EU Increases Frozen Cod and Haddock Imports from Russia Amid Shortage

The European Union has significantly ramped up its purchases of frozen cod and haddock from Russia as a result of a shortage driven by declining fish stocks and trade restrictions. This shift has made Russia the primary supplier of frozen cod to the EU, accounting for 54.7% of the imports in 2023.

Why this matters: The increased reliance on Russian imports highlights the complex dynamics at play in global food supply chains and the impact of geopolitical tensions on trade. This shift could lead to further price increases and supply chain disruptions, affecting consumers and businesses across the EU.

The shortage of cod, a staple in many European dishes, is primarily the result of a dramatic reduction in Atlantic cod stocks. The UN Food and Agriculture Organization (FAO) has warned of this decline, which has exacerbated the supply issues already present as a result of geopolitical tensions.

Trade restrictions imposed on Russia following the conflict in Ukraine have further complicated the situation. Although food items, except for high-end products like caviar, are exempt from EU sanctions, the sanctions have still hampered Russia's ability to conduct foreign trade and transactions.

Norway, another leading cod producer, has also contributed to the shortage by suspending all Russian seafood imports through a key border crossing in October, citing inadequate infrastructure. This has left the EU with fewer alternatives for sourcing cod.

The impact on the market has been significant. Prices for cod products have surged, forcing some EU countries to seek cheaper alternatives like pollock. German Zverev, director of the All-Russian Association of Fish Producers, noted, "Despite the significant increase in prices, consumers are not abandoning [cod] en masse, although they partially switch to cheaper white fish, primarily pollock."

In 2023, the EU imported over 284,000 tons of cod, excluding salted fillets, with frozen cod accounting for almost half of these shipments. The steady demand amid a declining supply has created an imbalance in the market, leading to what the FAO describes as 'sky high' prices.

The fish-processing industry in Europe is also struggling. The FAO's GLOBEFISH report highlights that the ban on trade with Russia is severely affecting European processors, who are finding it increasingly difficult to secure enough raw material. "The ban on trade with the Russian Federation following the conflict in Ukraine, is taking its toll for European processors. They are just not getting enough raw material," the report states.

The EU's continued reliance on Russian imports highlights the complex dynamics at play in global food supply chains. The situation remains fluid, with ongoing geopolitical developments likely to further influence the market.

Key Takeaways

• Russia now supplies 54.7% of EU's frozen cod imports due to shortage.
• Atlantic cod stocks have dramatically declined, exacerbating supply issues.
• EU sanctions on Russia and Norway's import suspension worsen the shortage.
• Cod prices surge, forcing EU countries to seek cheaper alternatives like pollock.
• EU fish-processing industry struggles to secure raw material due to trade bans.