ECONOMICS OF PLANNING Vol. 4, No. 3, 1964 Printed in Norway

tiotes on the Soviet Fishing Industry By Anton Haugland 1

For several years the Soviet Union has been one of the leading fishing nations of the world. Total catches of the country increased slowly but steadily from about 1 million tons in 1913 to approximately 2.5 million tons in 1955, the curve showing a decline only during the Revolution and similarly during World War II. From 1955 the increase in annual catches has been significantly greater (4.5 million tons in 1964) and it seems that this rapid development will continue for some years to come. The greater increase is the result of intense efforts, commencing in the mid-fifties, towards ocean fishing on a global scale. Since then, big factory trawlers of the stern ramp type have appeared in steadily increasing numbers vessels of quite different dimensions from the conventional ones - and it has become quite common for Soviet floating bases or motherships with their flotillas of trawlers and other fishing boats to appear in waters where Soviet fishing vessels were not seen before. At the same time the big factory ships and modern refrigeration and deep freezing techniques have radically changed the relationship between fishing intensity and marketing capacity. More than 80% of the catches from Soviet sea and ocean fisheries are now processed on board the vessels. This not only facilitates marketing - it also improves the quality of many fish products. It is interesting to note that this revolution in fishing and processing methods has taken place especially in the U S S R and Japan - two countries with quite different geographical settings and social systems while other fishing nations have been more reluctant to follow suit. In Japan, the fishing industry is owned and operated by private fishing 1 T h e author is editorial assistant in Economics of Planning and has collected this information on the Soviet fishing industry chiefly in connection with translation of articles from i.a. Rybnoe khoziaistvo for Distriktenes utbyggingsfond, Oslo. It is hoped in the future to be able to engage in a somewhat more profound study of this theme and eventually contribute on additional aspects of the Soviet fishing industry, i.a. its organization, planning methods, wage system etc. The author is indebted to H. Tambs-Lyche, present project manager of the Central Institute for Fisheries Education, Bombay, India, for his valuable information and advice and to P. J. Tinsley and P. G. Hurford, University of Birmingham, U.K., for their help in improving the English of this paper.

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ANTON ItAUGLAND

Annual catches of different fishing nations (Metric tons, in thousands) Country Peru Japan China USSR*** USA Norway Canada South Africa (incl. the Territory of South West Africa) Spain India World's total fish catches

1938

1959

1963

3562 --** 1523 2253 1153 837

2000 5875 5266 2756 2890 1607 1050

6901" 6698 5000 (approx.) 4000 2712 1388 1191

20500

822

1148 1098 1046

35300

46400

Source: FAO statistics. * The overwhelming quantity of fish catches of Peru comprises anchoveta (belonging to the herring species), utilized mainly for oil and fish meal production. e* China also in 1938 most likely ranked among the ten leading fishing nations, however, data for that year are not available. e * e A descriptive table, giving more detailed statistical information on the development of Soviet fisheries appeared in Ost-Okonomi, No. 1, 1962, p. 52.

companies, in the U S S R by fishermen's kolkhozes and the State. It is difficult to compare the profitability of the modern fishing industry in these countries with that of the more conventional ones in other countries. Especially is this the case concerning the USSR, where the price system is so different from that in western countries. However, the following data may enable the reader to make some reflections of his own: Capital investment in the fishing industry of the U S S R for the 7-year period (1959-1965) was originally planned to be 21.5 billion 1959-rubles (about 5 billion dollars), thereof 77.4 % for the industry's fleet and 22.6 % for shore installations. The profit of this industry amounted according to official data in 1964 to 436 million rubles (new rubles, i. e. about 485 million dollars), total expenditure per ruble worth of production output being 83.6 kopeks. The distribution of production expenses in the fishing industry is shown in the table on next page. The rate of amortization of the fixed capital is calculated by the following formula: N - -

(Fq- R - O ) F• • 100,

where N - is the rate of amortization, F - initial cost of fixed capital,

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THE SOVIET FISHING INDUSTRY

Distribution of production expenses, in per cent of total in 1962

materials

Auxil. materials

29.5 64.9

Rave

Category

Total

The fishing industry [ 100 The whole ] Soviet industry 100

Wages and I Other social expenses security

Fuel

En ergy

Amortization

18.1

4.8

0.4

6.1

27.4

13.7

4.5

3.2

1.9

3.7

18.6

3.2

Source: Promyshlennost" S S S R , Moscow 1964.

- expenses for capital repairs during the service life of the fixed capital, O - remaining value of the fixed capital after its liquidation, V - service life of the fixed capital (in years).

R

The norms of amortization are in the U S S R determined in connection with economic planning and vary from industry to industry. They may be different for different enterprises, different fishing vessels etc. The established average rate of amortization for the fishing industry is 6.3%. 70 o/0 of the amortization assignments remain with the enterprise, being utilized chiefly for capital repairs. The remaining 30% are directed towards the financing of capital construction, according to approved plans. 1 Studying rentability problems of Soviet fisheries, it is interesting to note a statement made at another occasionfl" that it costs 3 times as much to increase food production from agriculture as it does from fisheries. In order to increase the economic efficiency of this industry intensified efforts on the research sector are being announced by SoViet fisheries authorities. Among such efforts the application of economic-mathematical methods and automation are predicted to rationalize many labourconsuming operations and promote an optimal distribution/exploitation of fishing vessels, processing and transport facilities, in accordance with seasonal and other variations. 1 Cf. M. V. Morozov: Ekonomika, organizatsiia i planirovanie proizvodstva v rybnoi promyshlennosti (Economics, Organization, and Production Planning in the Fishing Industry), Pishchepromizdat, Moscow 1960. M. B. F. Ranken in a paper presented for the First International Congress of Food Science and Technology, London, 18-21 Sept., 1962. (FAO Abstracts).

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The F l e e t

Soviet fisheries authorities have claimed that their country now has the most modern fishing fleet in the world. More than 70 ~ of it has been built during the last 10 years. The number of large fishing vessels has been estimated to be around 2,500, and by the year 1970 this number is planned to reach approximately 5000. (These numbers include the mother ships as well as the fish transport vessels). About 750 large vessels are planned to be delivered to the industry within the current 7-year plan (1959-65). 120 of them will probably be delivered in 1964, - among these will be 21 large factory trawlers and 5 tuna-catchers. Both fishing vessels, processing - and transport vessels are usually built i n whole series, and the expediency of standardized types of vessels has often been stressed. It has been estimated (in 1963) that Gosmorlov 1 disposes a tonnage of more than 1.2 million tons dw. (including whaling vessels, processingand transport vessels, etc.). The same source S states that Gosmorlov within the current 7-year plan will receive a total of 14,000 units in addition to the roughly 100,000 units which were under its control in October 1959. When considering the great number of vessels disposed by the fishermen's collectives, it is clear that the Soviet fishing fleet also comprises a very large number of smaller vessels. The Soviet fishing fleet differs from the fishing fleets of most other nations by its large number of auxiliary vessels. There are different types of motherships/fish processing vessels, for instance the new, big floating canning factories, herring salters, and refrigerators with different degrees of fish processing. Some of these ships are primarily intended for transport, and are therefore constructed for a comparatively high speed. Others are intended primarily for long stays on the fishing grounds, supplying the fishing vessels and receiving their catches for processing. Therefore, when planning such vessels stress is laid upon the fish processing - and freight carrying capacity - the speed being of secondary importance. The new, large factory trawlers have been constructed with a more equal stress on both of these main properties. Therefore, for instance, they have been furnished with machinery of the flexible dieselelectric type - being able to a considerable degree to channel the available energy into the desired composition of power for propulsion, fishing, and fish processing purposes. The newest type of mothership/fish processing x T h e state Sea and Ocean Fisheries. J. D. H a r b o n , Canadian Fisherman, nr. 5, 1963.

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vessel is furnished with a stern ramp, for receiving the trawlers' fish bags (exchangeable cod-ends), and also in order that the mothership itself, if desired, can act as a sort of a "king size" stern ramp factory trawler. The large B M R T - and R T M class factory trawlers, 80-85 meters long, form a hard core within the Soviet fishing fleet. However, a considerable number of medium and smaller trawlers, seiners and drifters will still be constructed. Recently, Soviet authorities approved the plans for an interesting new type of mothership. The first vessel of this type will be named "Vostok", and it will be built at the Admiralteiskii shipyard in Leningrad. This type of mothership will carry her 14 catcher boats on board, on the deck. These will be fishing vessels of about 18 m length. The floating base will have a length of about 250 meters, maximum width will be 27 meters, deplacement 43,000 tons, cargo capacity 12,000-13,000 tons, and the machinery will be of 26,000 HP. Thus, it will be one of the country's largest ships, together with the two newest whaling factories and a few supertankers. The trawl is the most important fishing gear of the Soviet fishing fleet. In the year 1959, 31.6 % of the Soviet fishing industry's total catch (incl. whaling, etc.) was taken by trawl. Because of the very intensive herring fisheries, drift net catches are still playing an important role, - their percentage of the total annual catch in 1959 was 18,3 %, while the purse seine catches of the same year amounted to only 7,5 %. The importance of netless fishing methods using underwater electric light and pumps is rapidly increasing. The Russians consider fishing with drift nets an irrational, old-fashioned fishing method, and they will attempt to exchange this method with other, more rational and progressive methods as soon as circumstances allow. There seems to be no doubt that the Russians have been lagging behind in utilizing the new, synthetic fibres (nylon etc.) in their fishing gear production, not only compared with their own advanced, modern fishing fleet, but also in comparison with some other fishing nations. In May this year it was made known that synthetic fibres were only used in 15 ~ of the fishing gear (5000 tons of a total weight of 35,000 tons). On the same occasion, however, a rapid improvement of this situation was promised, in pace with the rapidly growing capacity of the chemical industry's production of such fibres. It was predicted that by the year 1970 all Soviet fishing gear would be made of synthetic fibres. It has been estimated that the country's fishing industry will save about

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50 million rubles annually by a complete conversion to this new, durable fishing gear. A lot of components on board the vessels, such as bearings for trawl winches and other machinery, gears and other components of the machinery, will also be manufactured out of nylon, polyester and other products of the chemical industry. The production of small fishing vessels where both the hull and the superstructure is made of glass fibre reinforced polyester has already been started. 1 The Fish Products

In 1961 the fish products amounted to 36 % of the total quantity of meat and fish products brought to the consumers' market in the Soviet Union. In 1960 the country's annual per capita fish consumption was 9.5-9.7 kilogrammes. It is estimated that by 1965 this per capita consumption will have risen to 14.6 kg. The country's annual population growth was 3.5-3.7 mill. in 1962 (16.6 pr. 1000). Therefore, a continued increase in the country's demand for fish products can be expected. In the Soviet Union the tendency is for consumers to demand more fresh and frozen fish, with a corresponding decrease in the demand for especially salted products (with the exception of salted herring). Here, as in the western industrial countries, there seems to be particularly an increasing demand for ready-to-use frozen fish products (fish sticks and the like), in spite of their higher cost. However, some products will be salted in the future too, such as fat herring and some of the catches of ocean perch and salmon. Salted herring seems to be a product very much in demand in the Soviet Union. In addition to their own large production, they have a considerable import of this product from other countries. For instance, last year the Russians wanted to buy far more salted herring from Norway than this country was able to deliver. For some years after 1950 the annual catches from inland waters showed a decline. This negative development has been due partly to the hydro-electric plant constructions, and partly to a rather unsuccessful regulation of these fisheries. Apparently, fisheries authorities are greatly concerned with these problems, and various steps have been taken in order to remedy some of the negative factors which have influenced the country's inland fisheries. The successful development of fisheries in some of the large hydro-electric plant reservoirs, such as for instance in 1 R e a d e r s i n t e r e s t e d in m o r e d e t a i l e d i n f o r m a t i o n are i n v i t e d to c o m m u n i c a t e w i t h t he a u t h o r (P. O. box 7030, Oslo, N o r w a y ) . T h e a u t h o r is also i n t e r e s t e d i n a n y c o m m e n t s to t h e s e n o t e s on Soviet fisheries.

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TIlE SOVIET FISHING INDUSTRY

the Tsimlianskii Lake, will obviously, together with the developing pond culture, do much to bring about a comparatively quick restoration of inland water fisheries. There have been complaints that only 3-5 % of the catches from inland waters reach the consumers as fresh fish or live fish. Too much of the catches from these fisheries is being salted. From the more important inland water fishing grounds the salt fish percentage amounted in 1961 to 24-28 %. However, it seems obvious that for the time being a rapid improvement is taking place where the fish processing of inland water catches is concerned. Series of comparatively small floating bases and fish transport vessels are being specially designed for this purpose. According to plans, by 1965 the percentage of fresh, cooled, or frozen fish from these fisheries will reach 70 %.

The FishProducts Category

Total catch, all "sea p r o d u c t s " , * metric tons, t h o u s a n d s . . . . . . . . . . Catches f r o m ocean fisheries . . . ~ ~) inland ~ ... Fish for h u m a n c o n s u m p t i o n . . . F r e s h and frozen fish p r o d u c t s . Salted fish (excl. salted herring). Salted h e r r i n g * * C a n n e d fish products, m i l l boxes

1950

1962

1965 (Plan)

1755 810 945

4167 3334 833

5600 4800 800

800 188 417 ? 202

1936 939 347 539 728

2800 1680 280 ? 1000

Sources: Rybnoe khoziaistvo, Narodnoe khoziaistvo S S S R and F A O statistics. * Incl. whaling, seal h u n t i n g , sea plants. ** I n 1962 the Soviet U n i o n ' s salted herring production was 539.300 tons, against a world total production of 761.000 tons.

In 1963 the value of Soviet export of fish products amounted to US $48,200,000 against 15,300,000 in 1955, and the value of the import was US $18,000,000 and 20,000,000 (approx.).

Research The Russians were engaged in certain fishery research activities already in the 19th Century. For instance, in the 1880-ies there was a biological station on the Solovetskii Islands in the White Sea. In the years around 1900 some fisheries research expeditions were sent out. 44 years ago the Soviet government instituted a marine research

172

ANTON HAUGLAND

organ called Plavmornin. Plavmornin is short for the name "The Floating Scientific Sea Institute". The task of this institute was to conduct research activities in the northern sea and coastal districts. Its first leader was J . J . Mesiatsevyi. Almost at the same time the Fisheries Research Institute was founded. These two institutes were later combined, to form the present All Union Research Institute of Marine Fisheries and Oceanography, the VNIRO. Gradually, VNIRO's activities were expanded, and the institute was given branch offices in some of the more important districts of the fishing industry. These filials of the VNIRO in their turn coordinate the research activities of various branch offices, biological stations, and research vessels. For instance, T I N R O (the Pacific filial of VNIRO) has more than 10 branch offices and more than 18 sea-going research vessels. In VNIRO's headquarter in Moscow about 100 scientists are working with various attached personnel. Among the headquarter's scientists there were, in 1961, 8 professors and doctors, while 72 were scientific candidates. In 1961 the headquarter consisted of 15 different departments, covering various fields concerning biology, technique, economics, and information services. In the many institutes under VNIRO more than 3000 people are employed, of whom about 900 are regarded scientists. The director of VNIRO is can& tech. V. P. Zaitsev, who is also vice chairman of the International Council for the Exploration of the Sea. In addition to the institutes under VNIRO there are departments and research groups concerned with fisheries research activities at a number of universities, institutes of the Academy of Sciences, etc. A couple of years ago there were altogether 87 institutions with 137 different establishments and 2000 scientists studying problems connected with fisheries or else with marine life. (In addition to these 2000 scientists there are probably some thousands of other persons, auxiliary personnel, attached to these activities). In 1961 the Soviet Union operated more than 30 large, sea-going hydrographic research vessels, and a large number of smaller, auxiliary vessels for the same purpose. Since then, at least a couple of new, large vessels have been added to this fleet. The present "Vitiaz'", having been in duty since about 1950, seems to be the vessel most frequently mentioned among them. This vessel has, among other things, conducted extensive research in the Indian Ocean. The research submarine "Severianka" is occupied with under-water observations in northern and northwestern waters. During the winter 1963/64 this submarine went out on its 8-th research voyage, viz. herring observations in the

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North Atlantic. Before starting on this voyage, the vessel was equipped with new, outboard equipment for under-water f i l m i n g - equipment making it possible for the crew to film in all directions when submerged. In northern waters, and probably elsewhere too, underwater observations with the help of bathyscaphes are also conducted - at far greater depths than those reached by conventional submarines, such as the "Severianka". In 1960 V N I R O worked out a long-term plan, according to which the most important task in the years to come will be to try to find out what resources are to be found throughout the world oceans, and to establish how to obtain an optimal utilization of these resources of marine life. According to FAO data, the surface of all oceans, lakes and rivers amounts to 75 % or more of the total surface of our planet. The average depth of the oceans is almost 4000 meters. Water is the element in which life originated on our planet, and it is still the primary source of all life. As millions of years passed only relatively few of the creatures became accustomed to living on dry land. Water therefore contains, beyond any doubt, far greater resources of living organisms than does the dry land. In spite of this, for the time being, only about 10 % of the world's supplies of animal protein for human consumption comes from marine life. Apart from this, enormous resources of water plants are virtually not yet being exploited. However, some of the traditional fishing grounds, especially in northwestern waters, are already being overfished - that is as far as the traditional species of fish, caught with conventional fishing gear is concerned. Therefore, progressive fishermen in these parts of the world are to a steadily increasing degree examining the possibilities of fishing in other parts of the world oceans, as well as at greater depths. Soviet fishing trawlers have, for instance, had astonishing good catches of halibut at depths of more than 1000 meters, and are experimenting with fishing at still greater depths, for the time being, mostly with pelagic trawls. Extensive experiments are being carried out in order to find out the reactions of various species of marine life to artificial stimulants, such as light, electricity, colours, different types of noise and smell, etc. Phenomena such as the optomotoric reflexes of fish are studied. Interesting observations have been made during some of the experiments, but with the exception of electric under-water light (and pumps), partly in connection with the creation of electric fields in the water, these observations have not as yet been reported to have found any practical utilization in the fishing industry. Soviet marine biologists have conducted interesting experiments con-

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ANTON HAUGLAND

cerning the transplantation of species of fish and crustaceans, for instance of the hera and gorbusha salmon from the Pacific Ocean to the Barents Sea and the Northwest Atlantic (via streams on the Kola Peninsula), the large Pacific grass shrimp (PandaIus Kessleri) to the Black Sea, and likewise, the king crab of the North Pacific to other parts of the world oceans. Efforts are being made to spread the valuable species of sturgeons over a larger area than that which they inhabit at present. Recently, Soviet fisheries experts, and probably experts of other advanced fishing nations too, have started to utilize the possibilities of electronic computers for predicting future variations in quantity and distribution of various species of fish and other marine life. They consider this a useful tool in their efforts to obtain a more dependable prognosing of optimal fishing intensity on the various fishing grounds. The planning organs of the fishing fleet seem to be paying much attention to problems connected with the construction of virtually completely automatic trawlers. With a minimum of crew members, such trawlers will almost automatically perform the functions of navigation, fish finding, fishing, and fish processing. Speaking about fishing vessels, fisheries minister Ishkov some time ago said that highly automatized submarine fishing vessels also ought to be developed. Whether concrete plans for such vessels yet exist is not known. However, the idea seems highly interesting, and promising. Such vessels, even if given rather small dimensions, would be practically independent of weather conditions. Moreover, they would be able to exploit vast new fishing grounds under the Polar ice, particularly in the shallow waters of the Soviet Arctic regions. Probably, in the not too distant future, both economic and technical considerations might be in favour of submarine fishing vessels employing netless fishing methods. Projects such as automatic trawlers and fishing submarines, as well as modern fishing vessels of the more conventional types, demand considerable efforts, both as far as capital investment and human "knowhow" is concerned - efforts that many of the traditional fishing nations, for various reasons, economic, political and others, have been reluctant to make. A broader understanding of the possibilities offered to man by marine life might secure a more bold approach to the world's nutrition problem and to a great extent remedy the desperate food situation in many parts of the world.