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# 2, 1997

THE FOURTH INTERNATIONAL CONFERENCE ON PACIFIC FISHERIES

BY Valeriy VOROBIEV,
GENERAL DIRECTOR OF ACROS JSC LTD.

Our product made of pollock, cod, halibut, crab, and other fish species, is known throughout Europe, South Korea, Alaska, and especially in Japan. The continuous effort applied to increase our product quality was highly estimated by International Trade Leaders Club, and in October 1996 Acros JSC Ltd. was awarded the 21-st international prize for high quality.
At the same time, absence of clearly outlined and strict governmental control over fishing and export brought about an increased number of newly cropped Russian companies engaged in catching and processing of fish and seafoods, and correspondingly, in export operations. The attractiveness of Japanese and Korean markets was backed by solvency of the buyers, good pricing for various products, geographic proximity, and technological base. All this led to oversupply of the product offered by Russian fisheries, and for this reason to a considerable drop in prices for such highly valued product as crab, pollock roe, sockeye salmon etc. the prices dropped 1.5 to 2 times as low. The greater damage in situation like that hit the companies who opted for long-term development policies, burdened with heavy credit obligations, and concerned with construction and modernization of fishing fleet.
To a certain degree, the progress in trade between Russia and other Pacific Rim countries is hindered by the rules and regulations, adopted by their respective governments during the stand-off periods, and also for the purpose of protecting own fish and seafoods producers. By way of example, Russian has no chance exporting cod to Japan, which fact makes Russian producers seek prospective buyers in Europe. Because of sharp ups and downs of cod prices in Europe and high transportation costs we are faced with a problem of short profits. Discrimination toward the value of pollock roe quotas still exists. Increase of 8 to 10 times, as compared to American product, in the value of import quota for the Russian roe will lead to a decrease in its purchase value.
We should take into a consideration the fact that Russian fisheries are not subsidized by the Government, but rather self-paid. Given the heavy taxation, the Russian fishing industry is far from being super-profitable, which is further proved by many bankruptcies of big fishing companies in recent years. We need to review the policies of all interested countries toward most favored conditions in respect to Russian exporters.
Russian fishing industry can be viewed as a major source of raw product, which, if handled carefully and afforded favorable policies of all countries, may be used for a long period. It should be considered as an integral part of the common food and trade balance so many countries are interested to preserve and develop.

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