RGI is a formidable company, even measured by international standards,
and all trends point to an increase. Profit before tax increased
by an impressive 341% from 1994 to 1995 and the turnover for the
first quarter of 1996 was 2.1 billion NOK. Recently RGI and Aker
have agreed to merge - the merger is dependent on a 2/3 majority
of the general assembly of both companies but everything indicates
that this will be a formality - and the new company Aker RGI ASA
will be Norway's third largest company after Statoil and Norsk
Hydro, with an expected turnover in the region of 20 billion NOK.
Fishing is identified as one of the major areas for the new company.
Fishing is the very cornerstone of RGI, and a very substantial
part of the entire structure as well. Though the company also
deals with finance, real estate, sports equipment and industry
(RGI owns or controls more than 35% of the stock in Aker), the
fisheries element is still central, representing 39% of the company's
turnover. With the planned expansion in Chile and Russia (apart
from American Monarch, construction of another 24 vessels
is planned for fishing in Russia) this percentage is unlikely
to diminish(15).
The story of RGI and Roekke is nothing short of incredible. Kjell
Inge Roekke quit school and went to sea at 16. He invested his
money in fishing vessels and established himself as a giant in
the Alaska pollack fishery in Seattle. Today Roekke is one of
Norway's richest men, owning or controlling 31 fishing vessels
in the Bering Sea, the Pacific and the Atlantic. Roekke - with
good help from his childhood friend Bjoern Rune Gjelsten - built
up RGI to become the world's largest fishing company, controlling
10% of all whitefish catches globally. And this percentage is
increasing.
It started with the establishment of American Seafood Co (ASC)
in Seattle in 1987. During the next 4 years Roekke invested in
a number of old boats which he modified into very advanced factory
trawlers at Norwegian shipyards. In 1994, he established Norway
Seafoods as a holding company which coordinates the activities
of the company, and the same year the holding company got the
job to expand and restructure RGI's fishing activities, and establish
an international fishing company based in Norway. The company
is arranged in three divisions:(16)
- Whitefish
- Pelagic fish
- Salmon
Norway Seafoods has interests in Norway, Europe, South America,
Russia and Alaska. Skaarfish and Norlax were brought into the
company in 1995 and Foodmark Holding and Melbu Fiske Industri
in 1996. The whitefish division is by far the biggest and consists
of 5 operational units:
- Foodmark Holding
- Melbu Fiske Industri
- American Seafood Company (American Bering Sea)
- American Seafood Company Far East (Russian Bering Sea)
- American Seafood Company South America (Argentina and Chile)
AMERICAN SEAFOOD COMPANY in Alaska represents both historically
and currently the largest of Norway Seafood's operational units.
Alaska pollack is the world's largest whitefish resource, and
ASC controlled 18% of the quota for this stock in 1995(17). The fish
is sold as either fillets blocks or surimi, but pollack also produces
roe of good quality in the winter season. The fillets blocks are
sold to large customers in the US, such as Gorton's, who delivers
to McDonald's and the restaurant chain Long John Silver. Other
customers are large international companies such as Nestle and
Unilever. Surimi and roe are mostly sold to the Japanese market.
Other markets in Asia, like Korea, Thailand and China, are of
increasing importance. The parts of the fish that are not used
for surimi, fillets or roe are ground into fishmeal(18).
In April 1996 ASC signed an agreement of intent with Oceantrawl,
a large competitor in the Alaska fishery, about a bareboat agreement
which covers three boats. In parallel with this, RGI signed an
option to purchase the same three boats. According to this agreement,
RGI has the right to charter the boats on a bareboat basis for
a period of 5 years, with an option to extend the agreement or
buy the boats at the end of the period. The boats, two built in
1991 and one in 1988, will be modernized and upgraded to ASC standards
to increase the processing efficiency on board. With these agreements
ASC expects to control around 37% of the available resource of
pollack in Alaska in 1996.
The Norway Seafood fleet consists of 31 vessels, including factory
trawlers, fishing vessels delivering to factory ships, fresh fish
trawlers and longliners. All were either built or converted between
1986 and 1995, so, with an expected lifetime of between 25 and
30 years, Norway Seafood expects capital expense for equipment
or production facilities to be limited. However, the company plans
a large expansion, with more than 20 fishing vessels on the drawing
board.
| Ocean Rover | Factory trawler, pollack, US Bering Sea |
| Northern Eaglemmmm | Factory trawler, pollack, US Bering Sea |
| Northern Hawk | Factory trawler, pollack, US Bering Sea |
| Northern Jaeger | Factory trawler, pollack, US Bering Sea |
| American Triumph | Factory trawler, pollack, US Bering Sea |
| American Dynasty | Factory trawler, pollack, US Bering Sea |
| American Empress | Factory trawler, pollack, US Bering Sea |
| Pacific Scout | Factory trawler, pollack, US Bering Sea |
| Pacific Navigator | Factory trawler, pollack, US Bering Sea |
| American Chalenger | Factory trawler, pollack, US Bering Sea |
| Pacific Explorer | Factory trawler/longliner, pollac US Bering Sea |
| Antarctic I | Longliner, Patagonian toothfish Argentina |
| Antarctic II | Longliner, Patagonian toothfish, Argentina |
| Antarctic III | Longliner, Patagonian toothfish, Argentina |
| Centurion del Atlantico | Factory trawler, southern blue whiting in Argentina |
| Hekktind | Trawler, dependent on gov't permission |
| Sortland | Trawler, dependent on gov’t permission |
| Staaltind | Trawler, dependent on gov’t permission |
| Staaltind 1 | Trawler, dependent on gov’t permission |
| Vesttind | Trawler, dependent on gov’t permission |
| American Champion | Crabber/longliner- crab and Pategonian toothfish outside South Africa |
| Gijon | Factory trawler, pollack, Russian Bering Sea |
| Solidarinost | Factory trawler, pollack, Russian Bering Sea |
| Sozidanie | Factory trawler, pollack, Russian Bering Sea |
| Vigo | Factory trawler, pollack, Russian Bering Sea |
| Kaptain Azarkin | Factory trawler, pollack, Russian Bering Sea |
| Stanovlenie | Factory trawler, pollack, Russian Bering Sea |
| Sotrudnichvesto | Factory trawler, pollack, Russian Bering Sea |
| Vladimir Starzhinsky | Factory trawler, pollack, Russian Bering Sea |
| Suverenitet | Factory trawler, pollack, Russian Bering Sea |
| American Monarch | Factory Trawler being built at Langstein Shipyard. Southern blue whiting, Chile |
In addition, it is being reported that RGI is building 2 fishing
vessels at Reile in Romania and plans to build 24 fishing vessels(19)
(10 fresh fish/freezer trawlers and 14 factory ship) at Brattvaag
shipyard. These are supposed to be introduced in the Russian Barents
Sea.
The Bering Sea divides Alaska and Russia, is 2 ¼ million
square kilometres in size, was discoverded by Dezjnev in 1648
and was named after the Danish/Russian seafarer Vitus Bering who
explored the area about 100 years later. This is where Kjell Inge
Roekke started his fishing adventure.
The Bering Sea is subject to both American and Russian management
and control. In addition to the Russian and American zones, the
Bering Sea contains an international area, the Doughnut Hole.
Similar to the Smutthullet, the Doughnut hole is outside national
jurisdiction. Strong pressure resulting in the decline of the
pollack stocks has led to an agreement by both Russian and American
authorities to forbid all fishery in the Doughnut Hole until further
notice. So far, this agreement has been respected by the relevant
players.
The Russian zone.
In the Russian zone, the management and control of the activities
are far from sufficient. Lack of research as well as lack of faith
in the research that does exist has led to a massive pressure
on various stocks, including pollack. There is little control
of the catch and it is close to impossible to disclose which criteria
form the basis for allocation of licences.
The Norwegian/Russian management of the fishery stocks in the
Barents Sea has gone through a large and positive development
through the last number of years. Together Norway and Russia have
built up a management and control regime which goes a long way
towards functioning satisfactorily, at least in theory. Today,
Russian and Norwegian authorities are using the same database
to keep a proper control with the landings of fish, something
which considerably increases the possibilities for a proper control
over the catches. Norway and Russia have also reached a common
understanding of the situation of the stock and what is required
to maintain the status quo in the future.
However, despite the fact that only one country is involved, the
situation in the Russian Bering Sea represents a stark contrast.
The development of the pollack fishery is worrisome. The decline
of pollack is of a kind where a more correct term is collapse.
In 1981 the pollack stock in the Russian zone of the Bering Sea
was estimated to be around 3.7 million tonnes - in 1995 this stock
was estimated to be around 600,000 tonnes(20).
The explanation can lie in the fact that Russia is separated into
5 different independent management regions which have little or
no contact with each other. There is no sign to indicate that
the knowledge Russian management has obtained through the work
in the Barents Sea (updated databases, thorough marine research
as a basis for the quotas etc) has influenced the management of
the Bering Sea.
RGI controls 18% of the pollack fishery in the Russian Bering
Sea.
The American zone.
In the American sector of the Bering Sea, where RGI controls 37%
of the quota, the situation seems less worrying, with a management
plan and good control of the catches.
Still, recent reports indicate that the catch of pollack is too
high and leading to reductions of the stock as well as other species
that depend on it. The American research ship Millar Freeman found
a considerable decline in the stock of one and two year old pollack.
These alarming results have inspired a new trip this summer. The
results from this year have not yet been published and any results
will not be made available until November.
A total quota for the season is set and fishing activities are
ongoing until the total quota is reached. This system leads to
a favouring of large and efficient ships and overcapacity which
again creates political pressure for higher quotas. Today, the
overcapacity within the American pollack fishery is 200-300%,
and the total yearly quota for the factory trawlers are being
caught within 2-3 months of fishing activities.
With the uncertainty hanging over the [Patagnian toothfish]
fishery combined with appearant lack of control, it is economically
sensible for all participants to fish as much as possible before
it is too late(21).
RGI is heavily involved in the fishery for Patagonian toothfish
in Argentina. In 1996 RGI's part is around 33%(22). Due to the depth
of the fishery (2000-3000 m) longlines must be used.
RGI has three longliners in Argentinian waters. These are Antartic
I, II, III - in addition, the American Champion fishes for Patagonian
toothfish from South Africa.
The fishery for Patagonian toothfish is relatively new and began
in the mid-1980s. Patagonian toothfish is presumed to be a rather
vulnerable species about which scientists have limited knowledge.
Areas where large catches have been made have later been found
to be close to empty - whether this is due to the stock migrating
to new areas or whether the stock simply is decimated is something
we have no clear knowledge about.
What we do know is that Patagonian toothfish lives in depths from
400 - 3000 meters, and that it can become up to 40 years old.
In general we can say that species which reach such an age have
slower reproduction rates than species with shorter life spans.
The young fish (juvenile) live in the upper water areas (400 -
600 m) while the sprawning mass lives in depths down to 2000-3000
meters.
Patagonian toothfish is caught in the international areas outside
Chile and Argentina and in the Antarctic. The conflict between
the UK and Argentina over the Falkland Islands and South Georgia
has further complicated the situation. The fish stock is thus
subject to both national and international management. Meanwhile,
much of the fishery is ongoing in international waters where no
management exists. Fish stocks in Antarctic are managed by the
Convention for the Conservation of Antarctic Marine Living Resources
(CCAMLR), a regulatory body which meets regularly to set quotas
and other management measures.
The Argentinian newspaper Redes writes that "...the list
of participants from last meeting in Hobart in October illustrate
this with a number of remarkable participants. Mike Nordby, the
director of RGI company ASC Latin America, was a part of the official
member of US's delegation as advisor." Redes emphasizes that
other and more natural participants had to stay at home. One of
the the large problems with the management of fisheries in the
Antarctic is that the Commission does not have sanction mechanisms
to penalise illegal fishing. The responsibility for control lies
with the state of flag of the individual vessel.
Patagonian toothfish has a very high market value and the pressure
on the resource can thus easily be too large. In 1995, the Argentinian
authorities set a total quota for Patagonian toothfish of 11,000
tonnes. Registrered catch this year reached 20,000 tonnes, in
addition to discards of fish of a jelly-like quality(25) which represents
around 20% of the catches. This is a dramatic increase from the
5,000-7,000 tonnes which were taken yearly in the beginning of
the 1990s. In recent years the catches have diminished somewhat,
something researchers and the fishing industry believe is a sign
of declining stocks.
The knowledge of the Patagonian toothfish is limited also in the
companies which are actively involved in the fishery. In a meeting
between Greenpeace and RGI on 23 August this year, RGI admitted
that they have little knowledge of the fish. They state it is
"a curious type of fish.." and said further that "..we
experience that in areas where we got large catches one year,
we get nothing the next..." That this kind of fishery can
not be called sustainable was admitted by RGI's Bjoern Rune Gjelsten
in a radio debate with Kalle Hesstvedt in Dagsnytt on the same
day.