EU support and national measures mitigate the impact of runaway costs
This article was featured in Eurofish Magazine 6 2022.
Latvia’s fishing and fish processing sector came successfully through the pandemic only to be confronted with steep hikes in input costs a year later. The administration is supporting the sector as it tries to weather the storm.
In 2021 the Latvian fishing fleet continued to decline in terms of numbers, tonnage, and power. Ministry of Agriculture data divide the fleet into offshore vessels active in the Baltic Sea and the Gulf of Riga, those that fish in the high seas, and the coastal vessels. The Baltic Sea/Gulf of Riga offshore vessels are further subdivided into trawlers between 12 and 24 m, trawlers above 24 m, and vessels above 24 m that use nets as the main gear. The number of smaller trawlers has stayed stable at nine vessels since 2019, the bigger trawlers declined by a fifth to 30 vessels, while the two vessels above 24 m using nets declined to one.
Vessel numbers fall as fleet capacity is adjusted to resources
Similarly, the high seas fleet dropped from eight vessels to seven, while the coastal fishing fleet, the biggest segment in terms of vessel numbers, declined very slightly from 603 vessels to 598. The decline in the number of vessels can be attributed to fishers scrapping their boats under the decommissioning plan established to align fishing capacity with the available resources. According to the latest Annual Economic Report on the EU Fishing Fleet (AER STECF 22-06), Latvian vessels between 24 and 40 m are active in the open Baltic Sea, while those between 12 and 18 m operate in the Gulf of Riga. Smaller vessels fish in coastal waters, while the largest vessels, 40 m and above, fish in the Atlantic NEAFC area, Barents Sea (FAO fishing area 27) and CECAF Morocco and Mauritania waters (FAO fishing area 34) .
Latvian quotas for herring and sprat, the most important species, have remained largely stable since 2013 averaging 56,000 tonnes. In 2023 they are set at slightly over 57,500 tonnes. For cod, there is no quota for a targeted fishery; the quota of 69 tonnes is exclusively intended for by-catches and it remains the same as it was in 2022. The cod stock will not show any recovery in the short term and probably not in the medium term either, foresees Dr Didzis Ustups, Head of the Fish Resource Research Department, Institute of Food safety, Animal Health and Environment (BIOR). Total catches in the Baltic Sea and the Gulf of Riga (mainly sprat and herring, but also small quantities of flounder, smelt, salmon, and other species) have declined from 67,000 tonnes in 2017 to 59,000 tonnes in 2021, a drop of 13%. The decline in coastal catches over the same period was 11% to 3,120 tonnes. In 2020, the latest year for which data is available on the Latvian Central Statistical Bureau’s database, landings by the Latvian fleet declined 9% but their value increased 10% to EUR17.5m. According to the AER the increase in value is due to a small increase in the average price for the target species. The large volumes landed by vessels fishing in the Baltic Sea and the Gulf of Riga mean that even a minimal increase can lead to a significant change in the total landing value.
Small-scale fishers add value to their catch but also launch other activities
The small-scale fishing fleet lands small volumes of a variety of species including herring, smelt, round goby, and flounder. Fishers in this segment use different gears, herring pound nets, fyke nets, fish traps, hooked lines, and flounder seines. They can deploy their gear at a maximum depth of 20 m measured from the coast. In recent years catches of round goby (an invasive species) have increased from 110 tonnes in 2014 to over 800 tonnes in 2020 making it an important species for coastal fishers. The fish has no market in Latvia, so catches are usually sold to be processed and then exported. In general, coastal fishers sell their catch on the local market or occasionally to neighbouring countries. Another development seen among some small-scale fishers is initiatives to add value to their catches. Others are diversifying their activities to create new income streams, for example, by linking their fishing activities to tourism. During the summer they will sail tourists around the harbour, offer water-borne site seeing, birdwatching, sea swimming, and food and drink on board the vessel. The investments needed for such activities are supported by European funds and fishers who are members of Fisheries Local Action Groups submit project proposals seeking support.
Adding value to the catch must also lead to a market for the products. Here coastal fishers and processors are assisted by local action groups (LAGs). An ongoing campaign promotes regional tastes to tourists and other buyers. Coastal companies that can offer fresh or processed fish are included in a brochure showing their location. The brochure, which was produced by the LAGs, also contains information on fishing seasons and fish species. Sites where fish is available for sale are promoted, in addition, on television. Other events, such as festivals for specific fish, are held in cities and towns. In Salacgriva, for example, there is a lamprey festival as well as an event to promote herring consumption. LAGs, municipalities, and the EU-fund-supported Fisheries Network also get together to organise festivals or events that celebrate fish and its consumption. For municipalities such initiatives bring tourists and tourist revenues which gives the municipality an incentive to support these activities. In addition, they promote the consumption of fish.
Certain procedures to apply for support greatly simplified
From the administration’s side efforts have been made that help coastal fishers apply for support by simplifying the whole process for projects with amounts up to EUR30,000. Normunds Riekstins, Director of Fisheries in the Ministry of Agriculture, explains that a fisher can put in a simple application describing what he needs and why, for their business development. It is evaluated by the Rural Support Service, an institution under the ministry, and if approved, the money is paid out. A fisher may want to acquire some electronic equipment, for instance, or renovate his vessel to improve health and safety or fish quality. A young fisher (<40) buying a vessel can also apply for support under the scheme. Another body within the sector is the Fisheries Network, which assists fishers develop the business initiatives they need to apply for support. More generally, the Fisheries Network tries to ensure good use is made of available funding opportunities and works to promote the fisheries and aquaculture sector as a whole by organising seminars, workshops, and conferences, as well as by visiting schools and educational institutions. Electronic catch records for the coastal fishery were introduced this year and here too the Fisheries Network has played a role. For older fishers who are unfamiliar with computers the network offers training and materials to help them get started. It is even possible to have the data entered into the system by somebody from the network if all else fails. Fishers without the necessary hardware to submit the data can even get support to acquire it as an incentive for them to start using the system.
Benefits of digitalisation can be felt by most
Electronic reporting is an example of a wave of digitalisation of the management of the fisheries sector that is being overseen by the ministry. The requirement to report electronically which is already mandatory for the bigger vessels in the fleet will gradually encompass all the fleet segments. It will help when we launch an app for mobile phones, Mr Riekstins feels, as not only will the interface be easier to deal with, but all fishers irrespective of their age probably have smartphones and are familiar with apps. The administration has also decided that at the initial stage a blind eye will be turned to errors or infringements discovered while fishers accommodate and start to use the system. The idea is to introduce the system and to encourage fishers to use it—not make it an instrument to punish them from day one of application. From 2023, subsistence fishers (who may only use a single gear at a time, either a net or a trap net, and may not sell their catch) will also be expected to use the system. Some of them are over 80 years of age, says Mr Riekstins, and will not take readily to the use of this technology, but perhaps they can be helped by younger members in the family. Angling is another area, the administration of which has been largely moved online. Angling cards (general permit for recreational fishing) and licenses (additional permit for specific water bodies) and can be purchased electronically and catches reported on a website run by a division of the ministry. From 2024, electronic reporting will be introduced for the entire inland fisheries sector (commercial and subsistence fishers). The system has already been created and anglers can now use it on a voluntary basis. The advantage is that they can avoid all the paperwork that goes with filing out a paper logbook, which includes submitting it to the control authorities each month and obtaining a new one from the local municipality. Angling is another area, the administration of which has been largely moved online. Angling cards (general permits for anglers) and licenses (an additional permit for specific water bodies with special management and additional services) can be purchased electronically and catches reported on a website.
Electronic systems for management and control
Digitalisation has wide implications as all the management and control institutions have real time access to the information recorded electronically. It is a complete management system for fisheries, says Mr Riekstins, containing information on contracts for fishing rights, protocols for allocation of limits, payments, information about licences, data on the fisher and catches, as well as on temporal and spatial restrictions in the different fisheries. Fishers use the system to reports on fishing related issues such as damage by seals, predation by seabirds, loss of gear, and even seal and cetacean sightings. Records of control incidents, infringements, and fines issued for the individual fisher, as well as compensation payments are also maintained by the system. The system can generate warnings for the fisher if limits are close to exhaustion or have been breached. Different kinds of reports can be generated by the system depending on the purpose. While the ministry and the control authorities have access to all the data, other bodies such as municipalities or the fishers themselves may only access parts of the information. But access to even part of the information may well be overwhelming for an older user unfamiliar with electronic systems. Ultimately all the stakeholders will be part of the system though the main target is users of the resource.
Traceability of the fish is another facet of the system. It is facilitated by links to the systems for authorisation and for reporting. As a result, consignments can be traced from catch, through processing, and to the final destination. Every move of the fish is stored in the system and Mr Riekstins claims there is less risk of illegal fishing as a result. Fishers in the Baltic Sea and Gulf of Riga have to report their catches before they land, and they are subject to spot checks by the control authorities. For the coastal fishery there is still some flexibility as they typically do not land in ports but at landing sites often with no facilities to sort or weigh the fish. However, the administration is discussing with the European Commission ways to do more with this segment in terms of monitoring. However, under-reporting catches is not in the coastal fishers’ interests as compensation for seal damage, which is a significant challenge for coastal fishers, uses a formula that is based on reported catches. The lower the reported catches, the less the compensation. A trial to monitor fishing activity using remote electronic monitoring (REM) by installing cameras on board fishing vessels has not generated much interest among fishers. Only in the third attempt to get fishers to volunteer has there been some response. The Ministry of Environment and Regional Development which is responsible for the trial is discussing with pelagic fishers the possibility of their participating in the trial. The investment needed will be supported by the European Maritime and Fisheries Fund (EMFF). Although fish discards are not associated with the pelagic fishery, it would be useful to have this confirmed as it would show that the control resources to prevent fishing activities are better deployed elsewhere in the fleet.
Processing industry exports its products around the world
The pelagic fishery in the Baltic Sea and the Gulf of Riga supplies the well-known Latvian processing industry with sprats and herring. Quota utilisation is close to 100% suggesting that the fish is in demand. Most of it goes into products for human consumption. In Latvia processing companies smoke, can, salt, and marinade the fish, or freeze it into blocks which are exported. Canned sprats are exported to 40 or 50 countries around the world on all the continents. The industry promotes its products at many tradeshows where collective participation is organised by the Union of Latvian Fish Processing Industry, and a team from the Institute of Agrarian Resources and Economy which is supported by the EMFF and now the EMFAF. For many companies attending these events would not be possible without this support. The canning industry benefited from the pandemic when there was increased demand for relatively cheap, tasty, and healthful products with a long shelf life. It is experiencing something similar today where uncertainty created by the war in Ukraine, inflation, and high energy prices is increasing demand for canned goods. The steep increase in prices particularly of energy but also of other raw materials used in the production of canned goods, such as the metal for cans and lids, have triggered compensation schemes from the government that are funded by the EU. The first applications are already being processed and the money will be disbursed as soon as possible. While the scheme is available until the end of the year, Latvia together with several other Member States would like to see it extended to cover 2023. It is a burden for the budget, concedes Mr Riekstins, but there is an immediate need for the industry to increase its resilience. Temporary support for industry should keep factories running and employees in work and allow the sector to emerge leaner and stronger on the other side of this crisis.