Market Information
Europe

Fisheries Sector Profile
Portugal

February 2002

José Araújo Correia
Canadian Embassy Portugal - Av. Da Liberdade 198-200
1269-121Lisboa, Portugal
Telephone: (351) 21 316 4600
Fax: (351) 21 316 4695;
E-Mail:jose.correi@dfait-maeci.gc.ca

MARKET OVERVIEW/OPPORTUNITIES

Almost twenty years after its inception, the Common Fisheries Policy (CFP) is confronted with major challenges. The policy has not delivered sustainable exploitation of fisheries resources and will need to be changed if it is to do so. Its shortcomings can be expressed in conservation, economic and political terms. As far as conservation is concerned, many stocks are at present outside safe biological limits. They are too heavily exploited or have low quantities of mature fish or both. The situation is particularly serious for fish stocks such as cod, hake and whiting. If current trends continue, many stocks will collapse. At the same time, the available fishing capacity of the Community's fleets far exceeds that required to harvest fish in a sustainable manner.

The current situation of resource depletion results, to a large extent, from setting annual catch limits in excess of those proposed by the Commission on the basis of scientific advice, and from fleet management plans short of those required. Poor enforcement of decisions actually taken has also contributed to over-fishing. The precarious situation of the fisheries sector is not specific to the Community. There is world-wide concern for the critical state of many fish stocks and for fleet overcapacity in the context of increasing demand for fish consumption.

The fisheries sector is characterised by economic fragility resulting from over-investment, rapidly rising costs and a shrinking resource base; this is reflected in poor profitability and steadily declining employment. In the future, the Community fisheries sector will have to be significantly smaller than it is today if it is to survive.

Even thought the European Community Fishing Commission proposed cuts of 40% in captures were not accepted by the Council of Fishing Ministries, compared to 1999, there is an important reduction of capture in some species.

Over the next 6 years the Portuguese Government will invest Cdn $624 million with a focus on the development of coastal fishery and aquiculture projects.

The Portuguese fisheries will experience changes in the period from 2000 - 2006 that will be characterised mainly by:

• The Portuguese fisheries, with the objective of stock renewal, will attempt to maintain, or surpass only slightly, its current landings (approximately 270,000 tons in 2001).
• The more important species captured will be the same: horse mackerel and sardine.
• Fishing the great pelagic migrators, like tuna and similar species, will be dominant in the Azores February 2002 and Madeira, representing 15% of the cacthes.
• The Portuguese fishing fleet will continue to be downsized, especially in sectors where its numbers do not reflect the economic importance or the actual resources.
• The access to third countries' fishing licences will, in the future, be more difficult to obtain. The future suggests that the emphasis should be in joint ventures whenever it is possible.
• The licence process will be dependent on the Portuguese natural resources recuperation. There will be more control and inspection of fisheries activities.
• The high level of fish consumption (the second highest in the world) will increase due to influence of fish products in the health of consumers.
• Demand for raw material, especially in frozen food, salt and dry industries, will increase.
• An increase in the quality of transformed products as a consequence of competition and consumer awareness.
• New opportunities in biotechnology.
• Production increase in aquaculture to try to lower Portuguese dependence on foreign supplies and the number of fishing licences.
• Decrease in the number of employees. Efforts will be made to increase employees qualification, while their numbers will decrease.

Geography is socially important

Portugal has an Exclusive Economic Zone of 1,700,000 km2 with 942 km of coast. Along its coast there are numerous sea dependent communities. These communities tend also to belong to the poorest sectors of the community.

The Gross Added Value of the sector, which is not high, is around 1% of the total GAV, if we include both aquaculture and fish transformation industry.

Consumption

Portuguese people now consume an annual average of 70 kg of fish; in 1992-94 the figure was 62 kg/per person. The European average consumption is 22.5 kg. This represents 14% of their income for food and drinks.

Imports Vs Exports

Portugal fishing production can only account for 68% of the national demand for fish products, while in1990 that number was around 93%. The volume and value of fish related exports in 2000 (67.000 ton) cannot balance the imports (287,000 tons) of the same products. The negative balance of volume and value has increased 65% and 83% respectively. Imports have increased 35% in quantity and 52% in value over the last years. Exports have decreased 7% in quantities but increased 12% in value from 1990 to1999. Dry cod is still the most important imported product representing 42% of the overall sales and 24% of quantities involved.

The canning industry had a direct influence on these numbers since production fell 23% in quantity but had an increase of 6% in value. The industry is having problems especially with sardine which has dropped 33% in quantity and 10% in value. On the other hand, tuna product exports have increased 12% in quantity and 5 % in value. The overall importance of canned goods in the industry is now 25% for sales and 32% in quantities

The Fleet and the Resources

The Portuguese fishing fleet has been reduced from 15,000 to 10,933 (1992 - 1999), leaving a total tonnage of 112.800. During 1990-1998, the Portuguese fishing fleet suffered a reduction of 28% in the number of ships, 37% in tonnage and 20% in potence. During the year 2000, 585 ships have been demolished and 329 were built. In 2001, 483 ships were destroyed and 300 new ones were built. The number of fisherman dropped 6% to 25,021 (40,000 in 1990) which represents 1% of the working population.

The fishing fleet is divided into three sectors: local; coastal and offshore. The local fishing fleet represents 85% of the ships but only 13% of tonnage. Coastal has 14% of ships and 51% of tonnage. Lastly, the offshore fleet is only 2% of the total but 36% of the total tonnage. There are 45 operating ports: 32 in the mainland, 2 in Madeira and 11 in Azores.

From 1992 to1997, fish landings quantities suffered an abrupt fall of 24% going from 266,000 tons to 202,000. Ships working abroad contributed with a loss of 35% while coastal fisheries added another 16%. During this period the prices went up 24%. 

EU and Portuguese incentives to fisheries were, in 1999, around US $46 million. For 2000 the values involved in related programs were US $50 million.

Catch:
Aquaculture

Aquaculture in Portugal is still running mainly on a family base. There are 962 licenced operators. The bivalves being the more important species produced. The role of aquaculture in the fisheries sector represents 3% of its value. Besides the bivalves, the more important species are sea bass, gilthead seabream, trout and oysters - altogether they represent 64% of the production with 4.000 tons. Clams and trout represent almost 50% of the total production. In 2000 due to a series of illnesses the production of clams dropped 57%, in consequence the overall decrease in aquiculture production was 16,7%.

This industry is viewed with a strong growth potential and, in the future, could be one of the solutions to the lack of natural resources.

February 2002