The new challenges for Greek aquaculture

The efficient management of production and the smooth operation of the supply chain was achieved by the Greek aquaculture industry, despite the wider difficulties and challenges brought to the fore by the pandemic, with the closure of markets and restaurants, thanks to experience, know-how and strategic orientation of fish farming companies. In terms of 2021, the indications predict that the industry will return to pre-pandemic levels and will close with an increase in production to about 3%.

In fact, at a time when the pandemic is in full swing, shaping new social and economic conditions, the industry is called upon to face new challenges. The main ones are the supply chain disruption due to the pandemic, the high food demand especially from China, as many countries have carried out storage and drought from La Niña (2020-2021). The above factors in combination with the increase in the cost of fossil fuels and metals have led to price increases in the food sector both in Greece and internationally.

Chain effects from global production chain increases

The increases that occur in many sectors in the global production chain, of course, come to have a chain effect on the total cost of operation and production of fish farming companies, as well as on the cost of processing its products.

Increase in total production costs by 20%

The most significant burden on the production costs of fish farming companies arises from energy costs. Other important burden factors are transport, packaging materials and raw materials for fish feed. Specifically, according to estimates, it results:

97% increase in energy costs for the operation of industry units
15% increase in the prices of raw materials for fish feed
42% increase in the cost of fish boxes
17% increase in the cost of packaging materials
8% increase in transport costs

Based on all the above parameters, the total increase in the cost of production of fish farms is estimated at 20%, while it is worth noting that the industry has been moving for a long time under a very restrained pricing policy, which was further pressured by the pandemic.

Under these circumstances, the Greek fish farming sector is called upon to make key decisions in order to adapt to the new reality that is taking shape. The focus is on safeguarding the business health and viability of the industry, which is called upon to improve the financial returns that will enable it to grow its investments and strengthen its international competitiveness.