The Norwegian fishing and aquaculture industry

Norway is one of the world’s leading seafood exporters and seafood is, after oil, the second biggest export commodity, bringing in earnings, in 1999, of NOK 30 billion (USD 3.3 billion) It is expected that a growing share of the world’s need for food will be provided by the sea, and this poses major challenges – resource management must be improved and aquaculture must be developed in an environmentally sound and effective way.

By Bjarne Myrstad

In Norway, there is increasing awareness of the huge potential that lies in the development of marine resources, and the intention is that fisheries and aquaculture are to play an increasingly important role in the country’s industrial sector. The earnings from the marine sector can be a vital element of the Norwegian economy as the oil and gas resources start to dwindle. For Norway it is of major importance that the production of Norwegian seafood shall comply with the strictest requirements to health and hygiene and be based on a sustainable and environmentally friendly production and harvesting methods.

Since time immemorial, people in Norway have made a living from fishing, whaling and sealing. This has been the very basis of life and culture on the coast, and the fishing industry is still one of Norway’s most important export industries. Efforts to steadily improve the management of marine resources have high priority, in order to ensure that commercial fishing and aquaculture remain a major industry in Norway for all time.

The reason fisheries have always been such a central component of Norwegian business and industry is that Norway controls some of the richest fishing grounds in the world. The North Sea, Norwegian coast, Barents Sea and the polar front in the Norwegian Sea are all highly productive areas, and major fish resources spawn right outside the coast of Norway. The coastline is also particularly well suited to environmentally friendly fish farming, and the aquaculture industry has grown tremendously in recent years, becoming a new, valuable industry for the coastal areas. In 1999 Norway exported farmed salmon and trout worth NOK 12.5 billion (USD 1.4 billion)

In 1946, Norway became the first country in the world to establish a separate Ministry of Fisheries. This Ministry is also responsible for harbours and shipping lanes, pilot and lighthouse systems and electronic navigational aids.

Sustainable management

In the last 30 years Norwegian fisheries, once virtually free and open, have become a regulated, profitable and sustainable industry managed by quotas and licences. The technological revolution after WWII has created such an effective fishing fleet that measures like these are necessary in order to prevent overfishing and depletion of resources. The migration of fish stocks across economic zones and international ocean areas, and increased pressure from fishing vessels from many countries, make it necessary to have binding international agreements on managing the fish resources in the world’s oceans. Norway has long traditions in cooperating internationally in fisheries, and after the implementation of 200-nautical mile economic zones in 1977, Norway has entered binding fisheries agreements with a number of countries. The 1995 UN Agreement on Straddling Fish Stocks and Migrating Fish Stocks was an important step in the right direction, and Norwegian authorities place great emphasis on implementing the principles of the agreement.

It is crucial that Norway’s abundant fisheries be managed in a sustainable way. Norway’s goal is to protect and build up stocks so that every year we can harvest as high and stable fishing quotas as possible, based on the principle of responsible fishing. In order to succeed, Norway is committed to marine research, including multi-species studies, which tell us about the relationship between the various species of fish and sea mammals in the ocean.

Sea mammals are at the top of the ocean food chain, and it is natural to harvest them within safe biological limits, in the same way we harvest fish stocks. This holistic approach to management of marine resources is the basis for the multi-species model adopted by the Norwegian authorities. Comprehensive research has been carried out to survey the size of the minke whale population, which is the species hunted in Norway, and to promote humane and effective slaughter methods. Sealing and whaling are subject to extremely strict requirements and rules.

Aquaculture has been dominated by Atlantic salmon and trout farming, although considerable efforts have been brought to bear in expanding profitable production to other species. The combination of aquaculture and traditional fishing – sea ranching – is at the trial stage. This entails setting out and recapturing organisms in their natural environmental settings.

About 90 per cent of the total quantity of fish which is brought to land in Norway is exported. The business is reliant on market profits and this means that all links in the chain must emphasize quality. For the authorities, the goal is to increase value creation in the industry through sound management of resources, further growth of the aquaculture industry with new species in addition to Atlantic salmon and trout, increased fish processing and better utilisation of fish by-products. Norway aims to be leading operator within the marine technology sector. Profitable and successful operators in a diversified fishing fleet, in aquaculture and in the fish processing industry are crucial in order to ensure thriving towns along Norway’s long coast.

An important industry for Norway

Fishing and aquaculture are the backbone of the economy along large parts of the coast. The industry provides work to over 21,300 people in the fishing fleet, (of whom more than 15,300 have fishing as their sole or main occupation), about 12,500 in the fish processing industry and over 3,700 in farming of fish and shellfish.

The fishing and aquaculture industry also generates considerable ripple effects in the form of shipbuilding and shipyard operations, the fishing gear industry, production of technological equipment, feed production, packaging, transport, and research and development.

Figures for 1999 show that over 2.6 million tons of fish with a landed value of NOK 10 billion were brought ashore. Aquaculture production in 1999 totalled close on 414,000 tons of salmon and about 42,000 tons of trout, with a landed value of nearly NOK 9 billion. Exports of fish and fish products amounted to NOK 30 billion. Of this, nearly NOK 12,5 billion came from the aquaculture industry. Norway currently sells fish and fish products to 170 countries.

The fisheries and sea farming industry is the second largest net exporter in Norway. Exports of crude oil dominated, accounting for 38.4 per cent, followed by seafood and fish products at 8.7 per cent, natural gas at 8.5 per cent, and , non-ferrous metals 6.9 per cent.

Fishery in a global context

With a catch of 3.4 million tons in 1997, Norway was the 10th largest fishing nation in the world, aquaculture and fresh water fishing included.. But as a seafood exporter, Norway is a leading nation. In the post-war period, global fishing operations expanded rapidly and fleets of large, ocean-going boats were built to locate new fishing grounds and resources which previously had not been utilised. It was not until the 1970s that the annual catch stabilised at about 60 million tons, and in many fishing regions pressure on resources increased and it became necessary to limit fishing. From the mid-70s, the total catch increased again, peaking in 1989 at 100 million tons. Ever since, the catch, including fresh water fish, has remained at this level. From 1988 to 1996 the world’s aquaculture production of fish and shellfish has more than doubled.

This constitutes a major challenge, because many fish stocks today are depleted or overexploited. There are also large fish resources that are put to little or no use, for technical and economic reasons, and it is impossible to know for sure what impact they will have in the future. Therefore, over the next few years, the most important addition to the food supply from the marine environment will expectedly come from further growth of the aquaculture industry.

International co-operation

Effective 1 January 1977, Norway established a 200 nautical mile economic zone outside the Norwegian mainland. Later that year it established a 200-mile fishery protection zone around Svalbard. A 200-mile fishery zone around Jan Mayen was added in 1980. These measures have given Norway control over and the responsibility of regulating large marine resources. The most important commercial fish species are joint stocks managed in co-operation with the EU and Russia. Norway also has bilaterial fisheries agreements with the Faeroes, Iceland, Greenland and Poland and holds annual conferences with all these countries to set quotas and discuss other regulatory measures. In addition, Norway takes part in multilateral fisheries negotiations on Norwegian spring-spawning herring, mackerel and blue whiting. The Norwegian delegation is comprised of government officials, marine researchers and the industry.

The main objectives of these agreements is to manage resources prudently, set total quotas on a scientific basis and strike a reasonable balance in mutual fishing rights in each others’ zones.

Quotas are set on the basis of evaluations and advice from the International Council for the Exploration of the Sea (ICES). Norway also takes part in several international management agencies such as the North-East Atlantic Fisheries Commission (NEAFC), the Northwest Atlantic Fisheries Organisation (NAFO), the International Whaling Commission (IWC) and the North Atlantic Marine Mammal Commission (NAMMCO). NEAFC has in recent years played an active part in the regulation of reserves in international waters in the north-east Atlantic. NAFO works in the same way in the north-west Atlantic.

Fisheries projects play an important role in the general support Norway gives to developing countries, and the fisheries sector has gradually become a major influence in Norwegian bilateral assistance programmes.

Fisheries officials work on trade policy with other countries, both in international organisations such as the OECD and WTO and with individual countries and groups of countries such as the EU (through the EEA Agreement), EFTA and the like. International work on ensuring safe food is in addition conducted through the FAO/WTO organisation Codex Alimentarius

The fisheries authorities also work within global and regional marine environmental processes, conventions and agreements, in order to ensure that the principle of sustainable use of living marine resources based on scientific foundations, is preserved when environmental considerations are to be integrated in marine management.

Diversified fleet

Norway has a diversified and technologically advanced fishing fleet, encompassing everything from one-man sjarks (small inshore fishing vessels) to large trawlers and purse seiners. A number of these are equipped with processing machinery for on-board production. At the end of 1999 the fleet totalled 13,196 fishing vessels. Of these 8,459 had decks, the rest were open boats. Only a small portion of the registered vessels are used for year-round fishing Of the decked vessels, 381 were longer than 28 metres and they accounted for 63 per cent of the total catch value. The 1,244 vessels between 13 and 28 metres in length represented 25.6 per cent of the total value of the Norwgian catch.

Cod fisheries, which comprise fishing for cod, saithe, haddock, bream, ling, halibut and a number of other species, are harvested with nets, lines, hand-lines, Danish seines, seines and trawls. Fishing for pelagic species such as herring, mackerel and capelin is done for the most part with ring nets. Industrial fish such as Norway pout, sandeel and blue whiting are caught with trawls.

Despite many years of work to regulate fishing and fishing operations, the capacity and capital investment in the fleet are still too large in relation to resources. As a result, profitability is in general too low, though good results within several sectors of the fisheries have in recent years substantially boosted profitability. Nevertheless, capacity has to be reduced in the ocean fishing and coastal fleet. In the spring of 1994 a unit quota system was introduced forthe Greenland shrimping fleet and in 1996 for the ocean-going purse-seiners and cod-trawler fleet Through this system the quotas for one vessel may subject to certain rules and for a limited period be combined and applied to one or several other vessels, in exchange for the permanent withdrawal of the first vessel from fishing.

The objective of these programmes is to reduce the pressure on resources, by cutting capacity and promoting the profitability of the remaining vessels in order to make it easier to renew the fleet. In the summer of 2000 these programmes were renewed and expanded to include the three groups mentioned as well as the conventional fleet of more than 28 metres in length. Since the 1970s, offshore oil operations in the Norwegian economic zone have created a new situation for the fishing industry. Areas that previously were important fishing grounds, are now being used by the oil industry. Norway’s goal is to provide a supportive framework so that both industries can develop and operate side by side.

Environmentally friendly aquaculture

In the past 20 years the Norwegian aquaculture industry has grown tremendously. Today the business is a modern and internationally competitive industry that efficiently produces valuable food . Most of the production consists of Atlantic salmon, the rest trout. Arctic char is a new aquaculture species, and work has been done on species such as halibut, Atlantic wolf-fish (catfish) and scallops. Production from fish farming is now twice as large as the combined production of meat in Norwegian agriculture. In the longer term there is little doubt that aquaculture will play an essential role in the production of seafood, provided it is done in an environmentally friendly way. Fisheries officials are strongly involved in the work of planning the future use of Norway’s inshore areas. The point of this planning is to balance the various user interests, and fish farming, fishing and exploitation of kelp and sea tangle will play an important role.

Aquaculture is a form of food production that has many advantages in terms of environment, nutrition and the use of feeds. Norway is a world leader in several sectors within fish and shellfish farming and has a number of natural advantages in the form of its nature and infrastructure.

Many Norwegian municipalities are highly dependent on the aquaculture industry to provide employment and a stable population base. Fish farming takes place at over 3,000 sites spread along the entire coast from Hvaler in south-eastern Norway to Aust-Finnmark in the far north. Figures compiled in 1998 show that there were 1,288 fish farming installations in total. Of these, 768 were for salmon and trout, 25 were hatcheries and for smolt and 162 were for marine fish and shellfish.

Compared with traditional fishing, aquaculture can help stabilize employment in Norwegian coastal communities. The combined use of knowledge and technology makes it possible to even out the natural cyclical ups and downs in traditional fisheries. In order to adapt production to the market, Norway has taken several steps in the past year to limit growth. In 1997, Norway and the EU reached a salmon agreement which ensures access to the European market, and established minimum prices as well as a ceiling for the annual growth of salmon exports to the European Union.

An official licence is required for those who carry out farming of fish and shellfish in Norway. A condition for receiving a license is that the activity does not comprise a danger for the spreading of fish diseases and that the facilities do not come n conflict with other local interests. Great strides in health and environmental initiatives have been made in the last few years – the same goes for efforts to raise technical standards and improve guidelines for operating fish farms. The level of competence is high and there is a wide spectrum of measures designed to ensure an environment-friendly development and growth within the industry.

Industry and export

In the home market, annual sales of fish total NOK 5-6 billion. The majority of the fish and fish products is nevertheless exported.

The EU is the most important market and around 60 per cent of total Norwegian fish exports, worth NOK 30 billion, go to EU countries. The biggest single markets are Japan, Denmark, Great Britain and France. The last few years have seen promising developments in several Asian markets and rapidly swelling exports to a number of other countries in Eastern Europe. In South America, Brazil buys large quantities of clipfish (split cod) and exports to the United States are on the rise again. Work on gaining improved market access is one of the Ministry of Fisheries’ main priorities.

The Norwegian Seafood Export Council in Tromsø has representatives in key markets and co-ordinates marketing campaigns for the industry overseas. The Council also has management responsibilities and is an advisory body to the Ministry of Fisheries.

Norway imported over NOK 5 billion worth of fish and fish products such as fish meal and fish oils in 1999. Part of this was direct landings from foreign vessels for processing in Norwegian plants. Cod, mackerel, and herring were the main species involved.

The Norwegian fisheries industry consists of many small and medium sized companies spread up and down the coast. Over the past 20 years the number of fish processing companies has declined from 860 to about 500. In the year 2000, there are 12 herring meal and oil plants along the coast. Much of their yield is high quality fish meal which is used in the production of feed for fish farming. Considerable changes have been made in recent years due to adjustments in national framework conditions and in world trade. Much work has been invested in adjusting the capacity of the fishing industry to resources and in promoting co-operative measures between companies and market orientated and profitable production. The authorities have taken measures, and a number of companies have made strong efforts to modernise facilities and equipment, ensure quality, as well as improve competence and marketing. The Norwegian fisheries industry delivers high quality products – ensuring that Norway continues to be a major exporter of seafood. The processing industry, based on raw material from both fishing and aquaculture, has a huge impact on activity, jobs and economic development in the coastal districts.

Research

Norway carries out comprehensive and multifaceted research in aquaculture, sea-fishing, sealing and whaling and biotechnology. Fisheries research has been a priority budget item for many years, with projects in a number of areas including resources, the marine and coastal habitats, fishery technology, aquaculture, fish food, industry, business development, food and market issues. A total of NOK 700 million is appropriated annually for fisheries research. Key words in aquaculture are hatching and feeding of fry, genetics and fish health. Biotechnology has high priority.

Part of the public funding of fisheries research has been channelled through the Research Council of Norway. The Research Council is an advisory body to the Ministry of Fisheries in research issues.

The Institute of Marine Research in Bergen, which for the most part is funded directly by the Ministry of Fisheries, has major assignments in researching and monitoring fish stocks and sea mammals, marine and coastal habitats and work on aquaculture and sea ranching. The Institute works closely with marine scientists in other countries. Much of the international co-operation takes place through the International Council for the Exploration of the Sea (ICES). The Norwegian Institute of Fisheries and Aquaculture in Tromsø conducts research on aquaculture, biology, biotechnology processing and and markets.

The Directorate of Fisheries – Institute of Nutrition in Bergen advises fisheries officials on human nutrition issues and feeds for farm fish . It also conducts research in this field.

Guaranteed safe food and high quality are basic conditions for modern foodstuffs export. The Norwegian fishing authorities emphasize satisfactory systems to ensure this.

A number of upper secondary schools along the coast offer vocational programmes in fisheries related subjects –fishing, whaling, aquaculture, fish processing and coastal industry. Higher education within fisheries is available at regional colleges, the maritime high schools and universities. The Norwegian College of Fishery Sciencein Tromsø has a degree programme Norway’s four universities all offer Master’s degrees in fisheries science-related fields. The Norwegian School of Economics and Business Administration and Norwegian Institute of Technology at the University of Trondheim also offer fisheries-related studies.

Regulation, supervision and control

The Directorate of Fisheries in Bergen is the executive agency of the Ministry of Fisheries with respect to regulation, guidance, supervision and control. Norwegian fishing quotas are divided annually between the different types of vessels, and in many cases each vessel receives a fixed vessel quota for the various fish species. In other cases each vessel is allowed to fish a maximum quantity within a group quota. When quotas are reached the fishing is stopped. There are several technical regulations to prevent the fishing of substandard fish, and throwing caught fish back into the ocean is prohibited.

Supervising and control to ensure compliance with laws and regulations are high priority tasks. Both Norwegian and foreign fishing vessels are subject to stringent controls in all Norwegian fishing waters. This applies to controls both at sea and during the landing of the catch, and to the technical regulations aimed at preventing the fishing of immature fish. At the same time, Norway is developing fishing gear that is better able to prevent the catching of young fish. The Coast Guard carries out controls at sea. The Directorate of Fisheries also has important functions in connection with regulation controls and monitoring. In later years much has been done to co-ordinate and improve the efficiency of control activities.In the spring of 2000, the Ministry of Fisheries commenced satellite-based surveillance of all Norwegian fishing andcatching vessels over 24 metres in length.

In co-operation with other countries, both in the northern areas and in the North Sea, Norway places great emphasis on achieving agreements that will ensure responsible fishing. Norway currently has co-operative agreements with Russia, Ireland, Scotland, Denmark and Iceland.

Norway is committed to arriving at responsible management regimes and sustainable use of resources in international waters, and the UN agreement on straddling and migrating fish stocks in the high seas would be an important tool here.

Fisheries officials are working to ensure that Norwegian fish products are high quality products in the world market and the Directorate of Fisheries carries out inspections and laboratory research with a view to this.

The fisheries authorities ensure that the conditions under which fish and seafood are to be raised have been complied with. To this end, the fisheries authorities work with various other public agencies at the central, county municipal and municipal level, and with the police. The Ministry of Fisheries is also responsible for supervising that the current regulations governing sales and exports have been complied with.

A renewable larder

Protection of resources based on the principle of sustainable and profitable development is the No. 1 objective of Norway’s fishery policy goals. The health of marine habitats is a guiding principle of Norway’s fishery policy and in practically all activities concerning fishing, sealing, whaling and aquaculture. Nature’s surplus shall be harvested, be it fish or sea mammals such as seals and whales. Norway’s view is that it should be possible to harvest all fish and species of marine animals within biologically responsible limits.

If we succeed here, and succeed in preventing the decimation of the world’s oceans, the sea will always be a renewable larder for humans. For a fishing nation like Norway, it is fundamentally important that the acceptance of conservation and scientific principles is embraced in all management of marine resources.

The author of the article, Bjarne Myrstad, 52, has been head of information at the Ministry of Fisheries since 1990. Prior to that he worked for 20 years as a journalist, serving as editor of Dag og Tid from 1974 to 1979, and fisheries reporter for Bergens Tidende from 1983 to 1990. In 1996 he wrote the book Vestlandsfiske (West coast fishing) He has also written other books on the fisheries.

UDA245ENG

Produced by Nytt fra Norge for the Ministry of Foreign Affairs. October 2000

The author is responsible for the contents of the article. Reproduction permitted.