ICWPF 2014, Paris
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1 ICWPF 2014, Paris
2 Intro
3 RG sales of CWP in Volume Japan Asia Other 7% 6% 1% Russia UK 13% 15% UK Japan 11% 19% Net turn Asia Other 4% Russia 0% 7% 33% Scand. Central Europe 24% 36% Scand. 26% Central Europe Overall Europe is Royal Greenland s largest market in terms of volume, turnover and profit Asia s importance to Royal Greenland is growing year by year Our new strategy has a clear focus on the North Atlantic species CWP is for the coming years expected to decline in volume, but maintain turnover level 3
4 RG Prawn Production Entities Trawler division (Nuuk, Greenland) Ownership in a number of trawlers and smaller fishing boats as well as numerous partnerships Landbased production (Greenland) - Ilullisat - Inshore - Sisimiut Off- and Inshore - Both factories are peeling at approximately half of the maximum capacity Repack (Denmark) - Aalborg (frozen, brine), Glyngøre (license prod. MAP)
5 RG Fleet Totally Royal Greenland operates 14 vessels: 4 large vessels are dedicated to catching cold water prawns Production capacity: 110 tons/day Catch capacity: 7-10,000 tons/year Hold capacity: tons Type: Ocean-going prawn trawler Production capacity: 110 tons/day Catch capacity: 7-10,000 tons/year Hold capacity: tons Type: Ocean-going prawn trawler The trawler division catches tons of sea food annually Prawns and halibut account for 80% of total catch. The rest consists predominantly of cod, redfish and cat fish. 320 people are employed in the fishing activities Production capacity: 110 tons/day Catch capacity: 7-10,000 tons/year Hold capacity: 600 tons Type: Ocean-going prawn trawler Production capacity: 60 tons/day Catch capacity: 6,000 tons/year Hold capacity: 130 tons Type: Inshore prawn trawler
6 Areas
7 Areas Our main fishing areas for Pandalus Borealis: Recent trial fishery has given limited volumes as far North as the Melville Bay Over the recent years, prawns have migrated further North. Including Inshore fishery. Fishery active in early 00 s
8 The Greenlandic Prawn Stock
9 Catch & TAC Data East Greenland Prawn Volume 1978 to 2013 (2014 catches until July) Comments - Since 2003, catch and TAC has been reduced, but from a low level. Source: Greenland Nature Institute: Report Advice September 2014 for 2015
10 Biomass Data East Greenland Biomass Survey 2008 to 2014 Comments - The biomass survey reveals no further changes to the stock. Source: Greenland Nature Institute: Report Advice September 2014 for 2015
11 Catch & TAC Data West Greenland Prawn Volume 1970 to 2014 Comments The prawn stock is continuing to spawn North, expectedly correlating with the increase of the cod biomass in the Southern areas. Source: Greenland Nature Institute: Report Advice September 2014 for 2015
12 Biomass Data West Greenland Biomass Survey to 2014 Inshore Offshore Comments The survey index of total biomass remained fairly stable from 1988 to 1997 It then increased by, on average, 19%/yr until 2003, when it reached 316% of the 1997 value. Subsequent values were consecutively lower, by less than half the 2003 maximum (Fig. 3.4); this decline has been continued in subsequent years, reaching in 2014 the second lowest level in the last 20 years. Source: Greenland Nature Institute: Report Advice September 2014 for 2015
13 Catch & TAC Data West Greenland Total Prawn Volume 1970 to 2014 *Biological advisory 2015 Sept Source: Greenland Nature Institute: Report Advice September 2014 for 2015
14 The Greenlandic Prawn Stock - Conclusions - East Greenland Biomass Survey projects only minor changes versus last year. The advisory is to keep TAC unchanged at 2000t for West Greenland the Biomass Survey has resulted in an advisory to reduce the TAC from t to t. Future development of the Borealis stock dependent on evolution of stock of cod. The Borealis stock has a low proportion of males, and recruitment to both the fishable and the spawning stocks in the short term are expected to remain low. Reduction in Offshore stock is especially worrying.
15 Sum Up
16 Capacity Future With current and expected TAC levels, there will be an overcapacity for both fishery and landbased processing. There are today 4 prawn processing plants on the West coast Supply will go down Lowering the supply due to further TAC reductions Low stock positions in the supply chain Demand will be reduced WWP is recovering from Early Mortality Syndrome (EMS) The consumers are expected to reduce consumption due to high shop price In-store assortments are likely to be reduced to 1 or 2 SKUs instead of 3 Bag sizes are likely to be reduced to small bag size Will go from a everyday products to a more luxury/weekend product Prices? Supply & Demand will find it s equilibrium Our challenge will be to communicate the product benefits to ensure continuous demand Footer skrives her 11/21/
17 C&P Price development April 2010 to Sept/Oct 2014 DDP, GBP/kg Footer Source: skrives Undercurrent her news and projections
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