Aquaculture in Greece

Aquaculture in Greece is an important sector of its economy. As of 2022, the annual turnover of aquaculture enterprises in Greece reaches 700 million euros, 80% of which is exported to 40 countries, and in the next 5 years the turnover is expected to exceed 1 billion euros. Aquaculture production is expected to increase, with an average annual increase of 3% in the medium term (until 2025), and an average annual increase of 5% in the long term (until 2030), while simultaneously increasing the competitiveness of Greek aquaculture products. Let's take a closer look at aquaculture in Greece.

Content

• Economic importance of Greek aquaculture
• Challenging times for Greek aquaculture
• Rivalry between fish farmers in Greece and Turkey
• Government assistance to aquaculture enterprises
• The challenges of Greek fish farmers
• Greek fish farming in numbers

Economic importance of Greek aquaculture

Aquaculture in Greece provides 14,000 direct and indirect jobs (fish feed factories, equipment manufacturing, distribution network) currently and is expected to increase to 20,000 over the next 5 years.
Greek fish farming, after more than three decades of continuous growth and development, is today among the country's leading export sectors, making a positive contribution to the country's GDP and trade balance. It is noted that Greek aquaculture fish is the country's number one export product in the primary sector.
It is a fact that the constantly growing demand for aquaculture products creates favorable conditions for the further development of the industry. Today, 60% of fish production in Greece comes from fish farming, and considering that fisheries have reached the maximum limit of the products they can offer, aquaculture is the most optimal solution.

Challenging times for Greek aquaculture

Despite the good development of the sector, this was not always the case; there are many difficulties.
2022 has been a very challenging year for the fish farming industry as continuing pressure from competitors has been compounded by rising production costs and war in Ukraine, creating a complex equation for all businesses in the sector.
This is not the first year that has been difficult for fish farmers. In 2020 and into 2021, the fish farming sector experienced problems caused by the pandemic and international competition, namely falling sales of large fish and rising production costs.
Already in the 2nd half of 2021, there was an increase in energy and transport prices, as a result of which all other costs of the production process (fish food, oxygen, fish boxes, transport) increased. This caused a significant increase in overall production costs, an increase of at least 25%. The increase in the cost of fish feed exceeded 40%.
The economic impact of the pandemic on the fish farming sector was caused by a temporary drop in export volumes, which was offset by increased domestic consumption and a gradual recovery in sales. Production management and supply chain operations were put to the test. Greek fish farmers managed to overcome these challenges, ending 2021 with sales and exports rising as consumption began to return to pre-Covid levels, and in some countries even surpassed them. As the gradual lifting of restrictive health measures and the reopening of the market, mainly in the catering and tourism sectors, has created increased demand, especially in the area of “out-of-home consumption”.
Sales of Greek aquaculture fish in 2021 reached 131,250 tonnes valued at €636 million, showing an increase of 7% in volume and almost 10% in sales value compared to the previous year. Sea bream and sea bass account for 96% of sector sales (125,550 tonnes), with the remaining 4% coming from all other species (5,700 tonnes).
Exports in 2021 amounted to 100,361 tonnes valued at €499 million, an increase of 9% in volume and value and the highest in the last 10 years.
80% of the products were exported to the EU and third countries, and the remaining 20% on the domestic market. Italy, Spain and France remain the main markets for fish farmed in Greece, as these three countries account for 58% of Greek production or 72% of exports, 3% is exported to the US and 1% to Canada. The remaining exports were mainly to Germany, Portugal, the Netherlands and the Balkan countries.
Despite increased competition from third countries and continued growth in production in Turkey, average prices for both main trades are rising (+1.5% sea bream, +6% sea bass), creating positive results for most businesses.

 

 

Rivalry between fish farmers in Greece and Turkey

2022 did not bring big changes in European production and did not affect sales in Greece. However, competition with Turkish fish farmers is increasing.
In 2021, almost 12 thousand tons of sea bream and sea bass were imported to Greece from Turkey. Of this amount, it is estimated that only 1,000 tons were consumed within Greece. The remaining quantity was sent to European markets through the Greek fish marketing network. Turkey's total sales volume for 2021 is 155,000 tons.
In 2022, Turkey supplies the market with about 200,000 tons of fish per year, against 120,000 tons of Greek fish, causing serious friction in the market, especially in the EU.
In 2023 and beyond, Greece expects to supplant Turkey in the US market and increase supplies from 3,000 - 4,000 tons of fish to 20,000 tons per year. The prerequisites for such optimism among Greek fish farmers are the assumption that Turkey will not be able to quickly increase the volume of fish production, as well as the reorientation of its exports to Russia and an increase in domestic consumption.

Government assistance to aquaculture enterprises

The Ministry of Transport and Communications supports aquaculture with resources (Fisheries, Aquaculture and Marine Program 2021-2027), under which approximately 90 million euros will be allocated for specific aquaculture purposes.
The Ministry allocates funds for sustainable (environmentally and economically) and socially responsible development of aquaculture, which includes the objectives of protecting fish stocks and marine biodiversity, completing territorial planning with the creation of Organized Aquaculture Development Zones (OADs).
The Ministry of Rural Development and Food is trying to support border, island and remote areas through aquaculture, helping to stimulate local economies.
The government has included fisheries in strategic investments, going so far as to include them in Enterprise Greece.
Aquaculture is believed to contribute to food security and reduce dependence on imports, as the successive crises experienced by Greece show the importance of primary food production.
The government is also trying to attract investment into the aquaculture sector from Europe, Africa, the Arab world and the Middle East.

One of the important sources of funding for the sector is the 519.64 million euros of the Operational Program for Aquaculture and Marine Fisheries.
The new program (PALYTH 2021-2027), introduced by the Ministry of Anti-Corruption under the NSRF 2021-2027 and approved by the European Commission, aims to move towards sustainable, competitive and environmentally friendly fisheries and aquaculture.
The total budget of the new program is 519.64 million euros, of which 363.75 million euros (70%) are EU funds coming from the Marine, Fisheries and Aquaculture Fund (MFIF), and 155.9 million euros (30%) are allocated to national budget.
The program is structured around four EFSI priorities for which the budget is allocated, namely:
Promoting sustainable fisheries, restoration and conservation of aquatic biological resources – EUR 296.95 million (57%)
Promoting sustainable activities in the field of aquaculture, as well as the processing and marketing of fisheries and aquaculture products, thereby contributing to the food security of the Union – €130.40 million (25%)
Promoting sustainable blue economies in coastal, island and inland waters, and promoting the development of fisheries and aquaculture communities – €71.30 million (14%)
Strengthening international ocean governance and creating conditions for safe, secure and clean seas and oceans through sustainable management – €10 million (2%)
The Technical Assistance budget of the Program will be 10.99 million euros (2%).
In order to improve the sustainability of the fishing industry, actions will be taken to modernize the fishing fleet and infrastructure serving the fishery, combined with actions to reduce environmental impact, improve the environment, reduce energy consumption, and increase the selectivity of fishing. Equipment and methods, recycling of materials, digitization of infrastructure and implementation of innovations and research results into the production process. Actions are also envisaged to diversify fishermen's incomes, such as fishing tourism services, develop human resource skills and knowledge, and encourage partnerships. All activities will serve and support small coastal fishing vessels in particular.
In the context of the country's participation in the Green Transition and with the aim of increasing energy efficiency and reducing CO2 emissions, the opportunity to finance investment and introduce innovation will be provided.
Actions are provided to overcome critical situations that may arise both due to force majeure and due to an imbalance between fishing capacity and available fishing capabilities.
In order to achieve sustainability the fisheries sector and the fight against illegal, unreported and unregulated fishing, actions will be taken to improve knowledge of marine ecosystems, as well as actions for modern and effective supervision of fishing activities, with investments in both the fishing fleet and the infrastructure and equipment of the Control Services.
Measures are provided for the protection and restoration of biodiversity and ecosystems, as well as adaptation to the impacts of climate change, management plans, their monitoring and implementation, as well as actions to combat invasive alien species.
To improve the competitiveness and sustainability of the aquaculture sector and in line with the Multi-Annual National Strategic Plan for its development, supporting production growth, actions are envisaged to promote sustainable practices, protect the environment, diversify into new species, digitalize the sector, coordinated spatial planning, as well as the use of financial tools to support business in the sector. In addition, industrial investments will be supported that will serve the transition to circular economy models, the goal of decarbonization through the use of renewable energy sources and other equipment, and the reduction of environmental impact and energy consumption.
Also included are actions to address the needs of expanding the target market, increasing the acceptability of aquaculture products, introducing traceability of fisheries and aquaculture products, creating/upgrading value-added facilities, products and services in the processing sector.
In order to promote sustainable economic development, social cohesion, culture, improved quality of life and the achievement of good environmental conditions, it is envisaged to develop and implement measures in target areas through local development strategies related to the blue economy and exclusion, which will be implemented by local action groups.
Finally, actions are provided to achieve the goals of the Integrated Maritime Policy and the development of maritime surveillance, including the goals of the Common Information Exchange Environment, strengthening of coast guard services, and actions to improve maritime knowledge.

The challenges of Greek fish farmers

One of the problems of marine fish farming in Greece is the theft of fish from the cages of production companies, which causes serious economic damage.
Organized groups are involved in stealing fish.

How do they steal fish?

Thieves take fish out of cages and catch them using the special tools they have. The removal of fish is usually carried out in small batches so that the decrease in the number of fish in the cages is not immediately noticeable. Some people prefer to take action by choosing different farms in the region. Theft can also be committed on one farm, but in no case in one day, since their actions can be noticed. Therefore, in this case, they re-catch the fish after 15 or more days.
The maximum amount they can catch is up to 500 kg of fish at a time, so it would not be immediately noticeable. However, at the same time as large numbers of fish are removed from cages, they often injure many other fish on the farm, and problems of disease outbreaks arise, which causes increased mortality due to the development of stress in the fish. In some cases, the damage to the industry is even greater when, after the fish are removed, the cages are left unsecured, which leads to the fish escaping into the sea.

How stolen fish are sold in the market

As for the way the stolen fish is sold in the market, there are traders who sell it as caught fish and others who sell it as farmed fish. The fish is sold a little cheaper, which creates sales problems for ordinary enterprises.

Amounts of loss

If 50 tons of fish are exported from a fish farm annually, the damage it will incur will be approximately 300,000 euros. By comparison, Avramar is the largest fish farming company in Greece. Avramar's turnover in Greece in 2021 amounted to 184 million euros with a net profit of 132 thousand euros. Therefore, the theft of about 50 tons of fish could make it immediately unprofitable.

Fight for fish

In terms of coping methods, fish production facilities are usually monitored through conservation. However, farm guards mainly monitor cages from a distance using thermal imaging binoculars and radars, not always effectively preventing such phenomena, since sea waves often create a number of difficulties in terms of the effectiveness of monitoring tools. Therefore, some companies involved in fish farming enter into security agreements with specialized companies that have floating facilities, personnel and technology to combat fish theft.

Greek fish farming in numbers

The results of Greek aquaculture activities for 2022 are just being summed up.
As of 2019, the total number of aquaculture farms in Greece is 1097. Specifically, 85% in marine waters (911 fish and mussel farms), 8% in inland waters (land-based installations), 7% in brackish waters (lagoons) and + 29 fish hatcheries.
The total number of employees was 12,000 workers in various specialties (scientific, technical and labor personnel), mainly in remote and island areas.
Greece ranks 2nd in the production of Mediterranean aquaculture fish, behind France, accounting for 22.2% of its global production in 2018.
For 2021, the main objects of aquaculture in Greece are dorado (sea bream - Τσιπούρα) 67,058 tons in 2021 and sea bass (sea bass - Λαβράκι) - 51,231 tons, golden pagr (Φαγκρί) - 4,704.6 tons, silver croaker ( Κρανιός) - 4,200.6 tons, mullet (Κέφαλος) 390 tons and others (solefish, high-bodied lakedra, common wolffish, white sagr).
Among shellfish, the main species is the mussel, which is grown in a volume of 13,508.3 tons in 2021. The share of other mollusks and crustaceans is insignificant and amounts to only 176 tons.
The growth in aquaculture production in monetary terms was 15.1%.
Freshwater aquaculture decreased by 4.5% in quantity and increased by 3.3% in value in 2021 compared to 2020.
Brackish water (lagoon) aquaculture in quantity and value showed a decrease of 4.5% and 10.2% respectively in 2021 compared to 2020.
In particular, 861.5 tons with a total value of 2,346.4 thousand euros were grown in 2021, compared to 901.8 tons with a total value of 2,613.1 thousand euros in 2020.
Marine aquaculture by volume and value in 2021 increased by 8.4% and 15.4%, respectively, compared to 2020.
In particular, 140,797.9 tons with a total value of 630,564.2 thousand euros were grown in 2021, compared to 129,891.1 tons with a total value of 546,242.6 thousand euros in 2020.
There is a lower yield of fry of the main commercial fish compared to 2020.