The main factors determining the performance of Icelandic fisheries have been identified as:<\/p>\n
\u2022 Price of seafood products<\/p>\n
\u2022 Growth of major fish stocks<\/p>\n
\u2022 Oil prices<\/p>\n
\u2022 Development of wages and other costs<\/p>\n
\u2022 Political involvement and possible changes in the fisheries management system<\/p>\n
External conditions are favourable for Icelandic seafood companies. Rising product prices in foreign markets have helped the companies and the exchange rate of the Icelandic krona (ISK) has been weak. The outlook for 2007 and 2008 is favourable.<\/p>\n
Economic growth in Iceland in 2006 is estimated to have been 4%. Inflation was 6.9%, and unemployment 1.3%.<\/p>\n
2007 will see a slower growth than last year but growth is likely to pick up again in 2008.<\/p>\n
Consolidation in the fishing industry has increased in recent years. In 2006, the 10 largest fisheries companies owned 50% of the total fishing quotas in Icelandic waters.<\/p>\n
The number of fisheries companies on OX Nordic Exchange in Iceland continues to dwindle. Only two traditional fisheries companies are now left, HB Grandi and Vinnslust\u00f6\u00f0in. A wide difference between break-up value and market value on OX and slow trading in fisheries companies\u2019 stocks means that owners do not see the purpose of listing.<\/p>\n
Fishing quotas in Iceland\u2019s territorial waters have not increased in total in recent years. Despite expectations for an increase in total fishing quotas they have remained almost unchanged.<\/p>\n
The price of marine products are at a historical high. The price of most types of products has climbed in recent quarters, with fishmeal rising the most.<\/p>\n
The price of demersal fish products is also very high which is convenient for the earnings of freezer trawlers and land fish processing.<\/p>\n
Glitnir Research expects demand and prices for marine products to remain high.<\/p>\n
Iceland\u2019s most important fish stock, cod, has not grown as much as hoped for. The spawning stock and fish stock have not grown in recent years and therefore cod catches around Iceland are not expected to increase in coming years.<\/p>\n
The most positive change in TACs for the year 2006\/2007 is the haddock and saithe increase.<\/p>\n
Looking into the future, herring quotas are expected to grow at a moderate pace.<\/p>\n
Profitability in Icelandic fisheries has improved when looking back at the last 26 years.<\/p>\n
EBITDA margin in fish processing and harvesting has improved although there are fluctuations between years, these fluctuations are mainly caused by ISK exchange rate movements.<\/p>\n
Opportunities for the industry include:<\/p>\n
\u2022 Further consolidation and acquisitions, both domestically and abroad<\/p>\n
\u2022 Increased quotas of haddock, herring and saithe will contribute to higher revenues and earnings<\/p>\n
\u2022 The seafood industry must further emphasise the purity of the Icelandic fishing grounds and thereby differentiate Icelandic seafood products<\/p>\n
\u2022 Increased competition will be met by newer and more efficient technologies<\/p>\n
\u2022 High product prices and a stable exchange rate will improve earnings in the next two years<\/p>\n
Industry challenges include:<\/p>\n
\u2022 Oil prices are likely to remain high<\/p>\n
\u2022 Product prices are high but are expected to rise more slowly in coming years<\/p>\n
\u2022 Rapid growth in global aquaculture<\/p>\n
\u2022 Condition of the cod stock is uncertain<\/p>\n
\u2022 Growing supply of frozen products from Asia, e.g. China<\/p>\n","protected":false},"excerpt":{"rendered":"
The main factors determining the performance of Icelandic fisheries have been identified as: \u2022 Price of seafood products \u2022 Growth of major fish stocks \u2022 Oil prices \u2022 Development of wages and other costs \u2022 Political involvement and possible changes in the fisheries management system Main findings External conditions are favourable for Icelandic seafood companies. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,21],"tags":[],"sponsor":[],"class_list":["post-10747","post","type-post","status-publish","format-standard","hentry","category-analysis","category-seafood"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/posts\/10747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/comments?post=10747"}],"version-history":[{"count":0,"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/posts\/10747\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/media?parent=10747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/categories?post=10747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/tags?post=10747"},{"taxonomy":"sponsor","embeddable":true,"href":"https:\/\/www.worldfishing.net\/icefish-conference\/wp-json\/wp\/v2\/sponsor?post=10747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}