Diesel to drive up price of fish
Sealord Group company secretary Terry Horne said fuel was the company’s second biggest cost after labour and the price increases were having a significant impact.
Sealord had rationalised its fleet over the past few years and introduced fuel-efficiency measures. “But it will ultimately impact on pricing in the future as companies look to increase cost recovery,” Horne said.
Talley’s Fisheries director, Andrew Talley, said the cost of commercial fuel was rising alongside domestic pump prices and was a critical factor for the whole fishing industry.
Fuel was consuming fishing profit margins and the industry was going to have to force international price increases.
In the long-term this would flow on to food prices, he said.
Nelson Inshore Fishermen’s Association vice-president Darren Guard said he expected his marine diesel prices to increase hugely at the end of the month.
There was no doubt fish prices would increase for consumers, but he hoped the price to fishermen would also rise.
While the fleet had a good tuna season it would be a long, hard winter for most fishermen, with many choosing to tie up their vessels and work onshore rather than fish at a loss, he said.
Arendale director Chris Ludeke, of Lyttelton, said he was cutting his deep-sea fleet from two vessels to one, and leasing out extra quota in the face of rising fuel prices.
Diesel prices and high Ministry of Fisheries compliance costs made fishing a very difficult industry.
He warned a reducing fleet would impact on New Zealand’s export earnings.
Lyttelton vessel agent Russ Barron said bulk marine fuel was escalating faster than domestic pump prices because fishermen paid international spot prices.
Source: Fairfax New Zealand
Tags: fish, fuel costs, New Zealand, price rising