Subsidies for pollock shipments to help boost supply on Russian market
The introduction of subsidized railway charges for pollock shipments to the central regions from the Russian Far East was discussed at a meeting held by the head of the Federal Agency for Fishery (FAF) Ilya Shestakov in a videoconference mode, reports Megafishnet.com.
According to FAF, the meeting was attended by representatives of the Ministry of Agriculture, JSC "Russian Railways", fishing, fish processing, reefer transport companies, traders and main associations.
To stimulate the reorientation of the supply of pollock products to the domestic market, the Government has amended the respective Resolution to include pollock in the list of subsidized goods until December 31, 2021. The work related to the publication of by-laws is also being completed, and in two or three weeks ( as of September), operators will be ready to ship at a reduced rate.
"Now, during the height of the salmon season and on the eve of the "B" pollock season in the Sea of Okhotsk, it is very important to unload the coldstores in the Far East as much as possible, which are currently 90% full. Today we will discuss the readiness of fishermen, operators of rolling stock for the possibility of using this subsidy mechanism." Ilya Shestakov said.
By August 17, the Russian fishermen harvested more than 3.3 million tons of fish and seafood, including 1.26 million tons of pollock. The total export of fish products from Russia as per August 17, 2021 amounted to 805.5 thousand tons, of which 357.8 thousand tons were contributed by frozen pollock. Its export shipments decreased by 35%, mainly due to the closure of the Chinese market to trampers. The situation required the adoption of measures for alternative destinations, including the domestic market. The reduction in the cost of fish delivery will be provided by compensating the tariff of JSC "Russian Railways" on average by 6 rubles per kilo. This is 8.5% of the price of frozen pollock taken currently at 70 rubles per kilogram.
Fillets and mince
According to the Pollock Catchers Association (PCA), the fishing fleet focuses as much as possible on the production of pollock fillets and mince. The output of headed pollock decreased by 28% while fillet and mince production increased by 30% and 41%, respectively. Fishing enterprises are re-equipping the fleet to increase the capacity for the production of fillets and surimi.
PCA predicts that by the end of the year, the pollock catch may reach 1.6-1.65 million tons. With this in mind, an additional 190-195 thousand tons of products will be produced from now to the end of the year (these are frozen pollock, fillet, mince, surimi, fishmeal). Some of these products can be additionally supplied to the domestic market.
According to the PCA, the capacity of the domestic market is about 125-130 thousand tons of pollock products per year. According to the preliminary results of the first half of the year, the supply of pollock to the domestic market has already increased by 21% year-on-year. As the PCA president Alexey Buglak noted, the subsidy of 6 rubles will be a tangible support, taking into account the current pollock price.
The meeting participants agreed that the proposed subsidy may show its effectiveness with the coordinated work of all participants in the fish supply chain.
Under the current government decree the subsidy will be valid until 31st December 2021. Meanwhile the Ministry of Agriculture has confirmed that the support measure will bу further extended into the year 2022.