BIM’s National Seafood Survey for 2023 reveals mixed bag after challenging 2022
The Irish fishing industry staged a remarkable comeback in 2023, with gross profits rising by 179% despite a slight dip in revenue, according to the latest findings from Bord Iascaigh Mhara’s (BIM) National Seafood Survey. The comprehensive report, which captured data from over 1,000 vessel owners representing 80% of the active fleet, paints a picture of an industry that has navigated the choppy waters of recent years through improved cost management and operational efficiency.
After the unprecedented challenges of 2022, when the sector grappled with soaring fuel costs triggered by the war in Ukraine and persistent inflation, the 2023 results demonstrate the resilience and adaptability that has long characterized Ireland’s fishing community. While total revenue dipped marginally by 1% to €323.6 million, the fleet achieved a gross profit of €48 million – a stark contrast to the struggles of the previous year.
The Numbers Tell the Story
The transformation is evident across key performance indicators. Operating costs fell by 12% to €307.8 million, driven primarily by significant reductions in fuel and personnel expenses. Energy costs decreased by 17% to €52.4 million as fuel prices retreated from their 2022 peaks, when the average cost per litre reached €1.19 compared to €0.83 in 2023.
“The sector has shown remarkable resilience,” said one vessel owner surveyed in the report. “While we’re still dealing with challenges around quotas and market volatility, the reduction in fuel costs has given us breathing room to focus on efficiency and long-term planning.”
Personnel costs also declined substantially, falling by 25% to €92.3 million. This reduction reflects both stabilization in inflation and the ongoing recovery in crew availability following the COVID-19 disruptions. However, industry observers note that wage pressures remain a concern, particularly as the sector competes for workers against other industries experiencing their own labour shortages.
The fleet’s improved profitability was further supported by an additional €70.9 million in operating subsidies financed under the Brexit Adjustment Reserve and European Maritime, Fisheries and Aquaculture Fund. While these subsidies aren’t factored into gross profit calculations, they provide crucial support as the industry adapts to post-Brexit realities.
Fleet Structure Remains Stable
Ireland’s fishing fleet structure remained relatively stable in 2023, with 1,993 registered vessels excluding those in the aquaculture segment. Of these, an estimated 1,393 vessels were active, representing a 6% increase from 2022. The fleet’s capacity totaled 65,728 GT and 182,975 kW, maintaining the diverse mix of vessel types and sizes that has long characterized Irish fishing operations.
The small-scale fishery (SSF) segment, comprising vessels under 12 meters, continues to dominate numerically with 1,164 active vessels – 84% of the total active fleet. These vessels, typically operating within 12 nautical miles of the coastline using passive gears like pots, traps, and nets, provided 974 full-time equivalent (FTE) positions, or 56% of all national FTEs in the sector.
Despite representing a modest share of the fleet’s total capacity, the SSF segment plays a crucial socio-economic role, particularly in remote coastal communities where alternative employment opportunities are limited. The segment achieved a strong recovery in profitability in 2023, with gross profit rising by 180% to €10.9 million, driven by reductions in fuel, personnel, and maintenance costs.
Species Performance Mixed
The 2023 catch results tell a story of mixed fortunes across different species. Total landings increased by 6% to 186,300 tonnes, but their value decreased by 5% to €286.4 million, reflecting significant price volatility across key species.
Mackerel remained the star performer, maintaining its position as the most valuable species for the Irish fleet with landings worth €78.3 million – representing 27% of total landing value. The species saw its value increase by 60% year-on-year despite a slight 1% decline in volume, indicating substantial improvement in average unit prices.
However, other key species faced challenges. Nephrops, which accounts for 27% of total landing value, experienced a significant 39% price drop from €12.36/kg to €7.55/kg. This decline particularly impacted the demersal fleet segments that depend heavily on this high-value crustacean.
The shellfish sector, crucial to many small-scale operators, faced its own pressures. Scallop prices declined by 48% from €4.42/kg to €2.31/kg, while brown crab prices dropped 22% and lobster prices fell 10%. These price declines highlight the vulnerability of small-scale operations to market volatility and the importance of diversification strategies.
“The shellfish market has been particularly challenging,” noted one inshore operator. “We’ve had to adapt our fishing strategies and look at different species to maintain viability.”
Employment Challenges Persist
While the economic indicators show improvement, employment trends reveal ongoing challenges. Total employment in 2023 was estimated at 2,681 jobs, representing 1,743 FTEs – figures that remain below pre-COVID-19 levels of 2,944 jobs recorded in 2019.
The employment data reveals concerning demographic trends. The average age in the SSF is 47 years with a median of 48, while the LSF shows an average and median age of 45 and 48 respectively. These figures highlight the ongoing challenge of attracting younger workers to the industry.
Gender imbalance remains stark, with males representing 96% of SSF crews and 94% of LSF crews. While female representation in the sector is low, the report notes that women’s contributions often go unrecorded, particularly in shore-based activities like gear preparation, administration, and fish sales.
Average crew costs fell by 24% to €34,416 per job and by 23% per FTE to €55,340 in 2023. While this helped improve fleet profitability, it raises concerns about the sector’s ability to attract and retain skilled workers, particularly when compared to the national median annual earnings of €43,221.
The report highlights that wage levels vary substantially depending on vessel size, crew employment type, and fishery, with larger vessels typically offering higher compensation through share-based remuneration systems linked to landing values.
Large-Scale Operations Drive Performance
The large-scale fishery (LSF) segment, consisting of 229 vessels over 12 meters, continued to be the economic powerhouse of the Irish fleet, generating 82% of total revenue despite representing just 16% of vessels by number. This segment includes the crucial pelagic trawlers that target species like mackerel, herring, and blue whiting, as well as the demersal vessels pursuing cod, haddock, and other bottom-dwelling species.
The RSW (Refrigerated Seawater) pelagic segment over 40 meters experienced particularly strong performance, with revenue rising 24% to €89 million and gross profit increasing by 370% to €24.9 million. This improvement was aided by capacity adjustments resulting from the Brexit voluntary permanent cessation scheme, which saw 39 vessels decommissioned at various stages throughout 2023.
Killybegs and Castletownbere remain the two largest home ports for LSF vessels, continuing their roles as key hubs for Ireland’s offshore fishing operations. The concentration of larger vessels at these ports reflects both the infrastructure requirements for modern fishing operations and the historical development of Ireland’s fishing industry around these strategic locations.
Regional Context and Competition
Ireland’s position within the EU’s North Western Waters region underscores both the opportunities and challenges facing the fleet. With 1,373 active vessels, Ireland operated the largest fleet by vessel count in the NWW in 2023, followed by France with 1,261 vessels.
Ireland’s dependence on the NWW region is unmatched among member states, with 90% of total landed value and 99% of fishing effort concentrated in these waters. This geographic concentration makes Irish fishing operations particularly sensitive to regional quota decisions and stock assessments.
The report notes that Ireland was one of only six member states to register a revenue increase from 2022 to 2023, outperforming larger fishing nations like France (-7%), Spain (-13%), and Belgium (-8%). Ireland’s contribution of €48 million to the region’s total gross profit of €179.3 million positioned the Irish fleet as a stabilizing force within the NWW economy.
Fuel Efficiency Varies by Gear Type
The report provides detailed insights into fuel consumption patterns across different fishing methods, revealing significant variations in efficiency. The Irish fishing fleet consumed over 63 million litres of vessel fuel in 2023, with LSF vessels representing just 16% of the total fleet but consuming 92% of total fuel.
Demersal trawlers and beam trawlers emerged as the most fuel-intensive operations, with larger demersal trawlers consuming over 300,000 litres per vessel annually and requiring more than 1,100 litres per tonne landed. Beam trawlers showed the highest fuel use per tonne, highlighting the energy-intensive nature of these operations.
In contrast, pelagic trawlers over 40 meters demonstrated impressive efficiency, using nearly 500,000 litres per vessel but only 100 litres per tonne landed due to their large catch volumes. Small-scale operations using pots and hooks proved most fuel-efficient, with potters using approximately 2,700 litres per vessel and 358 litres per tonne.
Brexit Impact Continues
The ongoing effects of Brexit remain visible throughout the industry, from quota allocations to operational adjustments. The Brexit voluntary permanent cessation scheme resulted in 39 vessel decommissionings during 2023, primarily affecting the LSF segment and contributing to improved economic performance through capacity adjustments.
Survey responses consistently highlighted quota concerns, with terms like “quota” and “lack” frequently appearing in vessel owner feedback. The report notes that quota reductions have impacted not only operational planning but also crew morale and business model stability.
Ireland’s approach to quota management as a public resource continues to distinguish it from other EU member states, helping prevent consolidation among large enterprises and maintaining distribution across diverse fleet segments. This policy supports continued economic links between fishing activity and coastal communities where alternative employment opportunities remain limited.
Market Volatility Creates Uncertainty
Market conditions emerged as a dominant concern in survey responses, with vessel owners reporting difficulties securing stable prices and facing increased competition from international fisheries. The overall average price for landed species fell by 21% in 2023, despite gains in specific species like mackerel.
“Fish prices are all over the place,” commented one survey respondent, capturing a sentiment echoed throughout the industry. The volatility particularly affected non-quota species targeted by small-scale operators, with scallops, crab, and lobster all experiencing significant price declines.
The report suggests that these market pressures reflect broader economic uncertainties and supply chain disruptions that continue to affect global seafood markets. However, industry observers note signs of potential stabilization as global economic conditions gradually improve.
Technology and Innovation Opportunities
While not extensively covered in the economic data, the report hints at opportunities for technological advancement and innovation within the fleet. The discussion of fuel efficiency variations suggests potential for targeted improvements, particularly in trawl and dredge segments where fuel consumption per tonne remains high.
The development of BIM’s Shellfish Fisheries App and the online interactive Fisheries Industry Dashboard demonstrates the sector’s growing embrace of digital tools for data management and decision-making. These developments support more informed operational choices and potentially improved efficiency across the fleet.
Looking Ahead: Cautious Optimism
The 2024 and 2025 projections present a mixed outlook. Initial data for 2024 suggests revenue decline of 12% to €286 million and GVA decrease of 16% to €121.7 million, primarily due to quota changes and fish price fluctuations. However, 2025 forecasts suggest improved performance driven by continued cost reductions and better demersal sector performance.
The report notes that key demersal segments have shown improved economic performance post-2023, aided by Brexit-related capacity adjustments, while pelagic segments experienced decline due to reduced quotas for key species. For 2025, major quota cuts in mackerel and blue whiting are expected to be largely offset by increases in horse mackerel quotas.
Industry stakeholders remain cautiously optimistic about the medium-term outlook. The government’s continued commitment through supportive policies and EMFAF funding provides a foundation for recovery and growth. Global market indicators suggest potential fish price rebounds, coupled with expanding export opportunities that could strengthen revenue streams.
“We’re seeing signs of stabilization after a very challenging period,” noted one industry representative. “The key now is maintaining operational efficiency while adapting to ongoing changes in quotas and market conditions.”
Resilience Through Adaptation
The 2023 results demonstrate the Irish fishing industry’s capacity for adaptation and resilience in the face of significant challenges. While external pressures from fuel costs, quota restrictions, and market volatility continue to test the sector, the improvement in profitability shows that strategic cost management and operational adjustments can yield positive results.
However, longer-term sustainability will require continued attention to workforce development, technological innovation, and market diversification.
