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    Home » Pros and Cons of Individually Tradable Quotas Explained
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    Pros and Cons of Individually Tradable Quotas Explained

    Greenland ReviewBy Greenland ReviewOctober 18, 2025033 Mins Read
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    Pros and Cons of Individually Tradable Quotas Explained
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    Member of Inatsisartut Raises Questions About Coastal Fishing Quotas

    Jens Napãtôᴋ’, a member of the Inatsisartut and the 1st Deputy Mayor of Avannaata Kommunia, has officially submitted a series of inquiries to the Naalakkersuisut regarding the trades related to Individual Transferable Quotas (IOK) for coastal halibut fishing in administrative area 47. This area encompasses Disko Bay, Uummannaq, and Upernavik, and the questions address activities that have taken place since the start of this year.

    According to a memo from Peter Borg, the Minister for Fisheries, Agriculture, and Self-Sufficiency, quota share trading and quota quantity trading have become prevalent practices within the fishing industry.

    While there are opportunities for improvement following the adoption of the new Fisheries Act—which allows dinghy fishermen more access to individually transferable quotas—some in the fishing community see both advantages and challenges. Knud Fleischer, factory manager at Rodebay Fish ApS in Oqaatsut, expresses concern that the IOK scheme poses significant challenges for smaller businesses operating land-based fish factories.

    A Well-Used Scheme

    In response to Napãtôᴋ’s queries, the Minister for Fisheries reported that between January 1 and September 12, there have been 49 trades involving a total of 679 tonnes of halibut, conducted by dinghy fishermen operating both under and over six meters, as well as various fishing companies.

    Notably, six individuals or businesses have sold their entire quotas and exited the fishery altogether. The Minister indicated that some of these sellers have retired, relocated from area 47, or stopped fishing for health reasons. Others have opted to sell only portions of their quota shares. However, the Department of Fisheries has indicated that it does not track the prices for these quota transactions.

    Room for Improvement

    Anders Sandgreen Reimer, a dinghy fisherman based in Ilulissat, has transitioned to the IOK scheme this year and purchased an additional 15 tonnes of halibut from Rodebay Fish ApS in Ilimanaq. He acknowledges that while the current quota distribution process has room for enhancement, the ability to buy and sell halibut quotas presents valuable opportunities for dinghy fishermen.

    “The IOK system for dinghy fishermen has turned out to be different than what was initially described,” Reimer explains. “Many of us received fewer quotas than expected, and I found it necessary to buy additional quotas since my allocation with the IOK was much smaller compared to my previous catches.”

    Despite the challenges associated with the transition, Reimer emphasizes the advantages of holding transferable quotas. “It feels more secure to own quotas that hold value, and I can purchase more when needed,” he notes. He also remarks that the practice of buying and selling quotas has gained traction among his fellow fishermen.

    A Significant Impact

    Conversely, Knud Fleischer highlights that the IOK scheme has substantially affected halibut production at his factory. He notes, “Initially, we saw robust purchases from dinghy fishermen, but that has dwindled significantly. This likely stems from the fishermen needing to conserve their quotas for the latter part of the year.”

    Fleischer continues, “We were receiving over 30 landings a day during the summer, but that figure has now plummeted to around five. If the current trend persists, maintaining the viability of small fish factories like ours in the coming years will be an uphill battle.”

    Rodebay Fish ApS currently employs 11 people, though many have shifted to part-time hours following a season of full-time work. The factory holds halibut quotas and sells them to fishermen to ensure sustainable operations. As the fishing community navigates these regulatory and market shifts, the long-term implications for both small and larger-scale operations remain to be seen.

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