Greenland@ ICWPF 2014, Paris
Intro
RG sales of CWP in 2013-14
3
6%
Asia
1%
Other
13%
Russia
Scand.
36%
24%CentralEurope
15%
UK
7%
Japan
4%
Asia
0%
Other
7%
Russia
Scand.33%
26%
CentralEurope
19%UK
11%
Japan
Volume Net turn
Overall Europe is Royal Greenland’s largest market in terms of volume, turnover and profitAsia’s importance to Royal Greenland is growing year by yearOur new strategy has a clear focus on the North Atlantic species
CWP is for the coming years expected to decline in volume, but maintain turnover level
RG Prawn Production Entities
Trawler division (Nuuk, Greenland) Ownership in a number of trawlers and smaller fishing boats as well as numerous partnerships
Landbased production (Greenland)- Ilullisat - Inshore- Sisimiut – Off- and Inshore
- Both factories are peeling at approximately half of the maximum capacity
Repack (Denmark)- Aalborg (frozen, brine), Glyngøre (license prod. MAP)
RG Fleet
Production capacity: 110 tons/day
Catch capacity: 7-10,000 tons/year
Hold capacity: 450-750 tons
Type: Ocean-going prawn trawler
Production capacity: 110 tons/day
Catch capacity: 7-10,000 tons/year
Hold capacity: 450-750 tons
Type: Ocean-going prawn trawler
Production capacity: 110 tons/day
Catch capacity: 7-10,000 tons/year
Hold capacity: 600 tons
Type: Ocean-going prawn trawler
Totally Royal Greenland operates 14 vessels:
• 4 large vessels are dedicated to catching cold water prawns
The trawler division catches 40.000 tons of sea food annually
Prawns and halibut account for 80% of total catch. The rest consists predominantly of cod, redfish and cat fish.
320 people are employed in the fishing activities
Production capacity: 60 tons/day
Catch capacity: 6,000 tons/year
Hold capacity: 130 tons
Type: Inshore prawn trawler
Areas
AreasOur main fishing areas for Pandalus Borealis:
Fishery active in early 00’s
Over the recent years, prawns have migrated further North.Including Inshore fishery.
Recent trial fishery has given limited volumes as far North as the Melville Bay
The Greenlandic Prawn Stock
Catch & TAC DataEast Greenland Prawn Volume – 1978 to 2013
(2014 catches until July)
Source: Greenland Nature Institute: Report Advice September 2014 for 2015
Comments - Since 2003, catch and TAC has been reduced, but from a low level.
Biomass DataEast Greenland Biomass Survey – 2008 to 2014
Source: Greenland Nature Institute: Report Advice September 2014 for 2015
Comments - The biomass survey reveals no further changes to the stock.
Catch & TAC DataWest Greenland Prawn Volume – 1970 to 2014
Source: Greenland Nature Institute: Report Advice September 2014 for 2015
Comments • The prawn stock is continuing to spawn North, expectedly correlating with the increase of
the cod biomass in the Southern areas.
Biomass DataWest Greenland Biomass Survey - 1988 to 2014
InshoreOffshore
Comments The survey index of total biomass remained fairly stable from 1988 to 1997 It then increased by, on average, 19%/yr until 2003, when it reached 316% of the 1997 value. Subsequent values were consecutively lower, by 2008–2009 less than half the 2003 maximum (Fig. 3.4); this decline has been continued in subsequent years, reaching in 2014 the second lowest level in the last 20 years.
Source: Greenland Nature Institute: Report Advice September 2014 for 2015
Catch & TAC DataWest Greenland Total Prawn Volume – 1970 to 2014
Source: Greenland Nature Institute: Report Advice September 2014 for 2015
*Biological advisory 2015” Sept. 2014
The Greenlandic Prawn Stock- Conclusions
- East Greenland Biomass Survey projects only minor changes versus last year. The advisory is to keep TAC unchanged at 2000t for 2015
- West Greenland the Biomass Survey has resulted in an advisory to reduce the TAC from 85.000t to 60.000t.
• Future development of the Borealis stock dependent on evolution of stock of cod.• The Borealis stock has a low proportion of males, and recruitment to both the
fishable and the spawning stocks in the short term are expected to remain low. • Reduction in Offshore stock is especially worrying.
Sum Up
Future
� Capacity
• With current and expected TAC levels, there will be an overcapacity for both fishery and landbased processing. There are today 4 prawn processing plants on the West coast…
���� Supply will go down
• Lowering the supply due to further TAC reductions• Low stock positions in the supply chain
� Demand will be reduced
• WWP is recovering from Early Mortality Syndrome (EMS) • The consumers are expected to reduce consumption due to high shop price• In-store assortments are likely to be reduced to 1 or 2 SKUs instead of 3• Bag sizes are likely to be reduced to small bag size• Will go from a everyday products to a more luxury/weekend product
� Prices?
• Supply & Demand will find it’s equilibrium• Our challenge will be to communicate the product benefits to ensure
continuous demand 11/21/2014Footer skrives her 16
C&P Price developmentApril 2010 to Sept/Oct 2014 – DDP, GBP/kg
21-11-2014Footer skrives her 17Source: Undercurrent news and projections