Ireland’s fishing industry is on course to make a loss for the third year in a row, the European Commission has warned.
The EU forecasts Irish fisheries will make a net profit of minus €12 million this year.
That’s an improvement, though, on previous years. The European Commission says the industry made a €34 million loss in 2022. Provision data for 2023 suggests a loss of €25 million last year.
The industry has been through considerable upheaval since the UK left the European Union leading to Ireland’s quotas being significantly cut.
Brexit created a “sudden and dramatic shift in the landscape for the entire Irish seafood sector from 2021 onwards”, the European Commission says.
As the UK’s closest neighbour, Ireland took the hardest economic hit when Britain left the European Union. The EU’s Brexit Adjustment Fund was set up to try to cushion that blow.
Ireland’s fishing industry was granted €23.9 million from that fund in 2022. That helped to offset more than two-thirds of the losses that year.
But the war in Ukraine, and subsequent inflation also greatly increased costs, the European Commission says.
Between 2019 and 2022, fuel prices more than doubled from €0.42 to €0.98 per litre. This had a “considerable negative impact on overall economic performance of the national fleet.”
The subsequent fall in inflation and drop in energy prices is a “key driver” of “optimism” for the future, the European Commission says. But also warns that there are a number of ongoing uncertainties for the Irish industry.
Across the European Union, the European Commission paints a rosier picture. It says fishing has become more sustainable. Economically and environmentally.
However, systemic problems with ageing boats and ageing fishermen and women represent “structural problems” for the future.