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30 October 2012

More Private Hatcheries In Russia?

What is more profitable for a state budget, private or state-owned salmon hatcheries?

In my opinion, construction of private salmon hatcheries compared to keeping state-owned hatcheries would bring more profits both to the state and private businesses.
This is an important for the Russia’s fishing industry issue. And recently the question concerning the transfer of all salmon hatcheries to private firms is being raised on a government level.
However, relationship between state-owned and private salmon factories are not still clearly regulated. Each of the Far East regions has developed its own specific conditions for the hatcheries. While in some areas like Kamchatka there is no need to expand the existing network of hatcheries, in some other regions (Primorski region) it is not possible to increase volumes of salmon without building new factories.
Another aspect I’ve learned when talking with professionals of this business is different cost of juvenile chum and pink salmon production in different regions: from 0.02 USD / per underyearling in the Sakhalin region to 0.12 USD in Kamchatka. But obviously, initial and operating costs at a private factory in comparison with the state-owned one are lower. One of reasons of it is that the number of permanent employees working at private hatcheries is reduced to minimum, and temporary workers are hired only in the most peaking periods.
Then, I see a strong trend of growing demand for Russian fish both in the domestic and international markets, so starting this business sound very promising for a potential investor. On condition of clear laws and transparent regulation mechanisms in Russia, of course.


Posted on 8:04 AM | with 0 comments
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