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COVID-19
IMPACT ON THE FISHERIES SECTOR IN THE NORTH ATLANTIC
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Executive Summary
This report was collated by Emma Attwood and Nick Branigan, July
2020
The report highlights key changes in the fisheries sector in the
North Atlantic region as a consequence of and in response to the
COVID-19 pandemic.
Key Changes:
• The collapse of the hotel, restaurant and catering sector
leading to the collapse of the market high value ‘restaurant
species’, such as lobster, shrimp, halibut and turbot.
• There are difficulties in maintaining exports because of
reduction in demand and logistical
problems. This caused either a diversion of product into
domestic markets or pressure on cold store facilities.
• There has been a significant increase in home consumption of
fish, but with a preference
for prepacked, packaged, canned and frozen products. Demand for
fresh/chilled fish has declined.
• There has been a marked increase in direct business to
customer sales using e-commerce
and social media. This change is likely to become permanent.
Direct boat to consumer sales has the potential to cause compliance
issues.
• Although the demand for processed and packaged fish products
has increased, social
distancing and logistical issues have increased production
costs.
• The lack of demand in the Far East for farmed Atlantic salmon
has been offset by increased demand for processed products using
salmon in Europe.
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Introduction
The world has faced a severe public health emergency due to the
novel coronavirus (COVID-19) that emerged in Wuhan, China in
December 2019. Leaping across borders, the virus spread globally
and rapidly, resulting in the declaration of a global pandemic by
the World Health Organisation (WHO) on 11 March 2020.
In addition to the health impacts, the pandemic has resulted in
the introduction of mandatory restrictive (“lockdown”) measures by
many countries in an attempt to reduce the spread of the virus,
which has had profound impacts on the world economy.
The international nature of fisheries combined with complex
supply chains makes the sector particularly vulnerable. This report
aims to illustrate changes in the fisheries sector in the North
Atlantic region as a consequence of and in response to the COVID-19
pandemic, highlighting any potential new compliance risks. The
basis of this report is information supplied by the members of the
North Atlantic Fisheries Intelligence Group, a multiagency
international group that aims to combat economic crime in the
fisheries sector.
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NA-FIG member findings
9 NA-FIG member countries: Canada, Denmark, Greenland, Iceland,
Ireland, Norway, Sweden, USA and the UK were asked to provide
findings on any shifts identified in the fisheries sector as a
result of the pandemic. Their responses are summarised below.
CANADA
The COVID-19 pandemic has seen the following impacts Canada’s
fish and seafood sector:
1. Impact on supply chains
• An accumulation of perishable inventory due to reduced demand
has disproportionately affected the supply chain for live and fresh
product typically marketed to the food-service industry.
• A diversion of product normally sold fresh to processing
plants has led to increasing concern about processing capacity and
cold storage. Capacity limitations are caused by physical plant
infrastructure and physical distancing requirements of staff.
• Potential delaying of the start of fisheries seasons to avoid
accumulation of inventory and allow time to implement health and
safety measures especially amid concern over worker health and
safety.
• A disruption in the logistics of making international
shipments and/or greatly increased shipping costs. The industry is
strained across the US, Europe, Japan and India and this has led to
an inability to ship key products.
• Potential long-term disruption to the aquaculture industry.
For example, the inability to harvest and rotate product may result
in long term implications on future harvests.
2. Impact on value chains
Factors contributing to problems in the value chain:
• Much of the product traded is highly perishable • A high
dependence upon export markets: (Canada’s seafood exports made up
80% of its total
landed quantity in recent years) • Significant dependence upon
food service sector as the end market
DFO, Canada
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These problems have resulted in other notable shifts in the
value chain. For example, foodservice is now confined to takeout
and delivery which has not been an easy shift for all sectors and
resulted in production bottlenecks. In addition, consumers are
turning to the web to shop. E-sales of fresh produce have risen 25%
since the virus became severe and online takeaway orders have
doubled.
3. Impact on commodity prices
The vulnerability of Canada’s high-end seafood to global
economic downturns was highlighted by the impacts of the 2008
recession (total fish and exports dropped 6% between 2008 and 2009
and shellfish, lobster and crab prices all dropped by at least
10%). Closure of restaurants across the US and uncertainty about
the short/medium term impacts of COVID-19 appears to have perturbed
the seafood markets. However, official data is not yet available to
allow an analysis of landings prices for 2020.
4. Workforce Impacts
There are growing concerns over several issues in relation to
the fishing industry workforce. These include crew availability,
difficulties with physical distancing and PPE use aboard fishing
vessels and the older demographic in rural fishing communities.
5. Economic Impacts
• Economic activity in Canada’s fish and seafood sector is
highly seasonal with the peak activity in spring/early summer.
There is a lack of comprehensive statistics on landings which means
it is not yet possible to analyse the impact on economic activity
in the seafood sector.
• There may be significant socio-economic impacts on
recreational fishing due to US/Canada border closures.
• There are concerns that continuations of lockdown measures
into late June and July may make it unprofitable for fisheries to
resume operations.
6. Other Impacts
• Cancellation of major events/conferences.
• A small number of fisheries opening delays have been announced
by the DFO but the Minister has asserted that no outright closures
are being considered at this time.
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DENMARK
The COVID-19 crisis and lockdown has had limited impact on the
Danish marine capture sector, with a normal pattern of
landings.
The facilities for processing Norwegian lobster ceased
operations due to the lack of demand due to the closure of
restaurants across Europe. Vessels targeting Norwegian lobster have
therefore remained in port.
From a tax and VAT perspective and as part of the financial aid
packages introduced in Denmark as a response to the crisis, the
deadline for the filing of tax returns and VAT declarations has
been deferred to autumn 2020.
The absence of returns means that the tax authority doesn’t
currently have enough data to carry out a proper analysis, and
therefore is not yet in a position to determine the financial
impact of COVID-19 on the fisheries sector in Denmark.
GREENLAND
The COVID-19 crisis appears to have had little impact on the
Greenland fisheries sector.
The requirement to land catches of Greenland Halibut in
Greenland has been reviewed as sales of fillets (25% of the catch)
was almost wholly to the restaurant/catering trade which has
collapsed whereas sales of whole halibut is more marketable if
landed outside Greenland.
Naalakkersuisut decided to reduce the landing obligation for
Greenland Halibut by 50 % subject to review every 3 months.
Danish customs
Fisheries Authorities, Greenland
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ICELAND
Like most countries, Iceland has been dealing with the effects
of COVID-19. At first, it appeared to not be having much effect on
the fisheries sector. For example, figures showing the quantity of
landed cod for period January through April 2020 were not too
different from the amounts landed in 2018 and 2019. (See Figure 1
below)
However, as can be seen in Figure 2 below, according to bureau
of statistics in Iceland, export values have plummeted since the
onset of COVID-19. Through weeks 13 to 17 exports are around 6
billion ISK (EUR 40 million) lower than in 2019. This amounts to a
circa 25% decrease in export values.
91,878
93,561
93,540
69,308
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
100,000
2020
2019
2018
2017
QUANTITY OF LANED COD (kg) January - April
Figure 1: Quantity of landed cod (kg) Jan – April for years 2017
– 2020.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
FISH EXPORTS (bn ISK)2019 2020
Figure 2: Icelandic fish exports (bn ISK) 2019 and 2020.
Billi
on (I
SK)
Week Number
Fisheries Iceland
Quantity landed (kg)
Year
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Effect on seafood market
According to Fisheries Iceland (the manufacturers and
ship-owners association) the impact on the fisheries sector has
been extensive. Most markets have tightened while others have
almost completely shut down, especially European markets for fresh
fish and in some cases markets for farmed salmon.
There has been a decline in prices for seafood, cancellation of
orders and deferred payments. Many manufacturers have responded by
producing more frozen products and so have been able to put more
into cold storage. Furthermore, there has been increase in
production of salted products/salt-fish which can be stored for
longer.
The transport of goods hasn’t been much affected, and airfreight
has not shut down although passenger flights have mostly been
cancelled due to the COVID-19 pandemic. The biggest problem noted
by Fisheries Iceland during this period has been the transport of
goods within Europe.
Effect on surveillance effort
The Icelandic Directorate of Fisheries surveillance effort was,
and still is in many ways, affected by the COVID-19 outbreak, both
at sea and on land. In accordance with directions given by the
Ministry of Health, inspections were not carried out at fish
processing plants from mid-March to mid-June. Likewise, inspections
at-sea were not carried out due to risk of infection on board.
The reaction to circumstances has been to focus more on
electronic surveillance, data inspection/comparison and
surveillance whilst “keeping a safe distance”. With decline in
COVID-19 cases, surveillance activities mostly returning to normal.
However, some vessels are reluctant to take an inspector on board,
and most production facilities are taking precautionary measures to
ensure safety among workers.
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IRELAND
Irish Government Response
The Irish Government announced a series of significant
restrictive measures to try to contain the spread of COVID-19 in
March 2020. Specifically, on the 27th March the Government
announced restriction of travel to and from work with the exception
of designated essential services. The role of the fishing industry
and the SFPA was designated as an essential service due to its role
in the provision and maintenance of the food chain.
There were also a series of economic measures to assist
companies remain in business and retain their staff. These measures
included employment related payments to supplement unemployment
stemming from the economic effects of COVID-19, tax changes to help
business and automatic extension of residency permits. A tie-up
scheme for fishing vessels has recently been launched by a
Government agency BIM. Further details on this scheme can be found
below.
There were also specific procedures with regard to foreign
vessel landings into Irish ports (see Information Notice Harbours
in Appendix A) and Marine Notice 6 of 2020 from the Department of
Transport, Tourism and Sport’s website. This notice sets out
procedures for the notification of possible cases of COVID-19 and
safe landing procedures for crew and local communities.
Fishery related activity, late March – Mid May 2020
During the initial weeks of the pandemic’s impact, in Ireland
and Europe there was a considerable downturn in the demand for fish
and related fish processing activity. This was most evident in
demand from the HORECA1 sector. This had a particular impact on the
fish being targeted by vessels in that fish normally with a ready
market for restaurant use, disappeared completely. Landings were
lower during this time (see Figure 3) when fishers were unsure if
they would cover their costs as markets were so uncertain.
About 70 % of the fish processing side of the food chain
remained open during the early weeks of the impact and some of
these operating at significantly reduced capacity. There was an
interest by fishers to supply the retail trade / consumer directly
and advice on the regulations was provided for such situations.
1HORECA = HOtel, REstaurant & CAtering
SFPA, Ireland
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Compliance
• Food business inspections were more difficult to carry out
throughout the crisis due to safety concerns of both the operator
and staff.
• Inspections on landing continued in the lockdown period but
with restrictive measures in place such as social distancing. At
sea inspection capability was reduced and in the later stages of
the lockdown, resources were reassigned.
• Throughout the crisis, suspected non compliances in landing
inspections were more difficult to identify.
• Courts have remained opened throughout the lockdown period,
although interviews under caution with skippers were more
difficult.
Introduction of the Irish Government Tie-up scheme:
The Irish Government Tie-Up scheme is being coordinated by BIM
on behalf of the Minister of Agriculture, Food and the Marine. The
purpose of the scheme is to reduce the volume of seafood entering
the market which has been depressed by the COVID-19 Pandemic, while
at the same time keeping an adequate number of vessels fishing to
maintain a food supply. The scheme is designed to support fixed
costs incurred by owners of vessels while tied up. The Scheme will
be reviewed at the end of each month and the Minister for
Agriculture, Food and the Marine reserves the right to terminate
the Scheme at any time.
A maximum of two thirds (66%) of the number of vessels in each
of eight vessel length categories will be approved for support for
any particular one-month period, ensuring that some vessels are
always available to fish and continue to supply the market. The
grant-aid is available to owners of Irish-sea fishing boats that
meet certain eligibility criteria. More on the scheme can be found
in Appendix A.
TRENDS IN (IRISH FLEET > 12m) LANDINGS INTO IRELAND, 2019 AND
2020
Figure 3: Electronic landings data for Irish fleet, 2019 vs
2020.
Num
ber o
f trip
s per
wee
k
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NORWAY
For the first time since September 2018, there has been a fall
in the value of seafood exports from Norway. In April 2020, there
was a decrease in value of 8%, compared with April 2019, despite a
marked weakening of the Norwegian krone (NOK). Volumes were also
down 7% compared to April 2019.
Restrictions due to COVID-19 pandemic were introduced in
mid-March. Therefore, export data from the periods of week 2-11 and
12-18 2020 have been compared. Key findings are summarised
below:
General Trends
• A fall in demand for salmon and whitefish caused by the
decline of the restaurant sector and increased air freight costs
for the transportation of fresh products to overseas markets.
• A growth in exports to processing markets due to an increase
in demand for prepackaged, frozen
and processed products for home consumption in several
markets.
• Falling export prices, measured in foreign currencies like US
dollars and Euros. Value growth in April 2020 for some species,
measured in Norwegian kroner, is mainly caused by a weaker
Norwegian kroner.
• Reduced airfreight and ferry capacity from Norway has impacted
seafood exports.
Transport
• Approximately 87% of Norwegian seafood is exported (46% by
road and 41% by ship).
• A comparison of export data pre and post introduction of
restrictions show the average weekly volume of frozen mackerel and
herring carried in reefers was reduced by 59%.
• Similarly, the volume of fresh trout and salmon exports by
road was down 7% in the same period, and average airfreight volumes
of fresh cod, trout and salmon were down 9%.
Norwegian Customs / Norwegian Coastguard
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Changes in Exports of most important species
Figure 4 below compares fish exports pre-and-post- the
introductions of restrictive measures in Norway. Findings show a
decrease in weekly export volumes post restrictions for all species
other than frozen salmon fillets which increased 26%. On the other
hand, price value variations were species-dependant. As previously
mentioned, these could be result of the decrease in value of the
Norwegian kroner.
Consequences
• A reduction in exports may result in increasing pressure on
cold store and storage facilities whilst exporters seek new
markets.
• Domestic consumption within Norway cannot absorb the volume
reduction in exports.
• Lower export prices and stress on storage facilities may
result in increased smuggling and misreporting.
-9%
26%
-23%
-12%
-17%
-7%
-33%
-66%
-51%
-51%
-83%
-50%
-18%
13%
-7%
-12%
4% 6% 6%
21%
10%
12%
0%
6%
FRE
SH W
HO
LE
FRO
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ILLE
TS
FRE
SH W
HO
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FRE
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FRO
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DR
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S A L M O N T R O U T C O D S A I T H E H E R R I N G M A C K R
E L K I N G C R A G
C H A N G E S I N E X P O R T V O L U M E & P R I C E B Y S
P E C I E S
Average weekly export VOLUME difference (weeks 2-11 vs
12-18)
Average weekly VALUE (NOK) difference (weeks 2-11 vs 12-18)
Figure 4: Summary of changes in average weekly export volumes
and average weekly prices of different species of fish. Compares
export data from weeks 2-11 vs 12-18 of 2020.
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Compliance Activity
Compliance activity by the Norwegian coast guard stopped on the
12th of March in response to the COVID-19 pandemic. Visits and
inspections were stopped but the coast guard remained on patrol and
were available to contact via phone/radio if help was required by
vessels.
• The pause period lasted 3 weeks during which there were no
inspections at sea and no controls or inspections of fish landings.
One trend was that the coast guard received more tip offs than
normal reporting illegal fishing activities (e.g. nets,
transshipments between vessels, discards of fish).
• Normally a change in behavior is observed when the coast guard
diverted are away from compliance activities, and in this instance
an increase in discarding events (by both aircraft & patrol
vessels) was noted.
• The first inspection since compliance activity paused took
place on 1 April following a strict COVID-19 risk assessment. The
coast guard successfully arrested a Russian trawler for discarding
cod and haddock with new safety measures being followed.
• Compliance activities are slowly returning to normal, although
vessels can now refuse to be inspected and new COVID-19 risk
procedures are in place.
Norwegian Seafood Council Report2
The Norwegian Seafood council published a report 6th July 2020
on seafood exports in the first half of 2020. The report found that
the export value of Norwegian seafood reached an all-time high for
the first half of the year, with an increase in value of 3.5 per
cent measured against the first half of 2019. A weak Norwegian
krone is the main factor driving growth, but increased quotas for
mackerel, increased production of trout and a turn towards more
consumption of salmon fillet have also helped to raise the export
value.
The report observes that despite the overall picture showing
growth in value for Norwegian seafood exports in the first half of
the year, several species and product types have experienced a
decline in value, such as fresh cod, prawn and king crab. The three
factors in particular contributing to this: are an almost global
shutdown of the hotel and restaurant segment, fewer flights due to
severe travel restrictions, and very bad weather in the main season
for fresh cod which resulted in reduced catches. Salted fish,
scallops and codfish were also hit hard in the first half of the
year. This is caused by, amongst other factors, major challenges
associated with the corona virus in traditionally large markets
such as Brazil and Italy. There was also a decline in the export
price for some products, which indicates a fall in demand. Reduced
purchasing power, the risk of the COVID-19 virus flaring up again
and uncertainty in the value chain are factors that make future
prospects uncertain.
2https://en.seafood.no/news-and-media/news-archive/weak-norwegian-kroner-leads-to-best-ever-first-half-year-for-seafood-exports/
https://en.seafood.no/news-and-media/news-archive/weak-norwegian-kroner-leads-to-best-ever-first-half-year-for-seafood-exports/https://en.seafood.no/news-and-media/news-archive/weak-norwegian-kroner-leads-to-best-ever-first-half-year-for-seafood-exports/https://en.seafood.no/news-and-media/news-archive/weak-norwegian-kroner-leads-to-best-ever-first-half-year-for-seafood-exports/https://en.seafood.no/news-and-media/news-archive/weak-norwegian-kroner-leads-to-best-ever-first-half-year-for-seafood-exports/
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SWEDEN
Fishery related activities January – June 2020 compared to
2019
Swedish fisheries control, both at sea and on land, continued as
usual during the COVID-19 crisis, but with safety restrictions for
both inspectors and fishermen including a pause in controls on
small-scale coastal fishermen in vulnerable age groups. Patrols
were made up of the same people in order to reduce the number of
social contacts.
COVID-19 has to some extent affected all Swedish fisheries, with
the largest impact on coastal demersal fishing using vessels >10
meters in length. In the Skagerrak and Kattegat, fishing has
decreased by 26%. An exception is the shrimp fishery, which has
increased by 15%. In this fishery, the number of controls to ensure
compliance with landing obligations increased from 56 to 87.
Cod fishing in the Baltic Sea has decreased drastically (by 80%)
but this was unrelated to the COVID-19 pandemic. The critical state
of cod stocks in the Baltic Sea has resulted in a ban on fishing
for cod in subareas 25 and 26, and in subarea 24 outside 6 Nm from
the baseline.
The large-scale pelagic fishing has decreased by about 16%, and
there has also been a change in fishing patterns in several of the
sea areas compared with 2019. Industrial fishing in the Baltic Sea,
which normally occurs in January to March has shown a large
decrease (40%) compared with the same period in 2019. This change
cannot be attributed to the COVID-19 pandemic as the COVID-19
restrictions were put in place in mid-March. Instead the focus
shifted, with fishing in the North Sea for sandeel and mackerel
increasing dramatically by 120% and 300% respectively.
Small-scale fishing with vessels
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Salmon fishery and controls in the Baltic Sea
Early in the spring there was a COVID-19 related travel ban in
Sweden which affected the possibility of carrying out landing
controls in the northern part of Sweden (Baltic sea) as there are
no permanent inspectors in that area of the country. Therefore, the
control plan for the Salmon fishery was to not conduct any landing
controls at all and instead extend administrative controls on the
fishermen’s trade in salmon in the autumn of 2020. At short notice,
the travel ban was lifted, and a smaller force of inspectors went
to the areas around the Gulf of Bothnia. So far, the landing
controls have been effective and about twenty controls have been
conducted. There is a high level of compliance from the fishermen,
but there are difficulties in controlling certain priority subjects
since the landing places in the archipelago are inaccessible due to
lack of boats.
New rules introduced for this fishing season, including the
requirement to indicate the position of the fishing gear before
fishing begins, have not been satisfactorily complied with. The
reasons why the level of compliance is low will be analysed at a
later point. Another new requirement is the mandatory
pre-notification of landings from freshwater areas bordering the
Baltic Sea, which seems to have a high compliance rate. This
requirement gives us more information about who is fishing and when
this fishing takes place, which will help us to differentiate
between quota and non-quota salmon at the trading stage.
Figure 6: Vessels > 10 m, exclusive demersal and shrimp
trawlers Figure 7: Vessels > 10 m, demersal and shrimp
fisheries, trawler/seines
Figure 8: Fishing area, pelagic trawler/seines
VESSELS >10m, EXC. DEMERSAL AND SHRIMP TRAWLERS VESSELS
>10m, DEMERSAL AND SHRIMP TRAWLERS
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Due to the dioxin problems with the salmon from the Baltic Sea,
EU regulations do not allow this salmon to be placed on the market
without sampling, to ensure that it is within the legal/safe
levels. Sweden, Finland and Latvia have exceptions from the
regulations, as these countries provide consumers with information
on how often this fish can be used for human consumption. Before
the fishing began, in mid-June, there was a risk that the border to
Finland would remain closed, which would have made sales to Finland
difficult. When fishing began, it was possible to transport the
fish and sell it to/in Finland. Trade with Finland has increased
this year and the presumed reason is that the price received from
Swedish first-buyers has fallen considerably. However, sales from
the vessels in the local market along the northern Baltic coast are
still high in relation to other fisheries in Sweden.
As a result of the COVID-19 pandemic, collaboration between the
Swedish Marine and Water Management Agency and the Swedish Food
Agency has been expanded and the more locally stationed food
inspectors have obtained information from first buyers that will be
useful in the administrative controls to take place later in
2020.
Impact on imports
Swedish imports of fishery products were compared by taking the
total number of consignments imported per country from January to
April 2020 and comparing the values with the same period last year
(2019). The data was compared for the five largest importing
countries (Norway (~ 90 %), China, Thailand, Canada and
Iceland).
The percentage changes in number of imports of consignments for
April 2019 vs 2020 are summarised in figures 9 to 18. For each
importing country, this figure is then compared against general
import data trends as observed over the past 5 years.
Norwegian imports
The decrease in number of consignment imports from Norway in
April 2019 vs 2020 reflects a similar pattern observed over the
last 3 years.
5,050
5,100
5,150
5,200
5,250
5,300
0 4 - 2 0 1 9 0 4 - 2 0 2 0
N O R W E I G A N I M P O R T S A P R I L 1 9 V S A P R I L 2
0
1250013000135001400014500150001550016000
2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9
N O R W E G I A N I M P O R T S 2 0 1 4 - 2 0 1 9
Num
ber o
f con
signm
ents
Num
ber o
f con
signm
ents
Year Year
Figure 9: No. of consignment imports from Norway April 2019 vs
2020. Figure 10: No. of consignment imports from Norway 2014 –
2019.
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17
Thai imports
There were no consignment imports from Thailand in April 2019
compared with 60+ consignments imported in April 2020. Generally,
the number of imports from Thailand decreased from 2018 to
2019.
Canadian imports
The changes in numbers of consignments imported from Canada 2019
vs 2020 are too similar to draw any relevant comparisons or
conclusions.
Chinese imports
050
100150200250
0 4 - 2 0 1 9 0 4 - 2 0 2 0
C H I N E S E I M P O R T S A P R I L 1 9 V S A P R I L 2 0
0
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C H I N E S E I M P O R T S 2 0 1 4 - 2 0 1 9
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f con
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ents
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2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9
C A N A D I A N I M P O R T S 2 0 1 4 - 2 0 1 9
Num
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f con
signm
ents
Year Year
Num
ber o
f con
signm
ents
Year
Num
ber o
f con
signm
ents
Year
Num
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f con
signm
ents
Num
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signm
ents
Year Year
Figure 11: No. of consignment imports from Thailand April 2019
vs 2020. Figure 12: No. of consignment imports from Thailand 2014 –
2019.
Figure 13: No. of consignment imports from Canada April 2019 vs
2020. Figure 14: No. of consignment imports from Canada 2014 –
2019.
Figure 15: No. of consignment imports from China April 2019 vs
2020. Figure 16: No. of consignment imports from China April 2014 –
2019.
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18
The number of consignment imports from China have declined 33%
when comparing April 2019 and April 2020. This is despite an
average increase of 9% per year in all consignments from China
since 2014. This could possibly be an effect of the COVID-19
crisis.
Icelandic imports
The figures show an increased number of consignment imports from
Iceland in April 2020. This seems to match the general trend from
2017 to 2019.
Direct landings from third country vessels
So far, in the first months of 2020 compared to the first months
of last year, there has been an increase in the number of Norwegian
direct landings in Sweden (42 %) and an increase in the number of
fishing vessels landing their catches (from three to six).
Norwegian landings of shrimps have increased by almost 90 %, from
35 to 66 tons.
There have been no direct landings from other third countries
other than Norway.
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50
100
0 4 - 2 0 1 9 0 4 - 2 0 2 0
I C E L A N D I C I M P O R T S A P R I L 1 9 V S A P R I L 2
0
Num
ber o
f con
signm
ents
Num
ber o
f con
signm
ents
Year Year
Figure 17: No. of consignment imports from Iceland April 2019 vs
2020. Figure 18: No. of consignment imports from Iceland 2014 –
2019.
-
19
USA
Along with many other industries, the commercial fishing and
seafood industries had to adapt quickly for dealing with the
COVID-19 pandemic. Three adaptations that continue to influence
these industries in the Northeast United States are: reduced
fishing effort, the waiver of observer coverage and a shift from a
multi-layered supply chain model. This shift has occurred in both
direct sales from boat to consumer (pop-up sales) and from
wholesalers direct to the consumer.
1. Reduced fishing effort
An analysis of VMS (Vessel Monitoring System) data in the North
East region shows there has been an overall decrease in fishing
activity. Prices have dropped, markets closed, seasons ended, and
new ones began. Overall, the number of trips reduced by about 21%
in March and April in 2020 as compared to 2019 according to VMS
data as per Figure 19 below. Figure 20 shows a further analysis of
the difference in number of trips in April 2019 vs April 2020 by
reference to targeted species.
-23%
-24%
7%
31%
-32%
-38% -1
1%
143%
-37% -2
1%
-21%
27%
SCA
LLO
P
GE
NE
RA
L …
SCA
LLO
P
LIM
ITE
D A
CC
ESS
MU
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PE
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S SE
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OR
MU
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PE
CIE
S C
OM
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OO
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FISH
SUR
F C
LAM
&
QU
AH
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SQU
ID &
M
AC
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L
HE
RR
ING
DO
F T
RA
WL
DO
F P
OT
DO
F D
RE
DG
E
DO
F G
ILLN
ET
V M S T R I P C O U N T P E R C E N T A G E D I F F E R E N C E
A P R I L 2 0 1 9 V S A P R I L 2 0 2 0
2400
1869
3184
2536
2 0 1 9 2 0 2 0 2 0 1 9 2 0 2 0
M A R C H A P R I L
V M S T R I P C O U N T I N T H E N O R T H E A S T R E G I O
N
Figure 19: VMS trip count in the North East region - March and
April comparison
Figure 20: VMS strip count % difference by species April 2019 vs
2020
NOAA Fisheries Office of Law Enforcement
-
20
TO NOTE: This analysis only includes fleets/vessels required to
operate VMS. In new England and mid-Atlantic region this is circa
1,000 vessels. It is very difficult to gauge how the pandemic has
affected the activity of vessels without VMS
Further notes on important species
Scallop: This fishery has a product with a high unit value so it
can operate at low volumes whilst remaining profitable. The season
opened 1 April. There is a general observed reduction in
activity.
Bluefin tuna: The season starts on 1 June 2020. It is unclear
how this species will be affected yet as it’s a high-value product
with both domestic and international markets. The direct to
consumer model is not an option and there is the risk that with
more people unemployed there will be more opportunity to fish but
with no avenue for legal sales. NOAA recognises the need to conduct
more outreach and compliance assistance on reporting
requirements.
Northeast Multispecies/Ground Fish: There was an initial
observed reduction in trip numbers because of uncertainty over
restaurant sector demand etc. There was an observed shift to direct
sales to consumer markets and online sales. Trip numbers then were
relatively steady or slightly increased. One possibility for this
could be the cessation of observer deployments. The absence of
observers may be incentivising the fleet to harvest as much fish as
they can now, so they do not have to pay for observer coverage
later and to avoid the scrutiny provided by observers.
2. Impact on supply chains
Traditionally, large wholesale dealers buy northeast fishery
products and distribute them to restaurants, box stores, and other
markets. The ongoing pandemic has caused a direct to consumer
market to develop which has resulted in an increase in new fish
dealers (with an increase in dealer permits issued in the New
England and mid-Atlantic region). New dealers leveraged their
permits to start direct to consumer ‘pop-up’ style sale operations,
advertising online on the internet and social media platforms with
some offering home delivery. Examples of such advertisements can be
found in Appendix B of this report.
With the increased number of dealers and the direct sales to
consumers, the potential for increased misreporting and/or
under-reporting is of concern. Officers and agents are providing
outreach and compliance assistance to help these new operators be
aware of reporting requirements. Social media monitoring will
become a useful tool to identify sales for further investigation if
needed.
3. Observer waivers
In the Northeast, observer and at-sea monitor coverage has been
waived. Some of the concerns with this waiver include less
visibility on fisheries like groundfish, where discards are highly
regulated, shifts in industry behaviour, and potential observer
safety concerns when they return to work. Some vessels have to pay
for observers so going forward, vessel owners may be reluctant to
incur these costs and may attempt to circumvent the rules.
-
21
UK
General update
The Scottish fleets have been severely curtailed with lack of
markets both in the far East and across Europe. In Scotland the
Industry has been supported by a hardship fund set up by the
government. This is made up of 2 funds; 1 for vessels below 12m
(mostly shellfish vessels) and the second for over 12m vessels
(many of which are small trawlers targeting Nephrops). Similar
financial support packages have been introduced in the other
countries of the UK.
Notable changes by species
Pelagic: The bulk of the Scottish Winter Mackerel fishery was
finished before Covid-19 impacted so the catching season had almost
finished (apart from Blue whiting which mainly goes for fish meal).
There were reports of Faroese, Russian and Icelandic vessels
encroaching into UK waters whilst targeting Blue Whiting. A Marine
Protection Vessel was tasked to the area, but no incursions were
detected.
Demersal : Markets across Europe were badly affected initially,
especially in France where the French industry demanded only French
caught fish be sold in France. This has now been resolved and
markets are slowly beginning to pick up. The Scottish Demersal
fleet has asked for help and all have accepted an 8 day tie up
scheme to try and stagger the landings from vessels across the
month. There has been an international fishery active at Rockall
and into NAFO waters (mainly Haddock) but there have been good
reports of other species throughout the fishery.
Nephrop: This fishery was severely restricted for a period with
markets almost drying up completely and still remains severely
restricted.
Shellfish: There have been no changes with regard to crab and
lobster as markets are only just beginning to open up albeit
slowly.
Shift in supply chain
One area where markets have bucked the trend has been with
vessels fishing to the community and using social media to alert
people of what they have to offer either from the quay side or
delivered to people’s doors. It will be interesting to see if this
trend continues going forward.
There is a trend in vessels avoiding land declarations by
selling directly to public – often neither party is registered as
buyers/sellers. There are limits on what they can do before they
are committing a criminal offence.
Marine Scotland / HM Revenue & Customs
-
22
Compliance
Enforcement throughout the lockdown period was drastically
curtailed with many compliance staff assisting with the COVID-19
effort; be that delivering medicine to some outlying areas or just
supporting the local community any way possible. As restrictions
ease, Marine Scotland look towards how to enforce the industry
going forward.
CUSTOMS DATA ANALYSIS
UK Customs data comparing fish products imported/exported in
weeks 11-19 of 2019 vs the same period of 2020 was analysed. For
reference, full ‘lockdown’ restrictive measures were introduced in
the UK in week 14. The below information highlights some key trends
observed.
TO NOTE: Data is only available for imports/exports to non-EU
countries. Movements to and from the UK from other Member States
cannot be directly monitored.
Export Trends
• A decrease in the total net mass of all fish exports (23%) as
well as a decrease in the total customs value of all exports (35%)
was observed.
• The 3 species that made up 80+% of all exports (by weight) in
2019 were: Salmon (63%) Mackerel (13%) and Whelks (5%). Figure 21
below compares changes in net mass exports for these 3 species from
the 2019 period to 2020. The graph also compares in the average
value (price per kg) of each species. This suggest that the overall
net mass decrease of 23% could be wholly attributable to reduction
in salmon exports.
5% 4%
-34%
1%
17%
-6%
W H E L K S M A C K E R E L S A L M O N
E X P O R T C H A N G E S - T O P 3 S P E C I E S
Net VOLUME % change Average VALUE (£/kg) % change
Figure 21: Volume and value comparison of exports of Salmon,
Mackerel & Whelks from weeks 11-19 2019 vs the same period
2020.
-
23
Further analysis of the changes in export volume and price by
species and ‘state’ was carried out and is summarised in Figure
22.
General trends from Figure 22
• Certain species saw huge increases in mass exports of frozen
fish products which suggests increase in demand for longer
life/frozen goods. For example, total mass exports of frozen cod,
haddock, herring & salmon all saw increases in 2020 compared
with the same period last year. Notably, frozen herring exports
increased 743%. Further analysis showed that this was largely down
to increased exports in 2020 of ‘whole frozen herring’ to Nigeria
and The Ivory Coast.
• Massive decrease in exports for species such as lobster (both
fresh and frozen). This is attributable to the reduced demand from
the HORECA sector.
• Across all species, the average value (price per kg) has
increased for prepared fish (most notably for species such as
haddock, herring & salmon).
49%
46%
-69%
16%
-74%
-98%
15%
-38%
-82%
9%
-49%
-61%
40%
-53% -3
4%
-94%
-25%
48%
26%
6%
-7%
98%
-79% -6
6%
129%
-31%
13% 29
%
-8%
2%
-25%
47% 7
1%
FRO
ZE
N
FRE
SH
PR
EP
AR
ED
FRO
ZE
N
FRE
SH
PR
EP
AR
ED
FRO
ZE
N
FRE
SH
PR
EP
AR
ED
FRO
ZE
N
FRE
SH
FRO
ZE
N
FRE
SH
PR
EP
AR
ED
FRO
ZE
N
FRE
SH
PR
EP
AR
ED
FRO
ZE
N
C O D H A D D O C K H E R R I N G L O B S T E R M A C K R E L S
A L M O N T R O U T
C H A N G E S I N F I S H E X P O R T S B Y S P E C I E S A N D
S T A T E - 2 0 1 9 V S 2 0 2 0
Net VOLUME % change Average VALUE (£/kg) % change
Figure 22: Volume and value comparison of exports of species by
‘state’ from weeks 11-19 2019 vs the same period 2020.
-
24
Salmon exports
As salmon exports make up the majority of the UK’s fish exports
(by volume), further analysis was carried out on this species. As
shown in Figure 23 the changes in volumes of exports of Salmon
products from 2019 to 2020 varied depending on country.
The increase in salmon exports to Vietnam is marked, however
this is skewed by a single 1000 tonne export of frozen salmon heads
in May 2020. This will need to be looked at in further detail.
If we look at salmon exports by type (Figure 24 above), frozen
fillets exports are skewed by 2 consignments of Pacific salmon to
Hong Kong. The Customs values for these two consignments look high,
so could be misdescribed. If we ignore these two consignments, then
the average price increase is 27%. Again, if we look at the exports
of minced fillets, 75% of the consignments were to Lebanon at 30
times 2019 prices. The reason for this is unclear. However, it does
mean that we need to exercise caution when looking at import/export
data trends due to potential misreporting.
137%
47%
-34%
-51%
-66%
V I E T N A M P H I L I P P I N E S C H I N A U S A T A I W A
N
C H A N G E I N V O L U M E O F S A M O N P R O D U C T E X P O
R T S B Y C O U N T R Y 2 0 1 9 V S
2 0 2 0-9
3% -7%
-90%
-59%
42%
-41%
8%
521%
807%
-4%
123%
10%
F I L L E T S F I L L E T S F R O Z E N
F I L L E T S M I N C E D F R E S H F R O Z E N S M O K E D
S A L M O N E X P O R T S B R E A K D O W N
Net VOLUME % change Average VALUE (£/kg) % change
Figure 23: Comparison of change in Salmon product exports weeks
11 - 19 2019 vs same period 2020.
Figure 24: Volume and value comparison of Salmon product exports
weeks 11 - 19 2019 vs same period 2020. Breakdown by ‘state’.
-
25
Import trends
• An increase in the total net mass of all fish imports (2%),
but a decrease in the total customs value of all imports (4%) was
observed. Figure 25 breaks down the changes in imports of different
species of 2019 vs 2020.
• There has been little change in proportion of species imported
by weight of value. The main imported species are cod, shrimp,
tuna, salmon, haddock and pollock (80% of all imports in 2019 and
2020).
Other Import observations
It is not immediately clear why imports of cod from Faroes
increased whereas the supplies from the main importing countries
(Iceland and Russia) decreased (as shown in Figure 26). It should
be noted that much of the imports of cod from the Faroes may be for
customers in the rest of Europe. As seen in Figure 27, there has
been a significant increase in salmon imports from Norway. Most
salmon imports are fresh/chilled.
29%
-36%
3%
-2%
-24%
F A R O E S N O R W A Y C H I N A R U S S I A I C E L A N D
C H A N G E I N N E T V O L U M E O F I M P O R T S O F C O D B
Y C O U N T R Y
84%
-26% -17%
27%
19%
N O R W A Y C H I N A I C E L A N D U S A F A R O E S
C H A N G E I N N E T V O L U M E O F I M P O R T S O F S A L M
O N B Y C O U N T R Y
Figure 25: Volume and value comparison of change in UK Imports
weeks 11 - 19 2019 vs same period 2020. Imports are broken down by
species and their state.
37%
-45%
-4%
-67%
-3%
17%
17%
166%
122%
18%
-32%
-35%
-4%
-63%-
23%
0% 1% 6%
-3%
-27%
24%
7% 7%
-14%
54%
-29%
32%
-22%
DR
IED
/SA
LTE
D
FRE
SH
FRO
ZE
N
FRE
SH
FRO
ZE
N
SMO
KE
D
DR
IED
/SA
LTE
D
FRE
SH
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FRE
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SMO
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D
FRO
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LIV
E
C O D H A D D O C K P O L L O C K S A L M O N S H R I M P
C H A N G E S I N I M P O R T E D S P E C I E S B Y V O L U M E
A N D A V E R A G E P R I C E 2 0 1 9 V S 2 0 2 0
Net VOLUME % change Average VALUE (£/kg) % change
Figure 26: Change in net volume of UK Imports of cod by country.
Weeks 11-19 2019 vs same period of 2020 compared.
Figure 27: Change in net volume of UK Imports of salmon by
country. Weeks 11-19 2019 vs same period of 2020 compared.
-
26
Summary of findings
This section summarises the reports of NA FIG members in
combination with information provided by the European Market
Observatory for Fisheries and Aquaculture.3
The collapse of the HORECA sector leading to significant
decrease in the demand for high value products. This has had
significant impact on the market for products such as lobster,
shellfish, shrimp, turbot and halibut. Bluefin tuna exports were
further impacted by the closure of markets in the Far East. The
European shrimp market was further impacted by a decline in imports
from India and Ecuador. Shrimp imports into the EU dropped 80% by
volume in week 17 and the market price reduced by 7% from the
corresponding period in 2019.
Difficulties in maintaining exports because of reduction in
demand and logistical problems. Norwegian exports of pelagics were
reduced due to the lack of reefers. Certain European countries
(e.g. France and Italy) created market-driven protectionist
policies to protect domestic fisheries which had further impact on
exports to those countries.
Labour supply issues impacted on harvesting and processing in
the aquaculture sector combined with a downturn in the HORECA
sector. For instance, in week 18, EU farmed mussel sales had
reduced by 80% since the beginning of the crisis.
There has been a temporary increased demand for cold storage.
This is particularly evident in countries such as Canada where the
reduction in exports was combined with a reduction in processing
capacity.
There appears to have been a diversion, where capacity permits,
to alternative markets. Norwegian exports of salmon to Polish
processing facilities increased due to increased consumer demand in
Germany. Imports of fresh salmon into the UK is not matched by a
significant increase in exports to non-EU countries, confirming
press reports that UK processors were able to shift product
normally exported to the Far East to the EU. Home consumption of
salmon in Spain, France and the UK increased by 12%, 21% and 18%
respectively in weeks 9 to 12. Similarly, home frozen cod fillet
consumption in France grew by 48% together with increased sales of
ready to eat salmon and cod products. In Germany, in the first
quarter of 2020, fish consumption increased by 11%, with a 25%
increase in sales of canned fish and a 14.2% increase in sales of
frozen. In Spain, retail sales of fish increased by 20% in week 17
compared with the same period in 2019. In the UK, one major
supermarket chain has reported a 60% increase in the sales of
domestically-sourced fish by selling pre-packed but fresh fish and
the home delivery of fish boxes.
An increase in sales direct to consumers using e-commerce
methods including social media. Across the EU, online sales
increased by 25% and online takeaway home deliveries increased by
100%. This shift to direct sales to consumers is marked and may
become permanent. A number of countries (USA, Ireland, Scotland)
implemented outreach measures to ensure that the regulations were
being adhered to. The establishment of permanent boat to consumer
sales is likely to require changes to fisheries control
mechanisms.
3European Market Observatory for Fisheries and Aquaculture
(EMOFA) reports can be found here:
https://www.eumofa.eu/covid-19
https://www.eumofa.eu/covid-19https://www.eumofa.eu/covid-19
-
27
These new methods of direct sales appear to have arisen in
countries with domestic consumer capacity. In predominantly fish
exporting countries such as Iceland and Norway consumer capacity is
likely to be already maximised and so there is no ability to
increase domestic consumption. Therefore, any production not
exported needs to be stored.
Panic buying by consumers in the early stages of the crisis may
result in market distortion as durable goods have been stockpiled
leading to reduced demand for the rest of 2020. Increased demand
for durable goods with long shelf-life resulted in a 41% by volume
increase in Norwegian exports of salted/dried cod to Portugal in
the first quarter of 2020 compared to the same period 2019. In
Spain, canned fish purchases increased by 80% at the start of
lockdown but thereafter only increased by 21% compared to the same
periods in 2019.
There has been a shift of product into processing due to
increased demand but this shift has been mitigated due to workforce
issues and social distancing requirements. The effect of this is
that although volume production may have increased, the unit cost
of production and transport has also increased and so, although
turnover may increase, profitability may decrease. Confirmation of
these trends will have to await the publication of business
results. The increase in processing was due to an increased
consumer demand for frozen and/or prepacked products for home
consumption. This demand in the EU resulted in increased imports of
Alaskan Pollack and groundfish from China and a reliance on frozen
imports from outside the EU. These changes meant that movements of
fresh and chilled fish was significantly reduced, with increased
demand for frozen, canned and smoked fish.
There appears to have been some variation on the impact of
COVID-19 on marine capture fishing operations. Certain fisheries
appear to have been significantly impacted with governments having
to introduce support packages. Inshore fisheries and local fish
markets were initially the most impacted. In Ireland, the price
drop for a range of popular species was 50-70% in weeks 19 to 21.
Other countries report minimal impact (Iceland, Denmark &
Greenland) or temporary pauses in operations. There have been
delays in opening fisheries. Where fishing operations have resumed,
increased supply combined with limited consumer demand has resulted
in market price drops. Continued price instability is likely until
supply and demand balances are re-established.
Compliance Risks
The reduction in enforcement activities such as use of onboard
observers, at sea inspections etc, gives risk to an increased risk
of illegal activities at sea such as discarding. Any illegal
fishing will result in sales of black fish into unstable markets
may result in increased price instability. One possible mechanism
to dispose of excess fish is to increase direct sales to consumers,
thereby bypassing reporting mechanisms. The immediate compliance
response has been the initiation of proactive outreach programmes
in USA, Ireland and the UK (Scotland) to make those involved in
this activity aware of reporting requirements. However, there
remains a clear risk of under-and misreporting and tax evasion.
Supply chain disruption may result in the increased likelihood
of mislabelling in prepacked products. Temporary shortages of
specific raw materials may result in a heightened risk of
substitution. Pre-printed labels may not correspond to the actual
content of the package.
-
28
Recommendations
COVID-19 government support programmes have, in a number of
instances, included deferred reporting deadlines which means that
there is a lack of data available to properly quantify the impact
of the COVID-19 crisis. We therefore propose that a further survey
is conducted in early 2021 so that the full impact of the crisis on
the fisheries sector can be determined and to ascertain whether the
detected shifts in value chains were temporary or permanent. If,
for example, direct sales to consumers becomes prevalent then this
may require changes to risk assessments and to fisheries control
processes.
-
29
Appendices Appendix A
Further details on the Irish government Response to the COVID-19
crisis
Details on the tie up scheme can be found here:
http://www.bim.ie/schemes/covid-19-temporary-fleet-tie-up-scheme/
Example of Information Notice for Landings:
http://www.bim.ie/schemes/covid-19-temporary-fleet-tie-up-scheme/http://www.bim.ie/schemes/covid-19-temporary-fleet-tie-up-scheme/http://www.bim.ie/schemes/covid-19-temporary-fleet-tie-up-scheme/http://www.bim.ie/schemes/covid-19-temporary-fleet-tie-up-scheme/
-
30
Appendix B
Examples of ‘pop-up’ style online advertisements, as seen in the
USA (Instagram & Facebook advertisements)
-
31
Appendix C
Examples of ‘pop-up’ style online advertisements, as seen in
Cornwall, UK (Facebook advertisements). These Facebook pages were
created April 2020.
The Irish Government announced a series of significant
restrictive measures to try to contain the spread of COVID-19 in
March 2020. Specifically, on the 27th March the Government
announced restriction of travel to and from work with the exception
of d...The Irish Government announced a series of significant
restrictive measures to try to contain the spread of COVID-19 in
March 2020. Specifically, on the 27th March the Government
announced restriction of travel to and from work with the exception
of d...There were also a series of economic measures to assist
companies remain in business and retain their staff. These measures
included employment related payments to supplement unemployment
stemming from the economic effects of COVID-19, tax changes to
...There were also a series of economic measures to assist
companies remain in business and retain their staff. These measures
included employment related payments to supplement unemployment
stemming from the economic effects of COVID-19, tax changes to
...There were also specific procedures with regard to foreign
vessel landings into Irish ports (see Information Notice Harbours
in Appendix A) and Marine Notice 6 of 2020 from the Department of
Transport, Tourism and Sport’s website. This notice sets
out...There were also specific procedures with regard to foreign
vessel landings into Irish ports (see Information Notice Harbours
in Appendix A) and Marine Notice 6 of 2020 from the Department of
Transport, Tourism and Sport’s website. This notice sets
out...Fishery related activity, late March – Mid May 2020Fishery
related activity, late March – Mid May 2020
