New auction could trigger far reaching changes

Marion Chiriac, President of the National Agency for Fisheries and Aquaculture (ANPA)

The Romanian fisheries and aquaculture sector has seen some interesting and possibly profound developments in the last couple of years. Possibly the most momentous is the new fishing auction in Tulcea, the first of its kind in the country, that is due to start operating later this year.

Another novelty is the use of cages to farm trout in a dam lake. Both these developments were made possible with support from European funds. The auction is intended primarily for fish from the Danube Delta, but ANPA, the National Agency for Fisheries and Aquaculture, the body that is currently responsible for the auction, expects that in time it will be used also to sell farmed fish and even fish from the Black Sea.

Huge increase in rapana production

Romania has a multifaceted fisheries and aquaculture sector, which although not large is very diverse: marine fisheries for finfish and shellfish from the Black Sea, freshwater capture fisheries from the Danube Delta as well as other freshwater bodies, pond fish farming of cyprinids, and trout farming using raceways, recirculation systems, and (now) cages. Nearly three fourths of the total fish and seafood production in Romania stems from the farming sector and the remainder from capture fisheries. Total Romanian catches in the Black Sea have increased over the four years to 2014 from 537 tonnes to 2,200 tonnes, according to data from ANPA. This is mainly due to the rapid increase in catches of veined rapa whelk (Rapana venosa), a marine snail, for which there is a ready market in Korea and Japan. Catches of this mollusc increased from virtually nothing in 2010 to over 1,950 tonnes in 2014. Romanian catches of other species found in the Black Sea such as anchovy and sprat have fluctuated over this period but were relatively modest with an annual average of 55 and 77 tonnes respectively. The low catches of sprat and anchovy can partly be attributed to the popularity of rapana as fishers would rather target this high value snail than low value small pelagics. In addition, Romania has no single large and modern port with all the facilities to land fish. Instead landings are dispersed over several sites none of which have storage facilities for fish. Since rapana can be kept alive and fresh for longer than fish, fishermen prefer to catch this.

Although Romanian catches in the Black Sea are minor (Turkey is the dominant player in this regard) it is making an effort to work with other countries in the region to reduce IUU fishing, a significant problem in the Black Sea. Marion Chiriac, President of the National Agency for Fisheries and Aquaculture (ANPA), says that the riparian countries are developing a common plan for inspection and control, and are strengthening their cooperation in the GFCM Working Group on the Black Sea. Romania is also working to improve fisheries data collection and the enforcement of legislation so that fisheries are sustainable in all senses of the word, economically, environmentally, and socially. Additional measures include the designation of ports and landing points, the use of better technology, such as an electronic catch reporting system, and the regular training of fisheries inspectors with the help of the European Fisheries Control Agency. ANPA’s desire to achieve a balance between stocks and fishing effort also extends to consumers. They will be the target of ANPA information campaigns that will urge them to pay attention to the traceability of fish and seafood.

While capture production from the Black Sea amounted to just 2,200 tonnes in 2014, farmed fish production has increased from 8,400 to 11,000 tonnes in the four years to 2014. The main farmed species are common carp, rainbow trout, silver carp, bighead carp, and goldfish. Together these five species amounted to more than 10,000 tonnes or over 90% of the total in 2013. Cyprinids are grown typically in earthen ponds at different degrees of intensity. In some cases the fish are allowed to grow at their own speed living off the natural flora and fauna that grows in the pond, while in other instances the farmer feeds the fish with a grain-based diet to speed up the growth. Perhaps the most striking aspect of the Romanian aquaculture industry is the growth of trout farming, which has increased from 725 tonnes in 2007 to 1,700 tonnes in 2011, before falling back to 1,100 tonnes in 2013. Trout’s popularity has to do with the relative ease with which it can be grown, the fact that it is a well-studied species giving the farmer little in terms of surprises, the short growing period, versatility in terms of how it can be processed, and finally, the ready availability of a market for the fish.

Trout eggs still mainly imported

Thus, while production of the main carp species has remained either more or less stable (common carp, bighead carp, silver carp) or gently declined (Prussian carp), rainbow trout production has generally increased. Some producers are now looking beyond the standard 300-350 g portion-sized trout at much bigger fish of 2-4 kg intended for certain niche markets in countries in Western Europe. Trout production however is dogged by the lack of eggs, which are largely still imported, though producers are now trying to collect or grow broodstock to establish their own supply of eggs. In case of the cyprinids, farmers collect the spawn and the milt themselves or can buy juveniles or fingerlings from a private or a government-owned hatchery. The latter are often at research institutes that use the sales to supplement their income. Catalin Platon, Executive Director of Romfish, the Romanian Fish Farmers’ Association, says that juveniles of Chinese carp species, grass carp (Ctenopharyngodon idellus), silver carp (Hypophthalmichthys molitrix), and bighead carp (Hypophthalmichthys nobilis), are produced at only two or three places in Romania. One is the research institute Nucet, while another is in Cirja near the Prut River between Iasi and Galati. Farmers buy 3-5 day-old postlarvae for use as stocking material for their ponds. The fish are grown to 1-2 g in small basins before being introduced into bigger on-growing ponds. In case of common carp (Cyprinus carpio), most farmers usually have their own broodstock, while the reminder either buy from other producers or from other hatcheries.

Many farmers rely on external hatcheries for stocking material

For other species such as pike perch the Nucet institute and the Cirja hatchery also maintain broodstock and can provide the farmers with eggs or larvae. These facilities are in other words very important for the continued production of Chinese carps and non-carp species, says Mr Platon. For other species that are raised together with these the farmers usually have the broodstock they need to produce the stocking material. Carp farms are typically designed with ponds of different sizes and with different functions: reproduction ponds, ponds for 21-day-old fish, for one-summer fish, for two-summer fish, and wintering ponds. Some farmers in fact grow the fish for one summer and then sell, not to distributors or consumers, but to other farmers who raise the fish for a further summer and then sell it. The reason is that well managed farms with high survival rates for one-summer fish have more stock than they need to grow for another year. In addition, when stocking the postlarvae or juveniles a farmer has to take into account the potential impact of predators on the fish. This induces them to stock more than needed. If the farmer then has a good year without losing much stock to predation he has more one-summer-old fish than he needs and can sell the excess to other farmers for them to grow. Predation is mainly a problem with one-summer-old fish as thereafter they are too big to be threatened.

Farmers buying one-summer old fish would rather not to buy the fish in the autumn as this means they have to absorb any mortalities during the wintering period. They prefer to buy the fish in the spring when there are fewer losses. However, as all farmers would like to buy t
he fish in spring, the demand may be higher than supply leading to a shortage of fish in spring and very high prices. Farmers must therefore juggle their options and use their knowledge of the market to choose the optimal course of action. The weather too can play a role. The dry weather that has prevailed in the eastern part of the country for the last few months has lowered water levels in ponds and caused farmers in the region to put their fish on the market already in the autumn leading to something of a glut, says Mr Platon. The farmers who have enough water and can keep their fish to spring will profit from this situation, assuming that the winter is wet and that water levels in the ponds rise so that there is enough water to stock them. The dry conditions in the east have forced farmers to look for water sources where they can allow the fish to overwinter. According to Mr Platon there are a few lakes that could be used for the purpose, but they are owned by the Romanian Water Company that is yet to take a position on whether they may be used for this or not.

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Pond fish farming – a tussle between commercial and environmental goals

Pond fish farming, apart from being a source of a variety of fish, also offers a number of environmental benefits. Researchers in the Czech Republic have shown that in ponds supplied either partly or completely with water from waste water treatment plants there is a decrease in nutrient (N and P) concentrations and in the bacterial contamination in the pond outflow water compared with the inflow. Ponds often attract a variety of flora and fauna, including migratory birds, and thus contribute to maintaining the biodiversity of the area. This has meant that many of the areas that host fish farms have been designated Natura 2000 sites. In Romania, 262 or over half of the altogether 460 fish farms are located on Natura 2000 sites. This classification does not exclude all human activity from the site, but it enjoins Member States to ensure that human activities do not interfere with conservation objectives. Many of these birds, animals, and even plants, however, are a threat to the productivity of the farm. The birds and animals prey on the fish, while certain varieties of plants are pests that fill up the ponds and need to be removed. The interests of the farmers are therefore sometimes at odds with those of the environment and producers are entitled to compensation for the loss of production they suffer as a result of farming in a Natura 2000 site. This may, for example, be due to predation by cormorants that are a protected species. There are also other instruments for compensating farmers who contribute to the conservation of the environment. Those that switch to certified organic farming and have organic production for at least seven years as 29 Romanian farms have done are also entitled to compensation. Finally, a further nine farms have received compensation for taking measures to protect the environment that go over and above the relevant legislation and the implementation of good practices.

Compensation schemes will continue under the European Maritime and Fisheries Fund, says Catalin Platon. Compensation for conversion to organic farming will correspond to the reduction in income arising from the switch; production in Natura 2000 sites that meets the conservation requirements of the site will be entitled to compensation at market prices for any decline in production volumes. Aquaculture operations that conserve and improve the environment and biodiversity will also be entitled to compensation. While this compensation is welcomed by the farmers some of them who have received the compensation for two years are now being asked to return it for one year based on a suspicion of irregularity. According to Mr Platon, if the case were to go to court and the farmers were to win, the government would not only be unable to claim back the compensation for a year, but would also have to pay a further year’s compensation to the farmers, who only received compensation for a single year.

A code of good farming practice starts to take shape

The members of Romfish produce about 40% of the cyprinids in Romania, while the remainder is produced by farmers who are not members of any association. This too is changing as selling fish at rural markets is only possible as a member of an association. Romfish however does not accept applications from producers who do not have all their paper work in order. So the association first helps the farm to sort out its documents and then considers their application for membership. In some instances it is difficult to convince farmers to become members as they benefit in any case from changes in legislation or other widely targeted measure that benefit the sector in general. Romfish has also been involved in campaigns to encourage fish consumption and is working on a code of good practice for its members, which, if successful, could be extended to all farmers. Mr Platon feels that the code could be developed further into a brand for consumers, showing how the fish is a high quality, healthful product, farmed in an environmentally friendly way. Romfish would also like to see a campaign explaining the role of pond fish farming in environmental preservation, the differences between intensive and semi-intensive production, the advantages of polyculture, and also the short distance from the ponds to the market which guarantees a very fresh product. The fish is sold through fishmongers as well as outlets at the farm itself and some farmers are working to increase the professionalism of their on-site shops, hiring designers to make them more attractive and increasing the range of products on offer. Romfish facilitates sales of juveniles and one-summer-old fish produced by its members by informing other members as well as non-members of the availability of this fish. Similarly it organises bulk purchases of feed securing better prices for its members, than they would have got individually.

As the fish auction prepares to go live…

One of the biggest developments in the inland fisheries sector has been the establishment of Romania’s first fish auction since communist rule. The project started in 2006, but was then shelved until 2012 when it was resuscitated. The modern auction house has been built in Tulcea, gateway to the Danube Delta, the approximately 3,500 sq. km area which forms the backbone of the commercial freshwater fisheries. The idea of the auction, says Marion Chiriac, President of the National Agency for Fisheries and Aquaculture (ANPA), the body that has been responsible for the auction until now, is twofold. On the one hand the objective is to reduce or even eliminate the volume of fish being traded illegally. On the other, ANPA wanted to establish a reference price for fish that was credible and transparent. The fishermen have an incentive to bring the fish to the auction as it is here that buyers will compete to give the best price. In addition, they should be able to sell all their fish, even catch that is not high value species or of the best quality, as the auction will determine the price at which also these products can be sold. Fish that is not sold immediately will be placed in the storage facilities in the auction building and will be sold at a lower price later probably to processing facilities. For fishermen too, the auction, apart from offering the best price, provides a legitimate outlet for the catch with all the paperwork, so that the fisherman need not fear being inspected and penalised for evasion. From a wider perspective, better records of catches give more accurate statistical data and ultimately a better basis for making policy.

…not everyone is happy

The auction is not without its detractors. Even before a single fish has been sold some leaders of associations of freshwater fishermen have voiced reservations about routing fish through the auction. Mr Ioan Utiu, Secretary of State in the Ministry of Agriculture and Rural Development and Mr Chiriac are categorical in their response – the only reason people can be critical of the auction is if they have something against the legal sales of fish, they emphasise. Legitimising fish sales will also lead to greater traceability and more accurate knowledge about what happens to the fish. Currently most of the fish from the Danube Delta is sold in the southern and eastern parts of the country, while the western part is generally supplied with fish from neighbouring Hungary. At ANPA the idea is that the auction will be the trigger that enables fish to be traced along the entire value addition chain from the point it is landed and where it will be tagged to the final point of sale. While the auction building is close to completion other procedures are still works in progress, for example, the register of sellers and buyers. The latter is expected to be mainly distributors, processors, and fishmongers, but the list is open to anyone in the country who wants to be on it. Among the potential candidates to register at the auction are also fish farmers as the auction could give them access to a larger number of possible buyers. However, Catalin Platon feels that if his members use the auction they will probably do so electronically and more likely in periods when fishing is prohibited, or in winter when fishing activities are subdued, to take advantage of the lower supply. This could allow farmers from all over the country to offer a consignment of fish for sale that would be delivered within a certain timeframe to the buyer.

Black Sea fishers may also start to use the auction

Black Sea fishermen are also looking at the auction with interest. Daniel Buhai, General Director, RO-Pescador, the fishing vessel owners’ association, says his members through the auction will be able to obtain the best price on the market, and that the auction will contribute to a more sustainable fishery as it will enable the proper documentation of all catches and thereby reduce the volumes of illegal fish. In addition, with an open and transparent market, producer organisations will be able to draw on support from the EMFF to store their fish when demand is too low. In summer, for example, catches of sprat can be more than what the market demands and so it is necessary to find the correct price. Finally, by accumulating the fish at a single point, the auction will facilitate the purchase of raw materials by processors, who will not have to go from landing site to landing site looking for adequate supplies of certain kinds of fish. This will contribute to the development of the processing sector and greater value addition – one of the overall objectives of the Common Organisation of the Markets. However, says Mr Buhai, the auction will only succeed if the authorities put in place robust regulations governing the auction and its operation and at the same time closely monitor and penalise infringements of the law such as undeclared landings and sales. Even so he feels getting fishermen to understand that the auction will get them the best price for their catch will call for efforts to inform them on how the system works. It will probably take several months and positive feedback from colleagues to convince them of the benefits of selling their fish on the auction. As all the impacts of the auction both in the short and the long term are still not quite apparent, Mr Buhai is keen for an exchange of ideas with participants at similar auctions in other countries, who have longer experience.

Mr Buhai wears two hats. One as a representative of the vessel owners’ association, and the other as a processor of Black Sea fish. As a processor the advantage of the fish auction will be the abundant supply and the ease of purchase compared to visiting a dozen landing sites. In the long run the auction should also contribute to the sustainability of fisheries in the delta and the Black Sea. The impending launch of the auction is already ushering in changes in the way the freshwater fisheries in the Danube Delta is organised. Marian Chiriac notes that farmers are starting to question their membership of associations that ties them to certain landing sites and restricts their options. For them the auction is potentially a more attractive alternative, he says, and some are considering
leaving their existing associations to form producer organisations that will be registered with the auction.

Higher prices, greater transparency, less illegal fish, and better functioning producer organisations, the fish auction in Tulcea has the potential to introduce a number of positive and far reaching changes in the market for freshwater and other fish in Romania.