give investors, financial analysts and other interested parties better insight into the white fish industry.

2 Innhold 1 The white fish segment Whitefish White fish? A definition or clarification of the segment White fish Role in the seafood world? The most important white fish species from the fisheries The most important white fish species from aquaculture The world market for white fish substitution etc Consumption of white fish from fisheries by main markets Consumption of white fish from aquaculture By main markets How are the white fish species sold and marketed? Price comparison main commercial white fish species Availability & Management of whitefish/groundfish resources Total allowable catch (TAC) Resource Management Fisheries in the northeastern Atlantic Ocean Seasonal variations for different species Fishing gear Conventional and ocean-going fleets Fishing gear Gillnet Hook-and-line gear Jigging Trawling Seines Sustainable fisheries and health issues Sustainable catch of a natural resource Fishing gear impact on the environment Protecting coral reefs Programmes and certifications CRISP and MAREANO Marine Stewardship Council (MSC) KRAV

3 Friend of the Sea (FOS) Megatrends Health, convenience, environment and ethics Nutritional benefit from eating fish Environmental influence Industry structure for important fishing nations Industry Structure Norwegian fisheries quotas, structure, regulation, and prices Distribution in Norway conventional coastal and ocean-going fleet Regulations The Fishing Participation Act First-hand sales The Raw Fish Act Sales organisations Price settlements Fresh Frozen Fishing areas (Norwegian coast, Barents Sea, etc.) HAVFISK Norwegian quota system HAVFISK quotas Obligations Higher quota ceiling for cod trawling Vessel segments New trawlers Operating pattern Products and sales Crew and expertise Safety Efficiency and costs in harvesting Outlook The Tveterås committee Sources APPENDIX

4 1 The white fish segment 1.1 Whitefish White fish? The term whitefish or white fish is a market-oriented term, referring to fish marketed for human consumption, with white flesh, and which is not oily. In white fish the fat reserves are typically in the liver, and not in the flesh and guts. 1.2 A definition or clarification of the segment In the last couple of decades, increasing availability of freshwater species from aquaculture, with the same characteristics - white flesh and fillets with little oil content - has entered and captured a large share of the white fish market segment. Pinning this down to what species of major international and commercial interest the market term white fish includes, the figure below describes this in terms of a core segment, including species both from fisheries and aquaculture, with numerous other species being more or less close to this core segment. Fisheries Aquaculture - Turbot - Patagonian Toothfish - Orange Roughy - European Seabass - Gilthead Seabream - Soles - Redfish - Plaice - Halibut - Cod - Greenland Halibut - Pollock Core - Tilapia - Carp - Wolf-fish - Pangasius - Hake - Barramundi - Monkfish White Fish - Haddock - Catfish - Ling - Tusk - Hoki Market - Cobia - Saithe - Meagre - Olive Flounder - Southern Blue Whiting - Northern Blue Whiting - Milkfish Peripheral Species White Fish Segment Source: Kontali Analyse AS 3

5 1.3 White fish Role in the seafood world? Total Seafood Resources mill tonnes Fisheries - 92,6 mill tonnes Aquaculture - 70,2 mill tonnes Pelagic marine fish 35 Carp 26,8 Groundfish 20,1 Tilapia 4,8 Other marine fish 11 Catfishes 2,7 Freshwater fish 11,2 Oth.Fresw.Fish 9,5 Molluscs/squid 6,9 Molluscs 15,5 Crust/Shrimps 6,5 Crusta./Shrimp 6,4 Salmonids 1,1 Salmonids 3,2 Other 0,8 Demersal marine 1,3 The global supply of seafood resources has increased in the last couple of decades from approximately 140 million tonnes to around 163 million tonnes in 2013, according to the FAO (excluding plants, algae and marine mammals). Of this, slightly more than 20 million tonnes of the pelagic resources are species that are not destined directly for human consumption, but go to the reduction industry where they are converted to fishmeal and fish oil. This leaves around million tonnes of seafood for human consumption. There is a general understanding that the degree of uncertainty in the statistics is higher in reported figures from regions where the fishing is done by small coastal fleet operators, and where the fisheries are not regulated by quotas or other restrictions. This often corresponds to areas where there is also very limited registration of data or volumes at landing auctions or market auctions. A number of freshwater carp species dominate the volume arising from aquaculture, but this is normally produced, marketed and sold very locally, much of it in China and other Asian countries. Besides this, the categories where we typically find the species competing in the white fish segment constitute around 50 million tonnes globally, include several hundred different species, and are outlined in blue in the figure above. The most commercially traded of these species represent some million tonnes, and will be the basis for the further analysis in this guide. 4

6 Main Commercial white fish Species E Catch 7,2 mill mt Aquaculture 10,8 mill mt Alaska Pollock 48,8 % Tilapia 50,3 % Hake 14,5 % Pangasius/Catfish 42,1 % Atlantic cod 16,8 % Seabass/Seabream 5,3 % Pacific cod 6,8 % Olive Flounder 0,4 % Haddock 3,8 % Cobia 0,4 % Saithe 3,9 % Barramundi 0,7 % Hoki 3,3 % Turbot 0,7 % Southern Blue Whiting 0,9 % Source: FAO, Kontali Analyse Mill tonnes Development and estimates - world catch and aquaculture prodiction source: FAO Aquaculture Catch Estimates Since the beginning of the 1990s world fisheries have ranged between 85 and 95 million tonnes. It is not expected that world fisheries will increase as the stocks are considered to be fully utilised. The annual growth in the aquaculture sector has been between 5-7% annually in the period from 2000 to 2013, and reached 70 million tonnes in volume in According to the FAO it is the fastest growing food producing sector worldwide. World aquaculture is heavily dominated by Asia-Pacific production. The dominance is mainly because of China s enormous production which in 2013 accounted for 60% of global production according to FAO. There is expected to be continued growth in the aquaculture production. The question is how strong this growth will be the coming years. The world population is growing and demand for food fish will increase. If the world population is to maintain a per capita consumption on today s level in the future, the increase will have to come from the aquaculture industry. Global annual per capita fish consumption is expected to increase from about 19 kg in 2011 to kg by 2030 (FAO). If we assume a growth in the aquaculture production of 4.5% the next 20 years, total catch and aquaculture production will reach 276 million tonnes in Most experts on aquaculture business predict that the production growth will slow down and become weaker in the coming years. 5

7 If we assume an average growth in aquaculture production of 2% a year, total catch and aquaculture production will still reach 185 million tonnes in Catch from fisheries and aquaculture production Est White fish from Aquaculture White fish from Fisheries 1000 tonnes round weight Annual growth 01-10: 14 % Annual growth 01-10: 0,7 % Annual growth 10-15E: 7 % Annual growth 10-15E: 2,2 % Source: Kontali Analyse Est 2015 Est Looking particularly at the white fish species during the last three years of the last decade, there has been a shift from a situation where strong growth in white fish species from aquaculture balanced out a decline in catches of groundfish species, to the current trend with growth in farmed whitefish. The availability of groundfish has also been increasing. The total supply of these selected white fish species has been increasing over the last decade, also including the current estimate for the 2013 and 2014 supply. 6

8 1.4 The most important white fish species from the fisheries White fish catch E Alaska Pollock Hakes Atlantic Cod Haddock Saithe Source: Kontali Analyse Pacific Cod Hoki The seven most important white fish species from fisheries accounted for more than 7 million tonnes in Alaska Pollock, which is one of the world s largest fisheries in terms of volume, accounted for 47% of the volumes. Atlantic cod and hake followed as numbers two and three. Alaska Pollock is a native species in the Bering Sea with the US and Russia being the two largest fishery nations representing nearly 90% of the total catches. Atlantic Cod is the main commercial white fish species in the North Atlantic with Norway, Russia, Iceland and the EU as the main players. Haddock and Saithe are also among the main white fish species in the Northern Atlantic fished by Norway, Iceland, Russia and the EU. In 2014, total supply of the main white fish species from fisheries remained at 2013 levels. Nation Alaska Pollock Catch by nation and species 2014 Atlantic cod Hake Saithe Haddock SBW Pacific cod Hoki TOTAL E 2015 Chile Argentine USA Canada Russia Norway Iceland Faroe Islands EU Namibia South Africa Japan/S-Korea New Zealand Others Total Source; National statistics/ka-est. 7

9 Photo: Stian Skjong 8

10 1000 tonnes Annual catch main catching nations EU - selected species (cod, haddock, saithe, hake) 0 France UK Spain Denmark Germany Poland Sweden Portugal Others Source: Fkd The largest fishing nations in the EU in the case of cod, haddock, saithe and hake are the UK and France. Total catches have varied between 80,000 and 90,000 tonnes over the last four years, of which cod and haddock constitute the largest share. France, Spain, Denmark and Germany are other important white fish nations. In Denmark and Germany, cod constitutes the largest share of the catches. In France and Spain it is the hake catches which make up the largest share of the volumes E 2015 E 2016 E 1000 NOK Alaska Pollock Source: Kontali Analyse Main whitefish fisheries by first hand value E Atlantic cod Hake Haddock Saithe Pacific cod Estimated first hand values for the different white fish species are calculated on basis of an average estimated first hand price. The two most important commercial species in terms of value are the Alaska pollock and the Atlantic cod. The Alaska pollock fishery is estimated at over NOK 16 billion followed by the Atlantic cod which is 2 million tonnes smaller in volume than the Alaska pollock. The haddock and saithe species in the North Atlantic are normally lower priced than the Atlantic cod and Hoki SBW 9

11 also less important in terms of volume. Haddock and saithe prices have increased strongly in recent years and haddock prices in Norway have been higher than cod at times. Estimated total haddock value exceeded NOK 3.7 billion in 2014 while estimated saithe value was approx. NOK 2.5 billion. Total first hand value of pacific cod was approx. NOK 3.3 billion in 2014 while the hoki catches were estimated to be above NOK 1.4 billion in first hand value. mt Other Species, North Atlantic 2014E Catch Value NOK Source: Kontali Analyse There are a number of other species defined in the white fish segment which are of vital commercial interest in certain areas, mainly in the North Atlantic. Some of the catches of these species are taken directly while some of the volumes are caught as by-catch. Main catching nations are mainly the same as for other groundfish in these areas, namely Norway, Russia, the EU, Iceland and the US. Redfish is the largest of these selected species in terms of volume and value. Approximately 120,000 tonnes were caught in 2014 and estimated first hand value was over NOK 1.4 billion. The first hand value of Greenland halibut was slightly below the value of the redfish catches in The third largest fishery in terms of value is the monkfish which is highly valued species. Monthly share of total catch ( ) 25,0 % 20,0 % 15,0 % Pollock Hake 10,0 % At. Cod 5,0 % 0,0 % jan mar mai jul sep nov Haddock Saithe Pacific cod Hoki Source: Kontali Analyse There are variations in the seasonal catch pattern between the different species. One third of the total whitefish catch is landed during the three first months of the year. Alaska pollock, Atlantic cod, 10

12 saithe, and Pacific cod have their main season at the beginning of the year, while haddock and hake are more evenly distributed throughout the year. The main hoki season is May-July, with a slight increase also in December. Photo: Harald Petersen Photo: Peder Otto Dybvik 11

13 The most important white fish species from aquaculture Aquaculture 50 production E Tilapia Pangasius/Catfish Seabass / Seabream Cobia Barramundi Turbot Source: Kontali Analyse Aquaculture remains a growing production sector, although it has slowed down compared to what we have seen the last three decades. The growth from 2000 to 2013 remained stable between 5 and 8% per year. Production from aquaculture is mostly destined for human consumption. The most important species defined in the white fish segment are the tilapia and pangasius/catfish species. Tilapia is the largest and production in 2014 is estimated to exceed 5.4 million tonnes. Tilapias are mainly produced in Asia and in some African countries. China, Egypt and Indonesia are the largest producers. China accounted for approx. 2.9 million tonnes in Pangasius, or pangas catfish as it is also called, is well known from the aquaculture industry in Vietnam, but there are also a number of other species in this category which has seen a large growth in production in the last 5 10 years. According to the FAO, pangas production in Vietnam was approx. 100,000 tonnes in In 2013 the production was calculated at more than 1.8 million tonnes. Sea bass/sea bream production is takes place mainly in the Mediterranean area and the main producers are Turkey, Greece, Spain and Egypt. 12

14 2 The world market for white fish substitution etc. 2.1 Consumption of white fish from fisheries by main markets The EU is by far the most important market for the wild-caught white fish species. Approximately 47% of the estimated total white fish supply ends up in the EU market. This constituted 3.2 million tonnes round weight of fish in The global volume of groundfish - Where is it consumed? (2014 E) 50 % 45 % 47 % 40 % 35 % 30 % 25 % 20 % 15 % 10 % 5 % 0 % 14 % 12 % 9 % 8 % 7 % 5 % 2 % EU North America Asia Russia South America Japan Africa Others Source: Kontali Analyse The EU market as a destination for the ground fish species is especially important for the cod. This is primarily the case for Atlantic cod, but a large part of the available supplies of Pacific cod also has the EU market as its final destination. In 2014, 82% of the Atlantic cod ended up in the EU while approx. 18% of the Pacific cod were consumed in this market. Nearly 1.1 million tonnes of different cod products ended up in the EU market in The main suppliers are Norway, Iceland, Russia, the Faroe Islands and China. The fish from China is of European origin as large volumes of frozen cod are shipped from Europe for further preparation and end up in the EU market. Share of total global catch consumed in the EU in 2014 E 100 % 90 % 80 % 82 % 70 % 60 % 50 % 40 % 30 % 20 % 38 % 18 % 46 % 45 % 52 % 29 % 47 % 10 % 0 % Alaska Pollock Atlantic cod Pacific cod Haddock Saithe Hake Hoki SBW Total 0 % Source: Kontali Analyse 13

15 A large share of the other ground fish species fished in the Atlantic Ocean like haddock and saithe also ends up in the EU market. Between 40% and 50% of the total catches of haddock, saithe and hake end up in the EU market. This is perhaps not so surprising for saithe and haddock, as all of this is caught in the North Atlantic. But for hake, where less than 10% of the global catch comes from European waters, it is the strong Spanish, and to some extent French, preference and demand for hake that is the main driver behind this trade flow. The figure below shows an estimated breakdown of whitefish consumption in the EU. These figures are not 100% accurate, but estimates based on trade and catch statistics. EU country split - whitefish consumption tonnes R.W. White Fish Cod Alaska Pollock Haddock Saithe Hakes Hoki Total Germany UK Spain France Scandinavia (SE, DK, FI) Poland Be/Ne/Lux Portugal Italy Others Top 3 Markets 1 Germany UK Germany UK Scandinavia Spain France 2 UK Spain France Scandinavia Be/Ne/Lux Italy Scandinavia 3 Spain Scandinavia Poland Be/Ne/Lux France Portugal Poland Source: Kontali Analyse How is the fish consumed in different countries? There are other characteristics of the European markets, apart from these species preferences, which for instance distinguish the French market from the German, the Portuguese market from the Spanish etc. Germany is perhaps the market in Europe where sales of fresh or chilled fish have the lowest representation, with a correspondingly high share of retail distribution being as frozen fillets and fillet portions. This is not the case only for white fish, but also for other seafood. The Spanish market is more diversified when it comes to white fish products. Large supermarkets such as Carrefour, Alcampo and El Corte Ingles offer a wide range of frozen, fresh and processed products. In the UK there it is mainly frozen fillets and value-added products such as breaded and battered products that are to be found on the fish counter. 14

16 In France we find fresh and frozen fillet products as well as a variety of value-added consumer packages. In Portugal and Italy there are mainly conventional products such as salted and dried white fish. Clipfish, photo K. Gjertsen Dried fish/stock fish, photo: Mediebank, Brandmaker 2.2 Consumption of white fish from aquaculture By main markets The global volume of the selected aquaculture species - Where is it consumed? (2014 Est.) 50 % 45 % 45 % 40 % 35 % 30 % 25 % 20 % 15 % 13 % 11 % 12 % 9 % 10 % 8 % 5 % 1 % 2 % 0 % Other Asia Africa North Latin America EU Russia Japan Other Source: Kontali Analyse America Globally, approximately 10 million tonnes of white fish are produced from aquaculture. Between 45% and 50% of this is consumed by the Asian producing countries. The existence of strong white fish consumption in Asia, Latin America and Africa is a result of substantial domestic production also having built up local markets. The North American market also plays an important role for both catfish products and for tilapia. Tilapia is the main aquaculture product in the US, being primarily supplied as frozen fillets from various Asian producing nations, as well as a steady flow of fresh airborne fillets entering the market from Central and South American producers. 15

17 The EU market has been the main destination for the local aquaculture species European seabass and Gilthead seabream, for local marine species such as cod and corvina/meager, as well as the higher priced flatfish species turbot and halibut. It has also been the most important export destination for the pangasius farmed in Vietnam, resulting in a growth in farmed white fish volumes going into the EU in the last decade. It is especially the fillet products which have shown a strong growth to this market. The supply of frozen fillet products from white fish to the EU markets was approx. 520,000 tonnes in In 2014 the volumes had increased to approx. 930,000 tonnes tonnes Fresh water fillets import EU Tilapia fillets Pangasius fillets Source: Kontali Analyse 1000 tonnes % 23% Estimated distribution of Consumption E Selected white fish Species from Fisheries & Aquaculture White fish from Fisheries White fish from Aquaculture % 9% 8% 4% 4% 10% 0 Other Asia EU North America Source: Kontali Analyse Africa Latin America Russia Japan Other The figure above shows that Asia is the largest white fish consumer, when we include products from both fisheries and aquaculture. Over 5.8 million tonnes of white fish products were consumed in Asia (other Asia + Japan) in The consumption in the EU was close to 3.9 million tonnes. 16

18 2.3 How are the white fish species sold and marketed? White fish product share 9 % 4 % 5 % 2 % 9 % Fresh Fresh Fillets 19 % Salted dried / Stockfish Frozen fillets / Blocks Frozen whole 52 % Surimi Source: Kontali Analyse Other Prepared A growing trend is a greater demand for fillet and fillet products. In % of the total ground fish species were sold as frozen fillets either singly or in blocks. Whole frozen white fish accounted for 19% of total sales in A large part of the whole white fish products like Atlantic cod and Alaska pollock is distributed to China and the Eastern European countries for further preparation and ends up in the EU and the US markets as frozen fillets. The EU market is a large consumer of fresh whole fish and fresh fillets. But with a low level of selfsufficiency in seafood, it is dependent on imports from other nations. The fresh fish is mainly supplied from Norway, Iceland and the Faroe Islands. The fresh fish segment constituted approx. 7% of the total ground fish markets in The salted dried (clipfish) and stockfish products made from cod and saithe mainly from Norway and Iceland are sold in traditional markets in Portugal, Spain, Italy, Brazil and African countries. These markets have long traditions of consuming such products. In 2014 approx. 9% of the total ground fish species were sold salted or dried. 17

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22 2.4 Price comparison main commercial white fish species As the figure below demonstrates, Atlantic haddock was the most expensive white fish species in the selected range in Even though the Alaska pollock is the most valuable species, it is relatively far down on the price ladder compared to the more expensive species. Tilapia and pangasius, the main species from aquaculture, are also found near the bottom of the ladder. In 2015 Atlantic cod has switched places with haddock at the top of the ladder, which is the normal situation when we look at historic prices. 21

23 3 Availability & Management of whitefish/groundfish resources 3.1 Total allowable catch (TAC) 1000 tonnes Catch vs TAC, main commercial white fish species TAC Catch Source: Kontali Analyse, FAO, National statistics The total allowable catch (TAC) is the catch limit which applies to the largest commercial fishing stocks. The fishing stocks are increasingly subject to regulation and monitoring and many of the most important ground fish species are strictly regulated. The figures shows TAC for the selected white fish species in total compared to total catch for the same species. Since 2006 it appears that the total catches have been below the total TAC. After some years with decreasing ground fish resources, both TAC and catches increased in 2011 and the subsequent years. TAC and catches in 2014 then remained stable compared to the year before. 22

24 The TAC for haddock has dropped every year since 2012, while the saithe quota decreased from 2013 to The Alaska pollock quota and the Atlantic cod quota have increased in recent years. However, a slight decrease in the Atlantic cod quota is expected this year, but the quota will remain high for many years because of a strong resource situation. 3.2 Resource Management Determination of quotas for species in the North Atlantic In the last 30 years there has been a change from almost free access to our common fishery resources towards a regulated industry with quotas and restrictions on access to fisheries. Each nation s quota is decided on the basis of an agreed TAC (Total Allowable Catch) which the fishery nations decide through their common fishery agreements. There are annual negotiations on quotas for the various species. The agreement establishes and regulates the amount of the given quota that each country can fish in its respective zone. The national quotas are distributed by each nation between the different fleet groups and down to vessel level. ICES (International Council for the Exploration of the Sea) The International Council, ICES is an independent, scientific organisation which provides advice on the allocation of fishing quotas (TAC) ACFM (Advisory Committee on Fisheries Management) is an advisory committee under ICES. ACFM collects scientific background material from the member states and provides annual advice on sustainable catches of major fish species in the northeastern Atlantic Ocean. Based on this advice, each fishing nation, together with its relevant negotiating partners, determines the size of the annual total quotas for the various species. Great importance is attached to advice from ICES. Norway Russia The largest fish stocks in the Barents Sea have a distribution covering the Norwegian and Russian 23

25 zone and the fisheries protection zone around Svalbard. The most important common stocks are the Norwegian Arctic cod, Norwegian Arctic Haddock and capelin. Norway and Russia have established a joint Norwegian-Russian Fisheries Commission where the quotas in the Barents Sea are determined annually by Norway and Russia. Total quotas set by Norway and Russia in the Fisheries Commission are based on the recommendations on taxation levels prepared by ICES. In addition to Norway and Russia, the EU, the Faroe Islands, Greenland and Iceland are also allocated quota shares in the Barents Sea through bilateral quota exchange agreement with Norway and Russia. Norway - EU Norway and the EU have annual quota negotiations on Norwegian and EU fisheries covering shared and exclusive stocks in the North Sea, Norwegian fishing west of the British Isles and in Greenland and EU fishing in the Norwegian economic zone in the Barents Sea. Norway - Faroe Islands Following an agreement signed in 1979, Norway and the Faroe Islands have an annual quota agreement for the exchange of fishing quotas in each other's economic zones. The agreement regulates the exchange of quotas on exclusive populations. Norway - Greenland Following an agreement signed in 1991 Norway and Greenland established on annual quota agreement regarding fishing in each other's economic zones. 24

26 3.3 Fisheries in the northeastern Atlantic Ocean The map shows fisheries zones in the Atlantic Ocean. Source: Directorate of Fisheries 25

27 3. 4 Seasonal variations for different species 25.0% Monthly share of total catch 20.0% Pollock Hake At. Cod Haddock Saithe Pac. Cod Hoki 15.0% 10.0% 5.0% 0.0% Jan Feb March April May June July Aug Sept Oct Nov Dec Source: Kontali Analyse There are variations in seasonal catch pattern between the various species. One third of the total whitefish catch is landed during the first three months of the year. Alaska pollock, Atlantic cod, saithe, and Pacific cod have their main season in the beginning of the year, while haddock and hake are more evenly distributed throughout the year. The main hoki season is May-July, with a slight increase also in December. 26

28 4 Fishing gear 4.1 Conventional and ocean-going fleets Conventional fleets (coastal fishing fleets) operate near the coast, often using ordinary and traditional fishing gear. They include vessels under 15 metres. There are also some larger coastal vessels that might operate far from the coast. Conventional fleets sell to nearby production facilities and mainly deliver the catch fresh. Ocean-going fleets have larger and more capital-intensive vessels. Equipment used by ocean-going fleets (above 20 metres) includes trawls, seines and hook-and-line gear. These vessels can travel considerable distances to deliver their catches. Trawlers might deliver their catches fresh/chilled on ice or/and frozen depending on the equipment on board. Some vessels have factories to process and freeze the fish in consumer packaging on board. Ocean-going fleets help fishing plants to maintain stable deliveries of fish all-year-round. 4.2 Fishing gear There are many different types of fishing gear. Some are adapted to certain species on the basis of the species special characteristics, such as their behaviour or their feeding, spawning and migration patterns. The main types used in Norwegian waters are gillnet (bottom-set gillnet, midwater gillnet and drift net), hook-and-line gear (lines, jigging and trolling lines), trawls (bottom, pelagic and semipelagic trawls), seines (Danish and Scottish seines), closing nets (purse seines, shore seines) and other fishing gear (such as lobster/crab pots, fish traps and shell scrapers). The main groups of fishing gear are divided into passive and active gear. With Passive fishing gear, the fish must seek out the gear in order to be caught, such as longlines and gillnets, whereas active fishing gear has to seek out the fish in order to catch it, such as trawls, closing nets and seines. Gillnet Gillnet fishing has a long tradition. Today it constitutes the most important fishing method for much of the Norwegian fishing fleet. Gillnets are principally used by the coastal fishing fleet, but also by larger ocean-going vessels. Fish generally caught in gillnets include cod, saithe, Greenland halibut, redfish, ling and monkfish. A gillnet is roughly speaking a piece of net (mesh) with floaters attached to the top and weights at the bottom. A distinction is made between various types of gillnet fishing, such as bottom-set gillnet fishing, midwater gillnet fishing and drift-net fishing. 27

29 Illustration of a chain of gillnets (Directorate of Fisheries/ NPD) Coastal gillnet fishing vessel (smack) Ocean-going gillnet fishing vessel (combined longline and gillnet) Illustration of net fishing vessels (Directorate of Fisheries/ NPD) Hook-and-line gear Hook-and-line gear is a term used for various types of fishing gear which can be divided into two main groups: longlines and trolling lines. The longlines category contains a number of variants such as mid-water lines, stake lines, boulters, bottom-set longlines, etc. There is a long tradition of fishing with bottom-set longlines in the Norwegian fishing fleet, and it is an important type of fishing gear for both the coastal fleet and the ocean-going fleet. The main species for which longline fishing is used are cod, haddock, Greenland halibut, ling, tusk and catfish. 28

30 Illustration of a longline during hauling (Directorate of Fisheries/ NPD) Longline fishing itself takes place in basically the same way as gillnet fishing, though with greater differences between the ways in which coastal vessels and ocean-going autoline vessels fish. On an average 4-6 week trip, an ocean-going autoline vessel is usually in operation 24 hours a day, seven days a week. An autoline vessel sets and hauls between 30,000 and 50,000 hooks per day. It is not usual to set all the hooks on one stub (35 40 nautical miles). The stubs are usually divided into lengths of 8 10 nautical miles. Some fisheries divide the stubs into even shorter rows, increasing the number of stubs in the area. A coastal vessel may also operate on a 24-hour basis using an autoline (automatic baiting), but their trips are shorter (from one to a few days) because of the need to deliver fresh fish. However, most coastal line fishing is based on manual baiting on shore. The vessel will bring ready-baited lines to the fishing grounds and set the line in one or more stubs. After leaving the lines in the water for some time (variable), the line is hauled in and the vessel returns to shore. Jigging A jig is a hand line with a weight at the end and hooks attached to the line above the weight. The number of hooks varies. Jigging with a hand-held jig still takes place, but this type of fishing is now largely mechanical, using a mechanical jig. This operates by hauling in some of the line and then letting it out again a process that is repeated until the fish load reaches a certain pre-set value, at which point the jig is then hauled to the surface. Photo of vessel cod fishing with mechanical jig (Directorate of Fisheries/ NPD) 29

31 Trawling A trawl is a tunnel-shaped fishing net which is towed through the water. The water strains out through the mesh, trapping the fish and retaining them in the end of the trawl. Historically, trawling is a new method, having started about 100 years ago. Since then there has been significant development in terms of methods and equipment, particularly with regard to the size of the trawl and specialisation according to the species to be caught. Fish behaviour, seabed conditions, selection devices (grating and mesh selection) and the vessel s engine power are all considered. The pulling speed during trawling ranges from 1.5 knots to 5 knots. Smaller shrimp trawlers travel at the lowest speed, while larger whitefish trawlers and pelagic trawlers travel at the highest speed. Sorting grid One element in trawling is a sorting grid, which is used to avoid catching fish under the minimum size. Two grids are attached to the opening of the trawler bag so that fish below a particular size go back to the sea, while larger fish are caught. Two main uses of trawls have developed: bottom otter trawl and pelagic trawl. In addition, there is a midway solution referred to as semi-pelagic trawl. A bottom otter trawl is a trawl which is towed along or close to the seabed. The trawl s contact with the seabed is in principle limited to the yaw (bobbin chains, rock hoppers or lighter rigging) and trawl doors (otter boards). The trawl itself consists of a few main components such as the cod end (trawl bag), extension and trawl net. Floats are attached to the upper and foremost part of the trawl net to provide buoyancy and to keep the trawl open. The bottom front part of the trawl net ensures that the yaw is in contact with the seafloor. Two trawl doors, to the front of each side of the trawl, keep the trawl open horizontally when towed by the vessel s trawl wire, which is attached to the trawl doors. The largest doors used today (shrimp trawl doors) weigh 4,000 6,000 kilos each and have an area of square meters. The extension of the trawl and how far behind the vessel it is towed both depend on the depth and type of trawl. Bottom-otter trawls are further divided into three main groups: A single bottom otter trawl is characterised by having one single trawl net towed by one vessel. The trawl net is kept open by two trawl doors. The size and extension of the device vary significantly. 30

32 Photo of a stern trawler and illustration of a single bottom trawl (Directorate of Fisheries/ NPD) An otter twin bottom trawl is characterised by having two trawl nets rigged next to each other horizontally and towed by one vessel. The trawl nets are kept open by two trawl doors. There is also a weight between the trawls. The size and extension of the equipment may vary. The vessel s manoeuvrability will be somewhat limited compared to that of a single bottom trawl. This type of trawling is sometimes used when trawling for cod, haddock, saithe and shrimp. Photo of an otter twin bottom trawl and illustration of a double bottom trawl (Directorate of Fisheries/ NPD) Pair bottom trawling is characterised by two vessels towing a trawl net between them. The opening of the trawl net is regulated by the distance between the two vessels, and so trawl doors are not used. When the nets are hauled in, both trawl wires are transferred to one of the vessels. Pair bottom trawling is a technique that is not used much by Norwegian vessels. In addition to the bottom trawling groups described above, there is another type of bottom trawling carried out in the North Sea. This group of trawlers and the trawling device itself is referred to as a beam trawl. The target species for this type of fishing include various types of flatfish. Beam trawling is only used by non-norwegian vessels. The fishing method is characterised by two smaller trawls being towed or, more precisely, dragged after the vessel on each side. Photo of a typical beam trawler and trawling rig towed by the vessel (Directorate of Fisheries/ NPD) Seines Seine fishing is a method which shares many of the characteristics of trawling, but which does not employ trawl doors. The difference between trawls and seines is that the trawl is towed through the water whereas seines are ideally hauled through the water. There are two types of seine fishing; Danish seine and Scottish seine. 31

33 Norwegian fishermen use the Scottish variety. Seine fishing in Norway usually takes place in the north of Norway. The extension and length of the lines vary with depth and seabed conditions. Danish seine is a type of seine fishing in which the vessel is anchored when hauling in the seine after it has been set. This is a method frequently used by Danish vessels in the North Sea. Scottish seine is a type of seine fishing that does not involve an anchor buoy; rather, the vessel is kept stationary using engine power during the hauling process. Fishing is done by launching a buoy. The vessel then feeds out a rope and launches the seine before the last piece of rope (arm) is set. Once the seine has been set, the buoy is taken on board and the hauling commences, whilst the vessel retains its position by means of engine power. Purse seine fishing has been and still is an important fishing method in Norway. There have been major developments in purse seine fishing, from cotton-thread seines and small vessels using hand power to haul in the seine, to large vessels where the hauling of significantly larger seines has been mechanised. Modern purse seine vessels are among the most efficient fishing vessels in Norway today in terms of the number of different species they catch (herring, mackerel and capelin). Many of these vessels may also be combined with pelagic trawls and some bottom trawls to catch sand eel and Norway pout. Illustration of a purse seine cast around a school of fish (Directorate of Fisheries/ NPD) 32

34 5 Sustainable fisheries and health issues 5.1 Sustainable catch of a natural resource The term sustainable is generally defined as a use or development that meets the needs of the present without thereby compromising the ability of future generations to meet their own needs. In fisheries management, this can be interpreted as continuous harvesting of viable stocks (Fisheries.no/ The Norwegian Ministry of Fisheries and Coastal Affairs). In November 2011 the entire Norwegian Fishery for cod and haddock was certified by the Marine Stewardship Council (more information below). TAC The most important element in a sustainable fishery is regulation of fishery based on examination of the stock; Total Allowable Catch TAC. Please see chapter 3.1 for more information on TACs. By-catch and discard of fish By-catch and discard of fish can be found in fisheries all over the world. Even though many countries have already passed regulations aimed at reducing discard and dealing with by-catch, these continue to be a major challenge around the world. In general there is an international consensus that discards are not consistent with sustainable management of resources. Globally, there are a number estimates for discards. In Norway there is a discard ban, and regulations are also enforced in order to prevent unwanted by-catch. EU fishermen, on the other hand, are obliged to discard fish for which they do not have quotas, but the EU has now proposed a reform with the aim of banning discards. Sorting grid The main object of a sorting grid is to prevent recruits and undersized fish from being caught, while keeping by-catch to a minimum. Please see chapter 4.2 for more information about sorting grids. 5.2 Fishing gear impact on the environment Gillnets: The anchoring of bottom gillnets may cause damage to coral formations, but the fishing gear itself is passive and there is less chance of damage than when fishing with active gear. In recent years, however, there has been a negative focus on gillnet fishing as a result of lost gillnets being left in the ocean where they continue to catch fish for years (also known as ghost-fishing). This entails a hidden exploitation of available resources and contamination of the marine environment, since modern gillnets are made from synthetic fibres that do not disintegrate in the ocean. Gillnets may be lost due to difficult seafloor conditions and bad weather. Trawling: Trawling is strictly regulated in most waters. However some believe that bottom trawling is detrimental to the environment, with a focus on three areas in particular: Since bottom trawling involves towing heavy gear along the seabed, this method can damage the seafloor and the sea-life that exists there, and concerns have been expressed about coral reefs, among other things. However, there has been considerable focus on this over the last decade, and the government, fishing companies and research companies have helped to bring about a change in fishing areas. Fishing gear has also been developed that is intended to substantially reduce damage to the environment (see below for more information about the protection of coral reefs). 33

35 An earlier problem was that trawl nets were not selective in terms of fish size, but here too an increased focus has resulted in the development of equipment which sorts out unwanted fish (e.g. sorting grids). Fuel consumption for trawlers is greater than for coastal vessels with lighter, passive gear. However, fuel consumption has been noticeably reduced over the last decade as a part of an effort by companies to reduce their fuel costs and environmental impact. The opportunity of having four quotas (up from three in January 2015) might also reduce fuel consumption if it resulted in fewer vessels in operation. Trawling also produces a greater quantity of produced tonnes of food per m3 diesel. Hook-and-line: Hook-and-line is often recognised as an environmentally-friendly fishing method because it is selective in terms of species and sizes. While corals may be damaged by anchoring and by the bottom-line, the fishing gear itself is passive and there is less chance of causing damage than when fishing with active gear. The vessels used produce a good quality catch and have relatively low fuel consumption. World-wide, however, a large number of sea-birds get caught on the hooks and drown, and for this reason hook-and-line vessels are being monitored by environmental organisations and government agencies. Seines: Seine fishing is a method which shares many of the characteristics of trawling, but which does not employ trawl doors. The trawl is hauled through the water (not towed as with trawlers). The gear can damage the sea-floor and the sea-life that exists there and the ropes used can also cause damage. However, seines have less damage potential to vulnerable ecosystems than trawlers. 5.3 Protecting coral reefs According to the Directorate of Fisheries nine coral reefs have specially protection. All fishing with bottomdragging equipment is forbidden in these areas. The implementing rules also state that special care must be taken when fishing in the vicinity of known coral reefs (the duty of care). 5.4 Programmes and certifications CRISP and MAREANO Both Norwegian and international research institutes are constantly working to find ways of improving fishing gear, quality and other issues that result in environmental gains. The Institute of Marine Research in Norway has two programmes: CRISP is a centre for research-based innovation that was set up to develop smarter technologies to meet future challenges for a sustainable and economically viable fishing industry. CRISP will focus on two main modes of industrial fishing and their products, these being trawling and purseseine fishing. Some 90% of total Norwegian landings (by weight) are caught using these types of gear. The centre aims, by means of this initiative and research strategy, to transform fisheries technology and bring the industry a big step closer to a reduced environmental impact and improved food quality. 34

36 MAREANO charts depth, bottom conditions, biological diversity, natural resources and pollution in Norwegian coastal and ocean areas. This programme also issues guidelines for the protection of coral reefs. Marine Stewardship Council (MSC) Catches of cod, haddock and saithe from Norwegian Fisheries are certified under the Marine Stewardship Council (MSC) standard for sustainable fisheries. The MSC standard was established in 1997 and it is now globally the most widely recognised environmental standard for seafood. It allows seafood to be tracked back through every part of the value chain to the sustainable fishery where the fish was first caught. MSC environmental standards are based on three main principles: 1. Fisheries must be managed in a way that prevents fish resources from being over-fished or exhausted. 2. Fishery structure, production and function must be adapted in order to maintain the diversity in the ecosystem. 3. Managers of fisheries must comply with local, national and international laws and guidelines, as well as the framework that provides for responsible and sustainable fisheries management. KRAV KRAV is Sweden s most widely recognised standard for organic food, providing certification for several products. Seafood certified by KRAV includes cod, haddock, shrimp, saithe and herring, as well as organicallyfarmed salmon, trout and cod. KRAV certification demands sustainable fishery and fishing gear that minimises by-catch while caring for the environment. There is compliance with recommendations from ICES. Friend of the Sea (FOS) is an environmental standard founded by Dr. Paolo Bray which has certified over thirty fisheries. FOS is the only certification that also covers harvesting and the production of fish meal and omega-3 fish oils. FOS makes the following demands for certification: no over-fishing, no by-catch of endangered species, fisheries must comply with laws and regulations and fisheries must gradually reduce their carbon footprint. 35

37 5.5 Megatrends Health, convenience, environment and ethics Megatrends are often defined as external factors that form a basis for and affect human actions. From a food perspective there are four megatrends that are of particular significance: health, convenience, environment and ethics. People are focussing increasingly on their health and are now more interested in organic food and environmental sustainability. Fish are an important source of protein, vitamins, minerals and omega 3 oils. Fish as a resource is able to counteract a major threat to health in the western world unhealthy diet. With regard to environment and ethics, many fisheries aim to achieve sustainability, though there are many challenges in terms of the legal harvesting of fish, discards etc. around the world. The MSC standard and other forms of certification help by rewarding those fisheries that focus on sustainability. With regard to convenience, fish can be easy and quick to prepare. An increasing number of producers are also making products and packaging that allow anyone to prepare a good meal quickly and easily. Very often a lack of knowledge of how to prepare fish is a barrier to fish consumption, and communication from the fishing industry/producers can encourage even more people to eat fish. 5.6 Nutritional benefit from eating fish White fish like cod, haddock and saithe are low fat, high protein products. The FAO stresses that Fish is food for the brain as well as good protein. Fish is a food of excellent nutritional value, providing high quality protein and a wide variety of vitamins and minerals, including vitamins A and D, phosphorus, magnesium, selenium, and iodine in marine fish. Experts agree that, even in small quantities, fish can have a significant positive impact in improving the quality of dietary protein by complementing the essential amino acids that are often present in low quantities in vegetable-based diets. Photo: Andre Steffensen 36