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Icelandic Fisheries: a Review

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Icelandic Fisheries: a Review DRAFTPRE-RELEASE! ! DRAFT ! DRAFT PRE-RELEASE! ! DRAFT ! DRAFT Directorate-GeneralPRE-RELEASE! !Fo r DRAFTinternal Policies POLICY DEPARTMENT Directorate-General For internal Policies STRUCTURAL AND COHESION POLICIES B POLICY DEPARTMENT AgricultureAgriculture and Rural and Development Rural Development STRUCTURAL AND COHESION POLICIES B CultureCulture and Education and Education Role The Policy Departments are research units that provide specialised advice Fisheries to committees, inter-parliamentary delegations and other parliamentary bodies. Fisheries RegionalRegional Development Development Policy Areas TransportTransport and andTourism Tourism Agriculture and Rural Development Culture and Education Fisheries Regional Development Transport and Tourism Documents Visit the European Parliament website: http://www.europarl.europa.eu/studies PHOTO CREDIT: iStock International Inc., Photodisk, Phovoir DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES FISHERIES ICELANDIC FISHERIES: A REVIEW NOTE This document was requested by the European Parliament's Committee on Fisheries. AUTHORS Irina POPESCU, Katrin POULSEN Policy Department B: Structural and Cohesion Policies European Parliament E-mail: [email protected] EDITORIAL ASSISTANCE Virginija KELMELYTE LINGUISTIC VERSIONS Original: EN Translations: ES, FR, IT, PT. ABOUT THE EDITOR To contact the Policy Department or to subscribe to its monthly newsletter please write to: [email protected] Manuscript completed in March 2012. Brussels, © European Parliament, 2012. This document is available on the Internet at: http://www.europarl.europa.eu/studies DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorized, provided the source is acknowledged and the publisher is given prior notice and sent a copy. DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES FISHERIES ICELANDIC FISHERIES: A REVIEW NOTE Abstract This note was requested by the Committee on Fisheries for its Delegation to Iceland (2-4/05/2012). Significant developments in recent years have affected the Icelandic fisheries sector and its future evolution: the global financial crisis in 2008, the migration of the mackerel stock in the Icelandic EEZ and the dispute around it, Iceland's application for EU membership and the perspective of its participation to the CFP. This note provides a snapshot of the Icelandic fisheries in the light of these developments. IP/B/PECH/NT/2012-06 March 2012 PE 474.540 EN Icelandic fisheries: a review CONTENTS CONTENTS 3 LIST OF ABBREVIATIONS 4 LIST OF TABLES 5 LIST OF MAPS 5 LIST OF FIGURES 6 EXECUTIVE SUMMARY 7 1. INTRODUCTION 11 2. FISHERIES MANAGEMENT 15 2.1. Legal and institutional framework 15 2.2. The Individual Transferable Quotas system 16 2.3. EU accession negociations 18 3. CATCHES 21 4. THE MACKEREL ISSUE 25 5. FISHING FLEET 31 6. EXPORT OF MARINE PRODUCTS 35 7. EMPLOYMENT 37 8. AQUACULTURE 39 9. MARINE RESEARCH 41 REFERENCES 43 3 Policy Department B: Structural and Cohesion Policies LIST OF ABBREVIATIONS CFP Common Fisheries Policy EEA European Economic Area EEZ Exclusive Economic Zone GRT Gross Register Tonnage GT Gross Tonnage FAO Food and Agriculture Organisation of the United Nations ICES International Council for the Exploration of the Sea ISK Icelandic króna ITQ Individually Transferable Quotas IWC International Whaling Commission MRI Marine Research Institute NAFO North Atlantic Fisheries Organization NAMMCO North Atlantic Marine Mammal Commission NEAFC North-East Atlantic Fisheries Commission TAC Total Allowable Catches 4 Icelandic fisheries: a review LIST OF TABLES Table 1 Key data Error! Bookmark not defined. Table 2 Icelandic catches: volume and value of major species (2010) 23 Table 3 Mackerel in the Northeast Atlantic - combined Southern, Western and North Sea spawning components: Catches by country, in tonnes (2002-2010) 28 Table 4 Mackerel in the Northeast Atlantic - combined Southern, Western and North Sea spawning components: Catches by country, in percentage of the total catch for each year (2002-2010) 29 Table 5 Total catches of Northeast Atlantic mackerel, compared to ICES advice (2008- 2011) 30 Table 6 Icelandic fishing fleet (2011) 31 Table 7 Number of vessels in the main Icelandic fishing ports (2011) 34 Table 8 Employment in the Icelandic fisheries sector (2011) 37 LIST OF MAPS Map 1 Iceland 11 Map 2 Seafloor morphology around Iceland 12 Map 3 EEZ delimitation in the Northeast Atlantic 13 Map 4 Northeast Atlantic mackerel stock components and their spawning areas 25 Map 5 The main migration pathway of the Western mackerel until the 2000s 26 Map 6 Distribution of Icelandic mackerel catches (2007-2010) 27 Map 7 Location of the MRI branch laboratories 41 5 Policy Department B: Structural and Cohesion Policies LIST OF FIGURES Figure 1: Total catches of Icelandic fisheries (1993-2010) 21 Figure 2: Total catches by species in Icelandic waters, including catches of Icelandic vessels in other waters (1900-2010) 22 Figure 3: Icelandic catches by species (2010): A. Volume, B. Value 24 Figure 4: Northeast Atlantic mackerel catches - combined Southern, Western and North Sea spawning components (2002-2010) 27 Figure 5: Evolution of the Icelandic fishing fleet by category (1999-2011) 32 Figure 6: Total catch of Icelandic fleet by fishing gear (1992-2008) 33 Figure 7: The catch quotas of the main fishing ports 34 Figure 8: Quantity and value of exported marine products 35 Figure 9: Value of exported marine products in EU countries and Norway (1993-2010) 36 Figure 10: Value of exported mackerel (2006-2010) 36 Figure 11: Estimated number of employees in fishing and fish processing in Iceland (1991-2011) 38 Figure 12: Total aquaculture production in Iceland by fish species (1985-2010) 39 Figure 13: Total export of Icelandic aquaculture products in volume (left axis) and value (right axis, ISK million at current prize) (1985-2010) 40 6 Icelandic fisheries: a review EXECUTIVE SUMMARY Iceland is one of the most important fishing nations in the world (19th on a global scale in 2009), in spite of the reduced size of its population (Table 1). Few nations are as dependent on fisheries as Iceland. Since the early 1900s, fishing has been Iceland's most important industry, and its contribution to the national economy has remained essential ever since. Table 1: Key data Area 103 000 km2 Population (at 1/01/2012) 319 575 Capital Reykjavík Flag North Atlantic Ocean, Norwegian Sea, Seas Greenland Sea, Denmark Strait Exclusive Economic Zone 758 000 km2 Shelf area 111 000 km2 Length of continental coastline 4970 km Source: Diverse Iceland is widely considered to have managed its fishing industry in a profitable way. The Icelandic fisheries management system is based on setting Total Allowable Catches (TAC) consistent with the scientific recommendations, and on the Individual Transferable Quotas (ITQs) system which gives each holder the right to catch a certain part of the TAC. Iceland submitted its application for EU membership in July 2009 and accession negociations have been opened one year later. The fisheries chapter, unanimously considered to be the most challenging one, has not been opened so far. Joining the EU means that Iceland would participate to the Common Fisheries Policy (CFP). The progress report of the European Commission notes the Icelandic restrictions on the internal market acquis (regarding the right of establishment and the freedom to provide services), and on the free movement of capital in fisheries production and processing. Other problematic issues are whale hunting and Iceland's self-attribution of significant quotas of mackerel. In 2010 the total catch by Icelandic vessels reached 1063 thousand tonnes, with a total of 133 billion ÍSK. Demersal species accounted for about 40% of the total Icelandic catch and dominate the total value of the catches (ca. 70%). The main demersal species are cod (34%) and haddock (12%), followed by redfish and saithe. Landings from pelagic fisheries are more than half of the total annual Icelandic catches (56% in 2010), but they only account for ca. 21% of their value. Among the pelagic species, herring and capelin have long been exploited, whereas Atlantic mackerel catches have increased abruptly in recent years, reaching 11.5% of the total volume and ca. 6% of the total value in 2010 (the second pelagic species after the Atlantic-Scandic herring). In recent years the Northeast Atlantic mackerel stock has changed its migration pattern and significantly expanded north-westwards, entering the Icelandic Exclusive Economic Zone (EEZ). This change caused a major crisis in the management of the stock by the Coastal States, which could not reach agreement on sharing the TAC recommended by the 7 Policy Department B: Structural and Cohesion Policies International Council for the Exploration of the Sea (ICES), but have unilaterally set national quotas. As a result, catches since 2008 have been considerably in excess of ICES advice. The absence of international agreement on the exploitation of the stock between the nations involved in the fishery is a critical concern, as at the current level of catch, the spawning stock biomass in 2013 could decline to the precautionary level. The fishing fleet is usually separated in three main classes: trawlers, decked vessels and undecked vessels. The total number of fishing vessels at the end of 2011 was 1655, with a total gross tonnage of 82 777 GT, and a total engine power of 281 403 kW. Trawlers accounted for 4% of the fishing fleet, but for 46% of the total gross tonnage. The importance of the different categories of the fleet varies greatly in terms of catch volume and value. In spite of their relatively large number, the undecked vessels are limited in terms of aggregate volume and value. In turn, the decked vessels dominate the harvest value, due to the large volumes of the purse seine pelagic fleet. In terms of value the trawlers account for almost as much as the decked fleet.
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