How would you describe the general state of the Norwegian fishing industry at the moment?
In 2003, there was a decrease in the landings of fish by Norwegian registered vessels, and also in the first hand value. The landings totalled 2.5 million tonnes, down from 2.7 for 2002. The first hand value reduced to Norwegian Kroner (NOK) 8.9 billion (1 Norwegian Krone = 0.12 Eurocents) from NOK 11.2 billion in 2002. The strong Krone also caused reduced export value due to the fact that more than 90 per cent of Norwegian catches are exported and paid for in foreign currency. The value of Norwegian seafood exports in 2003 was NOK 26.24 billion, a decline of 8.5 per cent compared to 2002. Catch and export values have, however, improved somewhat so far this year.
A white paper on "Structural Measures towards the Coastal Fishing Fleet" was presented to Parliament in May 2003 reviewing policy towards the coastal fleet, and arguing that it was necessary to reduce its catch capacity. The Government proposed a structural quota system and an industry-funded decommissioning scheme to meet the challenge of the increasing overcapacity. A proposal to establish a quota exchange system was also introduced to increase flexibility in exchange of quotas between vessels. These measures are now implemented and they are working well because the economics of the remaining vessels are improving.
What is the state of Norway's fish stocks?
The state of all the most important commercial fish stocks in Norway's exclusive economic zone (EEZ) is good. This includes the stocks of Norwegian Arctic cod, haddock and saithe. Spring-spawning herring and blue whiting are also in good condition. This is confirmed by the recent evaluation by the International Council for the Exploration of the Sea (ICES), which says that the development is positive for many of the most important fish stocks.
There are, however, some exceptions. The cod stock in the North Sea is in a deplorable condition and this is also the case for local cod stocks along the Norwegian coast. The capelin stock in the Barents Sea fluctuates from year to year. Currently, there is no fishing for capelin -- all of it is set aside as food for other fish stocks and marine mammals.
What are the main challenges that the Norwegian fishing industry is facing at the moment and in the near future?
Today it is fair to state that major challenges for the Norwegian fishing industry are not linked to resources and biology, but rather to matters linked to market developments and to the structure of the industry. Globalisation and changing trade patterns, recent developments in infrastructure and logistics, trade barriers and market access, the concentration of market power in especially retail and the hotel restaurant and café (HORECA) market segments, as well as the high cost of Norwegian labour, constitute a demanding environment for further development and growth. Modern infrastructure and technology have reduced the competitive advantage of being located close to major fishing grounds. Frozen seafood has become an international commodity and a profitable raw material for processors as far away as China. For Norway to answer this challenge, a shift towards more specialised products seems to be the obvious response. Such products should be based on fresh raw materials. Being located next to major fishing grounds should still be a competitive advantage.
The fishing fleet and processing industry are suffering from too much idle capacity. In various vessel categories, programmes for structural reorganisation and reduction of capacity have been implemented and already beginning to have an effect. In the land-based processing industry no such programmes have been introduced yet and companies often face poor profitability -- if any -- and in some cases even bankruptcy.
In major markets, (most EU states and the US), we have witnessed a growing concentration of power within important market segments.
Other parts of the distribution chain are also dominated by few and large multinational corporations. In contrast, the Norwegian fishing industry is still very much a local business with vessels owners normally controlling one vessel and processing plants often being small-size, family-owned operations.
Market access has become an important topic illustrated by several EU measures aimed at curbing a normal, market driven expansion of the Norwegian aquaculture industry.
Adapting to market developments and market demands is probably the major challenge presently facing the Norwegian fishing industry. Not surprising, given the structure of the industry and the fact that about 95 per cent of all fish landed and farmed are exported.
What are the main challenges of the fish farmed sector at the moment?
In an international aquaculture context, Norway is both a small and a big nation. Norway is small in terms of total geographical area and population and our history in fish farming is relatively short.
In only 30 years, since a couple of Norwegians first attempted to grow salmon in a net cage in the sea, it has grown from close to nothing into a thriving modern industry.
Salmon and trout, our main aquaculture export products, represented about one third of the total export value of our seafood in 2002, and in value about 1.4 billion dollars. For a small country like Norway this represents a substantial amount, and, after oil and gas, fish is in fact one of our major exports.
And the future role of aquaculture in the seafood industry?
Even though Norway has been a pioneer in modern, intensive commercialised fish farming, we face a number of challenges. Year on growth in the production of salmon and trout highlights the importance of implementing principles of sustainability in every regulation we introduce for the industry and fish farmers.
This includes environmental issues, animal health and welfare.
Internationally food safety is a focal issue for seafood and food generally.
We want the consumers to perceive Norwegian seafood as both safe and pleasurable to eat. We must therefore ensure that the marine environment is clean, and we must implement systems that can ensure this. These basic requirements can only be met by means of active efforts from both the authorities and actors in the industry.
Because most of our fish is exported, it is vital that we have access to the already established fish markets and that the industry continues to develop new ones. One of our goals is to ensure the best possible market access for Norwegian seafood by means of a stable and long-term, and thus predictable, regulatory framework in all markets.
Fisheries harvest from renewable resources. To put it simply, if we harvest in the right way we will be able to utilise these resources forever without negative impact on other parts of the environment. That is the precondition for sustainable fisheries. And that is the aim of our fisheries policy. Modern fisheries are efficient both in tracking and harvesting resources. It is thus necessary to limit the exploitation.
The primary focus is on ensuring good productivity of target stocks by keeping the spawning stock levels within safe limits.
"Adapting to market developments and market demands is probably the major challenge presently facing the Norwegian fishing industry"
Another important area of work is to continue to develop fishing gear and techniques that are selective with regard to the target species and lenient with regard to bottom fauna and habitats.
Yet another aspect, which is gaining in importance, is the interrelationship between species in the marine ecosystem. We know that harvesting one specie will affect others, either because the food source of some - or the predators of others - is reduced. ICES now use this aspect in their advice on quota for capelin. Generally, such interrelationships are not well understood and more research is needed before similar aspects can be used in the advice on quotas for other species. With this knowledge, one may wish to give priority to certain fisheries and less to others.
In the shorter term, it is important to arrive at long-term harvesting strategies with other states, with whom we share fish stocks, to ensure healthy and productive stock levels and to give better predictability for the fishing industry.
Also, I think it is important to realize that man is part of the ecosystem, and that some effects must be accepted.
But without due regard to the limits and requirements that are set by nature itself, we may undermine the very basis for harvesting in the future.
This is, in essence, an ecosystem approach to the management of fisheries.
What is the situation with regards to whaling?
On 19 March 2004, the government presented a white paper to the Storting (Parliament) on its policy on marine mammals. The purpose of the white paper was to present a proposal for a new, coherent, active management regime for marine mammals, based on modern principles for the management of species, habitats and ecosystems. It stated that it forms part of Norway's efforts to imple-ment the ecosystem approach to the management of its marine resources. This is in accordance with one of the goals of the World Summit on Sustainable Development in Johannesburg in 2002, which encouraged the application, by 2010, of the ecosystem approach to fisheries management.
Norway's marine mammal policy follows the principle of conservation and sustainable use based on scientific advice. The Storting supported the main proposals of the white paper, but requested that the government, as soon as possible, increases the harvesting level of minke whales.
What should governments do to support the fishing industry?
Our government is very much concerned to create and to carry out a policy which is innovation and research oriented, making it possible to obtain the value-added potential within the marine sector. The government has invested heavily in R&D during the recent decades. Research is one of our key priority areas [and] marine science is one of four main themes in the governments White paper on Research and Development. Also, the Ministry of Fisheries in Norway has always played an active role on the regulatory side. We see it as important to arrange matters for the fisheries sector, so that the industry can operate under circumstances, which give them, at all times, predictable and stable working conditions. Side by side with growth and progress within the industry, there has always been a goal to develop a suitable and appropriate regulatory framework.
How can Norway, and the fishing industry as a whole benefit from Nor-Fishing 2004?
Nor-Fishing is an important arena for the development of today's and tomorrow's marine-based business sector. Nor-Fishing is a showcase, a forum for discussion, an ideas factory. The exhibition's vital role is underscored by the presence of so many international exhibitors and by so many foreign delegations which attend. [The minister also spelt out his views on relations with the EU which appear as part of our big question on this month's Global Forum. See page 8].
