In an article sent to Morgunblaðið on 14 October. Arnljótur Bjarki Bergsson thanks Sigurjón Þórðarson for an article in Morgunblaðið on October 7. The reason for Sigurjón's article is news on Matís' website from 29 September following the successful World Seafood Congress event. Matís' news does not mention records or use adjectives at the top level. The news item on Matís' website points out that the export value per kg of cod catch has increased by more than 350% since 1981. Sigurjón rightly points out that the price of cod fillets in the UK market has risen more at the same time. Below is Arnljót Bjarki's more detailed answer to Sigurjón's article.
The news item on Matís' website also traces the development of value creation in the fisheries sector from 2003-2016. In 2003, a strategic decision was made to increase the value of seafood (ACP) through research and development; place more emphasis on the value of products than the quantity of raw materials. In this context, a sensible environment for resource management is certainly important. On the other hand, it is our opinion that the emphasis on processing and the value chain is much more effective for society. Therefore, the article on Matís' website did not discuss a quota system.
Project financing is primarily through competition funds, such financing is classified as special income and the proportion of Matís' special income is high in relation to similar units in Iceland. The financing of Matís' operations is Sigurjón's idea and it is good. It would be desirable for more members of the Althingi, current, former and future, to show similar interest. The state's budget through a service agreement with Matís, based on funding for Food Research, was ISK 435 million in 2016. Of taxes and public fees paid, 80 million remained. Matís' special income in 2016 amounted to ISK 1,180 million. Of this, ISK 481 million was raised from international competition funds and ISK 252 million from domestic competition funds. It is hardly necessary to mention that Matís' success in attacking international competition funds, e.g. Horizon 2020 plan, is considered remarkable. Among our partners in international research projects are the National Association of Small Boat Owners, the Association of Companies in the Fisheries Sector, the University of Iceland and the Marine Research Institute, the Marine and Water Research and Consulting Institute. The conference and its side events were funded in extensive collaboration as can be seen on the website WSC2017.
Investment in innovation is a prerequisite for progress in the food industry. Unfortunately, investment in innovation in the European food industry is only half that of the US food industry and a third, compared to Japan. It takes a lot to stay gone, let alone be a leader in an ever-changing world. It is true that the fisheries sector, fish processing in particular, is behind other food industries worldwide, although the actions of the Icelandic fisheries sector are taken in many parts of the world, as discussed at the recent conference. In this light, the Norwegian demand and Faroese in Icelandic knowledge and technology in the field of fisheries.
Innovation in the fisheries sector includes improved catch management, new cooling methods, automation, innovations in product range and new ways of marketing. All of these are examples of methods that have affected the value of Icelandic cod fillets in the British market since 1981. That year, a significant part of the cod was exported intact, without any processing. The condition of the raw material was often deficient. What was done in Iceland was exported largely block-frozen. Today, a significant proportion of cod products exported to the UK, under controlled conditions, are fresh fillet pieces that have been treated well through the value chain. This is one of the key reasons why prices in the UK consumer market have risen, as can be seen.
Icelanders have been bulky with their seafood for a long time, so developments in the Icelandic fishing industry as well as processing have affected the product range and prices in the British market. When more was put into quantity than quality, it was common for fishing vessels to sail with catch and sell as such on auction markets in British ports, then even 12-14 days old, now it is more about fish being filleted and trimmed in Iceland and even sliced into fillet pieces, thanks to Icelandic technological developments (eg Marel and competitors), for transport, under controlled conditions, to the UK. In this way, Icelandic seafood can get closer to consumers after they leave the country. Filleting in Iceland and the development of product composition exported from the country have an effect on price development and value creation. It is respectful to review data from foreign institutions. Although the author is not an economist, it can be seen that the most accessible data from the UK Statistics Office on fish show the retail price development of fish fillets, which is not the same as the import price in the UK or the export price from Iceland. The value of the British pound sterling changed in 2016 against other currencies, which may affect the retail price of food. Currency developments are different and they are of different ages and unstable. Certainly the price development of fish fillets is an important factor in the price development of cod products. Retail fish fillets in the UK have changed in the last 35 years Less is said about old fish being stuffed in the store, although there is something about fish fillets being translated up in stores, and fish fillets still being sold frozen in the UK, there are now more fillet pieces have been imported as such refrigerated from Iceland. Fish fillets that were processed in the same way as happened and went 35 years ago would not be sold at the same price as fish fillets that are treated with the elements that are common today. If we look at individual markets, we must not forget that Icelandic cod products are imported from here directly to three continents, then we can look at price developments (seafood index) in other markets. The difference between the development of value creation from all Icelandic cod products and the price development of cod fillets in retail in the UK market can be partly explained by the fact that food raw materials have not moved as much everywhere.
Commodity prices (e. Commodity) has changed more slowly than specialty products such as fillets. World Bank Food Price Index (e. World Bank) rose by 38% from 1981 to 2016. Food Price Index of the United Nations Food and Agriculture Organization (FAO) increased by 51% at the same time at current prices. Looking at fish prices in particular, world fish prices have increased by more than 51% from 2003 to 2016, while having fish fillets in the UK increased by 57%. At the same time, the export value of Icelandic seafood has increased by 145% in SDR, from 0.53 SDR / kg catch to 1.3 SDR / kg catch as reported in Matís news. Thanks to developments that have been driven, among other things, by co-operation between Icelandic fisheries companies and associations, educational institutions, Matís, industrial companies and other stakeholders in the fisheries sector.
In order for the Icelandic economy to be successful, Matís has invested heavily in cultivating human resources, including through collaboration with Icelandic universities, a collaboration that will hopefully be able to be financed in the future, despite the announced cuts in the 2018 budget proposal. It is necessary to have good data to build on when making decisions. Too often it must be pointed out that the third most valuable fish species in Iceland's export figures is other catches. With usable data in the queue, let's discuss issues openly, without shouting, and put them in context. For example, what are the effects of stopping saving valuables and meeting needs instead? How can we still improve co-operation and co-ordination between Icelandic parties? Matís' co-operation with stakeholders in the fisheries sector over the years, not least the National Association of Small Boat Owners, has yielded results in catch management and value creation. Now we need to look to the future and move even further in the field of value creation based on the knowledge and resources of the sea around Iceland and around the world.