The Spanish market is a vitally important outlet for Irish fish exports. Over 14,000 tonnes of fish worth over £32 million were exported to Spain in 1995. Consequently any factors which adversely affect prices in this market are of concern.
Since 1993 the Spanish peseta has devalued by some 7 per cent against the Irish pound with particularly large short-term fluctuations in early 1995. Over the same period the average value per kilogram of Irish fish exports to Spain has fallen by just over 11 per cent. The exchange rate fluctuations have doubtless contributed to this decline. However there have been other factors at work also, including recession in Spain, the quality of fish landed, competition from non-EU countries and supply-demand problems.
Imbalances in supply and demand recur frequently on the European whitefish market which is notoriously volatile. The European market overall between January and March of this year was very difficult for the whitefish sector although there has been a welcome improvement in prices over recent weeks. In that context, I underlined to colleagues at the Fisheries Council last Monday the importance of taking prevailing market conditions into account when agreeing annual tariff rates for fish imports from outside the EU. The right balance must be struck to safeguard the interests of Community fishermen while meeting consumer and processing industry demand.