The European Union's dependency on seafood imports, which has been extremely high for many years, continues to grow, with self-sufficiency levels sinking to historic lows in 2021, according to the European Fish Processors and Traders Association's (AIPCE-CEP) annual finfish report.
Due to reduced EU catches and the United Kingdom's exit from the trade bloc, the EU’s seafood production dropped in 2021 and self-sufficiency fell to unprecedented lows of around 35 percent, compared with a 10-year average of above 42 percent, said AIPCE.
And this year, the EU’s seafood self sufficiency is expected to fall even further to 33 percent.
Of the total 12.5 million-metric-ton supply in 2021, imports accounted for 9 million metric tons, or 72 percent, while the EU's domestic supply dropped to 3.5 million metric tons.
For 2022, AIPCE is forecasting a further 7 percent drop in total supply to 11.6 million metric tons, with both imports and domestic production weakening.
Although the worst effects of COVID-19 appear to have eased in Europe, many related supply chain issues are still hindering a return to pre-pandemic trading conditions, said AIPCE.
These pressures are now accompanied by unprecedented energy and fuel price increase because of Russia’s actions in Ukraine, which also impact other raw material and input costs in global food markets.
The EU sanctions against Russia are also making it more difficult to source seafood from Russia, and processors are likely to face a period of significant uncertainty, further complicating planning and investment decisions, said the report.
In 2022, processors are facing additional challenges brought on by the increase in fuel prices, energy costs, and the exchange rates between dollar and euro, he said.
"All these things have an impact on sourcing and getting raw materials into the EU for processing and ultimately consumption," Mike Turenhout, fisheries and trade expert at the Dutch Fish Federation (Visfederatie) told IntraFish.
Imports are critical
With more European consumers looking for healthy food from natural resources, the outlook is positive for the seafood sector, said the report, but the analysis shows that foreign imports are critical to meeting consumer demand.
A prime example is whitefish, notably Alaska pollock, on which the bloc is 100-percent reliant on supplies from the United States, China and Russia.
The EU's total supply of Alaska pollock in 2021 – and thereby imports – amounted to 808,000 metric tons. The United States accounted for 38 percent of the total supply, followed by China with 35 percent and Russia with 25 percent.
However, more than 95 percent of the Alaska pollock imported from China is of Russian origin, said AIPCE-CEP.
Similarly, the EU is heavily reliant on other countries for cod, importing 95 percent of its needs.
In 2021, the EU’s own cod fisheries represented just 5 percent of the supply, at 41,000 metric tons. The other 850,000 metric tons were imported primarily from Norway, Iceland and Russia.
“When it comes to Alaska pollock and cod, we need imports to fulfill demand,” said Turenhout.
With the various sanctions the EU, UK and United States have placed on Russia, “you already see there are shifts going on in sourcing,” he said. But for Alaska pollock, it is difficult to source from other countries than Russia.
Despite the reliance on imports, the EU wants to grow its domestic production to maximize the seafood supply.
“We should increase our efforts on improving production in fisheries and aquaculture in the EU because we need those raw materials for the processing industry, also keeping in mind the increased competition of seafood worldwide for imports,” said Turenhout.
