Halibut prices increased in Upernavik

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

But almost six years after the Polar Seafoods fish factory was inaugurated, there are now signs of increased competition in one of Greenland's largest fishing areas, and this can be seen from the increasing procurement prices on halibut in the area in recent times.

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

But almost six years after the Polar Seafoods fish factory was inaugurated, there are now signs of increased competition in one of Greenland's largest fishing areas, and this can be seen from the increasing procurement prices on halibut in the area in recent times.

Procurement prices are rising

After Polar Seafood opened the fish factory in Upernavik, procurement of halibut for Royal Greenland's factory in the city fell significantly, but competition has become tougher over the years, leading to higher procurement prices on halibut.

At the end of the year, competition intensified to ensure the greatest possible procurement for the fish factories, and as a result is Kilo prices for halibut have now increased significantly.

Polar Seafood in Upernavik raised the procurement price to halibut from DKK 27 to DKK 32 per kilo at the beginning of December, and in addition there was a supplement of two kroner.

Royal Greenland has procurement 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 the kilo.

Highest level ever

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

- The transaction of halibut could have been better in summer and autumn, and the procurement is also significantly lower this year than last year, but it is going well now, which among another is due to the higher procurement prices.

- The procurement prices is higher than ever before, and this is due to increased competition.

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

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

The transaction decreases

The procurement price for halibut for Royal Greenlands 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 kilo price is also DKK 31.

According to Frederik Olsen, director of Arctic Fish Greenland, there is a significant drop in procurement this year compared to last year, but he does not want to disclose the decline in numbers. The falling one According to him, procurement means fewer employees at the fish factories. And there is several possible reasons for the falling procurement volumes, says fisher and captures Timotheus Petersen from Kullorsuaq, who is a board member in Arctic Fish Greenland.

- Ghost yarn, Greenland sharks and changed current conditions are believed to be some of the reasons for them decreasing catch volumes. Furthermore, there is now a long way between large halibut, which once caught in large quantities, and it is difficult to say exactly what this is due, he says.

He states that this year Arctic Fish Greenland will start to produce halibut with head and pans, and so called j-cuts, just like the company have sold a larger number of snowmobiles to the local fishermen to increase their purchased halibut.