Fisheries and aquaculture around the Baltic Sea

Fisheries and aquaculture around the Baltic Sea

2015

THE EU PRESIDENCY

SLOVAKIA July-December 2016

NETHERLANDS January-June 2016

LUXEMBOURG July-December 2015

LATVIA January-June 2015

ITALY July-December 2014

GREECE January-June 2014

LITHUANIA July-December 2013

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Expanding opportunities in the Baltic Sea region The Baltic Sea region is an important and thriving part of the European Union. The fisheries sector is an integral part of the countries bordering the Baltic Sea, contributing substantially to national economies and forming the backbone of the region’s cultural heritage. Concentrated in coastal areas, the fishing and processing industry is vital to local economies. In past decades, fluctuations in major fish stocks have affected the economies of Baltic fisheries and fleets negatively.

However, improved fisheries management, including management plans, the maximum sustainable yield (MSY) model, discard bans, and precautionary approach when setting quotas are showing positive trends in improvement of stock status.

Local fish landings are essential to the development of the processing industry and to the availability of local products on domestic markets.

However, following the global trend of a declining supply of raw material, the region’s processing industry is increasingly dependent on imports.

Jānis Dūklavs, the Minister of Agriculture of the Republic of Latvia

The EU has established a framework for environmentally sound and sustainable aquaculture, which aims to increase aquaculture production substantially. Each Member State will determine the extent to which this can be achieved through Multiannual National Strategic Plans, in the period 2014–2020.

As the currect holder of the Presidency of the Council of the European Union, Latvia encourages the Baltic Sea region to utilise opportunities to boost development and create jobs in coastal and inland areas, and expand economic, environmental, and socially sustainable growth. Promoting fish as a healthy and nutritious food product and cultivating consumer demand will strengthen regional economies, and increase the fishery sector’s standing and growth.

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OVERVIEW The Baltic coastline is densely populated and its ecosystems are intensively used. The Baltic Sea is open to the North Sea through the Kattegat and Skagerrak straits. It includes a significant number of islands, especially off the coasts of Denmark, Sweden, and Finland. It forms two large gulfs – the Gulf of Finland and the Gulf of Bothnia – and in the south and southeast, it forms two small gulfs – the Gulf of Gdańsk and the Gulf of Riga.

Low salinity and stratification create special features in Baltic Sea ecosystems. The composition of fish species – a mixture of marine and freshwater species adapted to the brackish water conditions – changes from south to north as salinity and temperatures diminish. Cod, herring, and sprat are the main commercially valuable marine fish species. They are managed and assessed internationally. Flatfish species such as flounder and plaice are also fished, particularly in the north.

All the countries around the Baltic Sea, except the Russian Federation, are members of the European Union and have their fishing activities regulated by the EU Common Fisheries Policy. In 2009, the European Union and the Russian Federation reached a bilateral agreement governing fisheries in the Baltic Sea. Specific to the Baltic Sea region is a strong tradition of cooperation through various key organisations involved in the management of Baltic Sea fisheries. These include the Baltic Sea Advisory Council (BSAC), Baltic Marine Environment Protection Commission (HELCOM), and the International Council for the Exploration of the Sea (ICES). Sustainable development in the region is being promoted by the European Union Strategy for the Baltic Sea Region, approved by the Council of the European Union in October 2009. The strategy led to the establishment of the cooperation forum BALTFISH with the aim to strengthen cooperation of fisheries administrations, as well as various stakeholders relevant for the Baltic Sea fisheries.

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Countries Denmark Denmark is situated at the entrance to the Baltic Sea and is one of the world’s largest traders of fish and seafood. It depends less on domestic fish landings than other countries in the region. The country has an important industrial fisheries which supplies the local fishmeal and fish oil industry. The salmon-processing industry is the most important segment processing fish for human consumption.

The Danish aquaculture industry produces mainly rainbow trout, which makes up approximately 90% of total production, followed by European eel and blue mussel. Since 2008, Danish marine aquaculture production volume has increased sevenfold. Danish aquaculture is strictly regulated by environmental rules.

Estonia Estonia is located in the northeastern part of the Baltic Sea. Its has a 3,794 km long coastline thanks to some 1,500 islands.

Most catches in its Baltic Sea fisheries comprise sprat and herring, but smaller volumes of cod, smelt, perch, and flounder are also caught. Estonian coastal and inland fishing provides reasonably large volumes of freshwater fish, such as perch, pikeperch, and pike. The Estonian fish-processing industry exports more than 70% of its fish products. The aquaculture sector is constrained to its current level of approximately 700 tonnes by climatic conditions typical of the northern latitudes. Rainbow trout is the main species, representing approximately 90% of production. Common carp, sturgeon, and eel are cultured in limited quantities.

NB: This overview only refers to EU Member States.

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Countries Finland The main Finnish fishing zones are the gulfs of Finland and Bothnia. Finland has the biggest fishing quotas in the Baltic Sea in total and the biggest catches of Baltic herring and salmon. The significance of inland fishing equals that of marine coastal fishing and vendace dominates the catches. Aquaculture is more widespread in Finland than in other Baltic coastal countries and production is growing with the help of innovations. Rainbow trout is the main species produced, followed by European whitefish, but also other products have gained ground: sturgeon, black caviar, pike perch and nelma are the most promising newcomers at the moment. The rapid growth of the fish processing industry is based mainly on imported raw material, chiefly salmon from Norway.

Germany The Baltic Sea borders the northern Bundesl채nder Schleswig-Holstein and Mecklenburg-Vorpommern. Although German fish consumption is not high, Germany has one of the largest fish-processing industries in Europe, dominated by large companies, and is one of the largest markets for fish and seafood in Europe. Most seafood is imported, with Alaska pollock, salmon, herring, tuna, and trout as the most important species, causing an increasingly negative trade balance. Aquaculture is carried out mostly in southern Germany. Rainbow trout, common carp, and blue mussel are the principal species.

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Countries Latvia Latvia is situated on the east coast of the Baltic Sea and is bound by the Gulf of Riga to the north. Fish resources and their utilisation have traditionally played a significant role in the Latvian economy. Baltic Sea catches make up half of all Latvian catches. Historically, the fisheries sector is export-oriented and has maintained a positive external trade balance since the early 1990s. The processing sector relies largely on local raw material. Although, the aquaculture sector is relatively small, it plays a noticeable role in regional development. Common carp is the main species produced, although small amounts of sturgeon, trout, pike, and crayfish are also farmed.

Lithuania Lithuania is situated on the eastern shore of the Baltic Sea and has the shortest coastline (90,6 km) of all the countries around the Baltic Sea. Few local species are used as raw material by the large Lithuanian fish-processing industry, which depends chiefly (95%) on imported raw material. It is the largest producer and exporter of surimi products in the region. The fisheries sector is export-oriented, and EU countries are the main markets. Over the past decade, aquaculture production has increased 45%, with a focus on organic farming. Common carp is the main product, with smaller quantities of rainbow trout, sturgeon, African catfish, and European eel.

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Countries Poland Located on the southern shore of the Baltic Sea, Poland is one of the largest Baltic coastal countries. The 528 km shoreline forms 15% of its border.

The Polish fish-processing industry is one the largest fish-processing industries in Europe. Approximately 13% of all EU employees working in the fish-processing sector are employed in Poland. Most raw material is imported. The country is one of the largest European producers of farmed common carp and rainbow trout. A few land-based farms produce North African and wels catfish. Sturgeon, tilapia, and barramundi are produced in recirculation aquaculture systems.

Sweden The east coast of Sweden borders the Baltic, and the archipelago contains tens of thousands of islands. Sweden has established a large number of marine protected areas around its coasts. Although the Swedish fishing fleet operates within an area stretching from the Northeast Atlantic to the northern Gulf of Bothnia, the Baltic Sea is by far the most important fishing area. The fishery and fish-processing sector is heterogeneous, ranging from small family businesses to large-scale enterprises. Most raw material is imported. Over the past decade, aquaculture production has increased steadily and is dispersed widely across the country, often in rural areas. Since the 1980s, rainbow trout has been the dominant species, followed by Arctic char and blue mussel.

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9

TACs and QUOTAS In the Baltic Sea, management of the commercially most important species (cod, herring, sprat, salmon, and plaice) is based on total allowable catches (TACs) and the quota system (sharing TACs between EU countries), and employs other effort limiting procedures, such as technical conservation measures, management plans, and effort regulation.

Other species, caught in coastal waters, are managed nationally.

In general, quotas for various herring stocks in all fishing areas have fluctuated widely since 2010, but quotas increased in 2013 and 2015, over previous years.

Since 2010, quotas for sprat and salmon have fallen continuously.

In general, quotas for both the Eastern and Western cod stocks have fluctuated since 2010, mainly as the result of declining cod stocks. Quotas for plaice, which fluctuated slightly up to 2012, have remained stable since 2013.

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Cod

25,000

tonnes

20,000 15,000 10,000 5,000 0 2011

2012 DE

Herring

DK

2013

EE

FI

LV

2014 LT

PL

2015

SE

180,000 160,000 140,000

tonnes

120,000 100,000 80,000 60,000 40,000 20,000 0 2011

2012 DE

Sprat

DK

2013

EE

FI

LV

2014 LT

PL

2015

SE

90,000 80,000 70,000

tonnes

60,000 50,000 40,000 30,000 20,000 10,000 0 2011

2012 DE

11

DK

2013 EE

FI

LV

2014 LT

PL

2015 SE

CATCHES In the Baltic Sea, cod, herring, and sprat make up approximately 90% of total catches. Fishing is most intense in the southern part of the Baltic. The most common species, targeted by small-scale coastal fisheries, are cod, various flatfish species, smelt, perch, pike-perch, pike, and roach.

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SE 17%

PL 40%

DE 8%

SE 27%

DK 24%

Cod catches

EE FI 1% 1% LT 4%

(Volume, 2013) LT 1%

LV 5%

LV 7%

SE 21%

DE 4% DK 11%

Sprat catches

EE 12%

(Volume, 2013)

FI 5%

PL 32%

LT 2%

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DK 2%

Herring catches

PL 8%

(Volume, 2013)

DE 5%

LV 13%

EE 8%

FI 42%

AQUACULTURE Baltic aquaculture accounts for a significant share of the total European aquaculture output of finfish species. However, in the period 2009–2013, the aquaculture industry slowed down. The sector makes the most of its technological developments, innovation, and synergies PL with other sectors, such as tourism, 25% traditional fisheries, and co-location with offshore wind farms. Recently, recirculating aquaculture systems have become more common, encouraging concentration on more valuable species.

SE 11% DK 33%

Total aquaculture production (Volume, 2012)

DE 19%

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FI 8%

EE 0,2%

LV 0,6%

LT 3,6%

Total aquaculture production, 2012 40

160

30

120

25

100

The main species, rainbow trout, has a 71% share of the region’s total aquaculture production followed by common carp with 20%. The remainder is made up of European eel, sturgeon, pike-perch, pike, tench, and others.

80

20

60

15

40

10

20

5

0

thousand tonnes

35

140 million euro

Freshwater aquaculture production is more developed than marine aquaculture. Poland and Denmark are the largest producing countries, followed by Germany, Sweden, and Finland. Marine production is relatively low. Denmark and Finland are the region’s major marine producers. Shellfish production is led by Germany and followed by Sweden and Denmark.

0 DK

EE, LV, LT

FI

Total value

DE

PL

SE

Total volume

SE 13%

Rainbow trout Production of rainbow trout is divided into marine trout (43%) and freshwater trout (57%).

DK 28%

Freshwater aquaculture production

Only Finland, Denmark, and Sweden have PL 31% hydrological conditions suitable for sea cage systems producing marine trout. Production in Sweden has increased strongly, whereas other countries have maintained stable production levels. Marine trout production has increased because of rising prices for large trout produced in cages, which is driven by globally rising salmon prices.

EE 0,2%

LV 0,6%

(Volume, 2012)

FI 6%

LT 3,6%

DE 18%

Production of freshwater trout slowed between 2009 and 2013. Denmark is the largest producer of freshwater trout (21,400 tonnes), followed by Poland (15,500 tonnes) and Germany (9,000 tonnes).

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Common carp Various carp species are produced in the region, using mostly extensive technologies. Common carp is the second largest farmed species after rainbow trout. Overall production of common carp in the region decreased between 2009 and 2013. Poland is the main producing country (18,000 tonnes), followed by Germany (5,000 tonnes).

European eel Although European eel is produced in limited quantities in every country in the region, Denmark leads in the production of European eel, using land-based recirculation systems. The recovery plan for European eel stocks, adopted in 2007, requires Member States to define an eel management plan, which oversees among other aspects, reducing fishing mortality, restocking glass eel, and improving conditions for eel migration.

Blue mussel Blue mussel farming is a small, recently-developed segment, both in volume and value. Like seaweed farming, mussel farming is seen as a potential means to reduce the environmental impact of marine farming. Germany and Denmark are the main producers of blue mussel.

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: Alex

Photo

17 lsen

Mikke

PROCESSING The countries around the Baltic have a well-developed tradition of fish processing. There is high demand on both domestic and export markets for the sector’s products. The overall gross value added to the output of the region’s processing industry amounts to approximately EUR 1.1 billion. Denmark, Germany, and Poland are the leaders in production value. The sector consists of over 1,100 companies employing approximately 38,000 persons. The main product categories are prepared and preserved fish, frozen fish (whole marine fish and fish fillets), and smoked fish.

Frozen whole marine fish Frozen whole fish is produced by all the countries in the region. Whitefish and pelagics are the main frozen species. Sprat and herring are the most important species in Estonia, with an output of 35,000 tonnes in 2013.

In Latvia frozen production of herring, mackerel, and sprat totalled 23,000 tonnes.

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Frozen fish fillets Germany produces the most frozen fish fillets in the region – 46,000 tonnes in 2013, followed by Poland with 26,300 tonnes. Frozen whitefish fillets (Alaska pollock, cod, etc.) are significant for the fish processing sector in the Baltic Sea region. They are used for products such as fish fingers.

Smoked fish Traditionally, smoked fish is produced in all countries of the Baltic Sea region. In recent years, Poland has become one of the major producers of smoked fish (88,000 tonnes), based primarily on imported Norwegian salmon. Smoked fish output in Germany, Denmark and Lithuania ranges from 17,000 to 22,000 tonnes. Typical products include hot-smoked mackerel, smoked sprat, and hot- and cold-smoked herring.

Prepared and preserved fish Germany has by far the largest fish processing industry in the region. German output of prepared and preserved fish amounted to 337,000 tonnes in 2013. In Poland production of prepared and preserved fish amounted to 190,000 tonnes; herring is the main species. Latvian production of prepared and preserved fish reached 65,000 tonnes of which canned sprats, in particular, “Riga sprats”, are considered one of the country’s specialities. Lithuania is a major producer of surimi products.

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TRADE

Imports from third countries contributed most to the overall growth in trade, increasing 43% in value and 9% in volume, to reach EUR 8 billion and 2.5 million tonnes, respectively, in 2014.

Salmon imports increased the most. Other important thirdcountry species include cod, Alaska pollock, and herring.

Baltic Sea countries trade flow, 2014 10 8

billion euro

Trade in the Baltic Sea region is characterised by the import of fish as raw materials for further processing, mostly from third countries (extra-EU), and the export of value-added products to EU Member States (intra-EU). In 2014, the total trade flow (extraEU imports and exports, and intra-EU exports) amounted to about EUR 19 billion and 6 million tonnes. Both trade flows, imports and exports, grew over the period 2009-2014.

6 4 2 0 2009

2010

2011

Intra-EU exports Extra-EU exports

20

2012

2013

2014

Extra-EU imports

Trade highlights by species Total cod trade, 2014 400 350 300 million euro

Cod Most cod products in the region are traded in frozen form, and most originate in third countries (Norway, Russia, etc.). Extra-EU imports of cod to the Baltic Sea countries amounted to EUR 785 million and 221,000 tonnes in 2014 with a clear increasing trend in volume since 2009. The main importers were Sweden, Denmark, and Germany.

150 50 0 Extra-EU imports DE

DK

Intra-EU exports

EE, FI, LV, LT

PL

SE

Total herring trade, 2014 140 120 100 80 million euro

The value of herring exports from Baltic coastal countries to third countries has fluctuated for the past six years, registering an 8% increase over 2009. The leading exporting countries were Estonia and Germany, followed by Latvia and Poland.

200 100

Because most cod products are consumed within the EU, extraEU exports of cod products are negligible. Both value and volume of cod exports from the Baltic Sea countries to other EU Member States increased since 2009. Denmark, Sweden and Germany are the main exporters of cod products.

Herring Historically herring is one of the most traded species in the Baltic Sea region. The past five years have seen a smaller supply of herring from third countries. Following changing global prices for herring, its import value has decreased 3% since 2009, reaching EUR 176 million in 2014. The main importers were Poland, Denmark, and Germany.

250

60 40 20 0 Extra-EU exports

Extra-EU imports

Intra- EU exports

Within the EU, the species is supplied chiefly to other European DE DK EE, FI, LV, LT PL SE countries as raw material for further processing, and as prepared products for consumption. The intra-EU export value of herring has increased 30% since 2009, reaching EUR 455 million in 2014. Poland was the major exporting country, followed by Denmark and Germany.

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Mackerel Mackerel is an important raw material for the processing industry in the Baltic Sea region. Extra-EU imports of mackerel have increased steadily over the past six years. In 2014, mackerel import value doubled from 2009, reaching EUR 50 million.

100 80 60 million euro

The value of mackerel exports to third countries also increased, reaching EUR 22 million (up 72% from 2009). Germany is the major exporter (32%), followed by Lithuania.

Total mackerel trade, 2014

40 20 0 Extra-EU exports

Intra-EU exports of mackerel grew over 70% from 2009 to 2014, reaching EUR 187 million. Denmark and Germany are the leading exporters.

DK

EE, FI, LT, SE

Intra-EU exports LV

PL

Total salmon trade, 2014 3,000 2,500 2,000 1,500 million euro

Salmon Farmed Atlantic salmon from Norway dominates the fish trade in the Baltic Sea region. It is the most imported species from third countries, at 714,000 tonnes and EUR 3.8 billion (2014).

Leading importing countries were Sweden and Denmark, which represent the main transit routes for further export of salmon to the EU and other countries. Poland was the fastest growing import market for Norwegian salmon due to the increasing capacity of its processing industry and growing demand for salmon products. The export of salmon products to third countries has doubled in the past six years, and in value terms salmon was the species most exported outside the EU. The main exporting country was Poland, followed by Germany and Denmark.

DE

Extra-EU imports

1,000 500 0 Extra-EU imports DE

DK

Intra-EU exports

EE, FI, LV, LT

PL

SE

Salmon is also the most exported species within the EU. In the period 2009-2014, the export value doubled from EUR 2.2 billion to EUR 4.6 billion, and volume increased from 500,000 tonnes to 740,000 tonnes. Sweden is the leading exporter (EUR 2.3 billion), followed by Denmark and Poland.

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Sprat During the past six years, decreasing sprat catches in the Baltic Sea have been reflected in lower sprat exports.

In 2014, the extra-EU export value of sprat was EUR 18 million, down 44% compared with 2009. Estonia was the leading sprat-exporting country, accounting for 58% of the export value, followed by Latvia (22%).

Sprat accounts for a large share of intra-EU exports (110,000 tonnes), with Sweden as the major exporter. Germany, Poland and Latvia are other main exporters of sprat products. The value of exports increased 19% in 2014, compared with 2009.

23

million euro

The trade in prepared and preserved sprat is historically significant for countries in the Baltic Sea region. In 2014, the total export value of prepared and preserved sprat products amounted to EUR 92 million, of which over half was attributed to exports by Latvia. Nearly 70% of the prepared and preserved sprat products were exported to extra-EU countries, among which Russia was the largest market.

Prepared and preserved sprat, 2014 45 40 35 30 25 20 15 10 5 0

Extra-EU exports Intra-EU exports Extra-EU imports DK, FI, LT, SE

DE

EE

LV

PL

Latvian Presidency of the Council of the European Union

Latvian Ministry of Agriculture

www.eurofish.dk

www.EU2015.lv

www.zm.gov.lv

Data sources: EUROSTAT, DG Mare, EUMOFA, STECF