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.

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Pirates Ransack Vessels For Booty
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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.

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Pirate Attacks, High Gas Prices
Low Catch Make 2007 a Hard Year
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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.

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Minimal Export to U.S.--Eco-Friendly Euro Label
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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

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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."

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Comment
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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