Negotiations Stall as Greenland’s Fishing Giants Face Crisis
In a significant turn of events, the prolonged and intense negotiations between two of Greenland’s largest fishing companies, Royal Greenland and Polar Seafood, have collapsed. This impasse centers on a pressing issue that threatens the future of Polar Seafood’s shrimp and fish factory in Aasiaat, which now risks closure.
The situation is dire, as confirmed by Bent Salling, co-owner and managing director of Polar Seafood Greenland. “If it were merely a matter of a temporary reduction in the total allowable catch (TAC) for shrimp, we might be able to adapt. However, we believe that the biological situation is unlikely to improve soon. Additionally, the Fisheries Act compels us to reduce our stake in the fishery, unlike Royal Greenland,” Salling explained. “This makes it impossible to find a commercially viable solution for both parties.”
A Factory at Risk
The Aasiaat factory, a significant source of employment in the region, is now teetering on the brink. Without intervention from Greenland’s Naalakkersuisut, the factory may shut down by autumn 2026, displacing 116 employees. “Our workers and business partners in Aasiaat are vital to the factory’s success, and we will continue to fight to secure the necessary raw materials for its operation,” Salling emphasized. “The uncertainty is understandably distressing for our team and partners. We owe it to them and to the community to explore every possible option and fight for our future.”
A Call to Action
Salling has voiced his frustration with the self-government’s response, pointing out contradictions in the allocation of fishing quotas. “It’s perplexing that Royal Greenland has been granted a quota of 5,000 tonnes of cod to establish a factory in Tasiilaq, which employs very few people, yet they don’t seem eager to resolve the Aasiaat crisis,” he remarked.
The ownership structure of Polar Raajat, which oversees the factory, reveals a partnership where Polar Seafood Greenland A/S holds a 57% stake, while Denmark’s Polar Seafood Denmark A/S owns the remaining 43%.
Plea for Political Solution
For years, Polar Seafood’s leadership has alerted government officials about the potential closure of the shrimp factory due to the new fisheries law. According to sources within the company, further negotiations with Royal Greenland are futile. “It’s not a commercial issue but a political one that requires urgent attention,” Salling asserted.
The factory has historically processed a variety of seafood, including shrimp, halibut, and cod. However, the current operational model cannot sustain itself without an adequate shrimp supply—estimated at a minimum of 10,000 tonnes. With quotas expected to fall short by 4,000 tonnes over the next two years, the reality of closure looms large. “We can adapt to changes in biological conditions, but the politically engineered challenges we face are insurmountable,” Salling said.
New Opportunities?
Interestingly, Polar Seafood is exploring options to pivot its operations. The company has expressed interest in acquiring additional halibut quotas that could allow a shift from shrimp production to halibut, potentially preserving jobs at the Aasiaat factory. “If we can replace shrimp production with halibut, we could maintain our current workforce. This could be a mutually beneficial scenario, but it all hinges on political will,” Salling stated.
As the self-government continues efforts to facilitate dialogue with both companies, the clock is ticking. The arrangements for new fishing quotas remain in flux, with several companies vying for a share of the 4,600 tonnes of halibut, alongside cod and additional quotas. The future of Aasiaat’s factory will depend not just on business negotiations but also on decisive political action in the coming months.