Halibut prices increased in Upernavik

In connection with Polar Seafood A/S' new fish factory in Upernavik, which was built in 2019, Jens Salling, co-owner and then CEO of Greenland's largest privately owned group, said that he did not consider imminent competition from Royal Greenland's fish factory in Upernavik to be problematic.

But almost six years after Polar Seafood's fish factory was inaugurated, there are now signs of increased competition in one of Greenland's largest fishing areas, and this is evident from the increasing purchase prices for halibut in the area in recent times.

Purchasing prices are rising

After Polar Seafood opened the fish factory in Upernavik, the purchase of halibut for Royal Greenland's factory in the city fell significantly, but competition has become fiercer over the years, which has led to higher purchase prices for halibut.

At the end of the year, competition intensified to ensure the largest possible purchases for the fish factories, and as a result, the price per kilo of halibut has now increased significantly.

Polar Seafood in Upernavik raised the purchase price of halibut from 27 kroner to 32 kroner per kilo in early December, and added a surcharge of two kroner.

Royal Greenland has purchasing facilities in Upernavik and the settlements, while the group's subsidiary Arctic Fish Greenland also operates fish factories in Kullorsuaq and Nuussuaq, where halibut is sold for 31 kroner per kilo.

Highest level ever

According to Knud Mathiassen, factory manager at Polar Seafood's fish factory in Upernavik, competition is tough in Upernavik, but he also points out that the purchase of halibut has been good in the last month of the year, which is partly due to higher prices for halibut.

- The purchase of halibut could have been better in the summer and autumn, and the purchase is also significantly lower this year than last year, but things are going well now, which is partly due to the higher purchase prices.

- Purchasing prices are higher than ever before, and this is due to increased competition.

- There are a total of eight fish factories in Upernavik and the surrounding settlements competing against Polar Seafood, so the competition is tough, but our higher prices have resulted in more landings with us, he says.

Polar Seafood's fish factory in Upernavik is open year-round and now employs around ten people.

The action falls

The purchase price for halibut to Royal Greenland's fish factories in Upernavik and the settlements has been raised to 31 kroner.

The group's subsidiary Arctic Fish Greenland has fish factories in Nuussuaq and Kullorsuaq, where the price per kilo is also 31 kroner.

According to Frederik Olsen, director of Arctic Fish Greenland, there has been a significant decrease in purchases this year compared to last year, but he does not want to disclose the decrease in numbers. According to him, the decreasing purchases mean fewer employees at the fish factories. And there are several possible reasons for the decreasing purchase volumes, says fisherman and trapper Timotheus Petersen from Kullorsuaq, who is a board member of Arctic Fish Greenland.

- Ghost nets, Greenland sharks and changing currents are believed to be some of the reasons for the declining catch. In addition, large halibut, which were once caught in large quantities, are now far from being available, and it is difficult to say exactly what this is due to, he says.

He states that this year Arctic Fish Greenland will start producing halibut with heads and foreheads, so-called j-cuts, and the company has also sold a larger number of snowmobiles to local fishermen to increase the amount of halibut purchased.