Welcome to FIS   Sponsored By
Subscribe to FIS | Register with FIS | Advertise with FIS | Newsletter | About FIS | Contact us
If you would like to send us an article, contact Margaret Stacey
   


Fishmeal storage. (Photo: Copeinca)

Fishing companies’ operating margin falls 15pct in the last decade

  (PERU, 10/9/2018)

The regulatory contributions made by the marine ingredient (fishmeal and fish oil) industry to the State have increased their importance in the cost structure in the period 2008-2017, says a report prepared by Apoyo Consultoría, commissioned by the National Fishery Society (SNP).

This situation has occurred despite the fact that the industry has experienced a significant reduction in its profitability in the last five years, due to the 40 per cent drop in anchovy landings, which is attributed to weather factors and regulatory policy limitations, says the report.

According to the study, there is a clear reduction in the operating margin of fishing companies by 15 percentage points in the 2008-2017 period, in line with the average drop in anchovy resource landings of 6 per cent per year.

"Profitability indicators such as net margin, return on assets (ROA) and return on equity (ROE) have deteriorated significantly. This unfavorable scenario has motivated the increase of leverage on the part of the fishing companies", it notes.

According to the consultant, under a scenario of 4 million tonnes of annual anchovy landings in the period 2019-2022, the return of the Peruvian fishing industry could recover, but it would continue to be lower than that of other extractive industries, such as mining, hydrocarbons and forestry. However, should a scenario of adverse regulation and economic stress arise, the return could be significantly reduced.

"Although a recovery in the sector is expected for 2018, it is expected that it will not be enough for shareholders to obtain returns for their investment that will help them cover the bad years," the report states.

According to Apoyo Consultoría, while in 2016 national fishing companies paid USD 16.7 per metric ton (MT) of anchovy, in Chile the payment was USD 13.8 per MT. This difference would explain why the Peruvian industry assumes a greater burden for fisheries inspection and social contributions.

In this context, SNP president Elena Conterno informed that the sector has formally proposed the creation of a table of competitiveness of the marine ingredients industry. This request is due to the decrease in catches, the deterioration of profitability indicators and the increase in leverage, which implies the loss of value of the shares of the fishing companies that are listed on the stock market and also of those that are not listed.

"There is a myth that this is a buoyant industry but reality shows us the opposite. What we have is an industry with high fixed costs, high volatility, little growth potential, strong competition from substitutes, and that it is not giving return to its investors," explained Conterno.

In this regard, she recalled the report prepared by EY on tax burdens and some legal obligations of the fishing sector, which reveals that in a scenario of 4 million MT of annual catch of anchovy, companies pay 50.4 per cent of their utility operational, much more than other extractive industries.

"Another aspect to assess is the current uncertainty facing the fishing sector in general in the face of climate change and a possible arrival of the El Niño phenomenon on our coastline," SNP president said.

Finally, she added that a measure that could help improve the competitiveness of the marine ingredients industry is to return to a fisheries management system in the southern zone that allows the exploitation of the resource without jeopardizing its sustainability, but generating a positive economic impact, both for companies as for workers and citizens.


[email protected]
www.fis.com


Information of the company:
Address: Av. República de Panamá 3591 Piso 9 San Isidro
City: Lima
State/ZIP: (27)
Country: Peru
Phone: +51 1 422 8844
Fax: +51 1 261 7912
E-Mail: [email protected]
More about:


Location:



 Print


Click to know how to advertise in FIS
MORE ARTICLES
Smurfit Kappa Replaces EPS Frozen Food Packaging with Sustainable Paper-based Alternative
BioMar and Bio Feeder Announce Environmentally Friendly Boat
Albertsons Own Brands Celebrates Sustainability Milestone
Certified Seafood Collaborative Takes Ownership of RFM Certification Program
BioMar Scales Up RAS and Fry Feed Production in Denmark
Give Your Products the Best Possible Presentation
Japan’s First ASC Certified Coho Salmon Enters Retail and E-Commerce Market
Cepac’s IP Registered Chiller Pack Makes Waves in the Aquaculture Market
SeaAhead and New England Aquarium Announce Launch of BlueSwell Incubator Program
Niceland Seafood Brings First Branded Line of Frozen Icelandic Fish to U.S. Retailers
New Series of Feeding Solutions from Vard Aqua Sunndal
A Sound Idea: ‘Banana Pinger’ Audio Device Could Help Reduce Porpoise Bycatch
Camanchaca Launches First Ever, All Natural Wild Argentine Red Shrimp
SAPMER Joins World’s Leading Seafood Companies Working to Make Tuna Fisheries More Sustainable
Valka Launches Two New Types of IQF Graders
Manta Diving Nosy Be Achieves Pre-Certification for Friend of the Sea’s Sustainable Dolphin and Whale Watching
Researchers Show How Fishmeal and Oil Alternatives can Support Aquaculture Growth
Asia’s Largest Sustainable Seafood Business Symposium to be Held Virtually
Bering Select® Announces the Launch of Nutrient-Dense, Wild Caught Alaskan Salmon Oil
Open Blue Cobia Retail Products Now Certified by the American Heart Association
More Articles...

Lenguaje
FEATURED EVENTS
  
TOP STORIES
Dorset Fisherman buoyed by Waitrose support
United Kingdom Waitrose has become the first major UK supermarket chain to sell MSC certified British clams, which are now on sale at counters across 150 of its stores, with sustainable British cockles due to en...
Alaska Fish prices and production for 2019 provide pre-Covid base
United States While this summer’s salmon prices still remain mostly under wraps the Covid-virus has pushed down prices for other popular species. Halibut, for example, is below $4 a pound at several major po...
Yanmar to Develop Hydrogen Fuel Cell System for Maritime Applications
Japan Osaka - Yanmar Holdings Co., Ltd. and its subsidiary Yanmar Power Technology Co., Ltd. have announced the development of a hydrogen fuel cell system for maritime applications based on fuel cell techno...
Statistics │ Imports │ Pollock Fillets and surimi: USA, Vietnam, India, China, Russia │ 2020
European Union Source: FIS.com | Click to enlarge it [email protected] www.fis.com...
 
Maruha Nichiro Corporation
Nichirei Corporation - Headquarters
Pesquera El Golfo S.A.
Ventisqueros - Productos del Mar Ventisqueros S.A
Wärtsilä Corporation - Wartsila Group Headquarters
ITOCHU Corporation - Headquarters
BAADER - Nordischer Maschinenbau Rud. Baader GmbH+Co.KG (Head Office)
Inmarsat plc - Global Headquarters
Marks & Spencer
Tesco PLC (Supermarket) - Headquarters
Sea Harvest Corporation (PTY) Ltd. - Group Headquarters
I&J - Irvin & Johnson Holding Company (Pty) Ltd.
AquaChile S.A. - Group Headquarters
Pesquera San Jose S.A.
Nutreco N.V. - Head Office
CNFC China National Fisheries Corporation - Group Headquarters
W. van der Zwan & Zn. B.V.
SMMI - Sunderland Marine Mutual Insurance Co., Ltd. - Headquarters
Icicle Seafoods, Inc
Starkist Seafood Co. - Headquearters
Trident Seafoods Corp.
American Seafoods Group LLC - Head Office
Marel - Group Headquarters
SalMar ASA - Group Headquarters
Sajo Industries Co., Ltd
Hansung Enterprise Co.,Ltd.
BIM - Irish Sea Fisheries Board (An Bord Iascaigh Mhara)
CEFAS - Centre for Environment, Fisheries & Aquaculture Science
COPEINCA ASA - Corporacion Pesquera Inca S.A.C.
Chun Cheng Fishery Enterprise Pte Ltd.
VASEP - Vietnam Association of Seafood Exporters & Producers
Gomes da Costa
Furuno Electric Co., Ltd. (Headquarters)
NISSUI - Nippon Suisan Kaisha, Ltd. - Group Headquarters
FAO - Food and Agriculture Organization - Fisheries and Aquaculture Department (Headquarter)
Hagoromo Foods Co., Ltd.
Koden Electronics Co., Ltd. (Headquarters)
A.P. Møller - Maersk A/S - Headquarters
BVQI - Bureau Veritas Quality International (Head Office)
UPS - United Parcel Service, Inc. - Headquarters
Brim ehf (formerly HB Grandi Ltd) - Headquarters
Hamburg Süd Group - (Headquearters)
Armadora Pereira S.A. - Group Headquarters
NOAA - National Oceanic and Atmospheric Administration (Headquarters)
Mowi ASA (formerly Marine Harvest ASA) - Headquarters
Marubeni Europe Plc -UK-
Findus Ltd
Icom Inc. (Headquarter)
WWF Centroamerica
Oceana Group Limited
The David and Lucile Packard Foundation
Ajinomoto Co., Inc. - Headquarters
Friosur S.A. - Headquarters
Cargill, Incorporated - Global Headquarters
Benihana Inc.
Leardini Pescados Ltda
CJ Corporation  - Group Headquarters
Greenpeace International - The Netherlands | Headquarters
David Suzuki Foundation
Fisheries and Oceans Canada -Communications Branch-
Mitsui & Co.,Ltd - Headquarters
NOREBO Group (former Ocean Trawlers Group)
Natori Co., Ltd.
Carrefour Supermarket - Headquarters
FedEx Corporation - Headquarters
Cooke Inc. - Group Headquarters
AKBM - Aker BioMarine ASA
Seafood Choices Alliance -Headquarter-
Austevoll Seafood ASA
Walmart | Wal-Mart Stores, Inc. (Supermarket) - Headquarters
New Japan Radio Co.Ltd (JRC) -Head Office-
Gulfstream JSC
Marine Stewardship Council - MSC Worldwide Headquarters
Royal Dutch Shell plc (Headquarter)
Genki Sushi Co.,Ltd -Headquarter-
Iceland Pelagic ehf
AXA Assistance Argentina S.A.
Caterpillar Inc. - Headquarters
Tiger Brands Limited
SeaChoice
National Geographic Society
AmazonFresh, LLC - AmazonFresh

Copyright 1995 - 2020 Fish Info & Services Co.Ltd| All Rights Reserved.   DISCLAIMER