MercoPress. South Atlantic News Agency

Low prices high costs threaten Argentine squid industry

Argentina's squid sector is “hopeful, yet concerned” about the season which is scheduled to begin in a few days time, said Fernando Georgiadis, chairman of the country's Chamber of Jigger Vessels, CAPA in an interview with FIS.

The lack of certainty stems from "the fall in prices, disloyal competition from illegal, unauthorized, unregulated (IUU) fishing, soaring domestic costs and the fiscal noose", said CAPA's chairman, adding that the global crisis and recession in the most important economic areas of the world "could further severely impact commerce and trade". Georgiadis also claimed that foreign vessels and jiggers have been operating next to mile 201 on the border line of Argentina's Exclusive Economic Zone, EEZ. "There are numerous foreign jiggers that began catching as early as December 15th, as authorized by current international law. The scarce demand for squid will be supplied by them, once again displacing and pushing aside the legitimate product of Argentine origin", underlined the fishing industry businessman. Georgiadis revealed that CAPA representatives recently met with Norberto Yahuar head of the Fisheries Department who apparently was "well aware" of the difficulties and challenges faced by the squid sector in Argentina. "We're talking of lack of financing, soaring domestic costs, illegal fishing and disloyal competition in world markets", said Georgiadis. Representatives from CAPA are working with the Fisheries Secretary on "the credit conditions" but Georgiadis warned that if measures are not implemented on time "we'll face a very complicated situation, full of uncertainties and not only for the jiggers but for the whole fishing fleet". In support of Georgiadis, Alfredo Pott, president of the Argentine Capeca, the chamber of fishing vessels with freezing facilities, said that an estimated 300 vessels operate in the mile 201 plus zone "forcing the price of squid to fall sharply in the last two years, and the market has yet to recover". Pott said these vessels supply depressed markets, which favours stockpiling and "which in turn causes further disparity between supply and demand". Moreover owners of those vessels pay wages "well below Argentine standards and labour agreements". "There's a lot of uncertainty regarding the fishing industry. We are catching without knowing what kind of prices we will fetch and where we will sell our catches". Lack of financing further complicates the situation", insisted Pott. However he was optimistic that the Argentine government would re-impose some kind of refunding or compensation for fisheries exports from Patagonian ports.