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.