Icelanders have succeeded in following a centuries-old decision and maintaining a free and sovereign state here. Verstöðin Ísland has strengthened over the past century, a development that began with the mechanization of the fishing industry at the beginning of the 20th century. The average cod catch from 1918 to 2017 was just over 238 thousand tonnes per year. At the same time, the proportion of cod from the ¾ total catch of Icelanders decreased to 21%, but the total catch has increased from 98 thousand tonnes to 1176 thousand tonnes due to fishing for other stocks in parallel with increased capacity and improved technology. On average, cod have been around 26% of landed catch in the so-called restaurant. Cod is still the most important species we catch, about 44% of the value of landed catch in 2017 is due to cod fishing. At the time of the establishment of the sovereignty, the share of cod in the total catch value was close to 78%. The Icelandic fisheries sector is diverse and has developed with each step that has been taken. It is hoped that we will learn from history and be able to take more but fewer positive steps in the future.
New direction - new thinking
On the thirtieth anniversary of Iceland's sovereignty, Icelanders decided to make scientific knowledge the basis for fisheries management in Icelandic waters. Less than three decades later, Icelanders had unchallenged control of the 200-mile economic zone around the country. Around the same time, it gradually dawned on us that the fishing capacity of our fishing vessels was beyond what the fish stocks could carry, and therefore the fishing capacity of the vessel and the fishing capacity of the fish stocks had to be adjusted. Demands on the markets are that the utilization of fish stocks is sustainable, that we do not go closer to the resources than they can handle.
We Icelanders set a policy, based on the prevailing fisheries management system in 2003, to increase the value of seafood rather than increase the amount of seafood. Growing demands, as well as a willingness to show responsibility in the management of marine resources, played a part in the decision-making process. We followed it up with an increased emphasis on practical research and development work with the aim of increasing value. A major step in that direction was the establishment of an AVS research fund in the fisheries sector. Various collaborative projects were carried out to advance for the benefit of the whole, so that the outcome of individual projects could contribute to improving the interests of all Icelanders.
Consistent quality yields more valuable trades
In view of the export value of what was caught each year, it can be said that it was possible to quickly increase the value of seafood, with research funded by the ACP, after the decision was made. The value more than enough doubled from 2003 to 2011, in foreign currencies, although little has been done in that direction in recent years.
Based on the approach of the Food and Agriculture Organization of the United Nations to assess price developments in international trade in seafood (FAO Fish Price Index), the value of Icelandic seafood increased faster than it did. Value creation affects the operations and operating results of companies in the fisheries value network, including the margins of fisheries companies.
In any case, the development of value creation in the fisheries sector in Iceland was not the same in this decade as in the previous one, so it is important that we pick up the thread and continue to develop the fisheries sector with increased value creation as a goal. It should be noted that the above measure is not the only pure truth that states the status of the fisheries sector in Iceland, for example, the increased capacity of each link in the seafood value chain is not directly reflected in the measure of the export value of each kilogram caught. The composition of the catch as well as the total catch certainly have an effect on the above-mentioned scale as well as how the catch is handled until the seafood is sold out of the country, such as whether the catch is landed for landing in a foreign port, whole frozen fish on board, filleted, flat or melted, to name a few. named.
In order to promote value creation for the future in the Icelandic fisheries sector, Icelanders need to maintain their position by tightening their grip, do not beat any of the quality requirements, even put more emphasis on product quality and responses to consumer preferences than has been done recently. Consistent quality can make more valuable trades possible.
About a year ago, the Fisheries Conference was encouraged to aim for this fivefold of the valuables we process from seafood. Unfortunately, discussions about that goal have not taken place in modern forums.
Investment in research pays off
In 1918, exported marine products weighed 29 thousand tons, which amounted to 29% of landed catch. In comparison, in 2017, Icelanders exported 609 thousand tonnes of seafood, which amounted to almost 52% of landed catch.
Increased value creation can lead to prosperity. Experience shows that investment in research and innovation is important for the development of industries. The framework for innovation must be able to encourage increased value creation. Stable and long lasting. It is good to know that individual companies are strong enough to pay a good salary for well-educated and good people with experience, but it can come down to the whole thing that there is no systematic work to lift the floor. It may happen to us Icelanders if entrepreneurs and smaller companies do not have access to qualified, educated and experienced professionals.
AVS was a key fund that created an atmosphere where a lot of effort was put into increasing the value of seafood, but that fund seems to be running out. Its budget aims to be around 40% from what it was at its peak in 2011 and next year's government contribution to AVS will be less than half of 2011. AVS is crucial for most if not all of the companies that have suffered the most in connection with changed the image of the fisheries sector, just like the projects that have been carried out in collaboration with more traditional fisheries companies.
AVS grants are about 4% of Matís 'turnover, grants from the Science and Technology Policy Council's funds, under the supervision of Rannís, are about 9% of Matís' turnover. Revenues other than Matís' service agreement on food research with the Ministry of Industry and Innovation, such as research grants, are for the most part (72%) under the innovation that Matís provides.
In 2015, Matís booked revenue from projects in connection with European research collaboration in the amount of ISK 215 million, and then the state contribution to AVS was ISK 217 million. Since then, Matís has earned more on these European tickets than has been invested in AVS.
The thread will be picked up again
Much has been achieved over the past century, but we all need to do our part to be able to boast of operating in a competitive industry in the future. The sadness in today's fisheries sector is that we seem to have abandoned the extensive co-operation and sincere determination that was made to increase value creation in fishing, processing and sales of seafood. Certainly, there is value in the sale of knowledge or equipment that has been developed with knowledge of the nature and content of the Icelandic fisheries sector in collaboration that has often been supported by national research and development funds.
I hope we are fortunate enough to follow up on decisions that are effective in the future, implementing them in our daily lives to contribute to the betterment of all of us, but not giving up in the middle.
This article written by Arnljótur Bjarki Bergsson first appeared on pages 48 and 49 in 7.-8. issue of the 111th year of Ægis on the occasion of the centenary of sovereignty at the end of November.