Russian fishermen received three times less profit in the first half of the year
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The President of the All-Russian Association of Fishing Industry (VARPE) German Zverev told TASS and RIA Novosti agencies that the profit of the fishing sector in the first half of this year decreased by 3 times year-on-year and amounted to 38.5 billion rubles. For the same period in 2022, the sector’s profit amounted to 117.3 billion rubles.
“The rate of revenue growth in fish production has also decreased significantly, significantly: with an average rate of 14.4% for the period 2017-2022, in the first half of 2023 the revenue growth was only 7%,” said Mr. Zverev. According to him, profits have been declining since 2022 due to “the collapse of important export markets for Russian fish products and a significant increase in costs.”
He noted that in 2023 the situation worsened noticeably due to a decrease in export prices for the main types of Russian fish products, an increase in logistics costs, including due to high fuel prices. “The costs of delivering fish products (by sea and land transport) are close to 80 rubles/kg,” he added.
German Zverev believes that the rate of decline in profits “does not leave hope” for an improvement in annual values in the sector. At the same time, the indicators can become higher due to the cash flow that is provided by catching salmon fish. “However, increasing fee rates for aquatic biological resources and export fees will reduce the impact of the salmon factor,” he concluded.
On September 21, the government introduced flexible export duties on a wide range of goods; they were introduced from October 1, 2023 to December 31, 2024 and apply to supplies outside the EAEU. The main agricultural export subject to the new duties is fish and seafood. On September 23, German Zverev explained that duties would worsen the competitive position of Russian crab, pollock fillets and cod in foreign markets, the sale of which in 2022 brought fishermen about 80% of export revenue.
Read more about the risks for business associated with the introduction of export duties in the Kommersant article. “Corrosive duties”.
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