Resilient in the face of threats
Estonian fishers are active in the Baltic, in coastal waters, inland waters, and also maintain a distant water fleet. The diversity of waters, vessels, and gears is a strength at a time when raw materials are becoming difficult to source.
This article was featured in Eurofish Magazine 4 2024.
Estonia is a natural maritime and fishing country on the Baltic Sea coast, where the coastal people have been dependent on the changing sea that has shaped their daily culture and spirituality, beliefs and customs, and their traditional way of life. Historically, whole villages of men and women have gone fishing. Apart from fishing, the coastal villages were also engaged in shipbuilding, seafaring, and the training of sailors. The influence of the sea can be observed in all cultural spheres, whether material or spiritual. What has been inherited from past generations, created on their own, or adopted from elsewhere, has—throughout the ages—shaped Estonian culture as a whole.1
The fish supply chain starts with raw material which is caught or farmed; processing adds value to the fresh raw material and increases the shelf life apart from creating a tasty product for either human or animal consumption on the domestic or foreign market.
Overall production year on year remains fairly steady
More than 73 thousand tonnes of fish were caught in 2023 (Figure 1), a magnitude similar to the previous year. Distant-water fishing in 2023 amounted to 13 thousand tonnes. The main species caught were northern prawn, cod, redfish, and Greenland halibut. In a year-on-year comparison, the catch was down 13%. Trawling in the Baltic Sea amounted to 45 thousand tonnes, down 2% compared to the previous year. The main fish species caught were Baltic sprat and Baltic herring. Due to the poor state of the stock, cod fishing has essentially not occurred in the last five years. Coastal fishing in 2023 amounted to 12 thousand tonnes. Economically, the most important species are Baltic sprat, perch, smelt, garfish, zander, roach, and vimba bream. In addition to fish, the harvesting of furcellaria seaweed also plays an important role in commercial coastal fishing. There is a significant amount of commercial fishing in inland waters in the lakes Peipus and Võrtsjärv. In 2023 this amounted to 2,500 tonnes. The main fish species caught were perch, zander, common bream, roach, pike, river lamprey, burbot, and eel.
The Agriculture and Food Board currently supervises 108 licensed processing facilities, whose main activity is the processing of fishery and aquaculture products and the manufacture of various products. The number of fish treatment sites has remained stable over the years. The main activities include the freezing and filleting of fish, production of tinned and preserved fish, and prepared meals.
Estonia catches many times more fish than it consumes, mainly Baltic sprat and Baltic herring, so we are self-sufficient in fish from a food security perspective. Estonian fish processors have long traditions, know-how, and experience in producing fish products. Entrepreneurs, in cooperation with researchers, are investigating and developing methods to use local untapped or underused living aquatic resources—such as molluscs or seaweed—for food, feed, reducing environmental impacts, optimising energy use, and finding solutions for more sustainable or circular use of other resources important to processing. Finances from the European Maritime, Fisheries and Aquaculture Fund (EMFAF) are available to support raising awareness and develop export opportunities and investments.
Distant-water fishing contributed a fifth to commercial catches in 2023
The Estonian distant-water fishing fleet is active in the Atlantic: in the North-East Atlantic, mainly in the waters of the North-East Atlantic Fisheries Commission (NEAFC) (in the Barents Sea) and in the Svalbard region; in the North-West Atlantic, in the waters of the Northwest Atlantic Fisheries Organization (NAFO). They also fish in the waters of Greenland. Compared to the 12 vessels it had 20 years ago, the distant-water fishing fleet has been reduced to 6 active vessels. The main species caught are northern prawn, cod, redfish, and Greenland halibut, with the total catch amounting to 13 thousand tonnes and accounting for almost 19% of Estonia’s commercial fishing. In 2023, the total value of distant-water fishing was approximately EUR49 million.
Trawlers in the Baltic Sea target mainly small pelagics
Fishing in the Baltic Sea is divided into offshore fishing and coastal fishing. The target species for offshore fishing are the Baltic sprat, Baltic herring, and cod. Trawls are the main fishing gear. The trawling sector of the Baltic Sea has undergone a significant reduction in fishing capacity over the last decade, bringing stocks into line with fishing capacity. Seventeen companies operate in the trawling sector, with a total of 24 vessels. Baltic sprat and Baltic herring amounted to almost 100% of trawl catch in 2023. Trawling (with a catch of 45 thousand tonnes) accounts for nearly 62% of the total commercial catch, and the total value of trawling in 2023 was over EUR15 million.
Coastal fishers target a wide variety of species
A wide variety of fish species are caught in coastal fishing. Economically, the most important species are the Baltic sprat, perch, smelt, garfish, zander, roach and vimba bream. In addition to fish, the harvesting of furcellaria seaweed also plays an important role in commercial coastal fishing. Fishing is regulated by the number of fishing gears, and in part by the block quota (total allowable catch). The block quota governs fishing for cod, Baltic herring, salmon, and Baltic sprat. These fishing arrangements are based on recommendations from researchers on the number of fishing gear and allowable catches. Fish traps, nets, and longlines are the main fishing gear. A total of 16%, or 12 thousand tonnes, of Estonia’s commercial catch is caught in coastal fishing, where 1935 licenced fishermen operate. Saare County has the most fishermen, followed by Pärnu County, Hiiu County, and Harju County. For a large proportion of fishermen, fishing is only a seasonal source of income, and it is estimated that only 10% of coastal fishermen get their main income from fishing. They use fishing vessels up to 12 m in length, 2,016 of which have been entered into the register. The number of fishing vessels has increased steadily over the last five years. Based on first-sale prices, the value of coastal fishing catch amounted to EUR 6 million, with perch accounting for EUR 2.3 million and Baltic sprat for EUR 2.2 million.
For local communities inland fishing is a small but important activity
There is a significant amount of commercial fishing taking place in the inland waters of Lake Peipus and Lake Võrtsjärv. The main fish species caught are perch, zander, common bream, roach, pike, river lamprey, burbot, and eel. Fishing is regulated by the number of fishing gear, and in part by the block quota. Fishing opportunities are allocated to commercial fishermen based on historical fishing rights, in the form of gear limits. The block quota governs fishing on Lake Peipus, Lake Lämmijärv, and Lake Pihkva. As is the case with the coastal fleet management is based on researchers’ recommendations regarding the number of fishing gear and allowable catches. Fishing gear includes nets, fishing traps, pound nets, and Danish seines. Fishing arrangements and catch volumes for Lake Peipus, Lake Lämmijärv, and Lake Pihkva are agreed annually with the Russian Federation. A total of 2,505 tonnes of fish were caught in inland waters in 2023, with a total value of EUR 5.7 million at first-sale prices. In 2023, 512 vessels were used for fishing, and there were 592 professional fishermen operating on inland waters, with 345 permit holders.
Seafood exports account for over a tenth of total agricultural exports
The fishing industry is export-oriented, with a total of 48 export destinations in 2023. The export turnover of fish and fishery products produced or processed in Estonia amounted to EUR 153 million (Figure 2), accounting for 11% of the export turnover of agricultural and food products of Estonian origin. The largest share of exports in 2023 was made up of crustaceans (27%), frozen fish (21%), and fish products and canned fish (17%). The share of crustaceans in turnover increased by 2 percentage points. The most important export destinations for the fisheries sector were Ukraine (15% of the export turnover), China (14%), Sweden (12%), Finland (8%), and Iceland (7%). Sweden, Finland, Norway, Latvia, Ukraine, Switzerland, Iceland, and China have been the most stable export partners for the fisheries sector over the years.
As challenges multiply they must be converted to opportunities
Investments and export growth can be expected by an entrepreneur with a clear long-term strategy, a multi-year business development plan, the ability to generate turnover, and to prove that their product is the best to meet customer demand in their target market. There are several challenges that also have a direct impact on the international fish market: the general contradictory economic indicators, the war zones near the borders of Europe, the onslaught of protectionism, climate change, migration, and the technological revolution linked to artificial intelligence. Current international conditions have not been as daunting in decades. One of the issues that will certainly need to be addressed in the future is the exploitation of challenges as opportunities. The innovative products and strategies we have utilised to get to where we are today may not help us in the future.
Globally, production growth is currently being driven by aquaculture products—a trend that is likely to continue but is likely stabilising. At the same time, productivity growth in aquaculture production will be lower than in the previous decade. World fishmeal production is on a slight upward trend. At the same time, fishmeal production is growing at a slower pace than global aquaculture products, so the use of oilseed-based feed in the aquaculture sector is likely to increase. The consumption of fish per capita is on the rise in almost all regions except Africa, where a minor decline is forecast. For fish products, nominal prices are expected to increase, but real prices to decrease. The price of fish oil peaked between 2022 and 2023 and is expected to normalise and grow more steadily over the next decade.2
Adding greater value will generate more from less
In Estonia, fishing, the production of aquaculture products, and the processing and distribution of fishery and aquaculture products are part of food production, a strategic sector from a security perspective. The total value of exports of Estonian fishery and aquaculture products in 2022 was over EUR 153.8 million, of which frozen fish, for example, accounted for over 60% of exports in terms of volume, so it is possible to move towards product diversification and product development in the processing sector (Figure 3). “In 2023, the total value of exports of fishery and aquaculture products of Estonian origin declined somewhat, to around EUR 153 million. At the same time, the quantities of fishery and aquaculture products of Estonian origin have fallen from 83,000 tonnes to 68,000 tonnes over the year. Thus, ensuring the competitiveness of existing processing units is becoming increasingly important in a situation where raw materials are decreasing globally,” explains Madis Pärtel, Deputy Secretary General for Bioeconomy at the Ministry of Regional Affairs and Agriculture, who is also responsible for fisheries policy since 2024. Ultimately, the Estonian fisheries sector has weathered the difficult situations of recent years relatively well, but the shortage of raw materials is forcing it to move in new directions. “By moving towards final food products with higher added value and making better use of available resources, we can ensure the profitability of companies operating in the sector,” he predicts.
The implementation of EMFAF in the coming years will continue, for example, with market development support, which will provide additional leverage for three types of activities. Firstly, it will enable market surveys to be conducted, to better understand both local and foreign processes and consumer expectations. Secondly, it will enable participation in local and international thematic trade fairs as an exhibitor or a business delegation. Thirdly, it will encourage obtaining higher certifications and labels of compliance with sustainability or quality requirements for one’s products, to meet consumer expectations and remain competitive in target markets.
The Agriculture and Food Board is the supervisory authority for food systems in Estonia, and one of its areas of activity is also ensuring that international trade, including trade in fish, is compliant with regulations. The EMFAF funds will be used to promote activities for opening external markets and keeping them open. For example, requirements of external markets can be specific to countries as well as product groups. They can include various certificates, registry entries, laboratory tests, import and/or transit authorisations, etc. An entrepreneur can start exporting their products to the target market only when the terms of trade have been agreed upon between the foreign country and Estonia.
Support during the energy crisis kept the industry on its feet
Since the middle of 2022, Estonian companies have felt the setbacks in competitiveness in both European and global markets. At the end of 2022, the assessment of industrial companies on their competitiveness in external markets fell to a lower level than it had been during the financial crisis.3 The geopolitical crisis in Europe, triggered by the changed security situation, led to a sharp increase in the prices of energy carriers. Together, these effects caused serious disruptions to the EU economy as a whole. In this situation, it was essential that the sector was supported through compensation for the surge in fuel and electricity prices, which made it possible to offset the increase in input costs and maintain the profitability and competitiveness of the fisheries sector. The support enabled Estonian companies to overcome economic difficulties and continue their activities, i.e., to supply fish products, generate income, keep existing jobs in rural areas, export their products where possible, and to invest in making their activities more energy- and resource-efficient. The partial compensation of additional costs caused by the increase of fuel and electricity prices was a short-term mitigating measure, but it helped the sector cope with the negative economic effects.
Price rises in recent years have changed attitudes towards energy sources, and society has become more interested in greener options, which in turn has also led to the planning of offshore wind farms. The debate on wind energy must not overlook the impact of major innovations on sectors other than energy, including fisheries.
“As of today, businesses have already made, or are in the process of making, investments in energy- and resource-efficiency. This transition across the whole sector will take time and financial resources, and, in some cases, its implementation will depend on technological advancement,” says Mr Pärtel.
The importance of fisheries lies in its contribution to food security
Estonian coastal fishing has long traditions; commercial fishing in inland waters is also a unique characteristic. Fishermen must often contend with natural competitors, especially seals and cormorants. There must be enough fish for all—a balance between fish stocks and fishing opportunities is essential. If a boat were to dock and lift only empty boxes ashore, no seabird would bother to take to the air to greet the fishermen. Fishermen in Estonia have managed to avoid this bleak scenario. Challenging times bring out hidden potential, adds Mr Pärtel.
Estonia is one of the smallest countries in Europe, in terms of both territory and its population of 1.3 million people. Limited resources have required us to be more efficient and innovative in managing both the economy and social processes. We have built up an e-state to facilitate all kinds of daily transactions, for example PERK (a digital declaration system developed by the Estonian fisheries), states Piret Hartman, the Minister of Regional Affairs since April 2024. “Fisheries is very important when it comes to food security. Estonia is self-sufficient but also exports significant amounts to foreign markets. For us, it is important that we keep the fishing sector sustainable, maintain the biodiversity of our nature, and at the same time contribute to Europe’s unitary fisheries policy,” Mr Hartman adds.
Services play an increasingly important role in today’s economy. The shift from a traditional product-based economy to a services-based economy has led to significant changes in the strategies of companies and organisations, as well as in consumer expectations. This shift is not just a trend, but a fundamental change in the way companies create value and how that value is perceived and appreciated by society.
Eduard Koitmaa, Kairi Šljaiteris
Ministry of Regional Affairs
and Agriculture of the Republic of Estonia