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Continued investment, despite challenging environment.

FV Argos Berbes
FV Hadassa Bay

The early closure of, and non-opening of the second Loligo fishing seasons in the last two years has served as a timely reminder, if ever there was one, to the Government of the need to prioritise ideas that would seek to further diversify the Falklands Economy says James Bates, Executive Secretary of the Falkland Islands Fishing Companies Association, (FIFCA). The revenue derived from the fishing industry through licence fees and corporation taxes has equated to well over 60% of the Falklands GDP in recent years, though when other when other spin-off activities and sectors are factored in, it is likely that the true figure is much larger he adds, and this is how it has been for nearly 40 years.

However, there can be little doubt that the industry, the Falklands Islands Government and by extension the whole community have now entered unprecedented and uncertain times, and there is a real sense of caution with regards to the second Loligo season in particular of 2025, which is full of unknowns, and which are unlikely to know the outcome of until at least August next year.

Whilst some work is being currently being undertaken to try and better understand the environmental factors that led to the failed seasons of the squid fishery over the last two years, it is currently felt that there is little cause for optimism for 2025 with other fisheries experiencing downward trends in recent years.

FIFCA members are well aware of the cyclical nature of fisheries but even they have been surprised by the non-opening of the 2nd Loligo season this year and it highlights that there is still much to be learnt about the factors which influence species that are key to the industry and to the Islands more widely.

However, and despite the significant recent setbacks and additional costs, the sector recognises that the fishing industry has a responsibility to continually modernise and evolve within their industry and there is no clearer and visible demonstration of this than the replacement of some of the older vessels for state-of-the-art fishing vessels. 2024 alone has seen the launching and handing over of no less than three purpose built fishing vessels at a combined cost in excess of £100m. It is likely that once all of the vessels earmarked for construction and delivery have been handed over, that close to £0.5bn would have been spent in vessel renewal alone. These costs do not consider those faced by other operators who spend £m’s annually on vessel upgrades, overhauls and general routine and un-planned maintenance.

The Falkland Islands Fishing Industry operates 365 days a year and is an extremely resource intensive environment to operate in and when we see the vessels in the harbour either transhipping or collecting their licences, we should be collectively proud and supportive of the companies involved and their crews working hard to sustain and develop our fragile economy.

At some point early in 2025, the first of two squid pre-season recruitment surveys will take place, complimented by an experimental licence in February. It is hoped that these will provide an indication as to how the year may play out and that it will be better than 2024 for the benefit of us all but in particular for those with newer vessels.

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