Fishing Wider Markets
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Long before there was oil or gas, one of the biggest industries in the sultanate was fishing. As Oman looks to a future when its energy resources run dry so too its fishery industry is contemplating the threat of diminishing returns, with fish stocks being stretched as demand increases.
There are some 30 companies active in the Omani fisheries and seafood export sector, altogether accounting for $104.7m worth of overseas sales to 50 countries in 2006, with the majority of exports going to other Gulf Co-operation Council member states and Europe. The industry is the second highest export earner after energy resources.
To maintain this position though, Oman’s fisheries industry has to make plans to cast its net wider in order to meet its orders. Mohammed bin Hamad al Masrouri, the chairman of Oman Fisheries SAOG, the sultanate’s largest processor and exporter, announced in late June that the company was looking at overseas investments to boost supplies and its financial results. Among the proposals that al Masrouri identified were facilities for fish procurement, storage and fish farming in Yemen, Vietnam and India.
In the financial year ending March 31, Oman Fisheries’ results suffered due to a number of factors, including falling fish stocks, with catches of some prime varieties falling by more than half. Though the company boosted its consolidated turnover from $17m in the previous year to $21m, it fell into the red, posting a net loss after tax of $1.1m, compared to a profit of $1.7m for the 2005-06 financial year.
Along with the rest of the industry, Oman Fisheries had to deal with rocketing fuel prices, with diesel costs up nearly 250%, again forcing up the buying rates of fish.
Though not directly referred to by al Masrouri, the Omani fisheries industry took another blow in early June, when Cyclone Gonu blew in. While most of the sultanate’s fishing fleet was saved from any major damage due to early warnings issued by the authorities, some vessels were damaged. However, the massive storm washed hundreds of tonnes of sediment into the Gulf of Oman and the Arabian Sea, which along with the subsequent high temperatures, drove a large percentage of fish stocks into deeper waters.
Sediment and storm damage from Gonu also impacted on Oman’s shellfish industry, with some producers having to make repairs and wait for the waters to fully clear before their farmed produce can again be marketed.
In the wake of the cyclone, seafood prices around the Gulf region shot up by as much as 70%, mainly a result of the fall in production from Oman.
Though stocks may be declining, the industry is working to open up new export opportunities. One new market the Oman fisheries sector is looking to expand into is the US, assisted by the coming into force of a free trade agreement between the two countries in 2006. A number of the sultanate’s leading exporters took part in one of North America’s biggest marine products fairs, the International Boston Seafood Show, in March, with favourable feedback leading to a potential $4m worth of new orders.
The state has done much to support the fishing industry, mindful that it is one of the country’s main employers, with some 30,000 directly involved in fishing activities and around 5000 working in associated jobs such as packaging and processing. Funding assistance for fishermen to buy new boats and equipment, the establishment of research centres to provide detailed information to the industry and state funded training have all strengthened the industry.
In 1998, when the EU briefly banned imports of Oman seafood due to health and safety concerns, the government acted quickly to protect one of the sultanate’s oldest and most valuable industries. New laws were enacted to ensure all processing facilities met stringent EU and Japanese quality control requirements and further assistance was provided to producers to help upgrade their equipment. As a result, any question marks over the standards of Omani seafood soon disappeared.
The state has also moved to regulate fishing seasons and impose limits on the catch of some species, in order to preserve stocks and maintain standards.
Though the sector may be under pressure from high prices and falling resources, it has established a reputation for quality and is now looking to expand beyond its home waters. While vagaries of weather and seasonal conditions may affect net profits, future investments and sound management of stocks should ensure Oman’s fishing industry remains buoyant.
on July 10th, 2007 at 3:13 pm
[…] Fishing Wider Markets Long before there was oil or gas, one of the biggest industries in the sultanate was fishing. As Oman looks to a future when its energy resources run dry so too its fishery industry is contemplating the threat of diminishing returns, with fish stocks being stretched as demand increases…, the chairman of Oman Fisheries SAOG, the sultanate s largest processor and exporter, announced in late… $17m in the previous year to $21m, it fell into the red, posting a net loss after tax of $1.1m […]