NIGERIAN SHRIMPING INDUSTRY DECRIES PIRATE ATTACKS

C O N F I D E N T I A L SECTION 01 OF 02 LAGOS 000664 SIPDIS SIPDIS STATE FOR AF/W, INR/AA, DS/IP/AF, DS/ICI/PII, DS/DSS/OSAC OSLO FOR HELENA SCHRADER DOE FOR GPERSON, CAROLYN GAY TREASURY FOR ASEVERENS, SRENENDER, DFIELDS COMMERCE FOR KBURRESS STATE PASS USTR FOR ASST USTR FLISER STATE PASS TRANSPORTATION FOR MARAD STATE PASS OPIC FOR ZHAN AND MSTUCKART STATE PASS TDA FOR NCABOT STATE PASS EXIM FOR JRICHTER STATE PASS USAID FOR GWEYNAND AND SLAWAETZ E.O. 12958: DECL: 10/05/2017 TAGS: PGOV OES PREL ASEC NI SUBJECT: NIGERIAN SHRIMPING INDUSTRY DECRIES PIRATE ATTACKS Classified By: Acting Consul General Vicki Hutchinson for reasons 1.4 ( B) and (D) ¶1. (SBU) Summary: During a recent Turtle Excluder Device (TED) inspection visit, many Nigerian shrimp companies told the Poloff that pirates have boarded their boats, robbed their crew and equipment, and confiscated their catches. Eight Nigerian shrimp companies operate approximately 150 boats in the Bight of Bonny near the Niger Delta, a region most commonly known for militant activity aimed at international oil companies. According to industry contacts, the Nigerian Navy Patrol has been unable to police the waters to secure the shrimp fleets' safety. End Summary. -------------- Pirates Ransack Vessels For Booty -------------- ¶2. (C) According to the Managing Director of ORC Fishing and Food Processing Ltd. (Nigeria),the third largest shrimp fleet in Nigeria, security is a "very sensitive topic" because although piracy has long posed a problem, the Nigerian naval patrol has done little to combat it. On August 7, pirates (widely recognized as armed Niger Delta inhabitants who use outboard motor boats to approach shrimp vessels) looted a vessel's radios, electronics, the crew's personal belongings, and the boat's catch. This company representative said the frequency of pirate attacks varies; sometimes months will pass without a robbery and sometimes one boat will be hit multiple times a day. The most damaging aspect of a pirate attack, especially when there is violence against the workers, is a plummet in crew morale. ¶3. (C) Another company's captain commented that the security situation appears to have improved between June and September 2007, but he also acknowledged the tide was "much worse" during this period and may have kept pirates from the open water. Another captain predicted that, as they had in previous years, attacks would become more frequent as the holiday season approached. -------------- Pirate Attacks, High Gas Prices Low Catch Make 2007 a Hard Year -------------- ¶4. (SBU) Many shrimp company representatives voiced the same concerns to the Poloff: pirate attacks, increased gas prices, and a lo catch this year have made operations expensive and difficult. The largest shrimp company operating in Nigeria said one way it is addressing high operating costs is by dry docking its boats more frequently than is the norm. Dry docking entails raising boats out of the water so rust and barnacles can be cleaned from the hull. This, our interlocutor said, allows for more efficient fuel use. -------------- -- Minimal Export to U.S.--Eco-Friendly Euro Label -------------- -- ¶5. (SBU) Prim 7 Stars's Atlantic Shrimpers Ltd. is undeniably Nigeria's largest shrimp company with an active fleet of 69 boats (the next largest is Banarly with 24 boats). Managing Director Manjit Sadarangani said Atlantic is the only company that produces enough product to fill a container to export shrimp to the United States. Since the U.S. shrimp import ban was lifted from Nigeria in January 2007, Atlantic has exported 5-6 containers to the U.S., Sadarangani said. Nigerian shrimp exports to the U.S. are low because the American market prefers more labor intensive products including head-off and peeled shrimp. European LAGOS 00000664 002 OF 002 markets, particularly in Portugal and Spain, do not require this additional processing. Sadarangani admitted the Nigerian shrimp industry has come to accept turtle excluder device compliance, which is necessary to export shrimp to the U.S., because it gives them an edge in European markets where they can label their product "eco-friendly." -------------- Comment -------------- ¶6. (SBU) Pirate attacks on shrimp trawling vessels have plagued the industry over the past several years. It is not surprising that the Nigerian Navy is aware of these attacks but has done little in response. Militancy in the Niger Delta has caused the Navy to deploy more resources there, and it is not surprising that they are unable to curb attacks on shrimpers. While Nigerian shrimp exports to the U.S. are minimal, U.S. TED compliance certification is viewed by the Federal Department of Fisheries, and increasingly the industry, as a desirable and prestigious label. End Comment. HUTCHINSON