Bord Iascaigh Mhara has confirmed the serious economic situation for the Irish fishing industry. In its annual report, the State fisheries board says there will be a decrease in landings, revenue and profitability.
It says, "In the long-term, decommissioning will help bring fleet capacity back in balance with available quotas and improve the profitability for vessels remaining in the Irish fleet.”
This, however, is disputed by the fishing industry representative organisations, which contradicts the BIM conclusion. They say that hundreds of jobs will be lost, damaging the industry, making it unattractive to new entrants and ultimately creating serious economic and social problems in the country’s coastal communities.
Acknowledging the problems for the fishing fleet due to fuel prices, where the Marine Minister has refused requests for a subsidy, which would be similar to other EU countries, BIM says: “Based on feedback from industry, the impact of the Russian invasion of the Ukraine on inflation and rising fuel costs was the main driving force influencing the economic performance of the Irish fleet in 2022. In 2020, average fuel costs per litre were €0.42 whereas average fuels costs per litre in mid-2022 stood at €0.90, representing a 114% increase in cost and the current reported costs of €1.20 per litre represents a 18% increase since 2020.”
The report, for 2021, says that the data indicates an increase in landings by weight from 2020 (+6%) and a decrease in value of landings (-7.5%) due to decreasing fish prices and changes in quota allocation. Gross profit for 2021 is projected to decrease significantly (-58%) to €27.6 million combined with a decreasing net profit (-75%) to €8.1 million.
“In terms of the outlook for economic performance for 2021-2022, preliminary data point to a decrease in revenue and profitability for the Irish fleet. It also records less time spent at sea by the country’s fishing boats: “The Irish fishing fleet spent 77,460 days at sea, of which 84% were fishing days representing a decrease of 16% and 17% respectively from 2019.
“For 2021, the data indicates an increase in landings by weight from 2020 (+6%) and a decrease in value of landings (-7.5%) due to decreasing fish prices and changes in quota allocation. Gross profit for 2021 is projected to decrease significantly (-58%) to €27.6 million combined with a decreasing net profit (-75%) to €8.1 million.
“Profitability of the Irish fleet has increased since 2019, however, it says. Revenue increased by 2%, amounting to €312 million; gross value added (GVA) €161 million (+6%), gross profit €65 million (+24%) and net profit decreased to €32 million (-20%) due in part to Covid-19. The fleet landed over 218,600 tonnes valued at €312 million, an increase of 5% from 2019 in live weight and an increase of 2% in landed value (€306.5 million). In 2021, the fleet landed 233,000 tonnes, an increase of 7% from 2020.
Overall, the cost structure of the fleet has remained stable with a slight increase in all costs except non-variable costs (e.g., insurance, loan interest). Operating costs totalled €255 million, a slight increase of 1% from 2019 with energy costs increased by approximately 10%. When capital costs are included, the total cost of operating the national fleet rose by 4% since 2019 to €278.5 million.
Direct employment generated by the sector was estimated at 2,928 jobs corresponding to 2,684 full-time equivalents (FTEs).