Canadian prawn quota cut by 62%
Canada's Department for Fisheries and Oceans (DFO) has released the prawn quota for the 2017/18 fishing season, which in catch area 6, outside New Foundland, has been cut by 62% compared to the 2016/17 season.
This marks a dramatic drop following the previous year's cut of around 40%. The quota has also been reduced in other prawn fishing areas in eastern Canada, but not as drastically as in area 6. The area is key for the prawn industry in the region as this is where the greatest majority of prawns are caught.
The quota cuts have been imposed to protect stocks, as well as to retain the MSC certificate for Canadian prawn fishery and thereby ensure future sustainability.
Most of the prawns processed by Royal Greenland are from area 6 and 13/14 and are processed at our factories in Matane, Quebec and Newfoundland. The supply of prawns available in 2017/18 is expected to be lower as a result of the quota cut, especially in terms of the larger sizes. The supply of small prawns will be better, but this means that Royal Greenland expects the price gap between small and large prawns to grow. The price difference between small and large shrimps has, in recent years, been minimal.
Greenland is currently experiencing a slight increase in prawn quotas, but not enough to cover the lack of supply from Canada.
As the world's largest supplier of cold water prawns, Royal Greenland acknowledges our responsibility to help stabilise the market via strategic allocation of the raw materials we have access to, with regards for future supply, sustainability and pricing. We will strive to comply with this obligation by careful processing that respects the raw materials, and by distributing products to our regular customers at a price that reflects the level of quality. This enables us to utilise a limited resource to the widest possible extent and to keep prices stable.