NORWAY: help for the (cod) industry?

Readers might remember that on 16 September 2009 I wrote a post titled:NORWAY: the "leveringsplikt", a subsidy to the processing industry in Norway ?

Now, in Norway, participants in a selected number of fisheries will be allowed to have a certain percentage of by-catch of cod at landing provided it is sold fresh.

The objective of the Norwegian authorities seems to be to maintain, and if possible increase, the supply of fish across the Norwegian coast.

Interesting to note is that the Association of Owners of Fishingboats (Fiskebåt) seems unhappy with a  policy "that would oblige vessel owners to supply fish to a fishing industry that is not competitive".

Here are two articles in Norwegian on this issue. The first one is about the new measures. In the second one readers will find the reactions of Fiskebåt  back in June when the government was considering proposals to secure supply of fresh fish to industries on the coast.

http://www.fish.no/fiskeri/5660-foreslar-endringer-i-leveringsplikten.html

http://www.fish.no/fiskeri/5661-en-foreldet-politikk.html


  

INDIA: TAMIL NADU STATE ASKS FOR FISHERIES SUBSIDIES TO THE FEDERAL GOVERNMENT

Ms Selvi  J Jayalalithaa, Hon'ble Chief Minister for the Indian State of Tamil Nadu, has asked the Indian Federal Government to provide subsidies to the fisheries sector in her state.

The request for subsidies was made at least twice.

For the first one, on 14 June 2011, the Chief Minister handed over a memorandum to Indian Prime Minister Manmohan Singh with a number of demands for financial assistance to fishermen in Tamil Nadu state.

What struck me, when reading the request made by the Chief Minister, is that the subsidies asked for relate to a whole range of programmes: vessel modification, new engines, aid to processing, fisheries specific infrastructure and, last but not least, fuel costs.

I copy here the demands on fisheries indcluded in this memorandum:

I. New fishing harbours: At present, approximately 1,100 mechanised fishing boats are engaged in fishing from Rameswaram base.
It is required to decongest the fishing fleet"financing for fishing harbours one at Poompuhar in the North at an approximate cost of 75 crores [750,000,000 rupees or 15,148,000 USD] and another one at Mookaiyur, South of Rameswaram at an approximate cost of 60 crores  [600,000,000 rupees or 12,118,000 USD] are long felt needs.

II. Special package for conversion of bottom trawlers into Deep Sea Tuna Long Liners: In order to reduce the trawler fishing pressure in the disputed waters of the Palk Bay area, the Government of India should offer a special package for conversion of bottom trawling boats into deep sea Tuna Long Liners suitable for deep sea fishing. As against the existing subsidy pattern available at the rate of 50%, the Government of India should give at least 90% subsidy for such conversion of vessels as a special incentive for conversion of the boats of thePalk Bay area. A sum of 15 crores [150,000,000 rupees or 3,000,000 USD] should be earmarked each year for this purpose.

II Assistance for Mid Sea Fish Processing Park: In order to benefit the traditional fishermen against the background of dwindling catch in shallow waters, the State requires assistance from the Government of India for a Pilot Project of establishing a Mid Sea Fish Processing Unit, which will also act as a ‘Value Added Export Oriented Park’. Under this Project, which will cost approximately 80 crores [800,000,000 rupees or 16,158,000 USD] , a ‘Carrier Mother Vessel’ will be stationed at mid-sea, and it will act as a source of essential inputs for the ‘Baby vessels’ which will be involved in commercial fishing in the deep seas. This will serve a dual purpose of adding value to the fish caught in the deep sea sand also consequently reduce the pressure of fishing in the shallow waters of Palk Bay.

IV. Reimbursement of Central Excise Duty on High Speed Diesel (HSD) to mechanized boats: To reduce the operational cost of mechanized fishing boats, the Government of India has a Scheme to reimburse the Central Excise Duty on HSD oil supplied to such boats. However, the conditions imposed for reimbursement of the Central Excise Duty, such as the requirement of the Boat owners to be in the BPL category (which is practically impossible for any motorised boat owner), and the monthly ceiling of only 500 litres per boat for availing of the subsidy are unworkable for Tamil Nadu, as well as other Coastal States. Such conditions should immediately be reviewed in order to make this Scheme operational.

V. Motorisation of traditional crafts: The present assistance of 3 crore per year for motorisation of nearly1,000 traditional crafts every year is very meagre for Tamil Nadu since there are 32,000 non-motorised traditional crafts in the State. It is requested that a Package of 15 crore [150,000,000 rupees or 3,000,000 USD] per year may be sanctioned so that at least 5,000 traditional crafts are motorized every year.

Here is an official press release by the State Government of Tamil Nadu announcing the hand over of the Memorandum:

http://www.tn.gov.in/seithi_veliyeedu/pic.php?id=1971

And here a link to a website where a copy of the memorandum can be found (I did not manage to find a copy in the official website).


http://www.tamilguardian.com/file/File/Memorandum_submitted_by_Tamil_Nadu_Chief_Minister_Selvi_J.pdf

On 25 December 2011, and taking advantage of a visit of Prime Minister Manmohan Singh to Channai, the Chief Minister handed over another Memorandum that included a reminder of the requests made in the previous one, and of "A special package of Rs.10 crore every year for the State for the dredging of fishing harbours and bar mouths. The Government of Tamil Nadu had requested for an assistance of Rs.10 crore [100,000,000 rupees or 202,000 USD] every year to take up dredging of fishing harbours and bar mouths each year."

Here is an official press release on this second Memorandum:

http://www.tn.gov.in/seithi_veliyeedu/pressphoto.php?id=2909

And here the link to the webpage with a copy of the Memorandum of 25 December 2011:

http://www.tn.gov.in/seithi_veliyeedu/pr25Dec11/pr251211_273.pdf

OMAN: USD 260 million subsidies for fishermen, over five years.

An article in the online edition of Oman Daily Observer mentions the figure of Omani Rial (RO) 100 million (or USD 260 million) over five years financial assistance package to the Omani fishing and aquaculture industry.

The article quotes Dr Hamed bin Said al Oufi, Fisheries Wealth Under-Secretary as saying that the bulk of the subsidies will go to fisheries infrastructure. Dr. Al Oufi added that the planned amount was "is more than four times what was allotted during the previous Plan" and that "part of the allocation will also help finance the upgrade of the fishing fleet, marketing chain infrastructure, training, exploration of new markets, and improvements in the quality of fish."

Speaking about the state of the Omani fisheries industry he said that: “Subsidies are not the only thing that fishermen will need. There are other sources of financing: the Oman Development Bank (ODB), for example, gives loans at almost zero interest rate. This is the future of developing the sector. Subsidies, on the other hand, have two sides — a positive side and a negative side. People get subsidies and don’t become active because they don’t have to pay back anything.”

Another interesting statement by Dr. Al Oufi refers to the export prohibitions in place for "five notified species" . Looking in the Internet for more information on this export bans I found an article in the Oman Tribune where it is stated that the Minister of Agriculture and Fisheries, issued a decision banning export of kanad (kingfish), sahwa (tuna), al gethar, and al safi for six months, from December 1, 2011.

Here is the link to the article on subsidies in the Oman Daily Observer:

http://main.omanobserver.om/node/72497

Here the link to  the article of the Oman Tribune on the export prohibitions.

http://www.omantribune.com/index.php?page=news&id=106029&heading=Oman

USA: subsidies for the shrimp processing industry in Louisiana

According to the press a new shrimp processing facility will open in Baton Rouge, Louisiana.

In some of the articles I found on the Internet it is mentioned that   "the state [Louisiana] is providing a $1.09 million loan guaranty to Baton RougeShrimp, and the company is expected to utilize the state’s Enterprise Zone and Industrial Tax Exemption programs."

Here are the links to the articles:


http://goerie.com/apps/pbcs.dll/article?AID=/20110926/APN/1109260795

http://www.southerngovernors.org/articleview.aspx?articleid=7338

USA: Starkist and Tri-marine to benefit from government owned near-shore cold storage facilty?

Some media have reported that Governor Togiola Tulafono of American Samoa is seeking to make available to Tri Marine International and to Starkist a 2,400 tonnes cold storage freeze facility, to be located in the Department of Port Administration in the port area. The local fishing fleet would also benefit from this facility.

Also according to press reports Governor Togiola is seeking federal financial assistance to finance the project.

Here a few links on the subject:

http://samoanews.com/viewstory.php?storyid=24775&edition=1300788000

http://www.samoanewsonline.com/publicviewstory.php?storyid=27119&newspaperid=189

USA: still more subsidies for jobs in Samoa's tuna processing industry

Readers of this blog have surely noticed that I have following developments on the subsidies provided by the US to the tuna canning industry in American Samoa.

Well, the saga continues. According to Samoa News Governor Togiola Tulafono has signed the “tax exemption certificate” for StarKist Samoa. This exemption is from American Samoa’s taxes and it is granted by the Governor of American Samoa on some or all taxes (except for individual income tax) forup to 10 years for the establishment or expansion of qualifying industrial or business enterprises under American Samoa’s “Industrial Incentives Act”.

Also according to the press there were some strings attached to the cerificate, in particular in terms of jobs.

Note that this exemption adds to postponement with for one year, by the U.S. Congress, of federally mandated minimum wage increases, and to extension the “30A” tax benefit for another two years. I will discuss this 30A tax benefit in another post.

Here is the link to the article on this issue in Samoa News.

http://www.samoanews.com/viewstory.php?storyid=22919&edition=1295949600

USA: (more) subsidies to the processing industry - tuna canneries in American Samoa

More "life-support" measures for the ailing tuna canning industry in American Samoa.

Hereunder a copy a press release by the American Samoa Government announcing President Obama's decision to delay for two years the federally mandated minimum wage increase.

Published on American Samoa Government (http://americansamoa.gov)

Home > President Obama signs H.R. 3940 to delay American Samoa minimum wage increase for two years

-------------------------------------

President Obama signs H.R. 3940 to delay American Samoa minimum wage increase for two years

Created 09/30/2010 - 15:41

Submitted by Newsroom on Thu, 09/30/2010 - 15:41

Announcement

(UTULEI: Thursday, September 30, 2010) –Governor Togiola Tulafono today expressed his sincere gratitude to President Barack Obama for signing legislation that will delay the minimum wage increase scheduled to take effect in American Samoa for 2010 and 2011.

Governor Togiola said the delay in minimum wage hike, through H.R. 3940, is a much-needed blessing for the Territory.

“We have truly been spared another disaster and this hold on the minimum wage increase, even if it’s for only two years, will allow us time to work with this very important issue,” said Governor Togiola. “I am very grateful to President Obama for his favorable consideration and expeditious action. When I received the great news this afternoon, I breathed a huge sigh of relief, and thanked God for His direction and help. The minimum wage issue has made it impossible to attract investments because of the uncertainty it has created. I truly welcome this two-year suspension, but it is not the ultimate solution we need.”

Governor Togiola said there are so many hardworking and caring people to thank for the wonderful news for American Samoa.

“It is important to give credit where it is due. I want to thank Senator Daniel Inouye of Hawaii for his continuing support of American Samoa and helping to direct our attention to issues that we can address effectively to help our own cause. I wish to also express my thanks to our Congressman Faleomavaega Eni for his role in keeping track of this situation and asking the Senate and the House memberships for this relief. I look forward to our efforts in working with him for a permanent solution to our minimum wage to propose in the future.”

Governor Togiola also thanked U.S. senators and representatives and their respective staffs for their support in the successful passage of this very important federal legislation for American Samoa.

“This great news is also giving me hope that we will be able to work with Congress, on both sides of the aisle, to forge a permanent solution to the wage issues as well as our economic development needs. If we do not have a permanent solution for this issue, it will continue to be a major set back for near future developments. We need a permanent solution that makes sense for us and will help us effect more effective economic development,” said Governor Togiola. “I wish to recognize with gratitude and appreciation the special understanding given to my plea to U.S. Sen. Jim DeMint (R-SC) and his staff. I have never met the senator, but the good relations that my Washington staff have with him and his staff have enabled us to appeal to him for help, and he was gracious in his response and assurances.”

Governor Togiola gave thanks to the White House staff for their support in always being helpful; and also to his attorney and staff in Washington D.C. for the great assistance and diligence in pursuing Congressional help to achieve success in this matter.

“I wish to also thank the Fono for their support and I know that our people here in American Samoa have also been praying for relief, and God has answered us favorably. We give thanks to God for His guiding hand in these endeavors,” said Governor Togiola. “We have truly been spared another disaster, so now we have a lot of work to do in the next two years to ensure that this issue is resolved in the best interest of our people and our businesses.”

---americansamoa.gov---

Announcement

--------------------------------------------------------------------------------

Source URL:

http://americansamoa.gov/news/2010/president-obama-signs-hr-3940-delay-american-samoa-minimum-wage-increase-two-years

CANADA: subsidies for the fish processing industry

I copy here under a press release by the Provincial Government of New Brunswick.

As you can see this Canadian Provincial Government is "providing a $3-million forgivable loan as part of a $12-million project that will help maintain more than 1,000 jobs in southwestern New Brunswick."

According to an online article of the Canadian Broadcasting Corporation, if Connors maintains the 1.000 jobs in Blacks Harbour, the loan will not have to pay back the loan.

News Release

Business New Brunswick

Province supports efficiency upgrades at Blacks Harbour fish processor

24 June 2010 Media Contact(s)

Ashley Bursey, communications, Business New Brunswick, 506-461-0942, ashley.bursey@gnb.ca; Mike Randall, communications, Connors Bros., 506-878-3025.

BLACKS HARBOUR (CNB) - The provincial government is making an investment to help Connors Bros. complete efficiency upgrades to its processing plant. Premier Shawn Graham made the announcement today.

Graham made the announcement during a tour of the plant with Fisheries Minister Rick Doucet; Nabil Salib, plant general manager and company vice-president; Tony Hooper, company vice-president; and Ron Schindler, company executive vice-president.

"This company has been a vital part of our provincial economy since the 1890s," said Graham. "As we move toward a self-sufficient future, our plan for lower taxes and our strategic investments in key industries are helping companies to jump into new markets and diversify their products. Connors Bros. is an important example of how the revitalization of a traditional industry can carry a company successfully into the future."

The provincial government is providing a $3-million forgivable loan as part of a $12-million project that will help maintain more than 1,000 jobs in southwestern New Brunswick.

Connors Bros. is one of Canada's oldest food producers and the largest producer of canned sardines worldwide. In 2004, the operations of Connors Bros. merged with those of Bumble Bee Seafoods LLC and Clover Leaf Seafoods Co.

"We are proud to call Blacks Harbour the Sardine Capital of the World," said Schindler. "The assistance from the province means we can continue to produce a variety of high-quality canned seafood to compete in a global market. This modernization initiative will improve plant efficiencies and working conditions while helping us become more energy-efficient. These changes will be good for business, for our employees and for our future."

The Blacks Harbour plant is the only sardine cannery in North America. Its various companies produce canned tuna, salmon, sardines, clams, oysters, other specialty seafood products and canned meat products to a global market.

"In New Brunswick, our people are our greatest resource," said Doucet. "Our government is pleased to support one of our province's oldest and most significant employers as it continues to improve this facility for its workers and to find innovative solutions to stay competitive in a dynamic world marketplace."

24-06-10

Here are the links to the Provincial press release and to the story published by CBC:

http://www2.gnb.ca/content/gnb/en/news/news_release.2010.06.1072.html

http://www.cbc.ca/canada/new-brunswick/story/2010/06/25/nb-sardines-conners-bros-jobs-607.html

USA: subsidies for the tuna processing industry

One million USD for the tuna cannery of Chicken of the Sea in Giorgia.

Here are the news releases on this:


EDGE Fund – Toombs County Development Authority and Chicken of the Sea

Lyons, GA – A $1 million EDGE grant from the OneGeorgia Authority to the Toombs County Development Authority provided assistance with building improvements to benefit the location to Georgia of a manufacturing and distribution facility for Tri-Union Seafoods, LLC d.b.a. Chicken of the Sea International, one of the top producers of canned/pouched tuna capturing 25 percent of the US market share.

Chicken of the Sea located into an existing 212,000 SF industrial building previously occupied by Simonton Building Products, Inc. In addition, COS constructed a 13,968 square-foot freezer facility connected to the existing building needed for its tuna canning operation. The facility is situated on a 27.02-acre site in the Toombs Corporate Center on US Hwy 1 north of Lyons.

Tri-Union Seafoods, LLC (TUS) is a subsidiary of Thai Union International, Inc. (TUI) which is based in San Diego. This processing and canning operation for TUS is the first in Georgia. Chicken of the Sea will invest $20, 000,000 in the facility and create 310 new jobs within four years. The raw tuna is shipped straight from the Port of Savannah to process into shelf stable canned tuna, and then shipped throughout the United States.

The EDGE Fund, a specialized incentive tool, is used to enhance Georgia’s competitiveness in attracting significant economic development projects. It is a program providing “deal-closing” funds when one rural Georgia community competes for a business location or expansion with another state or country.
• Required elements: a recommendation for funding from a state agency; private investment commitment and job creation commitment from the beneficiary business.
• Benefits must exceed costs.
• Clawback provisions require partial repayment in the event job-creation or private-investment commitments are not met.

Who can apply?
Eligible applicants for EDGE funding are general-purpose local governments, local-government authorities, joint or multi-county development authorities in any of the directly eligible counties or conditionally eligible counties. Eligible sub-recipients are legally established business entities.

How much money is available?
EDGE Funds are not limited in amount. Grant and/or Loan amounts are recommended by the Georgia Department of Economic Development and are based on economic impact and demonstrated need.

How can the funding be utilized?
EDGE funds may be used for the purchase of publicly owned assets such as land and site development; infrastructure improvements; and publicly owned/ privately leased assets, such as land, buildings & machinery and equipment. Demonstration that relocation or expansion will enhance the overall economic security of the county is an important consideration. Applicants are encouraged to seek the advice of the Authority prior to submitting an application.

Here’s how it works:
Applications are online at www.onegeorgia.org and are accepted on an ongoing basis. Funding is used only when the industry is actively considering a location in another state.

http://www.onegeorgia.org/projects/17/EDGE-Fund---Chicken-of-the-Sea

----------------------------------------------------------------------------------------------------------------------

Toombs County Development Authority / Tri-Union Seafoods, LLC d.b.a. Chicken of the Sea International

EDGE grant funds of $1 million are awarded to assist with building improvements at the location of a manufacturing and distribution facility for Tri-Union Seafoods, LLC d.b.a. Chicken of the Sea International (COS). Chicken of the Sea is one of the top producers of canned/pouched tuna capturing 25 percent of the US market share. The company, located in an existing industrial building, constructed a 14,000 square-foot freezer facility that is connected to the existing building. The facility is situated on a 27 acre site in the Toombs Corporate Center on US Hwy 1 north of Lyons. Tri-Union Seafoods, LLC (TUS) is a subsidiary of Thai Union International, Inc. (TUI) which is based in San Diego. The parent company is the second largest processor of tuna in the world and with the opening of the Georgia plant; Thai Union Frozen Products anticipates that it will become the largest tuna processor in the world. The Toombs County canning operation is the first in Georgia for TUI and its’ many subsidiaries.

* EDGE Award: $1 million / Total Project Cost: $21.5 million
* 310 new jobs in four years / Interstate competition: South Carolina

http://gov.georgia.gov/00/press/detail/0,2668,78006749_78013037_160994537,00.html

CANADA: provincial aid for another seafood processor

In previous post I was referring to aid provided by the Canadian Province of Nova Scotia to seafood processors.

A few days ago the Provincial government granted a loan guarantee of CAD 2.5 million (USD 2.35 million) to another seafood processor, namely D. B. Kenney Fisheries Ltd. in Digby County. The guarantee will be provided through the Industrial Expansion Fund, which is administered by the Provincial governement.

According to Nova Scotia's Economic Development Minister Percy Paris, the seafood processor is part of a group of 14 companies and has sales of about $15 million.

Here is a link to the press release:

http://www.novanewsnow.com/article-406279-Loan-guarantee-for-DB-Kenney-Fisheries-Ltd.html

and to an article on the Net:

http://www.canadaviews.ca/2009/11/26/province-supports-a-home-grown-seafood-processor-in-digby-county/

NORWAY: Minimum Price for cod under serious strain

Almost a month ago I wrote a post on the Norwegian Minimum Prices for selected fish species. Cod is one the species covered by this system.

This year prices for cod products sold at retail outlets have been rather low. Salted cod, very popular in Portugal as “bacalhau”, has been one of those products that have experienced very low prices during late 2008 and throughout 2009. Most of the “bacalhau” marketed in Portugal has, as main ingredient, salted dried codfish, usually from Norway (Bacalhau da Noruega).

The fishermen’s Sales Organisation, having the monopoly of sales in a large area in Norway, the “Norges Råfisklaget”, did set the price of the raw material at levels that put the processing companies (drying and salting cod) between the hammer and the anvil as retail prices in the main export markets (e.g. the EU) did not recover to the expected levels.

In actual fact a number of processing companies in Norway had purchased cod at a rather high price and build up substantial stocks as no buyers were found in the export markets.

Some Norwegian websites specialised in fish and fish trade, such as www.fiskeribladetfiskaren.no (in Norwegian), have been publishing news on this subject. I was astonished by the numerous comments posted by readers (fishermen and processors). As you can imagine fishermen, in their comments, defended the minimum prices while buyers (processors) appeared to be against the system.

The situation of some of the processors seems so desperate, at least in the Northern part of Norway, that some have asked the government to provide help, in the same way fishermen have been helped because of the financial crisis.

My reading is that such system of Minimum Prices can only work in a market where competition from imported product can be suppressed by means of, for example, a “tariff wall”. The products sold through the Minimum Prices are not intended for the final consumers but rather subject to further processing and export outside Norway. There, in the real (export) markets, Norwegian cod will have to compete with produce from Iceland and Russia. It will also face competition from other fish species, such as pangasius or tilapia.

As a final comment I would like to add that some in Norway, in particular the Association of Fish Buyers” (Fiskekjøpernes Forening) are opposing an increase of 20% in catch quotas for cod next year, as requested by the Federation of Owners of Fishing Vessels (Fiskebåtredernes Forbund). The Fish Buyers fear that such an increase will further contribute to the low prices of cod in Norway’s export markets.

Will the Norwegian government give in to the pressure of the Fish Buyers and provide subsidies to the processing sector?