With the Cantabrian fleet moored until next Monday in protest at the rise in fuel prices and with a sideways glance at the situation in Ukraine, it was a matter of time before both crises hit the fishing sector Spanish which, as is plausible, could lead to an increase in consumer prices.
This ‘perfect storm’ also threatens the two ways in which fish reaches our fish markets and markets: fishing and aquaculture. The first, due to inflation and the rise in diesel prices, has been reduced and has put numerous guilds and ports throughout Spain on strike.
The second, too conditioned by the cost of energy, It is also affected by supply difficulties and higher feed prices, very dependent on Ukrainian and Russian cereals.
Ships that do not fish, skyrocketing distribution costs, The high price of electricity —with what it means for, for example, refrigeration— and the bad news coming from Eastern Europe means that, against more wind and tide than ever, both fishermen, fishmongers, canners and aquaculturists are in a same boat under the threat of heavy seas.
On the horizon, see how the drop in oil price can alleviate part of the situation and the hope that the war in Ukraine, in addition to humanitarian reasons, stops as soon as possible and does not end up destabilizing economically.
In the very short term, dealing with the lack of sunflower oil, the increase in fuel prices and the lack of accessibility to feed and, as is obvious, the increase in the price of electricity.
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There is no shortage (for the moment)
The problem is that it rains on wet, as he warns Maria Luisa Alvarez General Director of Fedepesca (National Federation of Provincial Associations of Fish and Frozen Product Retailers). “We have been monitoring prices with our associations for months,” she says about a situation that is not new.
“At the turn of summer we warned that the rise in fuel and energy It was going to have an impact on costs in the long run,” he clarifies. “It is true that the chain tries to contain prices for the final consumer,” he endorses, specifying that “in general terms, beyond very specific cases, there is no shortage nor will there be”.
He does not deny, however, that “the uncertainty that the war in Ukraine is generating, added to the stoppages in certain transport sectors” warn of that perfect storm. Meanwhile, the fish is still in the fishmongers: “There is no supply problem. beyond some specific species because some boats are moored or because some transport company has not worked”.
If you express concern, obviously because this is a recurring crisis that splashes the entire fish value chain. It splashes on farmed fish, highly dependent on feed that comes from Ukrainian cereals, but the cost of energy and, of course, that of fuel, necessary for any type of transfer, also matters.
In addition to that, Álvarez stands up for his associates: “The distribution chain is doing an impressive job for contain prices as much as possible and that do not affect the citizen, But it’s not a sustainable situation.
It could be glimpsed that aquaculture would act as a support for the business in the national fishmongers. Its not a made up sentence. The reality is that farmed fish are 25% of Spanish fishing production, according to sources from the Ministry of Agriculture, Fisheries and Food, and also accounts for a quarter of all aquaculture production in the European Union.
We are talking about sea bass, sea bream, turbot, trout, sturgeon, croaker, sole and even bluefin tuna. A good number of species that have adapted well to breeding in these pools and whose importance transcends the current, but conditions the present. According to data from Aquaculture in Spain, two thirds of the fish that will be consumed in 2030 will come from this type of system.
The options, in addition to the desirable end of the conflict, also suppose a greater commitment on the part of the administrations. This is how he expresses it Xavier Ojeda, Manager of Aquaculture of Spain, who demands “immediate state aid to compensate for the escalation in the price of feed or energy”.
It also alludes to community responsibility, such as “provide support from the European Maritime Fund or ensure the proper functioning of the single market“, among whose values is “not having internal trade barriers”.
In the same sense, it also opens the door to “a limitation of electricity prices and to search for new origins of raw materials as food for fish”. At stake, in his words, is the search for “extraordinary solutions that effectively help us to continue contributing to Spanish food sovereignty“.
A reality to which Approve (Aquaculture Business Association of Spain) joins, putting the dots on the i’s of the costs facing aquaculture. According to association estimates, the feed accounts for 60% of production costs of aquaculture fish.
A challenge that, once again, comes a long way, since “the cost of fish feed was already at a fever pitch in January due to tensions in the supply of raw materials in the aftermath of the covid pandemic,” they explain in a press release.
That ban remains open in the search for raw materials that not only the fishing sector needs, but also the fuel industry, such as the production of biofuels and which also depends on Ukrainian and Russian cereals.
As a climax, Apromar transfers the message to homes, in addition to the lack of profitability or the risk of closure that it may mean for the producers. If the presence of these fish is reduced due to their costs or the price to the consumer rises, it will mean an asymmetric reduction in the consumption of fish, “such an essential food”, they allude to from Apromar, “especially in the case of low-income families “.
The battle of the preserves
One cannot lose sight of the Spanish canning sector, also very powerful, although it does not always depend on national fishing grounds. In any, the canning manufacturing industry is also on alert due to the very high demand for sunflower oil and the low supply, due to the amount of oil imported from Ukraine.
According to sources from Anfaco-Cecopesca, a canning company, the shortage of sunflower oil could emerge at the end of this month of March. a reality that Juan Manuel Vieites, general secretary of the employers’ association, he pointed out at a press conference. The data does not lie: 70% of the sunflower oil that reaches Spain is Ukrainian.
To do this, the top leader of the organization also explained, ways will be sought that allow the canning industry to come out afloat. In the requirements requested from public administrations, both national and community, is “the taking of exceptional measures such as the removal of tariffs“. An escape valve that could open the door to import oil from outside the European Union.
The measure is not trivial. The possibilities of a stock breakage of sunflower oil are high, according to FEDIOL, a European association that brings together vegetable oil producers, who indicated on March 2 the margin of accumulated reserves in the European Union: “between four and six weeks”.
Images | istock
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