Aker Seafoods opposes government proposal

Norwegian Ministry of Fisheries and Coastal Affairs said on its website (in Norwegian) that it has put forth a proposal to a public hearing for amendments to the mandatory landing obligations for cod trawlers concerning Northern Norwegian areas of Finnmark, Troms and Nordland. The suggested changes would bring the mandatory landing system closer t what it was before 2003 while maintaining secondary landing obligation. Suggestion for mandatory purchasing obligations in cases of coinciding ownership with vessels and processing facilities is included.

The government says the proposal aims to ensure raw material cod and haddock access to the factories in said regions particularly in times of low catches. Also there would be the need to report catch to Norwegian Fishermen’s Sales Organization (Norges Råfisklag) in short order. In the Ministry’s view, this would further strengthen integration between the vessel and the processing facility. By-catch scheme will also be looked into. Furthermore the Norwegian minister for fisheries and coastal affairs, Lisbeth Berg-Hansen fully agrees with her European counterparts when it comes to the discussed changes in fish discards. She said furthermore that more fish should be landed where they were originally intended to be landed, in order to save coastal jobs.

Aker Seafoods (OSE: AKS) has been trying to improve the dismal returns of its processing industry now a separate company called Norway Seafoods. In general returns of processing facilities in white fish handling are dismal and this is why the companies have been talking further consolidation. This consolidation obviously then would mean loss of jobs that the minister is keen on stopping. The company said that the proposal would further limit Norwegian white fish industry in general and the company specifically and will work to avoid it being adopted in the said form. The company also said that the Ministry has jumped the gun following suggested changes in the company in North Norway put forth by its advisors that would regardless need to be approved by the Norwegian fisheries authorities in advance.