Kaliningrad canneries failing to compete with Ukrainian processors

Fish canneries, members of the Union of Fishermen of the North, decreased production two times from 141.2 million nominal canned fish units (equal to ca.325 grams) in 2008 to 74.5 million canned fish units in 2009. Production capacities of onshore processors were used only at 50%. Main reasons behind the dramatic decline of production volumes of canned seafood were the absence of state protection of the domestic market of seafood and inaccessibility of bank loans.

According to a spokesman of the Union, the Ukraine has been shipping to Russia Baltic sprat in tomato sauce at a wholesale price of RUR8.50. The cost price of Kaliningrad products amounts to RUR11.00. In the meantime, capture quotas for Baltic sprat amounts to 30,000 tonnes which could be processed into at least 50 million nominal canned fish units.