Crew share of redfish on Samherji’s vessels above average

Allegations as to the undercutting of prices from Samherji’s vessels to its subsidiary in Germany are completely unfounded and Samherji in Iceland is not transferring monetary assets out of Iceland to Icefresh GmbH. All assertions to that effect are ridiculous and completely out of step with reality.

• The average crew share of redfish on the Icelandic fish market last year, during the period April to November, was 202 ISK per kilo
  
• At the same time, the crew share on the Samherji vessel Björgvin EA was 221 ISK per kilo
• Allegations of price undercutting, breaches of collective bargaining agreements and infringements of currency exchange legislation are absurd

Last year, approximately 5,300 tonnes of redfish were sold on the Icelandic fish market at a total value of just over 1,200 million ISK. Björgvin EA caught 240 tonnes of redfish last year and the crew share was 221 ISK per kilo.  During the same period, however, the average crew share was 202 ISK per kilo.

The average crew share of landed redfish on the Icelandic fish market last year, after deducting a 4% marketing fee and the fish market handling commission, amounted to 219 ISK per kilo during the year. The average price was highest during the first three months of the year, with a crew share of just under 270 ISK per kilo. During this period, however, Samherji vessels caught hardly any redfish. The average crew share from 1 April until the end of November, however, was 202 ISK per kilo. During this period 4,250 tonnes were sold on the Icelandic fish market.

During the period in question, Björgvin EA caught 240 tonnes of redfish which were exported to Germany.  The crew share on board Björgvin EA during this period was 221 ISK per kilo.  At the same time, Samherji purchased 863 tonnes of redfish at a fish market in Iceland for export and processing in Germany. By the same calculation, the crew share according to collective bargaining agreement, with regard to this fish, all of which was obtained on the fish market, was 215 ISK per kilo. Those are comparable situations which demonstrate that the crew of Björgvin EA received a higher share than that obtained from redfish purchased on the Icelandic fish market at the same time.  Before fish products are subsequently sold to Icefresh GmbH various costs are incurred relating to transport and handling in Iceland and abroad and a corresponding amount has to be added to the selling price. All accusations relating to violations of collective bargaining agreements, let alone infringements of currency exchange legislation are, therefore, preposterous.

Thus, allegations as to the undercutting of prices from Samherji’s vessels to its subsidiary in Germany are completely unfounded. It is of crucial importance in this debate that appropriate comparisons be made and here the relevant evidence is to be sought from the Icelandic fish market.

Samherji deeply regrets the misinterpretation of evidence and misunderstandings which appear to have occurred and reiterates that the company completely repudiates the serious allegations arising from the circumstances outlined above.

Icefresh GmbH in Germany

Icefresh GmbH is a subsidiary of Samherji, located in Cuxhaven in Germany and established six years ago. Samherji owns 85% of the company’s stock and 15% is in the ownership of company management. Icefresh GmbH is a production enterprise which only sells its own products. This company must not be mixed up with Samherji’s Icelandic sales concern, which is named Ice Fresh Seafood, with its domicile at 30 Glerárgata, Akureyri, and which is in charge of selling fish products.

The turnover of Icefresh GmbH last year was 40 million euro, or over six thousand million ISK. Out of this turnover, 61% originated from salmon products resulting from the company‘s processing of Norwegian salmon. The total raw material for processing during 2011 comprised 11,500 tonnes, based on ungutted fish. Out of this quantity, redfish was about 2,200 tonnes, thereof 470 tonnes from vessels owned by Samherji hf. This quantity constitutes approximately 4.1% of the raw material processed by Icefresh GmbH during the year and 3.4% of the company’s turnover. The company‘s profit was 1.3 million euro, or approximately 200 million ISK. This amounted to 3.3% of turnover after the company had paid 28.5% income tax in Germany. In the year 2011 the company paid a dividend to shareholders of 200 thousand euro or 30 million ISK. Samherji received 85% of this amount into its accounts in Iceland. In 2010 the company’s profit amounted to 740 thousand euro. Those figures clearly indicate that Samherji in Iceland is not transferring monetary assets out of Iceland to Icefresh GmbH and assertions to that effect are ridiculous and completely out of step with reality.

Press release from Samherji 29.3.2012

For further information, please contact:
Þorsteinn Már Baldvinsson, CEO of Samherji; tel: +354 560-9011