There is a need for careful work in the development of the economy. Although Icelanders have succeeded in making great value from the renewable resources of the sea, some of them better than others, this is no guarantee for Icelanders to excel in this field permanently. There were clear signs of this last year. It is therefore important to increase progress with research and development in connection with the fisheries sector rather than pulling ashore.
Icelanders caught more from the sea in 2017, despite a long strike by fishermen, than they did in 2016. In 2017, the volume of exported seafood amounted to 52% of the total landed catch, the year before the corresponding proportion was 54%. 2016 was probably the best year for the Icelandic fisheries sector in terms of value creation in exports for each kg landed. In 2016, 1.3 XDR export value was obtained for each kg landed. In 2017, seafood exports returned 1.13 XDR per kg of landed catch, a decrease of 13%. A similar development could be seen in 17% reduction catch value in Icelandic krónur between 2016 and 2017. We caught about a quarter more pelagic species in 2017 than in 2016, but the catch value of pelagic species was lower in Icelandic krónur in 2017 than 2016. Cod catch was 5% lower in 2017 than 2016, cod catch value decreased by 16% between years.
Export value, utilization and total catch
Last fall was pointed out the fact that since 2010, volatility has been more characteristic of value creation in the fisheries sector in Iceland than an increase that could be seen in a more decisive way since its establishment. AVS Fisheries Research Fund, 2003, and Technology Development Fund Science and Technology Policy Council, 2004, until 2010 as can be seen in the picture above. The support of these key funds for innovation projects has contributed to the development of the value chain of Icelandic seafood, and new methods and solutions based on knowledge have been introduced into the day-to-day operations of fisheries companies. Market conditions and catch composition also have a major impact on value formation in fishing and processing of seafood.
Companies that fish, process, transport and sell fish products as well as companies that service the above companies, among other things through equipment development, have in collaboration with Matís worked with the support of the AVS Fund, the Fisheries Project Fund and / or the Technology Development Fund on projects that have contributed to added value.
FAO Fish Price Index and export value kg in catch in XDR
Compared with the Food Price Index of the Food and Agriculture Organization of the United Nations (e. FAO Fish Price Index) there are indications of a difference between the development of value creation in the Icelandic fisheries sector and the development of fish prices according to Art. FAO and for further clarification, a line is also drawn below which shows the development of the export value of the Faroese fisheries based on landed catch.
Landings and export value in XDR per kg of landings
If we look at the volume of catch and the export value in SDR (XDR), it is clear that large catch is not a check for high value for each kg landed. It can also be seen that since the aim is to increase the value of seafood by utilizing research and development with the establishment of the AVS Fisheries Research Fund in 2003 and the Technology Development Fund in 2004, rather than striving to increase the amount of seafood, more export value per kg which is extracted from the sea.
In 2011, the highest budget allocation was granted by the ACP budget. In the same year, cuts began in funding for food research at constant prices from the state budget. In the current year's budget, AVS's budget is less than 44% of the highest, in 2011. The budget proposal for next year (2019) proposes 12% cuts in food research funding (basis of the Ministry of Industry and Innovation's service agreement with Matís), a 9% reduction in contributions from the Treasury to AVS, a fisheries research fund and a 55% reduction in the total expenses of the Fisheries Project Fund. Í news on the Fiskifréttir website said about the reduction in the income of the Fisheries Project Fund that the Marine Research Institute planned a 340 million ISK reduction in its revenue estimate. The budget proposal provides for a 323 million ISK reduction in the expenses of the Fisheries Project Fund. In the submitted budget proposal, cuts in funding for food research (Matís) 12% are announced. Matís' income from AVS grants for research projects has amounted to about 27% from contributions to food research. Matís' income from grants from the Fisheries Project Fund has amounted to 12% from its contribution to food research.
It is therefore not guaranteed that we can expect a similar number of innovations in connection with the Icelandic fishing industry in the near future, which will no doubt affect the promotion of the Icelandic Ocean Cluster.
Utilization of cod 2017
In 2017, Icelanders used about 72% of cod catch for the production of products that were exported or consumed here at home, according to Statistics. Icelanders' utilization of cod in 2017 was in line with utilization in 2013, but somewhat lower than in the year 2015 when the comparable ratio was about 77%.
Catch and value of cod 1981 and 2017
For fun, a picture can be shown that showed what value Icelanders created by fishing and processing cod in 1981 and then again last year. In 2017, the Icelandic cod catch generated an export value of around 565 million in XDR, significantly more value than in 1981, although the cod catch in 2017 was about 55% of the cod catch in 1981. Each kg caught in 1981 returned about 0.54 XDR in export value than in 2017. returned each earned kg, based on statistics 2.23 XDR in export values. It is hoped that Icelanders will be able to create even more value from fisheries that thrive in the waters around the country in the future.
In this context, it may be mentioned that tomorrow, Wednesday 26 September 2018, the Fisheries Day will take place in Harpa, between 08:00 and 10:00, in collaboration with Deloitte, the Association of Fisheries Companies and the Confederation of Icelandic Employers.