Michael Keatinge The 2018 Annual Economic Report A comprehensive - PowerPoint PPT Presentation

Michael Keatinge

The 2018 Annual Economic Report A comprehensive overview of the latest information available on the structure and economic performance of EU Member States (MS) fishing fleets.

Compiled from surveys undertaken by Member States within the Data Collection Framework Clara Ulrich (Chair) and the Two Working Groups, 33 experts Members of the STECF Member States, Angel Calvo Commission (DG Mare) Natacha Carvalho, Joint Research Centre, Jordi Guillen, Ispra. STECF

CONTENTS (4) EU FLEET REGIONAL ANALYSIS (3) EU FLEET OVERVIEW General Overview • Overview of the EU Fishing Fleet North Sea & Eastern Arctic region • Baltic Sea Economic Performance Indicators Northeast Atlantic region • Assessment for 2017 and 2018 Mediterranean & Black Sea region • Other Fishing Regions (OFR) EU small-scale coastal fleet (SSCF) • (5) NATIONAL CHAPTERS (23) Main drivers and trends • (6) AER REPORT METHODOLOGY Summary data tables by MS (7) COVERAGE & QUALITY

Fleet Changes 2008 - 2017

Economic Performance (Large Scale Fleet)

Trends in fleet capacity

Fleet Changes 2008 - 2017 Change Change 2008 2016 2017 2008� -� 2017 2016� -� 2017 Number� of� � Vessels 88,058 83,360 82,861 -7.16% -0.60% Number� of� Inactive� Vessels 19,371 17,962 15,875 -19.14% -12% Number� of� Active� Vessels 68,687 65,398 66,986 -3.78% 2.40% '000� GT 1,845 1,600 1,561 -19.30% -2.40% kW 6,888 6,408 6,298 -11.86% -1.70%

Trends in fleet capacity Includes Greece & Croatia

Active Fleet Capacity and Structure over time

Landings 5 million tonnes of seafood – Volume up 14% since 2008, value up 7%

Landings Per Unit Effort (LPUE) 1,300 kg per day at sea Increased 30% since 2008

Productivity Labour Productivity €42,800 (GVA/FTE) Increased 1.7% on 2014

Economic Performance (Large Scale Fleet)

Prices (€ kg -1 )

Landings (Volume)

Landings (€ Value)

2015 2016 Change Revenue €7,248 € 7,648 0.3% Labour Costs €1,891 €2,034 7% Unpaid Labour value €260 €231 -11% Fuel Costs €1,348 €1,097 -19% Repair Costs €577 €643 11% Other Variable Costs €987 €1,076 9% Non-variable Costs €600 €542 -10% Total €5,663 €5,623 -1% Gross Profit €1,620 €2,067 28 %

Economic Performance (Large Scale Fleet)

Performance Indicators 2008 - 2016 • Revenue up 13% to €7.73 billion • Gross Value Added up 42% to € 4.5 billion • Gross Profit up 93% to €2 billion • Net Profit up 1200% to €1.3 billion

Economic Performance (Large Scale Fleet)

Performance Indicators • Revenue up 13% to €7.73 billion • Gross Value Added up 42% to € 4.5 billion • Gross Profit up 93% to €2 billion • Net Profit up 1200% to €1.3 billion • GVA to Revenue up from 46% to 58% Gross Margin up from 16% to 27% • Net Margin up from 2% to 17%

Performance Indicators • Fuel down from 24% of revenue to 12% • LPUE 1,300 kg per day at sea an increase of 30% since 2008 • Labour productivity up from €30,000 to €50,000 per FTE

The AER Report contins: • 23 National Chapters • EU Overview • 6 Regional Chapters • Member States reports While the AER Report doe not currently include a chapter dealing specifically with pelagic fisheries, the following ad hoc analysis was carried out using the AER 2018 data set.

Developing a Pelagic Assessment 1. Region (Area 27, Area 37, OFR) 2. Gear (Mid-water Trawling) 3. Vessel size category , (VL0010, VL1012, VL1218, VL1824, VL2440, VL40XX)

In 2016 mid water trawling generated catches in excess of €1 billion. 154% growth between 2008 - 2016

Value of Catch from mid-water trawling € 1.400 180% 160% € 1.200 140% € 1.000 120% € 800 100% Catch Value 80% € 600 % Change 60% € 400 40% € 200 20% € 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Value of Catch €1,063 million in 2016

Value of Catch from mid-water trawling 1.200 Miljoenen 1.000 2008 2009 800 2010 2011 600 2012 400 2013 2014 200 2015 2016 0 AREA27 AREA37 OFR Value of landings 90% from Area 27 (€954 million in 2016)

Value of Catch from mid-water trawling 900 Miljoenen 800 700 2008 2009 600 2010 500 2011 400 2012 2013 300 2014 200 2015 100 2016 0 VL0010 VL1012 VL1218 VL1824 VL2440 VL40XX Value of landings 83% from midwater trawling (€788 million in 2016)

AER Report For the purposes of this presentation the “Pelagic Fleet” is restricted to: • the mid water trawl fleet, • fishing in area 27, • over 40 metres in length.

Number of Vessels in the VL40xx Mid Water Trawl Fleet 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total number of vessels 84 90 87 83 100 97 96 95 98 United Kingdom 29 31 31 30 31 30 30 27 27 Denmark 0 0 0 0 17 13 16 18 22 Ireland 20 20 20 19 21 21 21 21 20 Sweden 10 13 11 7 7 8 7 10 9 Netherlands 14 13 12 14 12 13 10 7 7 Germany 3 4 4 3 5 5 5 5 5 France 4 4 4 3 3 3 3 3 3 Finland 3 4 4 5 2 2 2 2 3 Lithuania 1 1 1 1 1 1 1 1 1 Poland 0 0 0 1 1 1 1 1 1 Grand Total 84 90 87 83 100 97 96 95 98

Number of Vessels in the Mid Water Trawl Fleet 100� 80� 60� 40� 20� 0� � � � � � � � � � � � k s y f m d n e d a d o d r n i � n e c n n n o a n a n a d a a r a d m e a m a l l l e e u n o g b l r n w r h r r F i P n m e F e I e S t i h K D G i u � L t n d e � e N l a t i t n o U T

Capacity of the Mid Water Trawl Fleet (GT) 250,000� 200,000� 150,000� 100,000� 50,000� 0� tonnage� Kingdom� Netherlands� Denmark� Germany� Ireland� France� Sweden� Finland� Lithuania� Poland� Vessel� United�

Capacity of the Mid Water Trawl Fleet (kW) 400,000� 350,000� 300,000� 250,000� 200,000� 150,000� 100,000� 50,000� 0� � Kingdom� Netherlands� Denmark� Ireland� Germany� Sweden� France� Finland� Lithuania� Poland� power� Engine� United�

Age of the mid-water trawl fleet 50� 45� 40� 35� 30� 25� 20� 15� 10� 5� 0� Lithuania� Finland� France� Poland� Germany� Netherlands� Denmark� Sweden� Ireland� Kingdom� United�

Age of the mid-water trawl fleet 25.00� 20.00� 15.00� Actual� Zero� Investment� 10.00� Full� Replacement� 5.00� 0.00� 2008� 2009� 2010� 2011� 2012� 2013� 2014� 2015� 2016�

Employment by the mid-water trawl fleet 1600� 1400� 1200� Total� employed� Netherlands� 1000� United� Kingdom� 800� Ireland� 600� Denmark� 400� France� 200� 0� 2008�2009�2010�2011�2012�2013�2014�2015�2016�

Average wage on the mid-water trawl fleet € 160,000� € 140,000� € 120,000� € 100,000� € 80,000� € 60,000� € 40,000� € 20,000� € 0� 2008� 2009� 2010� 2011� 2012� 2013� 2014� 2015� 2016�

Fuel used per day at sea (litres) 30,000� 25,000� 20,000� Netherlands� United� Kingdom� 15,000� Ireland� 10,000� Denmark� France� 5,000� 0� 23,005� 23,975� 24,805� 22,461� 21,467� 27,465� 27,659� 27,416� 27,386� 2008� 2009� 2010� 2011� 2012� 2013� 2014� 2015� 2016�

Fuel used per tonne landed (litres) 350� 300� 250� Netherlands� 200� Ireland� 150� United� Kingdom� Denmark� 100� France� 50� 0� 241� 259� 248� 276� 212� 220� 207� 202� 182� 2008� 2009� 2010� 2011� 2012� 2013� 2014� 2015� 2016�

Overall Profitability 100%� 0%� 3%� 8%� 10%� 13%� 13%� 8%� 90%� 21%� 21%� 8%� 26%� 25%� 12%� 11%� 12%� 11%� 80%� 11%� 8%� 10%� 8%� 16%� 70%� 14%� 9%� 14%� 9%� 10%� 12%� 9%� 60%� 8%� 12%� 18%� 6%� 6%� 9%� 12%� 11%� 8%� 50%� 16%� 12%� 5%� 12%� 7%� 4%� 12%� 11%� 5%� 40%� 14%� 15%� 10%� 9%� 12%� 11%� 13%� 30%� 20%� 22%� 19%� 19%� 19%� 22%� 20%� 20%� 21%� 19%� 10%� 16%� 15%� 13%� 14%� 14%� 11%� 10%� 9%� 6%� 0%� 2008� 2009� 2010� 2011� 2012� 2013� 2014� 2015� 2016� Energy� costs� Wages� and� salaries� of� crew� Unpaid� labour� value� Repair� &� maintenance� costs� Other� non-variable� costs� Other� variable� costs� Rights� costs� Annual� depreciation� costs� Other� costs� (investments� etc)� Net� profit�

Energy Consumption per tonne landed (litres/tonne) North Sea & Eastern Arctic region

Fuel Costs as % of Landed Value North Sea & Eastern Arctic region

Gross Profit per Day-at-Sea North Sea & Eastern Arctic region