Chapter 9
FISHERIES POLICIES

I. Present Situation of the Fisheries Sector

A. Fish Resources and Catches

1. Fish Resources and Fisheries in Estonian Lakes

a) Introduction

The total area of Estonian lakes is about 2115 km²(Kask, 1964). With regard to fishing, the most important inland waterbodies of Estonia are Lake Peipsi-Pihkva (often named simply L. Peipsi in the broad sense), and Lake Võrtsjärv (Table 9-1). L. Peipsi-Pihkva is divided into three parts: L. Peipsisensu sirictu(the northernmost and largest part of the waterbody), L. Lämmijärv and L. Pihkva. L. Peipsis.s.is situated on the border of Estonia and Russia; about ⅔of the area and about 60%of the catch of fish belongs to Russia, the rest to Estonia.

Table 9-1 Fisheries

Fisheries Characterisation of L. Peipsi and L. Võrtsjärv

* According to wholesale prices in summer 1996.

Of the annual inland fish production, L. Peipsi provides about 80–90%, L. Võrtsjärv 10–15% and small lakes 1–2%. Among small inland waterbodies. L. Kuremaa, L. Elistvere, L. Kaiavere, L. Pikkjärv and L. Saadjärv (total area 1589 ha, all in the Vooremaa region) are the most important. The fisheries importance of remaining lakes as well as rivers is negligible.

b) Catches of fish from inland waterbodies

Eel and pikeperch are the most important commercial fish in L. Võrtsjärv (Table 9-2). The state of the eel population depends totally on the regular introduction of glass eels into the lake. About 38 million glass eels were introduced into the lake during 1956–1996. The eel catches have diminished during recent years because there were no introductions of glass eels during the period 1988–1990. Catches of pikeperch are diminishing too.

Table 9-2

Recorded Fish Catch from L. Võrtsjärv in Tons

Although catches of bream are fairly high (60–90 tons/yr.) it belongs to the category of non-valuable fish (group III) in L. Võrtsjärv. The share of this fish species is about 80% among fish of group III. It is permissible to catch bream without any restrictions in L. Võrtsjärv.

The most important commercial fish in L. Peipsi are perch and pikeperch (Table 9-3), which have a large demand in European and Estonian markets. Catches of pikeperch have decreased due the overfishing during last years. Restrictions are difficult to implement due to the lack of cooperation between Estonia and the Russian Federation. Recorded catches of bream have diminished during last decade too, but they have stabilised during last three years. Catches of pike have shown an increasing trend recently.

Table 9-3

Recorded Fish Catch from the Estonian Side of Lake Peipsi in Tons

The total amount of fish caught from L. Peipsi is determined by the catch of smelt. The catches of this species are variable, depending on hydrometeorological conditions during the very short fishing period (usually no longer than 10 days during the ice drift) and the market demands for fish. Smelt has taken first or second place in the catches during last two years (710 tons or 33% from total catch in 1995 and 478 tons or 23% in 1996).

In comparison with the earlier years of this decade, the total registered catch has declined on the Estonian side of Lake Peipsi. There are several reasons: the most important is the reduction of the fishing area after obtaining independence. Estonian fishermen lost their fishing rights near the eastern (Russian) shore of the lake. There are larger shoals of pikeperch and perch on that side. However, it must be bome in mind that nowadays the registration of catches is inaccurate, particularly concerning valuable fish (pikeperch, perch, eel and others).

The most important commercial fish in the lakes of the Vooremaa region are roach and bream. Eel catches (about 1.4 tons, Table 9-4) are surprisingly large in this region. Glass eels were introduced into these lakes during the years 1960–1980.

Table 9-4

Recorded Fish Catch from Lakes in the Vooremaa Region, 1995 (tons)

Small quantities of whitefish and vendace are caught from L. Saadjärv (the largest lake in. Vooremaa region). Northern whitefish were introduced into L. Kuremaa.

c) Fishing gear

The number of Danish seines has been restricted for some decades, according the Estonian-Russian fishery agreement. It is permitted to use 20 Danish seines in Estonian side of L. Peipsi (Table 9-5). The number of gill nets is restricted too: 2800 gill nets (for professional fishermen) with a mesh size no smaller than 110 mm, and 1000 gill nets for use in coastal regions of the lake (for inhabitants of coastal villages) with a mesh size no smaller than 72 mm.

Table 9-5

Distribution of Basic Fishing Gear Between Counties in 1996

As a rule, it is not recommended to use active fishing gear (trawls, Danish seines) in Estonian inland waterbodies, but in the conditions of L. Peipsi the Danish seine is the sole fishing gear whose numbers are possible to control. It is almost impossible to control the actual number of gill nets in the lake.

Besides Danish seine and gill nets several types of basket traps (different ones for vendace, for smelt, for perch and for big valuable fish) are used in L. Peipsi. The number of basket traps was not restricted before 1997. Professional fishermen use no more than 300 large basket traps and 360 gill nets in L. Võrtsjärv. Inhabitants of lakeshore villages can use 60 gill nets in total.

d) Number of fishermen

The number of professional fishermen on L. Peipsi has increased explosively during recent years and consisted of more than 500 persons in 1996 (Table 9-6). The number of professional fishermen on Lake Võrtsjärv is fixed and has not changed during last decade.

Table 9-6

Number of Fishermen on the Estonian Side of L. Peipsi and L. Võrtsjärv in 1996

2. Status of Fish Stocks in Estonian Waters of the Baltic

The status of fish stocks according to the Fish Research Centre of the Estonian Marine Institute is the following:

Baltic herringstocks in central and northern parts of the Baltic Sea are in a relatively good state. The 1991–1995 year classes are predominant. The average weight, particularly of older fish, is still low. This has been caused by the decrease of salinity which has had a negative impact on the nutritional conditions as well as by the increase in the number of fish. The 1995 generation is strong, and the 1996 generation is estimated to be poor.

Spratstock conditions in the Estonian economic zone are good. Sprat is caught mostly together with Baltic herring; pure sprat catches are more frequent in autumn. The average weight according to age groups has decreased slightly, which is probably related to the increase in the number of sprat in the northern parts of the Baltic Sea in the 1990s. The generation of 1994 is strong, the 1995 one average.

Salmonstocks in the Baltic Sea consist mostly of reared fish. Wild smelt production in Estonian spawning rivers is between 7,000 and 10,000. The Estonian catch is small because of the low level of effort of offshore salmon fishing.

Sea troutcatches in the coastal waters have decreased in spite of an increase in the fishing intensity. The Estonian sea trout catch is mostly based on natural renewal in the- spawning rivers of the Gulf of Finland. The 1993–1994 generations were weak, and the 1995 and 1996 generations markedly stronger. Catches in 1997–1998 will drop.

Powan.The stock of powan is in a depression, especially in the western coastal waters (including Saaremaa). The situation is better in the Gulf of Finland, where migratory whitefish comprise a significant part of the catches.

Smelt.The stock of smelt in the Gulf of Riga remains small. The share of smelt in the trawl catches in the Gulf of Finland is less than 1%. There will be no changes in this situation in the near future.

Pikecatches have decreased. Total stock of pike remains small mostly because of the unfavorable reproductive conditions and a high exploitation rate.

Roachstocks are in good condition. The catch in 1995 increased 50 t in comparison with 1994. The stock will be stable in the near future.

Idecatches decreased in the Gulf of Riga (the river Nasva stock) as well in Väinameri. The stock will be satisfactory in the next few years.

TheVimbastock in its main fishing area in the Pärnu Bay is in good condition. The generations at 1988, 1989, 1991 are strong. Good catches can be expected also in the coming years.

TheGarfishcatch in 1995 increased to 60% in comparison with 1994 and this trend continued in 1996.

Codstocks in the northern pans of the Baltic Sea, including Estonian waters, remain low. In the southern pan of the sea the condition of cod stocks is better and most of Estonian catches were taken in those waters (on the basis of bilateral agreements).

Pike-perchstocks in the Pärnu Bay decreased sharply, and the fish caught were younger in 1996. The generation of 1995 was assessed as strong, the generation of 1996 as poor. As the generations of 1992 and 1993 were below averace, a further decrease in catch can be expected in the next two years.

Perchexport demand is greatest for small fish and as result the perch population is considerably younger than before. Perch starts to reproduce at a rather early age and has good reproductive conditions in the coastal waters. In spite of decreased abundance, the stock condition is expected to remain satisfactory for the next few years.

Flounderstocks are in depression. Small scale increases in catches are foreseen in the next few years.

Eelcatches in 1996 were higher than in previous years. Data about stock conditions are not available.

a) Offshore fisheries and catches in the Baltic

Offshore fishing activity takes place beyond the 20 m isobath. The fishing gear is trawls and drift (for salmon) or anchored gill nets (for cod). Most of catches are taken with trawls, excluding salmon and some quantity of cod. Offshore catches amounted to about 56 000 tons in 1996 (Table 9-7), about 80% of the total Estonian catch in Baltic. Data for 1991 and 1992 include both offshore and coastal catches aggregated together, so they are not shown in that table. All the fishing fleet has been privatised. The total number of vessels longer than 12 m was 217 in 1996, and the number of employees 1,000–1,200. Most fishing vessels are rather old and investments are needed for renewal of the fleet and improvement of equipment.

Total Estonian catches in the Baltic (offshore±coastal) are presented in Table 9-8.

b) Coastal fishery and catches in the Baltic

Estonia has a long shoreline - close 3800 km including islands and islets. About half of population lives on the coast and a large number of people are engaged in commercial, subsistence or recreational fishery. All Estonian fisheries before the Second World War were concentrated in the coastal zone. At present the share of coastal catch is about 20 percentage of the total yield of Estonia in the Baltic Sea. (The term coastal zone denotes the water area between the shoreline and the 20 m isobath).

The coastal zone is a main habitat for most freshwater and some migratory fish and serves also as a spawning and nursery or feeding area for a number of marine species. The most productive areas are the Gulf of Riga and the Western Archipelago Sea and the most abundant specie is the Baltic herring, which accounts for about 85 percent of the total coastal catch. The remaining yield consists of 7–8 more important species: pike-perch, perch, roach, vimba, ide, garpike, flounder and pike. The statistics of 1993–1996 include only data reported in the fishermen's logbooks. The distribution of principal stocks is well represented by the spatial distribution of the catches (Table 9-10). Appendix tables 9-A1 to 9A4 provide data on Estonian coastal catches in the Baltic by county.

In the coastal zone over 4,500 professional and nonprofessional fishermen are active with commercial gear (Table 9-11). The fishing pressure is highest in the Pämu Bay. Most of the catches are taken with fixed gear during the months of April to June, exactly in the spawning period of the main commercial species (Tables 9-12 and 9-13). Such a practice is considered as one possible reason for the decline in spring-spawning fish stocks.

Table 9-7

Estonian Baltic Offshore Commercial Catches in Tons in Estonian EZ

Table 9-8

Estonian Baltic Commercial Catches in Tons in 1991–1996

Table 9-9

Differences between Catches in the 1930s and 1990s

* All Estonian catches were taken in coastal zone before 1940.

Table 9-10

Spatial Distribution of Commercial Catches in Coastal Seas in Tons 1995

Table 9-11

Fishing Load in Different Coastal Regions in 1995

Table 9-12
Distribution of BalticCommercial Coastal Catches Fishing Gear in T in 1995

Table 9-13

Seasonal Distribution of Baltic Commercial Coastal Catches in Tons in 1995

c) Aquaculture in Estonia

Fish farming began in the 1970s and maximum production of about 1750 t was reached in late 1980s, divided between carp (900 t) and trout (850 t). The rapid development observed in the late 1980s was linked with central subsidies provided by the Ministry of Fisheries of the USSR and made use of the warm effluents of power plants. In the 1990s, with the general decline in the economy, aquaculture activity was reduced. The most important cause of its depression is probably the same as it was in the 1920s and 1930s: the loss of the eastern market.

Today twenty companies are engaged in fish-farming, including 4 which produce only fish for stocking. Total production in 1995 was about 320 t (9.400×10³). Employees numbered 60–70. The share of fish farming in environmental pollution is low (5 t phosphorus and 33 t of nitrogen in 1994).

Rainbow trout, common carp and some other species are cultivated for consumption. The young stages of salmon, brown trout, whitefish, pike and river lamprey are stocked into coastal areas of the Baltic Sea and into freshwater fisheries for enhancement of commercial and recreational fishing. In some lakes glass-eel is stocked.

Rainbow trout

Rainbow trout is the main farmed fish in Estonia. In 1993 the number of operating trout farms was 16. Some trout is produced also in cages. Most of the farms are adapted for production of both stocking and consumption fish. Hatcheries and rearing units are situated mostly in the northern part of Estonia and use spring and/or river water. The largest trout farm producing for consumption rather than stocking works on the basis of sea water. Trout production was 380 t in 1992 and 278 t in 1995 (Table 9-14). Export of trout amounted 153 t in 1993 (Table 9-16). Some of the trout is processed before marketing (smoked or salted). The average first sale price for unprocessed trout was 32 EEK per kg in 1995 (Table 9-15). The net rate of profit from trout farming is approximately 10 percent. The number of employees is about 60–50 at present.

Common carp

The extensive carp farming takes place in earthen ponds. Pellets and cereals are used for feeding. The total area of ponds in 6 farms is close to 600 hectares, but not all the ponds are in operation. The climate of Estonia is somewhat hard for carp culture and farms are located mostly in the southern region of the country. The young stages are produced in a single farm (Ilmatsalu) providing larvae or older stocking carp for other farms for further raising. Carp is produced also in the cages using warm discharges of power plants. The total reported production was 234 t in 1992 and only 30 t in 1993. Production decreased particularly in cages on power plants effluents. The consumption carp from ponds is mostly 3 summers old and weighs 0.5–1 kg. Carp is marketed mostly in Estonia and is not processed. The average first sale price was 13 EEK per kg in 1995 (Table 9-15). About 10 people were employed on carp farms in 1995. Carp farming in most cases is less profitable than trout cultivation.

Stocking fish

The fish for stocking natural waterbeds are reared mostly in the commercial trout or carp farms, except for 2 separate units used only for artificial propagation. The production of stocking fish in 1995 of all age groups consisted 346,000 salmonids, 47,000 coregonids, 13,000 cyprinids and 8.85 millions of pike (larva and fry). Artificial propagation is funded mostly from the Fish Foundation; some support is given also from the State budget. The stockings of glass-eel are covered by fishermen. The annual eel catches in freshwater from earlier stocking amounts to 30–50 t.

Table 9-14

Aquaculture Production in Estonia in Tons in 1992–1995

Table 9-15

First Sale Price per Kg (EEK)

n.a. = data not available

Table 9-16

Export of Aquaculture Products

d) Deep sea fisheries

The Estonian deep sea fleet is mostly privatised and now amounts about 20 vessels fishing under different kinds of joint venture operations. (In 1991 the fleet had 75 vessels.) Deep sea catches decreased drastically from 229,414 t in 1991 to 34,715 t in 1996. The main species caught in 1996 were blue whiting. Atlantic mackerel and Atlantic redfish (Table 9-17). The number of larger operating companies is 6. and the total number of employees is somewhat over 2,000.

Table 9-17

Estonian Deep Sea Catches in 1991–1996 in Tons

B. Environmental Conditions

1.Lakes

L. Peipsi and L. Võrtsjärv are surrounded by agricultural lands, swamps and forests. There are no large industrial enterprises and settlements in the drainage area of L. Võrtsjärv, and therefore water on this lake is considered to be naturally clean. The largest inflows into L. Peipsi, the Suur-Emajõgi River and the Velikaja River, bring partially treated wastewater from Tartu and Pskov. Under the influence of these rivers L. Peipsi has eutrophied considerably. As a result, the transparency of water in L. Peipsis.s.has decreased during last decades: in the 1970s it was 1.8–5 m (Mäemets, 1977), but in last years 1–1.2 m (Eesti jögede ja järvede seisund, 1993).

The biomass of phytoplankton was considerably higher in 1996 than its long-term average value, partially due to the very numerous development of diatomAulacoseira islandica(shorter in spring and longer in autumn).A. islandicais an oligo-mesotrophic cold-favouring alga and its peaks after some years could not be connected with the increasing trophic state. L. Peipsis.s.,as a moderately eutrophied lake, differs from strongly eutrophied lakes in that its phytoplankton does not develop intensively every year, but only after several years (Kangur, 1997). The first stage of the Tartu wastewater treatment plant was put into operation in autumn 1996.

The extra low water level in L. Võrtsjärv (average depth 2.8 m, maximum depth 6m normally) was expected to become dangerous for fish life in the winter of 1996/97. In September 1996, the water level reached the lowest level (92 cm below 0-point) during the observation period since 1921. A low water level encourages the development of alga. An increase of the phytoplankton biomass was noticed already in 1995 (Nöges, 1996). The oxygen reserves under the ice are shorter during a cold and long winter and a risk of oxygen deficiency arises. The thick ice cover (50–60 cm) reduces the active water mass additionally and the shallowest areas of the lake will freeze to the bottom. There are no such catastrophic consequences associated with the reduction of water level in the L. Peipsi .s.s.(average depth 8.3 m).

Lakes in Vooremaa region (area 58–708 ha, average depth 2.0–8 m, maximum depth 3.5–25 m) are relatively eutrophied waterbodies. There are no large industrial enterprises in the drainage area of these lakes.

2. The Baltic Sea

a) General trends, impact on fish stocks

The total discharge of waste water decreased in the 1990s (1992 2,692 million m³, 1995; 1,849 million m³). The amount of untreated wastewater dropped from 23 million m³in 1993 to 18 million m³in 1995. The pollution load decreased also: BOD₇in 1992: 18.080 tons, and in 1995: 4480 tons, P_tot673 t and 321 t and N_tot5640 and 3500 t, in those two years, respectively.

The direct impact of pollution or eutrophication on fish reproduction is evident in some spawning rivers for salmonids (R. Purtse, R. Jägala, R. Selja). The decline of sea-spawning whitefish stocks is also related to coastal zone eutrophication. One reason for the poor condition of smelt stock in the Gulf of Riga seems to be the unsatisfactory' conditions of the spawning grounds in the Pärnu River.

b) Present situation

Nutrients concentrations are higher in the Gulf of Riga, particularly in the Pärnu Bay. Relatively high concentrations of nitrogen compounds were measured near the coast of the Narva Bay, especially in the vicinity of Sillamäe. Nitrogen and phosphorus loads are also problems in the Matsalu Bay. Thus from the point of view of eutrophication there are three critical regions in the coastal zone of Estonia.

For evaluating the state of the marine environment in respect to pollution from trace metals bioindications are used. The Baltic herring was selected as an indicator organism. Samples were collected from the western (Kakumäe) and central Gulf of Finland (Kunda) and from the northeastern part of the Gulf of Riga. The concentration of copper, zinc and cadmium in muscle, liver and gonads was highest in the Kunda area.

In 1995 the state of marine environment was assessed in respect to petroleum hydrocarbons including PAH, polychlorinated biphenyls (PCB) and chloroorganic pesticides. In coastal areas a concentration of petroleum hydrocarbons higher than 2 mg/1 was measured only in the Tallinn Bay. The concentrations of PCB and chlororganic pesticides in muscle of Baltic herring in the Gulf of Riga, Kakumäe Bay and Kunda Bay were lower in 1995 than in 1994.

C. The Socio-economic Situation of Coastal Villages

1. Saaremaa

a) Introduction

This section gives an overview of the socio-economic situation of the inhabitants of the coastal villages. As the Republic of Estonia has no official definition of the coastal villages, nor do official data permit classifying their inhabitants according to their occupation, this analysis is based on a sociological survey carried out in Saaremaa county. The data are valid for professional fishermen.

b) Fishermen and fishing

The average age of professional fishermen is 45.5 years. 14 of which they have been working as professionals. Their average family has 4.2 members. Most of the adult family members have their own income; only about one third of families have members with no income of their own. Most of the fishermen use their own fishing equipment (nets etc.), and a boat is usually bought by two or three men jointly. Only about 10% of the fishermen hire workers. The catch is usually sold at the port to purchasing agents, following informal preliminary agreements. However, only every second fisherman operates with a written agreement on selling the fish.

Fishermen consider traveling around and selling the fish themselves to be unprofitable. Most of the fishermen still use equipment purchased before the end of collectivised fishing era. By now, this equipment is almost at the end of its useful life, and at the same time new equipment is often too expensive.

c) Income and expenditures

The vast majority of fishermen get their main income from fishing. Only 5% have some additional job. At the same time, more than 90% of fishermen are involved in some kind of agricultural production, mostly for the needs of their family. Only about ten percent of these sell part of their agricultural production. Other income sources for family are salaries of spouses and/or children still living together with their parents, and social support money.

[Insert Figure 1, Expenses of Saaremaa Fishermen]

Gross income of professional fishermen from fishing in 1995 ranged from 6,000 to 130,000 EEK. During the first 9 months of 1996, the corresponding range was 4,000 to 115,000 EEK. Table 9–18 displays the differences in income by ports. Annual expenditures of a professional fisherman were 32,400 EEK as an average. The structure of these is shown in Figure 1. Comparing incomes and expenditures, every tenth fisherman thinks he cannot make ends meet, and a third has an annual income of less than 18,000 EEK.

According to the official statistics, in 1995 the average monthly salary (before taxes) in fisheries was 1987 EEK (some 24,000 EEK per year), and the average yearly salary (before taxes) in the whole economy was about 28,000 EEK.

Table 9–18

Income and Expenditure of Saaremaa Fishermen by Ports in 1995 and 1996

2. Inland Waters

a) Fishermen's organisations

The professional fishermen of L. Võrtsjärv have joined together in a Fishermen's Association. The main task of this organisation is to collect money for purchasing glass eels and distribute fishing licences. There are no fishery firms at L. Võrtsjärv and in the Vooremaa region today. Most of the professional fishermen at L. Peipsi are linked to several fishery firms (Table 9-19). The largest fishery firms are “Peipsi Trade” (in Ida-Virumaa county), “Kallaste Kalur,” “Peipsi Kalamees,” and “Latikas” (in Tartu county).

Table 9-19

Organisation of Professional Fishermen on the, Estonian Side of L. Peipsi in 1996.

b) Prices and marketing of commercial fish

Prices for commercial fish vary between different fishery firms, but the differences are not great (Table 9-20). Most fish are sold after chilling. The firm “Peipsi Trade” and its branch ”Kallaste Rand“ are filleting large amount of valuable fish. “Dagöfisk” (Kadrina branch) produces several kinds of fish preserves. Fishermen from Võrtsjärv and Vooremaa region sell mostly chilled fish. Small amounts of eel are smoked.

d) Fisheries management

The Estonian-Russian Peipsi Council was set up in 1974 for the management of fisheries in L. Peipsi. The main task of this organisation is to reach agreement on several fisheries measures, among them fishing quotas between the Estonian and Russian sides. The membership of the Peipsi Council includes representatives of fisheries firms, fisheries departments and scientific institutes of both sides. This Peipsi Council is responsible for the development and protection of the fish stock in the lake.

The Estonian (national) Peipsi Council was reorganised in 1996, and its membership consists of representatives of counties' administrations (governors and their counsellors) who are responsible for the social development of their regions. The real management of fisheries is performed by the Department of Fisheries of the Estonian Ministry for the Environment. The technical basis for the management of fisheries is developed by fish biologists of the Institute of Zoology and Botany.

Table 9-20

Wholesale Prices for Commercial Fish, Summer 1996

The fishery in L. Võrtsjärv is managed by the Võrtsjärv Council set up in 1991. Its staff includes representatives of the county administration, local parishes, fishermen and fish biologists of the Institute of Zoology and Botany. The Võrtsjärv Council is responsible for the development and protection of the fish stock in the lake.

D. Technical Condition of the Fishing Gear and Ships

For the main fish species, Baltic herring, sprat and cod, the annual fishing quota is 110 to 115 thousand tons, although it has not been fully used in recent years. In addition, relatively local freshwater fish in quantities of about 3 thousand tons are caught from coastal waters of Baltic Sea, along with 3–3.5 thousand tons of other fish species from lakes Peipsi and Võrtsjärv as well as from other inland waters.

The main catch of fish (sprat and mainly Baltic herring) and substantial parts of the cod catch are made by using Baltic Sea fish trawlers. Some 10 to 12 thousand tons of Baltic herring is caught by coastmen using ca 400 case fyke nets (a fyke net with open upper part) from spawning places and related waterways. using for servicing the fyke nets low draft “flatter” type working boats (8–10 m lengths) and 12 m long “Cacuame” type transport boats. Other fish species are caught by coastmen mainly from wooden 5–9 m long netting boats by using passive traps - fyke nets and fishing nets from littoral areas of 1–15 m depth. A steep increase in total number of gill nets has been observed during last years. There are about 1800–2000 maritime coastmen (owning traps) receiving the main part of their income from fishing.

Basic data on the current Estonian fishing fleet are shown in Table 9-21.

Table 9-21

The Estonian Fishing fleet

Small timber trawlers are built in Tallinn. Because of the low quality of the timber, the hulls only last for 15–18 years. Working and living conditions on these boats are bad but their advantage is that they can use the shallow ports near the fishing regions, which lowers the cost. There are few new boats, and their average age is about 10 years.

The MSTB are small trawlers mostly over 10 years old with limited catching areas. They can use the small ports near the fishing areas, which lowers the costs. The STB and MRS are small trawlers over 20 years old, and they have been repaired extensively many times. The two of them are over 40 years old and were built in Germany. More than 20 years ago these were the main boats used on the Baltic Sea by the Soviet Union. The SCS were built for seine fishing, but on the Baltic Sea they are used like trawlers and for drift-dredge fishing (salmon and cod). Their average age is about 20 years.

The MRTK (Baltica) are the newest type of boats used on the Baltic Sea. The first ones were brought to Estonia in 1974. Some of the old ships have been sold by today but most of them are still serviceable if they have been maintained. A financial analysis of their profitability should be made. While trawling the engines work on 100% of output and therefore frequent breakdowns occur. Their disadvantages are:

• The power of the main engine does not cover the needs of trawling (old 300 HP engines), and spare pans are hard to get because of their East German origin.

• The hold is small and awkward for mounting the packed fish load.

• They lack space for the separator and the ice machine.

• The electrical systems for starting the machinery is not very functional.

• The hulls are very rusted.

• Close vigilance over the engines is required.

• They tend to roll strongly and stiffly.

• The work deck is open.

Their advantages are:

• Satisfactory living conditions for the crew.

• A broad wheelhouse.

• A good overview of the work deck.

• Satisfactory arrangements for the catch.

The TB (PTS) are meant for transporting fish and are used for trawling. The age of most of the ships is 18 years or more. Repairs are very expensive and most of the ship owners exploit them as long as they stay afloat on water. There are no other types of boats of significance for fishing.

E. The Fish-Processing Industry

1. Background

The Estonian fish-processing industry was created during the communist era as a part of the huge Soviet fish-processing complex. Being one of the most important suppliers of canned fish for the Soviet market, the annual output reached up to 250 million conventional cans by the mid-1980s. The fish-processing industry was the biggest part of the food industry sector in Estonia, employing about one-third of the total labour in the sector.

Since Estonia regained independence in 1991 a very difficult period has been experienced by the industry. The Eastern market and the former system of raw-material supply collapsed. Only 23% of the capacity was used in 1993 and most of the production had to be sold on the local market.

In spite of the difficulties Estonian fish-processing industry has shown its ability to survive and adapt to the new circumstances. New sources of raw material have been found, traditional markets in the East have been regained and new markets have been found. Production volumes and exports are showing increases. Fish and fish products comprised about 5% of the country's exports in 1995.

2. Amount, Size and Geographical Location of Fish-processing Industries

According to the State Register of Enterprises, 77 companies are registered that have mentioned “fish-processing” as one of their major activities. The Estonian Association of Fisheries estimates that roughly 45 – 50 of these 77 companies are active. Their location by county is listed in Table 9-A5 of the Appendix.

Currently there are 8 fish-processing companies with more than 100 employees that have their production facilities in cities. The rest of the production is performed in rural areas. In many areas fish-processing plants are the only or the biggest industrial employers. In total, some 7700 -7800 people are currently employed in the sector.

The number of employees in the largest firms in the Estonian Association of Fisheries is shown in Figure 2. In total, the firms in the Association employ about 4,347 persons, or approximately 55% of the total employees in the fish-processing sector.

Since no exact data are available about the non-member firms, the Association can give only a rough estimate of the employees in the largest of those firms:

AS Maseko (Pärnu plant) ca 1000 empl. AS Maseko Nord (Tallinn) ca 950 empl. AS Astarta (Tallinn) ca 530 empl. AS Salmo (Pämu) ca 250 empl

3. Production and Sales

Total sales of the fish-processing industry were about 1300 million EEK in 1995 and 1525 million EEK in 1996. The firms with the biggest turnover in 1996 were:

• AS Maseko and Maseko Nord (together), about 300 million EEK, market share about 20%

• OÜ Viru Rand, 243 MEEK, market share about 16%

• Paljassaare Kalatööstuse AS, 153 MEEK, market share about 10%

• AS Ekton, 10.6 MEEK, market share about 6.6.%

• AS Läätsa, 73 MEEK, market share about 4.7%

Members of the Estonian Association of Fisheries registered total sales of 895 million EEK in 1996.

Number of employees in the member companies of Estonian Association of Fishery. January 1997.

Figure 2.

Source: Eesti Kalaliit

Sales turnover of the Members of the Estonian Association of Fisheries In 1995 and 1996 (MIlllon EEK)

Figure 3.

Source: Eesti Kalaliit.

Some 80–85% of the basic raw materials for Estonian fish-processing industry (especially in the canning industry) are local Baltic Sea species -- sprat and Baltic herring. The main imported species in 1995 were herring (from Iceland, Norway, Denmark), mackerel, hake and blue whiting.

4. Exports of the Fish-processing Industry

The fish-processing industry has an important position in Estonia's export structure. About 5% of the country's exports were fish and fish products in 1995 (EEK 1080 million), and roughly 47% of the exports of foodstuffs was fish. According to the Estonian Association of Fisheries, 83% of the production of the sector was exported in 1995. The traditional export partners for Estonia's fish-processing industry have been Russia and other CIS countries. The main export products to the Eastern market are various types of canned fish.

Main Export Partners of the Members of Estonlan Association of Flshariat In 1996.

Figure 4.

So far it has been quite difficult to penetrate the European market, but some achievements have already been made by Paljasaare Kalatööstuse AS (fish-fingers), AS Makrill (canned anchovy fillets) and AS Dagöfisk (fresh and filleted fresh water fish). In 1996 the total value of exports of member companies of Estonian Association of Fisheries was 728 million EEK (81.4% of their total sales).

5. Financial Indicators of Fish-processing Industry

According to the National Statistics Bureau the total assets of the fish-processing industry were EEK 779.5 million at the end of the second quarter of 1996. Of that amount, 251 million was working capital, and 528.5 million, fixed assets.

Cost Structure In the Fish-processing Sector. I and II Quartern 1996. (Percent)

Figure 5.

The strong labour intensiveness of the sector is shown by the comparatively high share of the labour costs at 25 – 26% of the total (vs. 16.1% in the food industry, 8.4% in dairy, and 16.3% in the meat-processing industry). Also, the shares of fuel and energy costs are almost triple those of the dairy and meat-processing industries.

F. Trade and Exports

The Estonian deep sea (distant water) fishing companies sell the entire catch to traders abroad and the final destination of the fish is not known. Trade in fish and fish products is free: there are no export taxes or import customs tariffs imposed in Estonia. Also, there are no developed or institutionalised distribution channels for fish and fish products, and no fish auctions in Estonia for the time being.

The average prices at landing for most important commercial species (EEK/kg) were in 1995 as follows:

Estonia exported 98,498 t of fish and fishery products of value of EEK 1,191 million in 1995 Fish and fishery products constituted 5.8 % of Estonian total exports in 1995.

In 1995 the main markets for the export of our fresh fish, in percentage of the total, were as follows:

In the same year, the main markets for processed fish, also in percentage of the total, were as follows:

G. Management of Fisheries

1. Fisheries Department of the Estonian Ministry of Environment

The National Estonian Board of Fisheries (NEBF) was established under the jurisdiction of the Minister of Environment of the Republic of Estonia in 1991. The NEBF was transformed into the Fisheries Department of the Estonian Ministry of Environment in January 1997. The Fisheries Department has 3 sections:

1. Fish Resources,

2. Development and Cooperation and

3. Fisheries Economics.

The main tasks of the Fisheries Department are:

• To develop the Estonian fisheries strategy and policies, to draft the Estonian Fisheries Act and other relevant legislation and regulations, to implement the Estonian fisheries policy on the national and international level in order to ensure the effective conservation and management of the living aquatic resources as well as the protection of their environment.

• To develop and ensure the establishment of effective mechanisms to monitor and control the compliance with and the enforcement of conservation and management measures.

• To promote the maintenance of the quantity, quality, diversity and availability of fishery resources for present and future generations.

• To prevent over-harvesting and excess fishing capacity in order to ensure that the fishing effort is commensurate with the productive capacity of the resources.

• To promote cooperation at sub-regional, regional, and global levels through fisheries organisations and other arrangements to ensure sustainable fishing and effective conservation and protection of living aquatic resources.

• To exercise effective control to ensure that fishing and fishing support vessels flying the Estonian flag fulfill their obligations concerning conservation and management measures taken in accordance with international law and concerning the collection and exchange of data relating to their fishing activities.

• To apply precautionary approaches to fisheries conservation and management in order to protect and preserve the aquatic environment and fisheries resources taking full account of the best scientific evidence available.

• To ensure that Estonian fisheries interests, including the conservation and management of the resources, are taken into account in the multiple use of the coastal zone.

• To promote the handling, processing and distribution of fish and fisher}' products in a manner which will maintain the nutritional value, quality and safety of the products, reduce waste and minimise the negative impacts on the environment.

• To promote international trade in fish and fishery products in accordance with fair practices and relevant international agreements.

• To manage and develop scientific fisheries research in order to assess the condition of the stocks under Estonian jurisdiction, including the economic and social impacts of ecosystem changes resulting from fishing pressure and pollution.

• To promote public awareness through fisheries education and training.

• To defend the interest of the fisheries sector in negotiations when dealing with cross-sectoral issues.

2. Fishery- Statistics

In accordance with Estonian fisheries legislation the Estonian State Sea Inspection Office (ESSIO) is responsible for collecting and processing the primary fisheries statistics and for implementing quota control procedures. ESSIO is managing the quotas in respect of the species regulated by the International Baltic Sea Fisheries Commission: Baltic herring, sprat, cod and salmon. For that purpose ESSIO processes information from the log books of the fishing vessels, fish landing declarations and information from first buyers of fish. The results of the cross checking of primary information arc also used by ESSIO for the purpose of quota control and enforcement.

Collection, processing and reporting of the primary fisheries statistics for the coastal and inland water fisheries is the responsibility of County Governments. Quota control (when appropriate) on the county level is the responsibility of ESSlO.

The Estonian Marine Institute and the Institute of Zoology and Botany are processing the primary fishers statistics in more detail for scientific purposes, primarily for making fish stock assessments and developing options for fish stock management. Collection, processing and distribution of statistics concerning fish processing, marketing and exports is the responsibility of the Estonian State Statistical Office.

The Fisheries Department of the Ministry of Environment receives the summary fishery statistics from ESSIO, the County Governments, the fisheries science institutions and the Estonian State Statistical Office. The summary fisheries statistics are used by the Fisheries Department for development of fisheries policy and legislation, for quota management and for carrying out economic and social evaluations of the management of Estonian fisheries resources. The Fisheries Department also provides the Estonian State Statistical Office and numerous international organisations (NAFO, IBSFC. ICES, NEAFC, FAO, EUROSTAT) with summary fisheries statistics required.

H. Associations and Property Forms

1. Fishing

a) Property forms in fishing

As a rule, local fishing gear are owned privately. Until the year 1988, practically all local gear for professional fishing were owned by fishing collective farms. Now the fishing collective farms have been re-structured into smaller enterprises, such as limited partnerships and joint stock companies. In most such enterprises fishermen have been granted the right to purchase the fishing gear used by them in exchange for their shares in the enterprise.

Today, most fishing gear is owned by individual fishermen (excluding large joint stock companies at Peipsi Lake and some recently established new companies) and by the main part of Baltic Sea trawling fleet where the owners, as a rule, came from the boat crews. Groups still staying together for some purposes include most of the Hiiumaa ships (DAGOmar), some of the ships belonging to the former Majaka (Astarta Ltd.), part of the fleet of the former Esmar (Kirov), part of the fleet of Russian origin Tralflot located at Narva-Jõesuu, and some of Viru Ranna's ships. Other fish processing companies possess some of their own or rented fishing boats (Esmar, Läätsa), and some boats have been assigned to creditors (banks) as a result of bankruptcy proceedings.

b) Professional associations of fishermen

There is no organisation uniting local professional fishermen in most coastal areas. County non-profit organisations (associations) for professional fishermen exist in Pärnumaa, Saaremaa, Hiiumaa, at Peipsi Lake (uniting fishermen from four counties) and at Võrtsjärv (uniting 21 fishermen from three counties). On the first day of September in 1995 representatives of fishermen who came from all over the Estonian coastal areas established the Estonian Association of Fishermen. It is an independent and non-profit aiming organisation for entrepreneurs dealing with fishing that has been formed on a voluntary basis. The main goals of this association are:

• representing its members in state and governmental bodies as well as other institutions;

• the acquisition, distribution and exchange of information required by fishermen;

• establishing the relations required for development of national fisheries;

• collecting the information required for acquisition of fishing equipment as well as assisting the placement of consolidated orders;

• handling of negotiations with companies that purchase fish as well as other local and foreign organisations.

Members of this Association of Fishermen can be professional organisations of fishermen from different counties with their fellow members. Since no such organisation do exist everywhere and all fishermen have not been united yet into local organisations, individual fishermen also are allowed to join the association, as well as legal fishing entities with their active members who are fishermen.

2. Fish Processing

a) Forms of ownership in the fish-processing industry

The privatisation process in fish-processing has almost been completed and today most of the processing plants are owned by private capital. Currently only 21.7% of the shares of AS Maseko Nord are owned by the Government and they will be 'sold by the end of this year according the privatisation programme for 1997.

The basic scheme of privatisation of fish-processing industries has been themanagement buy-out,and former top officials of the fishery kolkhozes have bought the majority of the shares. Still there are quite a few minority shareholders in those companies (for example: AS Makrill, AS Lääatsa, OÜ Viru Rand). It is important to mention that the majority shareholders are working in the management of their companies.

In other cases holding companies have been established on the basis of the former fishery kolkhozes (for example: AS Lääatsa Kalur that owns majority shares in AS Hako and Virtsu Kalatehase AS, AS Hiiu Kalur that is a major shareholder in AS Dagötar and AS Dagofisk). Shareholders of the holding companies are usually the former employees of the kolkhozes

The share of foreign capital in Estonian fish-processing industry is currently less than a quarter. Some instances of major participation by foreign investors include 100% foreign ownership of Paljassaare Kalatööstuse AS, 100% of AS Viinistu and 40% of AS Dagöfisk.

b) Associations in fish-processing industry

On 30 October 1995, 16 fish-processing companies established the Estonian Association of Fisheries. The EAF is a non-governmental non-profit organisation of companies and entrepreneurs whose main activities are fish processing and the trading of fish and seafood products. The main goal of the Association is increasing the competitiveness of the local fish-processing industry.

The basic activities of the EAF are:

• mediation and representation of the fish-processing industry's interests in the Government circles;

• participation in the elaboration of legislation, standards and technical documentation concerning the industry of fish processing;

• providing consulting and expert evaluations on fish processing;

• promoting the members' activities and production through exhibitions, seminars and in media;

• collecting, processing and analysing of statistics, information and business contacts.

The EAF works in close cooperation with the Association of Fishermen, the governmental fisheries administration and other governmental and non-governmental institutions related to fish processing. The services of the association are available also for non-members.

I. Fisheries Research

The main institution carrying out research on fisheries in Estonia is the Estonian Marine Institute, established in 1992 and until 1996 belonging to two “umbrellas”: The Academy of Sciences and Ministry of Environment. In January 1996 the Institute was reorganised as State scientific institute belonging only to the Ministry of Environment. The main directions of investigations of the Marine Institute are as follows:

• oceanographic research

• marine ecosystem research

• marine resources investigations, especially fish stock assessment

• marine monitoring

• the investigations of impact of human activities on the marine ecosystem

• assisting the fisheries administration in the regulation of fishing

All together the number of employees in Marine Institute is 115. The Institute has two small boats (length of 14.5 m) for fisheries research and is modifying medium-size (29.8 m) trawlers for research purposes. The investigations of fish stocks in Peipsi lake, Võrtsjärv lake and some of the other largest lakes is carried out by the Institute of Zoology and Botany at Tartu University.

The financing of fisheries research in Estonia is provided from the State Budget (for marine fish stocks assessment) and from the Fisheries Fund (for Lake Peipsi fish slock assessments). Unfortunately, the financing from State Budget has not increased since 1995 and is at the level of 1 million kroons, when for Lake Peipsi it is 400,000 kroons. The very low level of financing the sea . fish stocks assessment caused problems with management of those stocks in regard to the principles of sustainable development of fisheries and.with Estonia's participation in international management of the main Baltic fish slocks (herring, sprat, cod, salmon and flounder). It is also in conflict with the increase of fishing activity in Estonian coastal waters and of fish exports in the last two years.

There are several additional fisheries research programmes at the Marine Institute and at the Tartu University, financed by the Estonian Fisheries Fund by the Estonian Scientific Fund and by EU and other foreign sources The latter sources of funding are increasing rapidly. Unfortunately, the socio-economic aspects of fisheries are not studied by any research institutions due to lack of both specialists and financing.

J. Fisheries Education

The main fisheries education institution in Estonia is the Marine Education Centre of Estonia located in Tallinn and Pärnu (Pürnu Seaman's School). The Marine Education Centre provides high school education (four years) in the following fields: shipmates engineers fishing technology experts and marine economy experts. Also, two-year students are taught the specialties of seamanship and mechanics Teaching of coastal fisherman is provided also in Orissaare Secondary School and Suuremõisa Agricultural School.

In addition, Tartu University provides education in the specialties of ichthyology, hydrobiology and oceanography. Education in the same subjects was started in Tallinn Pedagogical University in this year. Unfortunately, the education of workers for fish processing companies as well as specialist's for small fishing vessels (mastermechanics, masterfishermen etc.) is not provided to the extent needed. The concept of fisheries education in Estonia is only in the early stages of development.

K. International Fisheries Cooperation

1. Fisheries and Marine Science related Conventions

The Estonian Parliament ratified conventions related to fisheries and marine science on 10 February 1993 as follows :

1. International Council for the Exploration of the Seas.

2. Convention on Fishing and Conservation of Living Resources in the Baltic Sea and the Belts

3. Convention on Future Multilateral Cooperation in the Northwest Atlantic Fisheries.

4. Convention on the Protection of the Marine Environment of the Baltic Sea Area.

2. International Organisations

The International Baltic Sea Fisheries Commission (1BSFC) has been the top level international forum for the Baltic fisheries cooperation in recent decades. IBSFC was established to implement theConvention on Fishing and Conservation of the Living Resources in the Baltic Seaand the Belts.The aim of the IBSFC activities is conservation of the living resources of the Baltic and international fisheries management and fishing quota distribution among the States bordering the Baltic Sea

The activities of the IBSFC are based on the comprehensive scientific advice of the International Council for Exploration of the Sea (ICES). ICES is the top forum for the fisheries scientists evaluating the status of the Baltic fish stocks and for giving advice on the conservation and sustainable use of the Baltic's living resources.

The Northwest Atlantic Fisheries Organisation (NAFO) was established to implement the Convention on Future Multilateral Cooperation in the Northwest Atlantic Fisheries. The area of activity of the NAFO is fisheries management in the Northwest Atlantic. A series of seminars on

Baltic Fisheries Cooperation (BAF1CO), an initiative proposed by the Nordic Council of Ministers. was started in Tallinn in 1993 The BAF1CO is considered as a confidence building forum to discuss the most important Baltic fisheries development problems.

The appendix lists international fisheries memoranda and agreements and international fisheries projects.