SELF-REGULATIONS OF THE “DANISH” MATJES HERRING FISHERY - FROM SUCCESS TO COLLAPS -

Jesper Raakjær Nielsen1 and Christian Olesen2

1 Institute for Fisheries Management and Coastal Community Development, The North Sea Centre, 9850 Hirtshals, Denmark

2 The Pelagic Producer Organisation of Denmark, The North Sea Centre, 9850 Hirtshals, Denmark

Matjes herring • Is a particular quality of the North

Sea/Skagerrak herring.• In the processing the gills are

removed, the herring is hereafter salted and graded.

• The processing is undertaken by Danish or Norwegian processors for the Dutch buyers.

• The main market is the Netherlands, but a minor portion is sold in Belgium.

• The market is dominated by 8-10 Dutch buyers having a market share of approximately 80-90%.

Landings in Denmark divided on nationality

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The herring fishery

• The Matjes fishery is a Scandinavian fishery. Swedish, Norwegian and Danish vessels participate. After 1995 Danish participation was low.

• The fishery for Matjes herring begins usually in May with a duration of normally 10 weeks.

• The fishery takes place in the North Sea, Skagerrak and along the Norwegian coast.

Matjes landings in Denmark and Norway

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The fishing fleet• Most vessels are purse-seiners

above 40 meters in length with an average crew of 8-10 fishers.

• Trawlers of 30-40 meters in length having an average crew of 5 fishers are also involved.

• All vessels involved in the Matjes herring fishery have RSW tanks and land high quality herring.

• Around 25 vessels are employed in the fishery at a time, but up to 100 vessels are involved during the season.

• The matjes herring fishery creates 4-500 extra jobs in the Danish processing companies during the season.

Fishing area and landing sites

The Matjes Committee

• Self-management of the Matjes herring fishery began already in the late 1970's. From 1992 until 2000 the self-regulation of the Matjes herring fishery was institutionalized on a voluntary basis by the creation of Matjes Committee

Self-regulation 1992-1998

• The self-regulation of the Matjes fishery meant that Norwegian and Swedish fishermen's organisations voluntarily accept rules made by the Danish Matjes Committee.

• Practical management was is undertaken by the Purse Seiners Producer Organisation in close collaboration with one representative from the regional processing industry.

• This includes monitoring of the Matjes fishery, gathering catch data, determination of weekly catch rations and distribution of information to fishermen's organisations in Norway, Sweden and Denmark, Danish processors and Dutch buyers.

The Ten Commandments for landing Matjes herring in Denmark

1. Herring for Matjes shall be landed in fish boxes.

2. Herring for Matjes shall be sold at the public fish auction.

3. The Matjes Committee decides maximum weekly rations for all vessels landing herring for Matjes.

4. Herring for the Danish processing industries (non-Matjes) must be sold at the teleauction or directly to the processors; in all cases the buyer takes over the herring in the bulk tanks of the vessel.

5. Herring for non-Matjes can be landed in addition to the maximum weekly ration for Matjes.

6. Herring, landed for non-Matjes must not be used for Matjes.

7. Vessels, which want to land Matjes herring on a given day are required to sign up for landings at the public fish auction before 06:00 at that day.

8. Vessels, signed up for landing at the public fish auction shall land the quantity signed up for and are only allowed to land this quantity.

9. The quantity signed up for, shall be landed at one time.

10. Two weeks before the Matjes season starts it is not allowed to sell herring in fish boxes at public fish auctions in Northern Jutland.

The daily management• The operational rules were

continuously revised in order to obtain the highest possible quality and maintain a high-value market.

• As part of the process weekly informal "coffee-meetings" were held usually on Thursdays. These meetings were extremely important.

• The coffee meetings was the a focal point for exchange of information. The fishers inform where the herrings have been caught and in which sizes and quantity. The buyers inform about the quality (size, stomach and fat content, appearance and taste as well as the market prospects.

Operational rulesOn behalf of the MC the PSPO decided the weekly catch rations and informed the Swedish and Norwegian FOs on the decision

Danish and Swedish have an individual vessel quotas, whereas the Norwegian FO has a collective quota, which it can distribute among its members.

Enforcement of the rules lie within the FO's of the participating fishers. The PSPO can only enforce rules on its own members and inform the Norwegian and Swedish FOs, if their members break the rules.

Operational rules (cont.)

Continuous exceeding of the weekly rations leads to economic sanctions, where the vessel must pay back the estimated value of the extra catch minus costs.

The MC is a 100% voluntary agreement, thus the committee only hold power which the organisations involved in the Matjes fishing/processing are willing to delegate.

Enforcement of rules is a part of the agreement between the international partners and is built on trust and confidence among the participants in the whole Matjes fishery and not only within the MC.

Coordination among the various stakeholders Meetings were held throughout the year : • A meeting was normally held in

Sweden in early spring. Where MC meet with the Swedish and Norwegian fishermen's organisation to prepare and plan the forthcoming season from the supply side.

• Shortly hereafter the MC meet with the Dutch buyers in the Netherlands to obtain information on expected demand and Dutch quality requirements for the coming season.

• A evaluation meeting was held in Norway in late autumn, attended by representatives from the Norwegian and Swedish FO's and the MC.

Surplus profit in the ”Danish ”matjes fishery

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The 1998 Rules regarding landing of Matjes in Denmark

Auction sale can take place in 3 different ways: 1. In boxes (as usual)2. In containers3. According to samples in tanks

According to samples • Every tank is offered separately.• From every tank at least 160 kg are sampled.• The vessel decides the smallest ( min 5 tonnes) and the largest quantity to be sold

together• If volume in a tank is larger than stated, the buyer is not obliged, but he has a right

to buy the extra volume. • The buyer has no right to receive compensation, if the volume is smaller than

stated.• The buyer decide the form of discharging and pay all costs associated • The discharging will take place in the order the matjes herring has been sold at the

auction• The matjes herring can be requested to be discharged right after the auction has

finished.• The tests selection remains in the auction hall until the unloading is finished

The reasons for changing the rules in Denmark

1. The herring stock in the North Sea were low, and Danish processers lacked herring for its primary production marinated herring for the German market.

2. The landing costs associated to the 10 Commandments where high.

3. To adapt to increased competition form the matjes market in Egersund, Norway.

The impact of the new rules

• The rules become sales principle rather than management regulations.

• The 1. hand sale of matjes lost its exclusiveness.

• No coordination or control to maintain a high price market.

Some explanions for the collaps• Very strong external pressure to the system

1. The recovery of the Atlanto-scanto herring (TAC increased to app. 1.000.000 tonnes within a few years). The Danish vessels entered this fishery to obtain historical rights, as the resource outside the Norwegian EEZ was unallocated among EU, Iceland, Norway and the Faro Islands.

2. Some Dutch buyers wanted to break the fishers controlled system in Denmark (take the profit themselves)

3. The Matjes market in Egersund, Norway won market shares

• The production of matjes herring is coming less important for most of the Danish processing companies

• Because the Danish Purse-seiners left the matjes fishery to establish rights in the Atlanto-scanto fishery. The key-person (Danish) in the self-management of the matjes fishery withdraw from the daily management, as the vessels he represented did not participate anymore.

Is there any future for self-management in the matjes fishery?

POSITIVE INCENTIVES

• ITQs were introduced (trial) in the Danish herring fishery from 2003

• In the 2003 matjes season. The Danish purse-seiners have some extend participated again.

• The Norwegian Herring sales organisation and the Danish Pelagic PO has initiated discussion on how to recover the matjes market as a high price market.

• The Dutch buyers are in resent years struggling to get the volume and the quality of herring they demand.

NEGATIVE INCENTIVES

• The production of matjes herring is continuing becoming less important for Danish Herring processing companies.

THANK YOU!