With the fishing industry in Russia going through reform and modernisation, the fleet being renewed long with port infrastructure and logistics, supply and the balance of imports and exports is set to change, according to the head of Russia’s Federal Agency for Fisheries, Deputy Minister of Agriculture Ilya Shestakov.
He said that up to 75% of the total marine catch is caught by approximately 850 vessels, and much of the fleet is obsolete.
‘This causes serious problems, such as the reduction of production capacity and a slow rate of industry innovation in the industry, a higher rate of repairs and maintenance, and increased the risk of accidents,’ he said, commenting that major amendments to stimulate renewal of the fishing fleet were made in 2016 to legislation governing fisheries.
‘We are talking about state support in the form of quotas for investment purposes, with an increased consolidation period, 10 to 15 years, so that fishermen can carry out long-term investments, as well as a mechanism for stimulating the development of coastal fisheries.’
He said that at least 50 to 60 large and medium-sized vessels can be built under the investment quota mechamism, as well as smaller vessels.
‘We appreciate that each region has its own specific requirements. For example, the Far East fishery for pollock and herring requires higher capacity trawlers. The northern region requires medium-sized vessels. By 2030 we plan to have upgraded around 50% of fleet capacity.’
He added that there are many domestic shipyards capable of building fishing vessels, citing the examples of three being built for Kamchatka at a Kaliningrad yard and a series of orders in Vyborg for trawlers and crabbing vessels for the Arkhangelsk region.
Ilya Shestakov said that it is accepted that there is a need for imported equipment, and the localisation threshold for vessels up to 2020 is at least 30%, and will rise to 40% (including the main engine) after 2020.
‘The goal is to improve the industry’s economic efficiency, its contribution to GDP, and most importantly, making available to the domestic market affordable and varied seafood products. To do this, we need to change the structure of production – increase advanced processing methods and create a modern fisheries infrastructure,’ he said, commenting that around 40% of Russian production is exported and there is no need for mechanisms to discourage this.
‘About 60% of export sales are frozen pollock, but part of this is returned as minced fish or finished product. At the same time, I note that an increase in exports of fish fillets and other finished products from Russia over the past year. We expect that trend will increase,’ he said, commenting that since 2015 Rosrybolovstvo has been running a promotion effort with the industry for Russian fish, promoting seafood products in co-operation with regional authorities.
‘We jointly organise seafood festivals and fairs, establish contacts between fishermen and retailers, and promote their participation in business forums and conferences. Work is underway on the implementation of a traceability system, as transparency of supply and compliance with requirements for transport and storage is vital to maintaining product quality.’
