ESTONIA
Compensating for uncertain markets
Troubled waters for Estonian sprat 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.
F
ounded in 2005, the Estonian Fishing Association (EFAPO) is a producer organisation representing five trawling companies operating in Estonian waters and Pärnu Rannakalurid, an organisation of 200 coastal fishermen from the Pärnu area. The trawling companies own 12 trawlers, and the Pärnu fishermen own more than 160 boats. Members also have three trawlers based in Finland, fishing the Finnish quota. All of this ensures that the plant has a constant supply of fish. The EFAPO inaugurated a processing and freezing facility in 2011, which provides storage for up to 3,200 tonnes of frozen fish and can freeze up to 200 tonnes of fish in a 24-hour period. Located in Pärnu County, the plant is well situated logistically. The plant cost EUR 6 million, about half of which was funded by the European Fisheries Fund. The plant runs two shifts of eight people each. It has HACCP certification and a traceability
system in compliance with EU requirements. Members of the cooperative hold 48 of Estonia’s historical sprat fishing rights and 43 of the Baltic herring fishing rights. Pärnu fishermen take 6,000–8,000 tonnes of Baltic herring annually. Estonian production includes frozen blocks as well as marinated sprat and herring. Different products are made by each of the three Estonian producer organisations. Membership in the organisation has stabilised since it was founded. Most fishing 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 quality, but sprat fished by Estonia in its own waters is of higher quality. The fishing grounds are close to the coast, allowing fast offloading, which leads to fresher fish that are
Mart Undrest, Managing Director of the Estonian Fishing Association, Eesti Kalapüügiühistu TÜ 46
Eurofish Magazine 2 / 2015
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frozen sooner after being caught. Sailing to the fishing grounds takes approximately three hours each way, plus six to ten hours spent fishing. Other countries, like Finland, do not have such immediate access to their fishing grounds, and the fish are not frozen as soon after being caught. It should be noted that partly or wholly Estonianowned companies own vessels that entitle them to use Lithuanian (ca. 500 tonnes) and Finnish (ca. 10,000 tonnes) quotas. This 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, fishing capacity has fallen, with a reduction in the number of vessels. Mart Undrest, managing director of EFAPO, believes that the quotas have been well utilised during the past two years and speaks positively of the flexibility that has been built into the system. Unused quota can be reassigned to the following year, and they can
Aleksander Konopelko, Director of Prizma Ukraine, one of the biggest distributors of fish in Ukraine.
even be traded. Quota swaps have taken place with their Finnish and Latvian partners, improving management of the fishery.
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 efforts in the western and central 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 situation remains more or less stable and there are no new sanctions or war, the Estonian fishing 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, Lithuania, 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, including marinated, salted, smoked and oiled, and smoked and spicy, www.eurofishmagazine.com
27/03/15 7:58 PM