Assessing the economic effects of the European landing obligation on the Spanish fishery in the Celtic Sea

European Union has agreed to implement the landing obligation for all species subject to quota in order to ensure long term harvest in a healthy marine environment, implying a prohibition on discarding species subject to quota that can legally be caught and landed under Community fisheries legislation. Landing obligation has been progressively implemented since 2014 and entered fully into force in January 2019. This work analyses the potential economic effects of the landing obligation on the Spanish fleet fishing in the Celtic Sea. The profitability of the fleet is evaluated in the years preceding the entry into force of the European regulation and compared with the profitability obtained since its implementation. The results show a significant economic impact of the landing obligation on small and micro-enterprises. The first years of partial application of the regulations coincide with a drop in diesel prices that helps smaller companies maintain a high profitability. However, once diesel prices recover, the profitability of micro-enterprises falls to negative values when the application of the discards ban is complete, leading to the closure of many companies. This scenario of effort reduction and control of over -exploitation of the fishing grounds, positive from an environmental point of view, nevertheless suggests the need for some kind of institutional support to mitigate the socio-economic damage generated by the landing obligation and to improve the gear selectivity of the fleets concerned, allowing them to adapt to the new management scenario.

Automated summary

The European Union has implemented the landing obligation for all species subject to quota in order to ensure long term harvest in a healthy marine environment. The economic analysis shows significant impact of the landing obligation on small and micro-enterprises in the Spanish fleet fishing in the Celtic Sea.