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Caviar always expensive and in defciit

Politics Materials 19 September 2007 12:05 (UTC +04:00)

After 16 September the citizens of black caviar exporting countries will be allowed to take two times little caviar while going abroad - 125gm instead of 250 gm. That is stipulated in the new rules regarding caviar export adopted at the 14th conference of CITES counties (Convention on International Trade with Wild Fauna and Flora Species Threatened with Disappearance), which was held in the Netherlands in June.

The main place of black caviar production (90% of world production) is the Caspian Sea, and the main caviar exporters are respectively the five littoral countries - Russia, Kazakhstan, Turkmenistan, Azerbaijan, and Iran. In 2006, CITES did not approve of the quotes for export of sturgeon, for all the five Caspian countries did not submit comprehensive information about the state of sturgeon population in their waters. As a result, Russia, Kazakhstan, Turkmenistan, and Azerbaijan either restricted or suspended caviar export to save the sturgeon population in the Caspian Sea. An exception was made only for Iran. It was allowed to export 44,370kg of black caviar in 2006. The exception for Iran was made taking into account the monopoly for caviar production in the country violation of which is followed by punishment and even death sentence.

The measures introduced by CITES were caused by catastrophic scale of poaching which can lead to extirpation of sturgeon population in the Caspian Sea as early as within three years. According to Russian ecologists' calculations, ruthless poaching in the Caspian Sea's basin resulted in 38.5-fold decrease in number of sturgeons within 15 years.

In recent years in compliance with the quote system the volume of the black caviar exported from the Caspian region made up 110-150 tons a year. At the same time, the states having fish business in the Caspian Sea constantly reported they could not manage their quota.

However, CITES still accuses the countries of inability to put an end to large-scale poaching in the Caspian Sea which many times exceeds quotas. Illegal fishing has achieved such a large scale that CITES experts find it difficult to hold assessments with acceptable accuracy and as a result to define on the basis of these data new fishing quotas enabling maintaining sturgeon population.

Illegal production of black caviar is widely spread. Thus, according to the statistics of Russian law enforcement bodies, poaching makes up 90% of Russian black caviar market. Russian economy annually loses at least $500mln from sale of illegal fish products. Unfortunately, the data on Azerbaijan is not available.

In 2007, CITES Secretariat lifted ban for export of black caviar with respect to Caspian Sea's littoral countries. The agreement envisaging decrease of sturgeon fishing quotas by 20% compared to 2005 was achieved the same year. The total quota of the five countries for black caviar export was reduced by 15% compared to 2005. These figures regard total fishing and export of 6 sturgeon species.

However, quotas for export of Persian sturgeon and stellate sturgeon's caviar were reduced by over 25%, whilst quota for Russian sturgeon's caviar on the contrary was increased by 23%. Quotas for sturgeon fishing were decreased more than the quotas for export of black caviar and that is explained by Russia's decision to increase export of caviar at the expense of decrease use of caviar in hatchers. Hence, yearly quota for Russia's export of black caviar amounted to 23.5 tons.

Later, Azerbaijan, Kazakhstan, Iran, and Russia were allowed to export 3,761 tons of beluga, but providing continuation of combating reduction of sturgeon population. The decision was made taking into account Caspian countries improved caviar trade control and are artificially breeding sturgeons. In 2007, Azerbaijan discharged 9.7mln newly-hatched sturgeons to the Caspian Sea.

In 2008, quotas for export of sturgeon and black caviar for Caspian countries will remain at the same level as in 2007. According to the Reproduction and Protection of Water Bioresources of the Azerbaijan Ecology and Natural Resources Ministry, Azerbaijan can increase its quota by 1 or 2 tons.

The total sturgeon fishing quota for the five Caspian Sea's littoral countries in 2007 was set as 1,071 tons, which is by 3.1% less than in 2006 (Russia - 286.5 tons, Iran - 450 tons, Kazakhstan - 182.5 tons, Azerbaijan - 90 tons, Turkmenistan - 62 tons). Azerbaijan's quota for export of sturgeon's black caviar and flesh was raised by 2.5% compared to 2006.

There are two following methods of definition of quote for catch of sturgeon fishes: one used in the four CIS littoral countries and one in Iran. The method used in the CIS includes five following major criteria: forage reserve in a definite Caspian sector and absolute bulk of forages, biomass of sturgeon fishes (in tons and head), output of fish production, trade return from natural spawning, and freshwater drain. However, Iran does not agree with these criteria, for it has very low indexes on several of them. Iran suggested supplementing this method with two more criteria - level of pollution and level of poaching. Only in case its two criteria are accepted it will accept the first five.

Iranian-Russian working group has been established to define pollution and poaching assessment mechanism for each Caspian littoral country. According the recent data, average annual freshwater drain in Azerbaijan makes up 31 km3 a year, in Azerbaijan 15 km3, in Russia 283 km3, in Iran 4.4 km3.

On 1 August, a 10-year ban on production of sturgeon caviar took effect in Russia. Caviar production shall be allowed only to the farms engaged in fish-breeding. Moreover, small amounts of caviar shall be produced for scientific development. But not all fish is good for plants and science, therefore it shall be re-processed. Legally manufactured and artificially produced products shall be sold.

The ban also touches upon con forfeit caviar trade. It shall be terminated. The point is that in October 2006 Russian Government developed a bill envisaging termination of illegal caught of several animals species, including sturgeon, and the products manufacture of them. Implementation of the bill will enable termination of forfeit sturgeon products in order to prevent its legalization.

Marking of sturgeon caviar is still an open issue in Azerbaijan. Notably, at the beginning of the year the Azerbaijan Cabinet issued a decree on production of sturgeon fishing in Azerbaijan, but the issue regarding marking of the sturgeon caviar was not resolved. In most cases content of a pack does not correspond with the mark. There even was fact when a producer which long ago had stopped manufacturing activities was indicated on the pack. Annually the country produces less than 100 tons of sturgeon caviar.

Over 95% of the world's population cannot afford caviar due to its high price. In Europe and the United States retail prices for sturgeon caviar vary between $ 4,000 and 9,000. Beluga caviar of 5th variety amounts to $10,000 per kilogram in the United States. In Russia's black market beluga caviar, which is the most expensive (sale of this variety of caviar is banned), costs €620 per kilogram and even up to €7,000 per kilogram abroad.

An average Azerbaijani also cannot afford black caviar for a long time. Monopolists controlling production and sale of black caviar regulate prices in internal markets. For the time being one kilogram of black caviar costs between AZN 700 and AZN 1,800 depending on its variety. This caviar can be bought both in black market and specialized shops.

For instance, 113-gram cans with black caviar are sold in fish shops at AZN 80-100. Experts ambiguously speak of the quality of black caviar sold in Azerbaijan's internal market. Everybody knows that the most high-quality caviar is exported at incredible prices. Low-quality caviar is sold in Baku, Salyan, and Neftchala.

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