Tough Times Ahead for Fishers and the Fisheries Industry as Quotas on Important Stocks are Set to Decrease

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Next year, the fish quotas for several important stocks will be reduced. The cod quota was, as known, cut by 20 percent, and the Norwegian Institute of Marine Research recommends a significant reduction in the red king crab quota for 2024. 

"It will be noticeable," says the leader of the Norwegian Fishermen's Association to High North News.

"We have had a reduction in the cod quota over the course of several years but have, until now, been able to compensate for this with the price," he continues.

High cod prices in recent years

The cod price has increased significantly in the past decade. The fishermen received almost NOK 50 per kilo several places during this year's winter fisheries.

Heggebø believes it is unlikely that another reduction in quotas can be compensated with the price.

"Many fishers who have their main income from the cod and red king crab fisheries will likely have a real decline in income," he elaborates.

Consequences for the fisheries industry

"It will undoubtedly be challenging," says Chair of Norfra, Steinar Eliassen.

The company is one of the largest Northern Norwegian-owned fisheries groups within the white fish sector and operates fish production in Vestvågøy, Karlsøy, and Nordkapp in the counties Nordland and Troms and Finnmark.

Eliassen believes it will be especially challenging for the fish plants and the producers in the coming time.

"For Norfra, the red king crab is not that significant regarding activity, even though it is expensive in dollars and cents. It is the reduction in cod that will be the most challenging. We compete for raw materials, and there are limits to how far you can go and how much you can pay – before you cannot get it back in the market," he continues and adds:

"We will try to cope as best as possible, but we risk poorer results than in many years. The reduction will likely also lead to redundancies in the fisheries industry."

He further points out the fisheries industry's ripple effects in local communities and worries about the consequences that the quota reduction may have for the Northern Norwegian region.

"We register how this is met by the ocean-going fleet, which does not want to give up any quotas and concurrently keeps exporting unprocessed, frozen raw materials."

"The fisheries industry on land has had several difficult years in the past two decades. Next year is reminiscent of 1999-2008 when the quotas were historically low. However, frozen fish was not exported in such a large proportion as it is now. Hence, the industry had access to more raw materials," explains Eliassen in Norfra.

He also believes it will be tough for the fishers.

"Next year will be the first year since 2003, I believe, that the fisheries will not go up and forward."

"The fishers have made it out relatively okay from these ups and downs regarding quotas since the raw materials prices often compensate for smaller quotas and vice versa. But next year, it does not look that easy," he adds.

Worries about the cod stock

What is most worrying regarding the quota reduction for cod?

"It is worrying that there has been poor recruitment despite such a big stock," says Heggebø of the Norwegian Fishermen's Association.

He explains that recruitment means there have not been registered strong, new year classes of cod in the past years; the fish has not reached an age where it is measured and counted as part of the stock estimates.

"This is very worrying."

"In addition, many of our members will have tough times ahead. Luckily, we have many good years behind us, and I hope this can contribute to being more prepared for some tougher years," he adds.

Many young people have recently stepped into the fisheries sector and invested a lot in boats and quotas – what do you think about that situation?

"That can be very challenging, especially for those who have big commitments. Several things are happening at once now: reduced quotas, lower income, higher interest rates, and generally higher operations costs regarding fuel and prices that have gone up the past years," explains the association leader.

King crab is not a primary fishery

"Regarding the king crab, the quota reduction adds to a number of other negative developments in several stocks," Heggebø further explains.

"With the king crab, the idea has been that it would not be a primary fishery but an addition. Those who have leaned too heavily on the king crab will likely have bigger issues than those who have considered it an added benefit to their other operations."

The fishers may participate in the red king crab fisheries if certain requirements are met. There are further divides between quota-regulated areas, mainly Eastern Finnmark, and outside the quota-regulated areas, which are roughly west of Nordkapp. (See the fact box at the end of the article).

Unclear why the stock is shrinking

How has it come to this reduction of cod quotas?

"That is the million-dollar question," answers Heggebø of the Norwegian Fishermen's Association and continues:

"Especially since we have followed the advice from researchers and management on cod and king crab."

Eliassen also finds it difficult to provide a specific answer to why the cod stock is declining but highlights two factors that may have affected the situation:

"One is the seismic shooting that the oil industry has been doing, which one knows is damaging to fish larvae if they are exposed to it."

"In addition, trawling has been happening in coastal areas in the past years, in areas where major concentrations of Calanus finmarchicus [a species of copepod, an important food source for young fish, journ. note.]. Although there is not a great mixing of the fish larvae, the larvae with the biggest chance of surviving are found here. And those who find themselves in the middle of the copepod stream will be caught by the copepod trawlers," concludes Eliassen.