Rising Fuel Costs Impact the European Seafood Processing Industry
Brussels, April 15 – On the background of soaring operating costs sparked by the Iran war Seafood Europe calls on the European Commission to accelerate its work of regulatory simplification, ease already adopted legislation that further increase administrative costs and to facilitate import of raw material via finalization of trade agreements and by strengthening instruments that facilitate supplies to EU seafood industry.
Seafood Europe, the Brussels-based association representing the European seafood processing and wholesale industry, speaks on behalf of approximately 3,900 companies. Together, these businesses generate around 130,000 jobs and €35 billion in annual turnover. Many are located in coastal and fisheries-dependent regions, where they contribute significantly to local employment and economic value.
The ongoing conflict in the Middle East has led to rising fuel costs, with significant consequences for both sourcing and production. Increasing energy prices have already resulted in some fishing vessels remaining in port, reducing landings and consequently limiting the availability of seafood on the market. At the same time, global distribution channels have become more complex due to regional instability, with disruptions in container movement and higher transportation costs. These developments are already exerting considerable pressure on international seafood trade.
In parallel, elevated oil prices are driving up the cost of packaging materials, with potential shortages anticipated in the near future. Processing costs are also increasing due to higher energy requirements for activities such as cooling, freezing, baking, smoking, and canning. Furthermore, reduced raw material supply is leading to underutilisation of processing capacity, placing additional strain on the sector’s economic performance.
The higher costs and tighter supplies come on top of the administrative burdens on EU operators incurred by the Fisheries Control Regulation in the form of start-up challenges of CATCH and implementing digital traceability in all parts of the supply chain.
Considering these challenges, Seafood Europe calls on the European Commission to accelerate its work of regulatory simplification, ease already adopted legislation that further increase operating costs and strengthen instruments that facilitate supplies to EU seafood industry. Growing administrative requirements—such as enhanced traceability, reporting, and certification obligations—are increasing operational costs and necessitating further investment in compliance systems. Proposed changes to tariff regimes could affect access to raw materials or create an uneven playing field if import are subject to stricter standards than production in 3rd countries.
Seafood Europe emphasises the critical importance of free trade agreements and the system of Autonomous Tariff Quotas (ATQs), which allow tariff-free imports of raw materials for processing within the EU. With the ATQ regulation due for renewal this year, its role in ensuring the continuity and competitiveness of the European seafood processing industry is more crucial than ever.
Finally, Seafood Europe calls for a timely renewal process and a flexible approach regarding the range of products covered. As companies begin negotiating sourcing contracts for 2027 as early as the coming autumn, regulatory certainty is essential. In a context of volatile energy prices and rising consumer costs, import conditions for raw materials used in European processing should be set with the aim of strengthening supplies to the advantage of industry and end consumers.