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Foreign Developments ing capability, year-round availability, white color, and pleasant taste. Walleye pollock is predominantly found in the North Pacific, in waters off Alaska, the The Asian Industry BeringSea, andwithinthe SovietExclu­ sive Economic Zone (EEZ). As foreign access to pollock stocks in the U.S. and The Asian surimi industry is under­ dynamic commodities in the Asian SovietEEZ'sisbeingreduced, however, going a period of rapid change as the industry because of recent in­ other demersal species such as hoki, Republic ofKorea, , New Zea­ novations in production and utilization. Macruronus novaezelandiae, and blue land, and the United States are increas­ Surimi is an intermediate product made whiting, Micromesistius poutassou, as ingly challengingJapan'sposition as the from minced fish that has been well as pelagic species suchasjackmack­ world's leading surimi producer. The washed, refined, and treated with cryo­ erel' Trachurusjaponicus, and sardine, appreciation ofthe yen and the Japanese protectants. Although fish products Sardinia melanostrichus, are also being exclusion from U.S. and Soviet walleye have been hand-made for centuries, a used in surimi production (Table 3). To or resources, have caused process for freezing surimi, invented in date, however, producers have not found Japanese production to decline from its 1960, provided the impetus for expand­ any single species besides pollock that 1984 peak of418,000 metric tons (t) to ing the industry and surimi markets based both satisfies the necessary processing only 310,000 t in 1989. Meanwhile, the on the vast walleye pollock, Iheragra criteria and is sufficiently abundant to outputoftheotherfour majorproducing chalcogramma, resource. supply the growing world market. In the countries has increased from about In 1975, Japanese firms introduced 26,000 t to 260,000 t during the same imitation crabmeat and analogs ofother period (Fig. 1, Table 1). , generating much greaterinter­ The Korean surimi industry shows the estin surimioverseasthandidtraditional Table 1.-World aurimI production bycountry and year, greatestpotential for independentgrowth Japanese surimi-based products. 1985-89. among the Asian surimi producers, with About 90 percent ofJapan's surimi pro­ Surimi production (1,000 t) an output of60,000 t in 1989. The Thai duction is used to manufacture traditional and New Zealand industries also show products (known as ), imita­ Country 1984 1985 1986 1987 1988 1989' considerable growth potential, butare at tion crabmeat(kanikama), , and 418 385 342 285 290 310 Korea 14 15 34 40 50" 60 present dependent upon Japanese tech­ otheranalogs (Table2). Theother 10per­ United States 0 0 4 18 57 141 Thailand 10 11 15 20 20" 30 nical assistance. Quality and adequate cent is used to make fish and sau­ 2 raw material resources are the primary sages. Surimicanbeproducedonfactory New Zealand 0 0 6 19 28 30 obstacles facing these three up-and-com­ trawlers at sea, orinland-based process­ 'Projected. 2Estimated. ing Asian surimi producers. ing plants. Because fresher fish is used, at-sea surimi is generally considered to Background be of higher quality than land-based products have long been a surimi. Walleye pollockis the mostcom­ Table 2.-General gloaaary of surlml-related terma'. part of traditional Asian cuisine, but monly used species in surimiproduction Commodity Definition surimi has become one of the most becauseofits abundance, highgel-form­ Broiled kamaboko w~h a cylindrical shape. Hanpen Sponge-like fish cake for soup made from a boiled kamaboko and ground yam mixture. Kamaboko Fish cake made from surimi. Sometimes mixed with ingredientssuch asstarch, egg albumin, and (Japanese sweet li­ quor). Comprises 90 percent of surimi­ based products. May be steamed, fried, or broiled and consumed directly or further processed. Kanibo Surimi-based imitation legs. Kanikama Surimi-based imitation . Naruto Steamed kamaboko with a cylindrical shape containing a pinka nd white spiral pattern on the cross section. Neriseihin Any surimi-based processed food product. Satsuma-age Surimi-based fish cake pallies with vege­ tables and flavoring added. Surimi A semi-processed wet fish protein made from washed and refined minced fish meat 1985 1986 1987 1988 1989 mixed wlth cryoprotectants and . Not for direct consumption.

Figure I.-Major surimi producers and production by coun­ 'Source: OECD Multilingual Dictionary of Fish and Fish try and year, 1985-89 (1988-89 data estimated). Products, 1978.

52(1),1990 25 T8ble3.-FlahspecI8llusedforsurtml production by com- Table4.-Japaneaesurtml productionbytypeandquan- Table5.-JapeneaeAlaaka pollockdirected flahlng catch mon neme, flahlng grounda, and quentlty, 1984-88.' IIty,1978-87. quotaaln the U.S. EEZ, by round weight quantity, region and year, 1985-89,and U.S. domeatlcannual proceaalng Production (1 ,000 t) At·sea' Shore-based (t) Total allocation (DAP). prod. domestic Common name Fishing grounds 1984 1985 1986 Year (t) Pollock Other Total production (t) Quotas(t) Total U.S. amI. DAP Walleye pollock N.E. Pacific 1,373 1,398 1,605 1978 175,853 177,655 12,075 189,730 365,583 Year Bering Aleutians Alaska (t) (t) NW. Pacific 4,614 4,733 5,154 1979 190,621 162,422 14,543 176,965 367,586 NW. Atlantic 651 635 635 1980 179,331 165,818 19,097 184,915 364,246 1985 594,200 50,900 25,000 670,100 75,900 Croaker W. Indian Ocean 136 146 132 1981 176,442 160,200 18,280 178,480 354,922 1986 261,800 36,300 0 298,100 135,100 E. Indian Ocean 36 32 35 1982 177,095 178,941 17,013 195,154 373,049 1987 3,300 0 0 3,300 255,400 Gulf menhaden Gulf of Mexico 983 884 829 1983 153,593 210,855 15,425 226,280 379,873 1988 0 0 0 0 622,500 Hoki SW. Pacific 55 39 104 1984 146,000 248,186 24,258 272,444 418,444 1989 0 0 0 0 1,117,200 Jack mackerel S.E. Pacific 2,314 2,148 1,958 1985 126,067 226,420 32,106 258,526 384,593 Pacific whiting N.E. Atlantic 598 656 799 1986 101,054 205,074 43,419 248,466 341,833 Southern blue 1987 64,402 195,921 24,406 220,327 284,729 Threadfin bream E. Indian Ocean 74 76 81 1988 90,000 180,000 20,000 200,000 290,000 2 Whiting S.E. Atlantic 113 95 104 1989 120,000 170,000 20,000 190,000 310,000

'Source: FAO data. 'Produced by Japanese factoryships at sea. 2Estimated.

last 20 years, world demand for surimi­ 4), accounting for about 95 percent of allocation for directed Japanese fishing based -marketed as inexpensive, the total world supply. Production has intheU.S. EEZ. Under the 1989Japan­ healthful alternatives to natural sea­ steadily decreased since 1984, however, U.S.S.R. bilateral groundfish agree­ food-has grown dramatically, and for several reasons. First, the United ment, the Soviets allocated about surirniproduction, originallydominated States and the Soviet Union have greatly 121 ,000 t ofpollock to Japanese fisher­ by Japan, has spread to over20countries reduced Japan's allocations of pollock. men. Ofthis total, 53,480 twas free-of­ in Asia, , and North and South Second, Japan's consumption and pro­ charge while for the remaining 67,530 t America. duction of surimi-based foods has been the Japanese have to pay a fee. In re­ Japancontinues to dominate both pro­ declining, leading to reduced domestic sponse, Japan has moved the bulk of its duction and consumption of surimi and demand for surimi. Third, a significant­ pollock fishing operations into the surimi-based foods, but other countries 1y stronger yen has helped make foreign highseas "Donut Hole" region in the, have begun to challengeJapan's position products much more competitive in both Bering Sea. Japan has also begunexperi­ in recent years. The U.S. and South Japanese and foreign markets. Today menting with the utilization ofother fish Korean industries are particularly Japanaccounts for less than 75 percentof species for surimi production. New Zea­ dynamic. The U.S. surimi industry has the world total, producing only about land hoki has beenoneofthe mostprom­ almost doubled in size each year since it 290,000 t ofsurimi in 1988. ising alternative sources ofraw materials was established with Japanese technical because of its abundance and the high assistance in 1986. It is expected to pro­ Raw Materials quality of hoki surimi. But, for 1989, duce over 140,000 t of surimi in 1989. The most serious problem facing Japa­ New Zealand reduced its catchallocation (For an explanation ofthe Japanese pro­ nese surimi processors is reduced access to Japan by over 75 percent-to only duction and import figures used in this to walleye pollock resources. Because 2,899 t-bringing independent Japanese report, pleasesee "Note" atend ofarti­ about 80 percent of Japanese surimi is fishing in those waters also to a virtual cle.) The South Korean surimi industry, manufactured from walleye pollock, halt. In response, the Japanese appear to capitalizing on the high Japanese yen, is Japan currently requires about 1.5 mil­ be targeting Canadian Pacific hake, beginning to displace Japan in the main lion t (round-weight) ofpollock annual­ Chilean jack mackerel, and various Ar­ export markets of Europe and North ly»). Traditionally, Japanese producers gentine demersal species. America. The surimi industries in Thai­ relied upon domestic landings for their Japan has also turned to joint venture land and New Zealand also show con­ supply of raw materials. However, the (JV) agreements with the United States, siderable growth potential. Japan will Japanese pollock catch dwindled rapid­ the Soviet Union, and other countries to alsoeventually havetocontendwith other ly when the United States and the Soviet ensureaccess to rawmaterials. Totaljoint countries in Europe (, United Union established their200-mile fisher­ venture surimi production-whereby Kingdom, Norway, etc.) and Latin iesjurisdictions (in 1976 and 1977, re­ Japanese surirnifactory vessels purchase America(Argentina and ) which are spectively), encompassingmajorpollock Alaska pollock over-the-side from for­ developing surimi industries. fishing grounds, and began to cut Japa­ eign trawlers within their respective nesepollockcatchallocations (Table5). EEZ's, and process it at sea-increased Japan Currently there is no pollock catch from 6,OOOt in 1979to 143 ,000 tin 1987. Japan's surimi production expanded This number fell to about 141,000 t in sharply in the 1950's and 1960's and 1Using aconversion rate from the round-weight to 1988, however, because of decreased peaked in 1984 atover418,OOOt (Table the processed product of22-25 percent. U.S. joint venture processing (JVP)

26 Marine Review TIIble 8...... rlml joint __, by qu8nt1ty TIIble 7...... -production oftleh pe8te procIucta by procIucttorm 8IlCI qll8ntlty, 11175-17. procIucecl8I1CI r-, 11171-11. Year Chlkuwa Kamaboko Fried kamaboko Other Subtotal / Grand total Partner and quantity (t) Total prod. 1975 259 4044 3'ZT 10 1,033 121 1,154 Year U.S.' U.S.S.R· DPRK U.S./Can' (t) 1980 174 326 269 18 824 89 913 1983 195 347 297 59 898 98 998 1978 6,000 0 o 6,000 1984 198 330 298 71 898 95 990 1979 6,000 0 o 6,000 t985 200 327 291 73 891 92 984 1980 7,225 0 o 7,225 1986 195 309 276 74 855 91 945 1981 10,750 0 o 10,750 1987 189 307 271 69 836 89 926 1982 23,444 0 o 23,4044 1988 190 308 278 61 836 84 920 1983 55,859 0 o 55,859 1984 80,282 0 o 80,282 1985 105,156 0 o 105,156 1988 122,668 0 o 122,668 1987 143,210 0 o 143,210 1988' 113,500 23,400 2,300 2,000 141,200 1889' 31,000 13,800 1,500 6,000 52,300 TlIble 8.-Prlen ofJe...n'elrozen ..rlml. T8ble 9."""'e...n eurlml Importe by meJer euppller end 'Although the Japanese Govemment records joint venture quentlty,l117l1-8l1. surtmi production as an import, the surtmi is produced by Grade' Grade' Japaneselactoryshipslromlishpurchasedover-the-sidelrom (¥/kg) (¥/kg) Imports(t) ~oint venture partners. Country not specified until 1988. Year A B C Year A B C Country 1984 1985 1986 1987 1988 1889 'Pacific hake-based surtmi production. 'Estimated or projec1ed. 1983 400 251 234 1986 492 352 332 U.S.A. 0 0 0 5,500 30,500 90,000 1984 412 203 221 1987 480 286 243 S. Kor. 1,000 4,000 9,000 8,000 8,000 10,000 1985 426 278 256 1988 NA' 200 NA Thail.' 0 10,000 12,000 21,000 25,000 30,000

'A • highest grade of offshore product; B • on-land, 1st Total 1,000 14,000 21,000 34,500 63,500 130,000 ~rade; C • on-Iand, 2nd grade. NA = Not available. 'May include a smail amount from Taiwan. allocations (Table 6). JV production is expected to fall further in 1989 to a pro­ jected52,000t. About23,000 t ofsurimi was producedthroughjointventures with the Soviet Union in 1988. About 50,000 t (round weight) ofjointventure pollock purchases are negotiated yearly with II) "g 140r------..., North Korea. New Zealand, Thailand, c: :;: 120 _ United States Chile, Argentina, and Canada have also 100 g ~Thojlond been small-scalejoint venture partners. ~ - 80 o South Korea Production ~ 60 2 40 The Japanese domestic production of u surimi has dropped from its peak of ~ 2~t-~~~~==~bL..l- 418,000 t in 1984 to 290,000 in 1988 ~ 1984 1985 1986 1987 1988 1989 (Table 4) primarily because of recent competition from less expensive U.S. Figure 2.-Japanese surimi imports by major supplier and quantity, 1978-89, not includingjointventure production (1989 and South Korean imports. Thedecrease data estimated). also results from declining demand from surimi-based food processors, as the domestic consumption oftheir products falls offdue to changingJapaneseeating habits (Table 7). Prices for all grades of South Korea, although New Zealand, pensive imported materials has permitted surimi have fallen precipitously since Thailand, and Taiwan also supply small Japanese analog producers to cut prices 1987, putting many producers out of amounts. As U.S. domestic surimi con­ and retain most oftheirdomestic market business (Table 8). sumptiongrows, however, U.S. exports share. to Japan are expected to level off. Al­ Japan controls imports through a suri­ Imports though South Korean surimi retains an mi import quota (IQ) system. The Japa­ The decreasing domestic surimi pro­ image of poor quality in the Japanese nese claim that biannual IQ's prevent ductionhas spurredona dramaticgrowth market, its price, 20-30 percent lower foreign countries from oversupplying the ofimportsfrom 14,OOOtin 1985 to a pro­ thanJapanesesurimi, has madeitincreas­ Japanese surimi industries by bringing jected 130,OOOtin 1989 (Fig. 2, Table9). ingly popular. Industry sources predict down prices. The pollock surimi IQ is Because ofthe recent fall in the value of that Japan will import 10,000 t ofSouth distributed to three major categories of the U. S. dollar and the Korean won Korean surimi, and 90,000 t of U.S. usergroups-fishermen, processors, and against the yen, most of Japan's surimi surimi in 1989. According to the same traders. The fishermen's quota is ear­ imports comefrom the United Statesand sources, the availability of these inex- marked for imports ofJapan-U.S. joint­

52(1),1990 27 venture processed pollock products Table 1O.-Pollock surlmllmport quotas lor Japan's Iiscal years' 1986-88. (primarily surimi). The processor's Import quota (t, round wt.) quotacovers South Korean surimi. Final­ Apr.-Sept. Oct. 1986- Apr.-Sept. Oct. 1987- Apr.-Sept. Oct. 1988­ ly, fishermen, processors, and traders are Recipient commodity 1986 March 1987 1987 March 1988 1988 March 1989 all entitled to use the Overseas Fishery Fishermen's quota Development (OFD) quota, which ap­ Surimikyokai (Japan Surimi Association) 2 plies to imports ofsurimi and other pro­ (U.S.-processed surimi ) 10,000 20,000 Daisui (Japan Fisheries cessed pollock products from countries Association)' with pollock resources within their (Japan-U.S. EEZ's. As Japan's access to pollockre­ Joint Venture surimi) 10,000 45,000 28,000 NA Processor's quota sources has shrunk in recent years, total Zenkama (All Japan Federa­ tion of Kamaboko import quotas have increased dramatical­ Manulacturers Association) ly from 95,000 t (round weight) in fiscal ROK-processed surimi) 2,000 7,500 8,500 8,500 8,500 NA Gyoniku (Fish) Sausage year 1986 to 631 ,000t ofpollockin fiscal Association year 1988 (Table 10). With domestic (ROK-processed surimi) 1,000 1,000 1,000 1,000 NA Overseas Fishery Develop­ catchandjointventureproductionfalling mentquota4 yearly, this trend is likely to continue. (Surimi from all countries) 100,000 0 200,000 NA Exports Total 22,000 73,500 109,500 37,500 209,500 421,500 'Japan's fiscal year extends Irom April through March of the following year. Pollock and pollock surimi quotas are allocated The appreciationofthe yen from a rate twice each year-the first allocation covering April through September and the second covering October through March. of¥240/$1 in 1985 to ¥ 125/$1 in 1988 2As of April 1987 this quota was incorporated into the Overseas Fisheries Development quota. 'May include other processed pollock products. damaged Japan's world export share in 'Issued for the first time in April 1987. many commodities by raising their prices to potentially uncompetitive levels. Al­ though other sectors of the Japanese economy have weathered this crisis by cutting costs and streamlining produc­ tion, the surimi industry, already hit by Table 11.-U.S. surlmlsupply by domestic production, Table 12.-Japanese exports 01 Imitation crabmeat by Imports, exports, and quantity, 1980-89. country, qusntlty, and yesr, 1982-88. high costs caused by inadequateaccess to fishery resources worldwide, has been Imports (I) Irom: Exports (1 ,000 I) Domestic severely disadvantaged. Consequently, Year production Japan Other' Total Exports Year U.S. Canada Europe Aust. Other Total surimi exports to the United States de­ 1980 703 1982 6.7 0.5 1.8 0.3 9.3 clinedfromabout6,000 tin 1986 to only 1981 829 1983 13.8 0.2 2.8 1.6 0.4 18.8 1982 1,114 1984 26.8 0.8 2.3 1.6 1.0 32.5 800tin 1988 (Table 11). Imitation crab­ 1983 1,708 1985 30.9 1.4 3.8 1.9 1.0 39.0 meat exports also declined precipitous­ 1984 2,306 1986 25.3 1.9 5.8 1.6 1.1 35.7 1985 4,801 122 4,923 1987 17.6 1.8 7.1 1.1 0.8 28.4 ly in the past year, with exports to the 1986 4,000 6,056 1,528 7,584 1988 8.7 1.7 7.5 1.3 0.6 21.1 United States decreasing by one half 1987 18,000 1,000 2,165 3,165 5,500 1988 57,200 800 2,000 3,500 30,500 2 (Table 12). In response to these trends, 1989 141,000 400 500 900 106,000 the Japanese producers have shifted their 'Primarily from South Korea, with small amounts from New export focus to the rapidly expanding Zealand. European market. Surimi exports to 2Projected. Europe rose by 50 percent in 1987, and accounted for40percentoftotalJapanese In addition, several unprecedented fishery exports in 1988. However, this agreements were signed or discussed increase was notlargeenough to offsetan with the Soviet Union in 1988 for the overalldecline in Japanese world surimi years. Five Japanese vessels began pro­ initiationofAlaskapollockjointventures market share in both 1987 and 1988. ducing hoki and southern blue whiting in eastern Siberia and on the Sakhalin surimi in Argentine waters in 1987, but Island in the Northwest Pacific. The Current and this project reportedly lapsed in 1989. potential for future jointventures withthe Future Developments The Japanese company Nippon Suisan Soviet Union, which has been enthusi­ Togain access to hoki, jackmackerel, expected to begin experimental surimi astically pursuing closer economic ties and southern demersal stocks, Japanese production of about 3,000-4,000 t with Japan since beginning business re­ producers have increasingly been turn­ through a joint venture with the Argen­ structuring moves in 1986, is great. Joint ing to South American countries, espe­ tine company Mejino in 1989. Pacific ventures with NewZealandarealsolike­ cially Argentina and Chile. Japanese hake joint ventures with Canada were ly to increase because of the 75 percent vessels have been using Chilean jack also on the rise, accounting for a pro­ cut in the Japanese hoki catch allocation mackerel to produce surimi for several jected 6,000 t of surimi in 1989. in New Zealand waters for 1989.

28 Marine Fisheries Review Table 13.-Korean frozan aurlml production facilities by In contrast, joint ventures with the as a major independentproducer and ex­ company. United States are on a downward trend. porter of surimi and analog products. It Vessel Daily Overthe last2 years, the UnitedStateshas is the only Asian surimi industry which size capacity sharply reduced U. S. joint venture pro­ does not depend on Japanese technical Company' Vessel name1 (GRT)(t) (t) cessing allocations (JVP) to the Japanese assistance and aid. Production has more Goyo Fishery Goyogo 5,377 40 Korei Deepsea Keiyogo 5,377 60 to keep pace with the raw material re­ than tripled overthe last 8years, as ROK Kaitakugo 28,000 170 quirements ofthe rapidly expanding U.S. surimi, boosted by the fall of the won Namboku Nambokugo 5,549 40 Toei Sangyo Tosango 4,347 60 surimi industry. JVP's are the maximum against the yen, has succeeded in pene­ Sanko Bussan Taihakugo 5.510 45 round-weight amount of a particular trating not only the Japanese domestic Shinro Koeki Shinango 5,689 80 Dairin Fishery 1152 Daishingo 4,050 35 species that the Japanese are permitted to market, but also markets in Europe and Nanyosha Sunflower 3,200 30 buy over-the-side from U.S. vessels . The South Korean in­ 'Names in Japanese pronunciation; mention of trade names within the U.S. EEZ. The 1989 Alaska dustry, however, must overcome not or commercial firms in this article does not implyendorsement pollock JVP allocations, reflecting the only the challenges ofreduced access to by NMFS, NOAA. 79 percent growth in the U.S. domestic raw materials in the U. S. and Soviet surimi production since 1988, have been EEZ's and growing U.S. competition, reduced from 504,000 t in round weight but also a reputation for poor quality. In (20,000tinsurimi weight) in 1989 (Table addition, an increasing domestic con­ 6). Total Japanese joint venture surimi sumption rate may also limit the growth Production production was expected to decline from of ROK's world export share. At-sea surimi production began in 141,000 t in 1988 to 52,000 t in 1989. 1984 aboard three vessels with a yearly Growing competition from South Raw Materials capacity ofonly 14,000 t. The capacity Korea in both domestic and JV surimi TheSouthKoreansurimiindustry, like of the fleet doubled in 1986 with the productions also has industry sources Japan's, is primarily based on walleye addition of3 factory ships. Nine factory concerned. Some U.S. competitors fear pollock utilization. In contrast to Japan, vessels and 185 shore-based processing that cheap South Korean surimi may be however, ROK pollock catches rose plants were operating in mid-1989, to profitably reexported by Japan, but the steadily during the 1980's (from about produce about 50,000t ofsurimiperyear Japanese producers believe that it will 367,OOOtin 1983 to 726,OOOtin 1987). (Table 13). Analog production, including glutanalready stagnating market, result­ Since 1988, however, reduced access to imitation crab, has increased from ing in a further harm to the industry. They raw materials from the U.S. EEZ has 69,000 tin 1985 to 87,120 t in 1988. also fear that a recently concluded JV forced Korea also to move operations to Although the maximum production agreement between a South Korean com­ the Bering Sea and New Zealand, and to capacity of the Korean industry is still pany and the Soviet Union presages a tum to joint ventures with European small compared to Japan's, it has bene­ trend toward Japanese exclusion from countries, the Soviet Union, and the fited greatly from the recent fall of the cooperative surimi production oppor­ United States. Statistics for 1988 reveal Korean won against the yen, and is ex­ tunities with the SovietUnion. Theagree­ a 25 percent decrease in Alaska pollock panding rapidly. Domesticconsumption ment permits South Koreans to enter catch to 181,5OOt. Despite this, theROK ofsurimi-based foods is increasing as the traditional Japanese pollock fishing continues to be a net exporter ofwalleye ROK populationgrows more affluentand regions for maintenance privileges pollock, with 30 percent ofits catch be­ demands more non-traditional, higher­ for Soviet factor vessels in Korean ing exported in fillet form. Exports go quality foods, such as imitation crab­ shipyards. mainly to the United States andJapan. In meat. The outlook for the Japanese surimi in­ 1989, about 36 ROK vessels are oper­ dustry is thus bleak. Although the search ating in U.S. waters, through JV agree­ Imports continues for a fish species to use as an ments with U.S. companies. South ROK imported a small amount of alternative raw material to Alaska pol­ Korean-U. S. JM pollock production in­ surimi for the first time in 1988, when a lock, few can be turned at low cost into creased from 98,000 t in 1984 to 452,000 South Korean importerpurchased 5,000 the white, high-quality surimi preferred tin 1987, but has declined since then to t from the Great Land Com­ by theJapanese. In addition, thehigh yen, 389,000 t in 1988, and an estimated pany ofthe United States. To supply its U.S. and Korean competition, and ade­ 270,000 t in 1989. In one recent JV, a growing domestic market, the industry quate supplies ofraw materials are like­ South Korean company has agreed to will probably be forced to import more ly to grow more problematic with time. purchase 86,000 t of pollock from the in the future. TheeraofJapanese predominance in the Soviets offthe western coast ofthe Kam­ surimi industry may be reaching its end. chatka Peninsula. Joint ventures with Exports North Korea, although still on a small South Korean exports ofsurimi to the The Republic of Korea scale, are also on the rise, with pollock United States have grown dramatically The most significant development in constituting one of the most significant since 1985; they increased from 122 t the Asian surimi industry has been the commodities in the growing North-South in 1985 to 2,000 t in 1987 (Table 11). rapid riseofthe Republic ofKorea (ROK) trade. During the same period, ROK surimi

52(1),1990 29 exports to Japan increased from 4,000 present, however, the Thai surimi in­ Current and t to 8,000 t. In 1988, total ROK ex­ dustry is still dependent on Japanese Future Developments ports ofimitation crabmeat approached technical assistance. The future oftheThaiindustry hinges 20,000 t. Exports to the United States on technological improvements and and Japan may be stabilizing because Raw Materials resource management. Thai surimi is of a stagnating market on the one hand particularly disadvantaged in the Japa­ and growing domestic competition on Thai production is based on threadfin bream, Nemipterusjaponicus, becauseit nese market because of its low quality the other. However, ROK surimi ex­ compared to the South Korean product. ports to Europe are growing rapidly. is the mostabundant raw material found in Thailand's waters and because it also Theindustry iscurrently receivingtech­ exhibits the proper characteristics for nical assistance from the All-Japan Current and Federation ofKamaboko Manufacturers Future Developments processing export-quality surimi. Thai­ land's yearly supply ofraw materials was Associations (Zenkama), and fromJapa­ ROK faces the same difficulties as estimatedatabout 1.1 milliont for 1987. nesebuyers suchas Hiraki Corporation. Japaninterms ofaccess to foreign surimi The yield of surimi from the threadfm Becauseofthetropicalclimate, Thai pro­ raw material resources. Joint venture breamis the sameas the yield from wall­ ducers D1ustemphasize reduced landing allocations with the United States are on eye pollock-about 22-24 percent of times and improvedicingand freezing of a downwardtrend, as thepollockrequire­ whole weight-but the flesh is slightly rawmaterials. Modemplantsandequip­ ments of the U.S. surimi industry in­ darker and oilier, making it a somewhat ment, as well as improved worker hy­ crease. However, future South Korean less desirable product than pollock gienelevels, are also necessary toensure supplies ofpollockmay be influencedby surimi. that the produce passes the microbio­ political developments. Although ROK logical standards ofimporting countries. does not maintain diplomatic relations According to the Thai Government, Production with any Communist nation, it is active­ Thailand may also have to deal with lypursuing closereconomic ties in many Surimiprocessing remained a small in­ declining resources, especially in the sectors of its economy with the Soviet dustrythroughoutthe 1970's, with three GulfofThailand. In 1963, fishing effort Union, the East European countries, surimi plants producing only 2,000 t forthreadfin breaD1yielded276 kg offish China, and North Korea. AssurimiJV's annually. Since 1983, however, demand per hour. In 1988, only 80 kg per hour are a common avenue for economic ex­ for and output of surimi products has werecaught. Jointventuresandexploita­ change, the industry stands to benefit increased dramatically. To date, there tion of the previously unutilized Anda­ from improved relations. The ROK is are 11 plants in operation, producing man Bay waters have been identified as also focusing on Europe as a major JV 20,000-25,000 t yearly. The rapid possible-countermeasures. SIFCO Cor­ base and export market. Several joint growth is due to the expanding Japanese poration, Thailand's largest surimi pro­ ventures with Europeancompanies, such market for cheap, lower-quality im­ ducer, has been involved with Japanese as DemaineBros. inFrance, havealready portedsurimi, as wellas the risingdomes­ assistance since 1987 inmany successful been signed. To date, however, Korea tic demand for new products such as fish efforts to upgrade the quality and supply has notdoneas well ineithertheJapanese noodles and fish sausage. Although the of its surimi. or European market as in the United Thai Government does not compile States market, because of the poorer statistics on domestic consumption, in­ New Zealand quality of its surimi. Quality, access to dustry sources believe that 3,000-4,000 raw materials, and domestic consump­ t ofsurimi will be used by Thai food pro­ New Zealand was the world's fourth tion are three factors that the South cessors, including 1,000 t for imitation largest producer ofsurimi in 1987, rep­ Korean industry must stabilize to con­ crabmeat in 1989. resenting 3percentoftheestimated world tinue expanding its position in the world production. New Zealand's rise to this surimi market. position was rapid and was due primar­ Imports and Exports ily to the growing Japanese demand for Thailand imports no sunml raw New Zealand hoki, Macruronus novae­ Thailand materials and only a small amount of zelandiae, to help offset the expected Fish jelly products, such as fish balls imitation crabmeat. Exports, on the decline inpollocksupplies. All New Zea­ and fish satay, have a long history in other hand, have been growing steadily land's surimi operations, however, are Thailand. Barracuda, sea eel, and sole over the last few years, increasing from joint ventures with Japanese or Korean were traditionally the main raw materi­ about 11,000 t in 1985 to 20,500 in companies. als, buttodaythreadfinbreamandcroak­ 1987. Thai exporters hope to sell nearly er, available in much larger quantities, 30,000t ofsurimi toJapanese companies Raw Materials are the most commonly utilized species. in 1989. About 80-90 percent of Thai Hoki is excellentfor surimibecauseof The Thai surimi industry is developing surimi goes to Japan, while 10-20 per­ its high gel-forming capability, abun­ quickly and exported more surimi to centgoes to the United States, Singapore, dance, and good color. Itconstitutes New Japan in 1988 than did South Korea. At and Europe. Zealand's largest commercial fishery,

30 Marine Fisheries Review andis consideredtobethe second-largest surimiproducersinNewZealand. Most sidization from the government to surimi resource after walleye pollock, New Zealand surimi is of the highest develop the domestic surimi industry with a biomass ofabout 1.5 million t. It quality, valuedin1988at$3.40-3.50per which, they claim, has the potential to iscoveredby one ofthe seven New Zea­ kg. There is a limited consumption of produce as much as 15 percent of th~ landTAC (Total Allowable Catch) allo­ surimi-based products in New Zealand. world's surimi supply. To date, how­ cations, usually setat200,000t. Because It is estimated that the total market is ever, the industry has not received any ofrising foreigndemand, hokicatchesby worth about $2.7 million annually­ government subsidies. both foreign and domestic vessels more mostly supplied by imports from Japan. Note: There are considerable dis­ than doubled from 91,000 t in 1986 to However, industry sources expect that crepancies between U.S. and Japanese 210,000t in 1988. A statedconcernabout domestic production will expand in re­ statistics for Japan's surimi production depletion, however, as well as a sponse toboth rising domestic consump­ and imports. These are mainly due to a desire to promote the domestic surimi tion and high potential export earnings. differenceinU.S. andJapaneseattitudes industry, has led the New Zealand Gov­ toward Japan's surimijointventurepro­ ernmenttoconsiderabolishing theJapa­ Imports and Exports duction withothercountries. Injointven­ nese and Korean hoki catch allocations. Nearly theentire New Zealanddomes­ tures, surimi is generally produced by Also, New Zealandfishermen, handling tic production is exported to Japan, al­ Japanese-owned factory vessels using hoki for export, object to foreign alloca­ though someis also shippedto Australia, fish purchased over-the-side from for­ tions. Japan's 1989 allocation has been Singapore, and the United States. Many eign vessels in foreign waters. In Japa­ reduced to 2,899 t, only 26 percent ofits producers hope to emulate the success of nese statistics, all joint venture produc­ 1988 level, and industry sources expect the U.S. surimiindustryandmake surimi tionis included as imports, and is clearly the allocation to be phased out entirely a major fisheries export earner for New differentiated in our main source, the within the next few years. Should this Zealand. Minaro shimbun, from the domestic occur, theJapaneseand the Koreans will Japaneseproduction, despite the fact that be forced to depend upon joint ventures Current and the surimiis produced by Japanese com­ and imports for future access to New Zea­ Future Developments panies. In this report, because we have land's hoki resource. The development of an independent primarily utilized Japanese sources, we New Zealand industry will largely de­ have followed the Japanese custom of Production pend upon future foreign fishing alloca­ referring to JV surimi production as im­ New Zealand's hoki surimi production tions for hoki. If the allocation is cut ports. Other reports, however, may in­ began in 1986 at 5,700 t, and rose to completely, the New Zealand industry is cludeJV production in Japanese domes­ 17,300 t by 1987. One Korean and 15 likely to benefit from joint ventures and tic production, thus resulting in much Japanese factory vessels, under charter technology transfers from Japanese and higherdomestic productionfigures than to 6 New Zealand companies, produced South Korean companies. There is a are used inthis report. (Source: IFR-89/ a total of 28,000 t of surimi in 1988. A strongdesirewithintheindustry tofollow 73, prepared by Karen L. Kelsky, For­ small amount (3,000 t) of southern blue theexampleofU.S. producers, who used eign Affairs Assistant, Foreign Fisheries whiting surimi was also produced. Flet­ Japanese technical expertise to build a Analysis Branch (F/IA23), National cherFishing, Amaltal, IndependentFish­ strong domestic industry. Some New Marine Fisheries Service, NOAA, Silver ing, and Skeggscompaniesarethelargest Zealand companies are requesting sub­ Spring, MD 20910.)

for reduction into fishmeal and oil, in­ creased by more than 20 percent, to 1.5 million 1. Danish exports of fish and The Fisheries shellfish products totalled $1.9 billion, of Denmark some 3 percent above 1987, giving the country a trade surplus of$0.9 billion. The European Community (EC) was Denmark's most important market, purchasing nearly 70percentofthecoun­ Introduction cent to about $504 million) in 1988. try's total fishery exports in 1988. The Landings ofedible fish decreased slight­ Federal Republic of Germany is the Danishfishermen increasedtheirland­ 1y toO.3 million t, while landings offish largest single destination for Danish ings of fish and shellfish 17 percent by seafoodexports. Danish imports offish­ 1Value figures are shown in United States dollars, quantity to 1.8 million metric tons (t) based exchange rates reported by the U.S. Treasury ery products amounted to 0.6 million t butthe value ofthe catchdecreased2 per­ (US$I.00 = 6.660 Danish krone), for 1988. worth $0.8 billion.

52(1),1990 31 (}overnoonentPrograJOs where subsidy programs may be given as city to allow building ofnew fishing ves­ partofthe CFP. The grants arelimitedto sels, modernization which increases the Resource Management a maximum of 25 percent of project capacity by less than 15 percent, and As an EC Member State, Denmark is costs. vessels which are used exclusively to fish required to faithfully execute the terms The Danish Governmentin 1988, also noncritical stocks (stocks for which there and provisions of the EC's Common approved about $1.6 million in grants to were no regulatory measures). Fisheries Policy (CFP) and other EC improve the profitability of the Danish In implementing the EC directive, regulations and directives. Danish Fish­ fleet andtoupgrade thequalityofthe raw grants are available for the permanent eries Minister Lars Garnmelgaard and material being delivered to processing withdrawal of vessels from fisheries members ofhis staffadminister several plants. These grants are allocated for within EC waters. A total of $6 million programs designed to maintainorexpand modernization of fishery vessels. Ac­ was appropriated for the years between fishing opportunities for Danish fisher­ cording to EC regulations (4028/86), 1984 and 1986 and $45 million for the men, while atthe same timeensuring that smallersized fishing vessels (less than 12 years 1987 through 1991. Sincetheintro­ Danish quotas allocated under the CFP m) can obtain financial support on the duction oftheprogramfor thepermanent are not exceeded. Some ofthe manage­ same conditions as larger vessels (those withdrawal ofvessels in 1987, the Dan­ ment programs initiated in 1987-88 in­ over 12 meters). Grants are designed to ish fishing fleet has been reduced by clude the following items. speed the introduction of new and im­ about 7 percent, from 136,000 gross proved technology: more effective fish­ registered tons (GRT) to 126,OOOGRT. Quotas ing techniques, faster fish handling, No financial assistance was granted for A seasonal division for EC quotas energy savings, and improved safety for the construction of new fishing vessels allocated to Denmark was established. fishermen. Under the provisions ofthe in 1987 and 1988. Fishermen also were allowed to supple­ 1988 annual Appropriation Acts, grants menttheircatchquotas forcod, haddock, of $705,000 were allocated to promote International Agreements and saithe as well as herring and mack­ experimental fisheries and grants of The European Community is respon­ erel in the pelagic fisheries. Minimum $90,000 were given to Danish aquacul­ sible for negotiating all international fish sizes for cod, haddock, saithe, and ture projects (representing 10 percent fishery agreements affecting Danish fish­ plaice were increased in 1987and 1988. ofprojectcosts), in accordance with EC ermen, including fishery agreements Regulations (4028/86). with the and Greenland. Vessel Limitations The Royal Danish Fisheries Bank Denmark, however, is responsible for Access to spratstocks was restrictedto (Kongeriget Danemarks Fiskeribank) conducting international negotiations vessels under 19 m in Kattegat and under provided$38millioninloans in 1988, of on behalf of the Home-Rule Govern­ 22 m in Skagerak. These smaller sized up to 70percentofthe constructioncosts ments of both the Faroe Islands and vessels were prohibited from catching of new fishing vessels, and of up to 60 Greenland. This sometimesplaces Den­ herring and from fishing inotherwaters. percent of costs of purchasing second­ mark in the unique position of seeking Vessels over22 m weregranted access to hand vessels. The Fisheries Bank also to expandaccess for EC fishermen (i.e. , ,'industrial" fish species (for reduction granted loans to cover as much as 60 Danish fishermen) in waters offGreen­ to fishmeal and oil), but not to sprat percent of the cost for the purchase of land, for example, while, at the same stocks. processing plants and machinery. In­ time, being responsible for reducing EC terest rates for the loans corresponded to fishing in these same waters. North Sea and Greenland the marketrates ofinterestandrepayment Denmark also has concluded fishery Herring and mackerel fishing by purse is scheduled over 10-20 years. agreements with Norway and Sweden, seiners in the North Seaand fish­ withinthe framework oftheEC Common ing in the waters off Greenland were Fishing Fleet Reduction Fisheries Policy, concerning fishing in managed by means of a licence system The EC published regulations for the Skagerak and the Kattegat. In 1988, based on a quota per vessel. Regulatory reducing the fishing capacity ofthe EC Sweden allocated to the EC 2,500 t of measures were also adopted for coastal fishing fleet in 1985. The result, for Den­ cod, 1,500 t of herring, and 170 t of fishing. mark, has been a substantial reduction in , in the contested "white zone" both the number of licenses granted to between Sweden and the Soviet Union. Financial Aid to the Industry fishermen andinthe number ofnew ves­ On 12 December 1988, however, ajoint The Danish Government extended sels allowed to join the Danish fishing protocol was signed in Riga dividing up about $1 million in grants to develop or fleet. Themainelements oftheEC regu­ the "white zone" between Sweden and improve plants processing or storing fish lations as they apply to Denmark are: 1) the Soviet Union, ending years ofconflict and fishery products for human con­ Only allow entry of vessels ofthe same betweenthetwonations, butalsoending sumption. These Danish grants were capacity to replace vessels withdrawn EC access to the zone on 31 December made inaccordance with EC Regulations from thefleet; and2) Withinalimitof15 1988. (355/77) which identify specific areas percentofthe reduction inthe fleet capa­ When it became apparent to Danish

32 Marine Fisheries Review fishermen that they would lose their ac­ Quality is ofgreat concern to Danish vessels in 1986. Thetotaltonnage ofthe cess to the "white zone" off Sweden, fishermen andprocessors becauseofthe Danish fleet declined by 7 percent, to they pressured the Danish Government importanceofthe quality-eonscious FRG 126,000 GRT in 1988, when compared to approach the EC to open negotiations market which accounts for nearly one­ to 1987. Thedecreaseis dueinlargemea­ with the Soviet Union to provide access fifth ofDanishexports. In 1987, reports sure to the EC programto reducethe size to Soviet-eontrolled waters in the Baltic of nematodes in fish were televised on ofthe members' fishing fleets. In 1988, Sea. EC negotiators met with Soviet West German television and fish con­ Denmarkwas one ofonly two EC coun­ officials in Moscow on 8-9 September sumption declined dramatically. On 8 triesto meetthe ECgoal; fishing fleets in 1988. These were the first fishery talks August 1988, the FRG published new a number of other countries increased between the EC and the Soviet Union regulationsonthe handling andprocess­ slightly, despite the EC programs. since 1977, when the EC extendedits in­ ing offishery products. Danishfish pro­ The Danish fishing fleet is dominated ternational fishery boundaries, excluding cessors were well prepared to meet or by small vessels; morethan two-thirds of the foreign fisheries. The opening of exceed these strict standards. thefleetconsistsofvessels below25 GRT negotiations was an important step be­ Imported fish and fishery products (Fig. 1). MostoftheDanishfishing fleet cause for years the Soviet UDion did not mustcomply with all EC regulations en­ operates out of ports on the island of recognizetheECandrefusedtomeetwith forced in Denmark. Before importing BornhoIm (285 vessels), followed by EC fishery officials. Negotiations were any fish orshellfishproduct, animporter Friderikshaven (262 vessels), Esbjerg continuing, but the results were not yet must notify the Danish Fish Inspection (208 vessels), Skagen(205 vessels), and clear. Danishfishermen wereparticular­ Service, which may performlaboratory Hirtchals (190 vessels). The remaining ly eagerto receivepermissionto fish for control of samples. Fishery products vessels were registered at 25 other ports cod in Soviet-controlled portions ofthe destined for export are also covered by in Denmark (Fig. 2). Baltic Sea. the sanitary regulations. By the end of 1988, there were about Danishfishery interests withtheneigh­ 8,000fishermen registered in Denmark, boring German Democratic Republic including 2,200 who are members ofthe (GDR) began a new era of cooperation Denmarkhad635 registeredfish farms Danish Fishermen's Producers' Organ­ when, on 14 September 1988, Danish in 1988, including 565 freshwater farms ization (DFPO) which was established in officials and representatives ofthe GDR (mostly raising rainbow ), 38 ­ 1973, according to EC regulations for the initialled an agreement recognizing water farms (mostly raising seatrout in Common Market Organization for fish­ Danish sovereignty over waters around salt water), and 32 farms devoted to rais­ ery products. The DFPO guarantees its the island ofBornholm and dividing the ing European eels, Anguilla rostrata. members certain minimum prices for Continental Shelfand fishing zones be­ Total aquaculture production has re­ tween the two countries, ending a long mained steady in recent years, mostly dispute. The ratified agreement entered because of environmental concerns

into force on 14 June 1989. whichledtoabanonestablishing newfish Teble1.-Denlll8r!<'saqueculture production byquentlty, - farms. Because ofthis ban, no new fish 1983-88. Sanitary Regulations farms have been established and expan­ Harvest(t) General regulations concerning the sion ofexisting saltwater installations has Species 1985 1986 1987 1988 catching, storing, carrying, freezing, been prohibited since December 1986. Trout preserving, processing, and the sale of Asa result, Danishaquacultureharvests Freshwater 24,000 24,000 23,000 22,500 fish and shellfishproductsarecodifiedin havechangedlittle since 1985 (Table 1). Saltwater 3,300 3,600 3,700 5,200 the Fisheries ActofQuality Control with In 1988, Danish fish farms received European eel NA 200 250 235 Fish and Fisheries Products No. 339 of permission from the FRG to sell their Total 27,300 27,800 26,950 27,935 29 May 1987. Control is carried out by saltwater-raisedtroutas "salmontrout. " the Danish Fish Inspection Service. In The decision was not uniformly wel­ accordance with EC regulations, all comedin West Germany, since itcauses Danish companies storing, handling confusionamong consumers. Danishfish and/or processing fish and fishery pro­ farmers do not raise Atlantic salmon ducts mustbeauthorized by the Ministry because restrictions on new fish farms of Fisheries. By the end of 1988, there have prevented culture of this high­ were about400plantsauthorized to store, valued species. handle, or process fishery products in Denmark. There were 108 firms regis­ Fleet and Fishermen tered in Greenland, including factory The Danish fishing fleet consisted of • Over 500 GRT l!l§I100-499 GRT ships and several vessels which are 3,007 powered vessels in 1988, a de­ o 25-99 GRT 0 Under 25 GRT able to cook shrimp using onboard crease of 205 vessels from the 3,212 Figure l.-Denmark's fishing fleet by equipment. vessels registered in 1987 and the 3,243 number and size of vessels, 1984-88.

52(1),1990 33 :: I,600 .----.----r---,-----r~= o g~ 1,200 _Imporls o EKporls 800 .c tJ· o BORNHOLM "0 400 U

1984 1985 1986 1987 1988 • Edible fish D Industrial species 1984 1985 1986 1987 1988

Figure 3.-Denmark's fishery catch by Figure 4,-Denmark's trade in fishery quantity, 1980-88. products by value, 1984-88.

Table 2.-Flaherles landings by Danish vessels, In domestic and lorelgn ports, by 1,000 Figure 2.-Principal fishing ports of quantlty,1988-88. _Imports o EKports 800 c- c- ~ .--- Denmark. Landings' (1,0001) 0 600 0. Species 1986 1987 1988 ° 400 Edible '0'" 0 200 Cod 136 132 113 ~ their landings offish. Two other organ­ Herring 80 66 92 0 -'- -- -- Plaice 39 36 31 1984 1985 1986 1987 1988 izations, the Purse Seiners' Producers Mackerel 22 27 25 Organization and the Skagen Fisher­ Haddock 17 9 10 Sailhe 9 6 6 Figure 5.-Denmark's trade in fishery men's Producers' Organization, also Norway 3 3 2 products by quantity, 1984-88. Hake 3 2 1 provide price supports to their members. Whiting 2 1 1 Common sole 1 1 1 Landings Atlantic salmon 1 1 1 Other 123 118 106 Danish landings of fish and shellfish ports, foreign fishermen also unload their haveaveragedabout 1.8milliontduring Subtotal 436 402 389 catches in Danish ports and Danish fish­ the past decade. Landings peaked at 2.0 Nonedible' ermen also land a portion of their catch Subtotal 1,365 1,244 1,532 million t in 1980 and declined to 1.7 in foreign ports. million tin 1987. In 1988, total landings Total catch 1,801 1,646 1,921 Trade by Danish fishermen in Danish ports in­ 'Figures may not agree because 01 rounding ot edible species. creased by 17 percent to 1.9 million tons. 'Industrial tish species tor reduction into Denmark is one of Europe's leading This was a recovery from the 1.7 million fishmeal and 011. seafoodexporters, importing low-value t harvested in 1985, but is below the 2 raw material and exporting high-value million t caughtin 1980. Landings offish finished seafood products. During the and shellfish destined for human con­ past 5 years, Danish exports have re­ sumption, however, decreased by some mained important, providing the country 3 percentto 389,OOOt (Fig. 3, Table 2). 1988. Landings of fish for reduction with a source offoreign exchange. How­ Most of the Danish fisheries catch is into fishmeal and oil increased to 1.5 ever, the seafood industry is relying more made in the NorthSea (72 percent), Ska­ million tin 1988, 20 percent above 1987 and more on imported fishery products gerrak(12 percent), Kattegat(5 percent) landings. The landings yielded 338,000 to maintainits processingplants. Imports and Baltic Sea (6 percent). Danish land­ t offishmeal in 1988, versus 270,000 t have gradually increased in recent years ings in domestic ports were valued at in 1987 and 302,000 t in 1986. It is as compared with stable export levels $504 million, 2 percent below the value noteworthy thatthree-fourths ofDanish (Fig. 4, 5). oflandings in 1987. The principal ports landings, by quantity, consist offish for where most of the Danish fish catch reduction which contributeless than one­ Imports was landed in 1987, included: Esbjerg third of the value of the entire catch; Danish imports of fish and fishery (687,000t), Thyboron(234,OOOt), Hirt­ meanwhile, fish for humanconsumption, products amounted to some 550,000 t in shals (171,000 t), Skagen (149,000 t), one-fourth oflandings, account for over 1988, vs. 494,OOOtin 1987 and454,000 Hanstholm(52,OOOt), and Hvide Sande two-thirds ofthe value ofthe harvest. It t in 1986. Danish imports have been (43,000 t). Landings of edible fishery is also noteworthy that the catch of fish growing at about 10 percent per annum products were worth $360million, while and shellfish for human consumption is during the last few years. The value of industrial species used to make fishmeal gradually decreasing in Denmark. In Denmark's imports, however, remained and oil were valued at $144 million, in addition to Danish landings in domestic stable at $870 million in 1988. Shrimp

34 Marine Fisheries Review was the most important item; imports of in 1987 and 225,000 exported in 1986. Limitation on aquaculture suggests that shrimp amounted to $330 million in ThevalueofDanishfishmea1exports was Danishprocessors willhavelittleoption 1988, representing almost40percentof $150 million in 1988. but to import in the coming years. total Danish imports in value terms. The European Community was by far The long-term outlook for many Da­ In 1988, U.S. seafooddealersexported the most important market for Danish nishfishermen is notoptimistic. Mostof 1,992 t of fishery products valued at fishery products in 1988, purchasing the fleet (2,015 vessels) consistsofsmall $10.7 million to Denmark. This include $1.3 billion worth of Danish fishery fishing vessels (mostly under 25 GRT); $6 million worth of chum salmon and exports, equivalentto70percentofDen­ these vessels cannot take advantage of $1.5 million worth ofother salmon (in­ mark's total export earnings. The FRG distant fishing grounds where EC nego­ cluding fillets, canned salmon, and was the largest single market for Danish tiations have succeeded in obtaining salmon ). Danishimporters alsopur­ fishery exports in 1988, accounting for accessfor memberfishing vessels. There chased $1.8 million worth of seaweeds $348 million, ornearlyone-fifthoftotal is little chance that stocks offish in Da­ fromthe UnitedStatesin 1988. TheU.S. exports. Danish exports to the UK in­ nish waters orin neighboring waters will Embassy in Copenhagen in 1987, re­ creased from $197 million in 1987 to increase substantially in the near future, ported that the best prospects for U.S. $204 million in 1988. although some fishermen hold out the suppliers in Denmark include white­ OutsidetheECthemain marketoutlets hopethatthe EC will beabletonegotiate fish fillets, eels, salmonroe, lobster, and for Danishfishery products, by value, in access to the Soviet Baltic waters. crayfish. 1988 were: Japan (7 percent, $139 mil­ The Danish fleet includes 299 vessels lion), Sweden (6 percent), Switzerland over 100 GRT that can sail to distant Exports (5 percent), andthe United States (4 per­ fishing grounds. In 1988, several Danish Danish exports of fish and shellfish cent or $72 million, down from $138 fishermen decided that fishing in the productsamountedto 823,300t in 1988, million in 1987). TheweakerU.S. dollar North Sea had become too difficult and a 5 percentincreaseover 1987exportsof andthelowerpricesfor frozen codblocks set sail for the Indian Ocean where they 804,000 t. Fishery exports were worth in the U.S. market contributed to the attempted to fish fortuna. In 1989, itwas about $1.7 billion, some3 percentabove decline· in sales of Danish fishery pro­ announced that 20 licenses have been 1987. Cannedorpreparedseafoodswere ducts in the United States. issued to Danish fishermen allowing the most valuable commodities, earning them to fish in waters offTanzania and $375 million, 11 percent above corre­ Outlook Zanzibar in East Africa. The licenses sponding 1987 levels. Shrimpwas by far Danish fishermen are being caught in were obtained by an Anglo-Danish the most important item in this group, an increasingly tight squeeze. Fishing group. Danish fishermen will beallowed representinga total valueof$165 million. quotas for profitablespecies (such ascod) to fish for , , spinylobster, Uncertain market conditions for tradi­ aregrowing smallerwhile restrictions on and shrimp. Vessels participating in this tional groundfish products, such as cod fishing grounds, seasons, net sizes, etc. , fishery will fly the Danish flag, but must and haddock, havedepressed Denmark's increase. The EC is reducing the size of land their catch for processing ashore in exportearnings from frozen fillets which the Danish fishing fleet. Competition, thehostcountry.Thus, forlargervessels, dropped from $405 million in 1987 to from countries such as Iceland and Nor­ the future mightbe more attractive indis­ $315 million in 1988. Other important way, has grown in recent years, further tant waters where skilled Danish fisher­ export earning commodity groups in­ increasing pressure to reduce prices on men can use their experience to assist clude shellfish, , whole fish many traditional fish species. Danish developing countries expand their fish­ (fresh and chilled) and freshwater fish fishermen are experiencing difficulty in eries-a mutually profitable endeavor. (mostly trout). providing consumers, processors, and (Source; IFR-89/89, prepared by Wil­ In 1988, exportsoffishmeal increased export markets with supplies ofdesired liam B. Folsom, Office ofInternational both in terms of value and quantity. A species from domestic fishermen. The Affairs, National Marine Fisheries Ser­ total of252,373 t was exported in 1988, rising demand for fishery products is vice, NOAA, 1335 East-West Highway, 26 percentabove the 200,000 t exported forcing suppliers to increase imports. Silver Spring, MD 20910.

52(1),1990 35