Tag: Freezer trawlers

Reports

Sjóvinnsla á þorskalýsi / On-board liver oil processing

Published:

06/09/2018

Authors:

Marvin Ingi Einarsson

Supported by:

AVS Fisheries Research Fund

Sjóvinnsla á þorskalýsi / On-board liver oil processing

The project Sea processing of cod liver oil is about examining whether there is an operational basis for fish oil processing from cod climbing on board freezer and icefish trawlers. This includes a summary of all costs of processing as well as investment costs. The results were summarized in the income statement. In addition, the processing process of fish oil for human consumption was discussed and its market value was assessed. The results of the project indicated that it is not profitable to work only cod climbing on board trawlers, but it is more profitable to land it fresh. However, it is possible to increase profits significantly by processing all cod, saithe and haddock livers together and even more if all the meat is processed, including the liver. There is more profit from the processing of fish oil on board freezer trawlers compared to icefish trawlers, considering that icefish trawlers will generate income if they start producing fish oil on board. It is income from the liver that would otherwise be landed. This does not apply to freezer trawlers, but most of their liver goes into the sea today.

The task of this project is to explore whether there is an operating basis for processing cod liver into oil onboard freezer- and wet fish trawlers. This includes summarizing all costs in a profit loss account. The project also considers further refining of fish oil for human consumption and its market value. The results of this project indicated that it is not profitable to process only cod liver, as more profit is gained by landing the liver fresh. However, by processing liver from cod, saithe and haddock profits can be increased and even more if all the viscera including liver is processed as well. More profits are obtained from processing fish oil onboard freezer trawlers, compared to wet fish trawlers, considering lost revenue of previously landed liver. This does not apply to freezer trawlers as they do not utilize liver.

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Reports

Landing obligation on cod heads from factory vessels

Published:

01/07/2015

Authors:

Jónas R. Viðarsson, Gunnar Þórðarson

Supported by:

AVS Fisheries Research Fund (R 104-12)

Contact

Jónas Rúnar Viðarsson

Director of Business and Development

jonas@matis.is

Landing obligation on cod heads from factory vessels

At the beginning of the 2012/13 fishing year, a regulation came into force that obliges processing vessels to bring ashore a certain proportion of cod heads that occur during fishing in Icelandic jurisdiction. The Regulation stipulates that the largest processing vessels bring ashore at least 40% heads and that medium-sized vessels land at least 30% heads, but the smallest trawlers are exempt from this Regulation. This report sets out the reasons for the enactment of the Regulation and the objectives it is intended to achieve. The effects of the regulation in the first two fishing years in which it has been in force are also examined in terms of the effect on the increased number of landed heads and what effect this has had on the fishing industry's results. It also outlines some possible ways for the companies to meet the requirements of the regulation. In short, the regulation has had a very limited effect on the number of landed heads. This is because most of the processing vessels it covers met the conditions before it came into force. There are mainly smaller freezer trawlers that do not see themselves able to bring their heads ashore, and they are in any case exempt from the regulation. There are several possibilities for increased value creation through better utilization of cod heads, but since the size, age, equipment and general operating environment of freezer trawlers are a limiting factor, there is a limited chance that the regulation will be significant for the fishing industry or society as a whole.

On September 1st 2012 a regulation came into force that obliges Icelandic fishing vessels with on-board processing to bring a shore a certain proportion of cod heads that derive from catches within Icelandic waters. It requires the largest factory vessels to bring ashore at least 40% of cod heads, medium size trawlers are to bring ashore at least 30% of cod heads, but the smallest trawlers are exempted from the regulation, but majority of Icelandic factory vessels fall with in that category. The reasons why the regulation was set and its success after two years of implementation are reviewed in this report. The effects on volume of landed cod heads, associated costs and revenues, as well as available alternatives for vessel owners to meet with the requirements of the regulation are studied and discussed. The regulation has had limited effects on the volume of landed cod heads, as most factory vessels subject to the regulation had already met with the requirements long before the regulation came into effect. It is primarily the smaller vessels that do not land significant volumes of cod heads, but they are excluded from the regulation anyhow. There are potentials for improved utilization of cod heads and cod head by-product on-board Icelandic factory vessels, but size, age, equipment and current operational environment for these vessels are limiting factors.

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Reports

Investment management in freezer trawler operations

Published:

01/05/2014

Authors:

Gunnar Þórðarson, Arnljótur B. Bergsson, Gísli Eyland, Jónas R. Viðarsson, Sigurjón Arason, Sindri Magnason

Supported by:

AVS Fisheries Research Fund. Reference No .: S 12 007‐12

Contact

Gunnar Þórðarson

Regional Manager

gunnar.thordarson@matis.is

Investment management in freezer trawler operations

There has been a major change in the freezer trawler industry in Iceland since it began in the early 1980s. The share of freezer trawlers in cod has decreased significantly and today it is only caught as a by-catch when fishing for other species such as redfish, saithe and halibut. In 1992, there were most freezer trawlers in the Icelandic fleet, 35 in number, but today there are only 23 and the number is decreasing. The reasons for the declining share of freezer vessels in the cod fishery can be traced to higher oil prices, but the energy cost of freezing at sea is much higher than comparable costs on land, higher labor costs for processing at sea than on land and changes in marketing where fresh fish has recently returned one of the greatest value creation in the Icelandic fishing industry. The most important operating aspects of freezer trawlers today are catch quotas, catch value, fishermen's wages, oil prices and fishing fees. The imposition of fishing fees has created uncertainty and reduced the efficiency of freezer trawlers, which has prevented investment in the industry, as well as a share-based system that does not encourage investment in technology or product development. Freezer trawlers are necessary for Icelanders, and although their share of cod and haddock has decreased, it will still be economical to fish other species with processing vessels. Species such as redfish and halibut are well suited for processing such as this, and distant targets will hardly be retrieved except with freezer trawlers.

Significant changes have occurred in operation of freezing trawlers in Iceland since it began in the early eighties. Its share in the most important stock, the cod, has declined significantly and today cod is only caught as by ‐ catch with other species. The main species caught by and processed on ‐ board freezing trawlers today are; redfish, saithe and Greenland halibut. In 1992 the number of freezing trawlers peaked in the Icelandic fishing fleet, with 35 vessel, but has declined to 23 today. Reasons for the reduction are mainly higher oil prices, higher energy cost of freezing at sea than onshore, relatively higher salaries of processing offshore and changes on markets where fresh fish portions have recently delivered better value than see ‐ frozen fillets in the Icelandic fishing industry. The most important operating parameters for freezing trawlers are quotas, catch value, crew remuneration, fuel cost and fishing fee. Imposition of fishing fees in Iceland have caused uncertainty and reduced profitability of freezing trawlers and prevented capitalization in the industry, along with crew salary ‐ systems that do not encourage investment in technology or product development. Freezing trawlers are necessary in Icelandic fish industry, though their share of the cod and haddock have declined it remains profitable to catch other types of species, such as redfish and Greenland halibut and these vessels are vital for the Icelandic deep sea fishing around Iceland and in the Barents see.

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