MercoPress. South Atlantic News Agency

Low squid prices send Argentine jigger fleet back to port

A drop in catches plus the halving of the international price for Illex squid forced most of the Argentine fleet of jiggers back to port virtually closing this year's season when the official scheduled date is August 31, reports the Argentine press.

Hugo Stecconi head of Pesquera Madryn confirmed the news which he said follows a very encouraging and high yields initial season. "August 31 marks the end of the season but most jiggers are back and moored until next season", said Mr. Stecconi.

Hugo Stecconi head of Pesquera Madryn confirmed the news which he said follows a very encouraging and high yields initial season. "August 31 marks the end of the season but most jiggers are back and moored until next season", said Mr. Stecconi.

"Catch volumes were very low by the end of June even when the size was good, but the jiggers decided to return", added the fisheries businessman.

However Mr. Stecconi pointed out that the 2006 season "has been the best in years, good volumes and good yields". In the first half of this year Argentine jiggers landed 275.999 tons of squid, well ahead of the 2005 and previous seasons.

But a collapse in squid prices has had its toll since there has also been a considerable increase in costs plus the consequences ?and debts-- of the previous poor seasons.

"Yields have been considerable better which has had an impact on prices and made the overall equation very fragile, and in some cases even negative" said Stecconi who indicated squid prices have been consistently falling and have more than halved. "Only God knows what can happen from now to the end of the year".

According to Mr. Stecconi at the beginning of 2006, a thousand US dollars a ton was normal, "but now we're below 700/800 US dollars, which is particularly harmful for those companies that only catch squid". Furthermore costs have increased: salaries are in US dollars and tied to production volumes, so with big volumes, low prices, "profits vanish and we're loosing money". Stecconi revealed that in the "bad years", with low volumes prices sky-rocketed to 3.400 dollars a ton, "which is not good for the industry but I must admit it improves profits"

Finally the fisheries businessman said he favours "exhaustive scientific research", plus "mobile bans", even advancing the season when necessary to ensure a long term profitable management of the squid fisheries.