NZ: Working together for a sustainable industry

For Britain and Iceland it was the ‘Cod Wars’ and for Canada it was the collapse of the Atlantic Cod fisheries. But for New Zealand that moment came in 1986 when the country became the first in the world to introduce a property rights based Quota Management System (QMS).

Since then, New Zealand has edged closer towards becoming one of the most sustainable fisheries, long before the subject was even discussed in other parts of the world.

Fourth largest EEZ
New Zealand’s exclusive economic zone is the fourth largest in the world, covering 4.1 million square kilometers, and is over 14 times the land area of the country itself. It is believed that there are over 15,000 marine species in the zone, many of which are unique to the island, as well as valuable migatory species.

New Zealand’s fisheries were originally inshore and the majority of fish caught was for the domestic market. From 1938 to 1963, there was a licensing system operating, involving gear and area controls. The early 1960s saw New Zealand’s offshore waters (then ouside the 12 nautical mile territorial sea) fished by Japanese, South Korean, Taiwanese and Soviet trawlers. This lead to the creation in 1977 of the exclusive economic zone as the country sought to gain protection from foreign vessels.

Back then the zone was considered huge and seen as having high potential as the inshore fisheries became over exploited. New Zealand companies embarked on joint ventures with foreign companies. Trawling crews from other nations taught New Zealanders how to fish in deep waters and in return got a share of the catch.

Elsewhere, major fisheries, such the northern hemisphere cod fisheries, were collapsing. Fishing companies in New Zealand were able to buy or lease the redundant trawlers cheaply. At the same time, the collapse of northern fisheries resulted in an unmet need in the world market for quality whitefish and New Zealand hoki and orange roughy became popular throughout the world.

The country then introduced its QMS and by 2000 the industry had developed from being a domestic supplier to exporting over 90% of the fish harvest. Last year New Zealand harvested about 600,000t from wild fisheries and aquaculture. The value of this harvest is approximately $1.2-$1.5bn per year, of which the aquaculture industry contributes about $200m per annum. Seafood exports consistently rank as New Zealand’s fourth or fifth largest export earner.

There are about 130 species targeted commercially in the New Zealand EEZ. Seventy per cent of fish caught in its wild fisheries is taken in deepwater fisheries.

Sustainability
Today, sustainability still flows through the heart of the industry and it is this that many believe is behind the considerable success in the country.

“Sustainability wise, the NZ industry has made considerable progress and is recognised globally for the quota management system it operates,” Alison Sykora of the Sealord Group tells World Fishing & Aquaculture.

This success stems from working together. Formed in 2005 the Deepwater Group Ltd is an amalgamation of EEZ fisheries quota owners in New Zealand. A non-profit organisation, Deepwater Group Ltd is working in partnership with the Ministry of Fisheries and with other interest groups to ensure New Zealand gains the maximum economic yields from its deepwater fisheries resources managed within a long-term, sustainable framework.

Fisheries managed by Deepwater Group are those targeted commercially and usually fished at depths between 200m and 1200m. These include orange roughy, hake, hoki, squid and oreo dory. The group’s members include companies such as Sealord, Sanford and Aotearoa Fisheries.

Under the QMS, industry and government agencies continually work together to assess stock levels of all quota-managed species. There are now over 95 species or species groups managed under the QMS. This management system covers most major fisheries within New Zealand's EEZ, and will eventually cover all commercially harvested species.

Certification
In 2001, New Zealand hoki became the world’s first large whitefish stock to achieve Marine Stewardship Council (MSC) certification. This eco-label is independent confirmation that New Zealand hoki is amongst the best well-managed and sustainable fisheries in the world.

As part of the deepwater fishing industry’s commitment to sustainability, the Deepwater Group has also put forward three other fisheries for consideration against the MSC environmental standards of fishing - hake, ling and southern blue whiting.

The New Zealand Ministry of Fisheries continues to be flexible but cautious in protecting its fisheries. Last September, for example, it announced a 10,000t increase for the TACC for hoki while catch limits for two orange roughy fisheries were reduced in line with scientific and industry recommendations to ensure the continuation of a sustainable fishery.

Sealord, one of the country’s biggest companies, has access to approximately 19% of the total commercial fishing quota (about 119,000t worth) and 30% of the hoki quota. In 2010 hoki was New Zealand’s second most valuable seafood export, earning the country around NZ$172m.

Unlike some nationals, New Zealand’s seafood companies recognise the need for cuts and although hard on their businesses have adjusted accordingly.

“Scientific data and good fisheries management is the key to sensible quota allocations. The outcome is a win for New Zealand’s sustainable fisheries and our positive global reputation,” said general manager of harvest operations at Sealord, Colin Williams.

“New Zealand hoki is becoming more widely recognised as a sustainable seafood choice, it has been certified as sustainable by the independent global experts, the Marine Stewardship Council,” says Mr Williams.

Success
The sustainable approach has brought much success in the country. Sealord’s global success spans seven continents and it delivers $500 million worth of seafood to people in more than 60 countries each year. The company employs around 1,100 people throughout New Zealand and more than 400 people around the world.

Established in 1961, Sealord is half owned by the Maori people of New Zealand, through Aotearoa Fisheries Ltd and half owned by leading Japanese fishing company Nissui. In December 2011, the company reported in its annual results that Sealord Group Limited holding company Kura showed a 13% increase in net profits after tax to $20.6m; seasonally adjusted debt levels down by $15m.

Revenue for the reporting period was $573.5m up from $530.8m for the previous year. The result has been described by CEO Graham Stuart as reasonably solid following a decade of challenges faced by the deep water fishing industry.

“Conditions have been tough with reductions in quota, increases in fuel costs and a strengthening dollar over the last decade. We had to adapt and make some tough decisions, but we are quietly confident this year’s results show what the industry is capable of delivering,” says Mr Stuart.

Elsewhere, another one of the country’s major companies, Sanford, is also progressing well. Profit for the year totalled $22.3m, down from $25m last year.

Eric Barratt, managing director of Sanford says: “After a solid improvement in the first six months, the result for the second six months was below expectations for a number of reasons.”

He adds: “Deepwater operations continue to be the strongest profit contributor to the Group and had another strong year. The size of the operation resulted in it being significantly impacted by the exchange rate and fuel price rises.

“The increase in the orange roughy quota on the Challenger Plateau partially offset the reductions on the Chatham Rise. With greater quota access through our partnership with the Iwi Collective Partnership, we also increased the proportion of quota for hoki, southern blue whiting and squid caught by our domestic fleet. Our catches of toothfish in the Ross Sea and South Georgia continued to make a valuable contribution to our longline fishing operations.”

Work at Sanford is also a good example of how New Zealand has developed its sustainable approach to fishing. In October 2010, Sanford entered a five-year partnership with the Iwi Collective Partnership (ICP). The ICP is a formally constituted body of 12 North Island iwi who have pooled their quota and, in respect to their deepwater and inshore ACE, have formally agreed to engage with Sanford over its use.

“When Sanford signed up to a business relationship with the 12 North Island iwi working in a collective partnership, we agreed to do more than fish their deepwater ACE. The aim on both sides of this deal is to share our views and values for mutual benefit as well as focus on building capability and capacity for both parties,” says a Sanford statement.

MoTeC
Also, Sandford’s deepwater fisheries have been using its data-acquisition system (MoTeC) installed on their vessels to gather data on the amount of fuel used when steaming in various weather and fishing conditions with the goal of identifying the ideal steaming speed for the vessels concerned.

The MoTeC system records data, constantly logging what fuel is being burned through the main engine, at what speed and what pitch setting the vessel is using.

When this is matched with how much fish is onboard and where the vessel is, a profile of the vessel is able to be built which shows how the vessel performs in different conditions and with different cargo loads onboard.

Research remains at the heart of the country’s success and crucial to its future. And this goes for tracking migatory species as well in important fishing grounds for New Zealand vessels.

The most detailed survey of the biodiversity in the Tasman Sea to date has been made possible thanks to cooperation between research organisations and industry on both sides of the Tasman.

The Sealord owned and part-owned vessels Rehua, Janas and Antarctic Chieftain have been part of vital fact finding about the state of the Tasman. Using state-of-the-art electronics these vessels have helped map the amount of fish and other marine life as they travelled between New Zealand and Australia.

Data
According to Sealord’s in-house scientist, Graham Patchell, this work is significant because previous estimates about the biomass (mass of living organisms) in this part of the ocean could be way off the mark.

“Models estimate about 10 million tonnes of living creatures. The data shows it could be 10 times or more than this – 100 million tonnes,” says Mr Patchell.

The research will also help to monitor the effects of global warming on some of the most important and least understood ecosystems.

“100 million tonnes of little midwater fish are swimming up towards the surface at night to feed. We need to understand what will happen to these fish over time, how important they are in taking CO² out of the atmosphere, and what is the real complexity in the food web out there,” says Mr Patchell.

The company’s vessels have been working to gather scientific data since 2004 and have partnered with the CSIRO (Commonwealth Scientific and Industrial Research Organisation) on the IMOS (integrated marine observing system) project to replace guesswork about the amount of life in the Tasman Sea, with hard data.

“We need to think ahead and understand how bigger changes will impact the oceans. A few years ago recruitment in the hoki fishery was badly damaged because of warm water in the Tasman Sea, but this wasn’t recognised until later. By better understanding potential impacts, industry can plan ahead to protect New Zealand’s resources,” says Mr Platchell.

Investment
New Zealand has also invested heavily to help increase the level of returns from the vital resource to Pacific nations.

It will invest $7.5m over five years in a fisheries training programme to ensure a coordinated approach for private sector-led sustainable fisheries development in the Pacific Ocean. This will include upgrading the Pacific’s fisheries training institutions, fostering seafood business enterprise development, helping people in the industry gain formal globally-recognised qualifications, and up-skilling fisheries officials in areas like international commerce and investment appraisal.

The Pacific Ocean accounts for 60% of the global tuna catch, which is worth around USD$4.3bn to the country. Up to USD$400m is lost each year through illegal, unreported and unregulated fishing.

As WF&A went to press it was also announced that the New Zealand Southern blue whiting trawl fishery has been certified as sustainable against the Marine Stewardship Council (MSC) standard. According to the MSC, the fishery has demonstrated that the fish stocks being targeted are healthy, the fishing practices have minimal impact on the marine eco-system and overall the fishery is well managed.

“This is further recognition of New Zealand’s leadership in sustainable fisheries management," says Scott Gallacher, the Ministry for Primary Industries’ deputy director-general.

The certification covers the vessels nominated by Deepwater Group operating in the Bounty Platform, Campbell Island Rise and Pukaki Rise management areas within the New Zealand Exclusive Economic Zone (EEZ). Catches of Southern blue whiting are taken mostly by semi-pelagic trawling methods.

In 2010/11 the total allowable commercial catch (TACC) set by Government under the QMS was 44,848t and in that period approximately 39,000t was landed.