Fierce competition for stonefish roe in Paamiut

The fishery producer Ortooraq/Taatsiaq Møller P/R in Paamiut, consisting of father and son, Ortooraq Møller and Taatsiaq Møller, are owners of a new procurement facility that currently exclusively produces stonefish roe.

Last year, they received 48 barrels of stonefish roe at the facility, all of which were exported to Sweden.

In addition to the procurement facility, Taatsiaq Møller also operates various businesses, including an engine repair shop and a hotel, and is therefore one of the business profiles in Paamiut. However, Greenland's largest public company, Royal Greenland A/S (RG), owned by the Greenland Self-Government, is, in Taatsiaq Møller's opinion, competing too fiercely with the private procurement facility in the town that started up last year.

Royal Greenland is, however, operated on the usual competitive terms, the company says.

Distorted competitive situation

The coalition agreement between the new Greenlandic government, which was formed last year, specifically mentions that small and medium-sized businesses should have good conditions and growth opportunities. However, according to Taatsiaq Møller, Royal Greenland's tough competition for the smaller and newly started plant in Paamiut creates a distorted competitive situation.

Royal Greenland's fish factory in Paamiut buys halibut, cod, redfish and snow crabs. And it is very difficult to compete with a large and economically strong company in a town like Paamiut, which has around 1,200 inhabitants, according to Taatsiaq Møller.

- As soon as we set our price per kilo for rockfish roe, Royal Greenland immediately raises the prices, and as a new company we cannot keep up with that.

- It is said that Royal Greenland has an important social responsibility, but its methods point more towards trying to squeeze competitors out of the market, which creates a distortion of competition, and that is of course unacceptable.

- If our plant closes, Royal Greenland will immediately lower the prices again, and we have unfortunately seen this trend before, says Taatsiaq Møller, who is also vice-chairman of the fishing and hunting association in Paamiut

If, from a political side, you want to create a better framework for the self-employed, Taatsiaq Møller believes that RG should use more competitive ones, so that the private industry can still be a part of the fishing industry.

Ortooraq/Taatsiaq Møller P/R's fish factory in Paamiut has four employees and plans to start cod production next year.

A healthy competitive spirit

Royal Greenland's fish factory in Paamiut receives 46 kroner plus one kroner in bonus for every kilo of stonefish roe purchased. Factory manager Otto Petersen says that only about two tons of stonefish roe have been landed since the stonefish fishery started on April 1.

- This is partly due to unstable weather, but it also seems that our new competitor in the market is also playing a role, he says.

He also points out that they raised their purchase prices for stonefish roe in accordance with the existing competitive conditions.

- I think it is healthy to compete, and we are simply following the price of commercial competition. We wish all the best for our current competitor. Therefore, it cannot be claimed that we are trying to suffocate the competitor, states Otto Petersen.

Last year, 39 tonnes of stonefish roe were loaded into Royal Greenland's fish factory in Paamiut, and Otto Petersen hopes to land 50 tonnes this year.

A safer framework for the self-employed

Royal Greenland's price competition with small purchase plants sometimes takes place using dubious methods, believes the chairman of Inatsisartut's fishing, hunting and agriculture committee Bentiaraq Ottosen from Atassut.

- It can be frustrating that public companies compete against independent entrepreneurs. It is also important to point out that competition can bring benefits to a city, he says.

At the end of last year, public hearings were held regarding a proposal to amend the Competition Act. The proposal is now on the agenda of the Competition Act.

Bentiaraq Ottosen believes that it is necessary to ensure that private companies can continue without being suffocated by public companies, and that the Competition Act should pave the way for private companies to develop.