Changes taking place in export markets and Iceland’s currency gaining strength have hit processors.
Processing company Gullberg at Seyðisfjörður in eastern Iceland, a subsidiary of Síldarvinnslan, has taken delivery of 2700 tonnes of landed groundfish so far this year, a figure that has doubled since 2014. Its trawler Gullver has landed 3250 tonnes over the first nine months of the year compared to 3000 tonnes last year, but in spite of this increase, Gullver’s catch values are ISK70 million down on last year’s.
According to the company, product prices have fallen on overseas markets, and the increased strength of the Icelandic króna has widened this gap still further as operating profits have falled significantly.
Gullver has traditionally supplied the German market with fresh redfish and built up a reputation for the quality of its landings, but with the closure in 2014 of the Russian market that had previously been a major outlet for redfish products has resulted in increased redfish exports to Germany.
Síldarvinnslan reports that the volume of redfish available on the German market has increased by 40% at the same time as prices have dropped by 30%, while fishing patterns have also changed, with catches of redfish by fresher vessels having increased by 20% as freezer vessels have been not been targeting redfish as much as before.
