16 Sep 2020

The impact of the Covid -19 crisis on fishing activities in the Arab region

by OUATI Youssef, Director, INFOSAMAK

The Arab world includes among its member’s major producers and exporters of fisheries resources (Morocco, Mauritania, Tunisia, Yemen), countries where aquaculture is developing (mainly Egypt, Tunisia, Saudi Arabia) and major importers of fish (Egypt and Gulf countries).

All Arab countries have been hit by the Covid-19 pandemic crisis, however, the impact of COVID-19 on economic, nutritional and social levels has varied among the Arab world.

The Food and Agricultural Organization of the United Nations (FAO), concerned about food security, with the support of the International Fund for Agricultural Development (IFAD), the World Food Programme (WFP) and the World Bank, as well as other partners, has focused in a first step on the assessment of the Covid- 19 crisis on the world of agriculture, which provides most of the basic food supplies to the populations. The fishing world requires for its part, like the hydraulic and forestry fields, in-depth studies to identify the real effects of this crisis.

However, on the basis of the study of a group of six Arab countries members of the INFOSAMAK Center, namely Morocco, Tunisia, Yemen, Iraq, Syria and Southern Sudan, the following observations can already be made concerning the fisheries sector:

  • The approach is different from one country to another depending on several parameters, including vulnerability, fragility of productive sectors and livelihoods, political stability, climate dependency (rainfall), external dependency for food security, diversity of financial resources ... etc.
  • In order to ensure the supply of markets and distribution channels with foodstuffs in general and seafood products (fresh fish, frozen fish, canned fish, fish meal and fish oil ... etc.) in particular, and in order to preserve jobs and economic activities of the countries, the authorities have deemed it useful, even judicious to avoid the cessation of activities of fishing fleets, activities within fish farms and packaging and processing units of fishery products, as long as:

- Sanitary measures are rigorously applied, namely social distancing, wearing of helmets, disinfection of equipment and premises, hygiene in production and processing units ... etc, and that

- The production units, both at sea and on land, do not constitute hotbeds for the propagation of Covid-19;

  •  As a result of the application of sanitary containment measures to contain the pandemic, including restrictions on movement, transport and inter-city travel, suspension of flights and shipping services to several fisheries importing countries, and border closures, trade has been seriously affected and exports have been blocked for almost all exporting countries.
  • Given that the fishing companies, other than those specialized in frozen fishing, generally do not have the means to store their catches, and that restaurants, hotels and tourist establishments have closed and cancelled their orders, there has been a drop of up to 60 or even 70% in the prices of species landed in large tonnages and which could not be sold quickly.
  • The cancellation of the 2020 editions of the international fairs specialized in fisheries products such as Seafood in Brussels, Seafex in Dubai, Halieutis in Morocco ... etc, and the new fears, or even the impossibility to participate in the very short term in shows and fairs in search of partners, suppliers or customers. Indeed, the new provisions imposed by the organizers to prevent the spread of Covid-19 make it difficult to participate in the forums. It will be necessary to replace this possibility by a new approach based on digital means. INFOSAMAK Center diffused its productions (magazine and ITN) on line for the first time in August 2020 following the difficulties encountered for the printing and distribution of these documents.

The implementation of electronic sales platforms with digital auctions allows for the fluidity of commercial transactions and can help, above all, to respect the physical distance imposed by the health authorities. This could have avoided the closure of the Casablanca wholesale market on May 25, 2020 due to the detection of about sixty cases of corona virus contamination among the fish wholesalers and fish sellers who frequented it, and thus, avoid the shortage of fresh fish and the disruption of the city's seafood supply circuits.A range of financial measures have been put in place in some countries to support companies in difficulty (under special conditions), including :

  • The establishment of a guarantee and exceptional overdraft facility for the rapid mobilization of additional financing resources for companies whose cash position is in difficulty due to the decline in business. This bank financing for a limited period of time provides working capital related to operations, i.e. salaries, rents and the settlement of necessary purchases.
  • The implementation of a suspension of payments  allowing companies in difficulty to suspend the payment of social security charges and the repayment of bank and leasing credit installments without fees or penalties.
  • The postponement without formality of the tax due dates of the companies of the declaration of the fiscal result, the complement of the tax on the company;
  • The granting of a net monthly allowance for the benefit of declared employees; and
  • The granting of financial support to families not declared to the National Social Security Fund ﴾CNSS﴿ who are registered with the Medical Insurance Plan (RAMED) and to vulnerable households working in the informal sector and affected by the Covid-19 crisis.

 In terms of food security, even if the prospects do not seem encouraging, actions have been carried out or proposed to help countries overcome the Covid-19 crisis , including the creation of training or extension platforms and the provision of direct aid through the version of emergency funds, the distribution of kits or through Cash+ programs. What is certain is that some strategies and some modes of development must be "reviewed" in order to better adapt them to the new context to protect the productive sectors from new similar crises.

The FAO Fisheries Department and its subsidiary bodies are working on this issue and have already addressed it and the various actions undertaken, including expert panel meetings, the organization of virtual forums and video-conferences, should help to identify the sectors most affected by the crisis and formulate proposals for actions to be undertaken in the immediate future for the most affected sectors, and in the short and medium term for the others.

As such, it is already believed that the fish trade will certainly be affected to varying degrees by the following factors:

  • The increase in the price of air freight as a result of border closures and the decisions already taken by several airlines or shipping companies, which will have consequences on the price of fish species or their derivatives intended for export;
  • The supply of inputs (metal boxes, packaging material, spare parts for recovery and processing units and ice factories) imported from abroad; 
  • The supply of fry, feed and veterinary products (including vaccines) for aquaculture farms that depend on foreign countries for their operations;
  • The drop in purchasing power and the drastic drop in the price of white meats would lead to a drop in seafood consumption, and
  • The imposition of stricter health restrictions.

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