Photo: Norwegian Seafood Council/FIS

Seafood is the largest and most important food-producing industry in the country

NORWAY
Monday, November 11, 2024, 00:10 (GMT + 9)

2023 was a record year for the Norwegian fishing industry. Seafood is the largest and most important food-producing industry in the country. In 2023, the industry exported 39 million meals every day of the year. Total value creation in the industry was NOK 139 billion (U$D 12.63 billion), reports Sjømatbedriftene (Seafood Companies Association).

Seafood Companies CEO Robert H. Eriksson says that the fishing industry is the largest and most important food-producing industry in the country and has become one of the most important contributors to maintaining the welfare state of the future.

The Norwegian fishing industry continues to grow and is becoming increasingly important for the Norwegian economy. The report prepared by Nofima shows that there are 96,000 direct and indirect employees in fishing and aquaculture. The share of the fishing industry in mainland Norway's gross domestic product (GDP) has more than doubled since 2012 and rose to 2.3% in 2023.

The fishing industry has always been important to Norway, but in recent years its importance has increased. The industry makes a solid contribution to AS Norge and has become one of the most important contributors to maintaining well-being, employment and economic growth throughout the country, says Robert H. Eriksson, CEO of Seafood Companies.

For almost 20 years, reports have been prepared showing the ripple effects of the fishing industry. As last year was a record year for Norwegian seafood exports, it is not surprising that value creation and ripple effects were also the best ever.

Photo: Norwegian Seafood Council

Eriksson notes that the industry employs a total of 96,000 people and will contribute tax revenues of 40.7 billion Norwegian kroner (US$3.69 bllion) in 2023.

"If you look at the tax contribution, the industry has become a very important contributor to maintaining Norwegian well-being. If you take the tax contribution, and add to that the land rental tax, and the funds paid to municipalities and district authorities through the Aquaculture Fund, the industry's contribution corresponds to the financing of all full-time nursing home places in the country, and more," says Eriksson, and continues:

"We see that the fishing industry is a regional industry, with great activity along the entire coast. At the same time, the industry generates chain effects throughout the country, through suppliers and subcontractors. We create jobs, and the industry not only creates light in homes, but also light between homes, we build local communities," he says.

Photo: Norwegian Seafood Council==>

There are seven counties that dominate the industry. Vestland, Nordland, Trøndelag, Møre og Romsdal, Troms, Finnmark and Rogaland account for 85% of value creation and spin-offs.

The capital also comes out well this time. Oslo has more than NOK3.1 billion in value creation, of which the domino effect amounts to almost NOK2.6 billion. This is because many companies that provide services to the industry, such as finance, insurance, legal services and others, have their office in Oslo. But there is also direct value creation in the capital. €501 million in value creation is created in Oslo in the fishing industry itself.

The largest aquaculture

With NOK 74 billion (USD 6.72 biillion) including spin-offs, aquaculture accounts for more than half of the total value creation. The high value creation in the core business is due to good operating results, high export prices and the low krone exchange rate. The industry employs a total of approximately 96,000 people. 41,600 people directly, while another 54,000 jobs are linked to the domino effect.

Photo: Norwegian Seafood Council

"There is no doubt that the fishing industry is the largest and most important food producer in the country when it comes to the country's food security. In addition, the industry plays an important role in the country's overall preparedness," says Eriksson.

He further notes that NOK 4.7 billion (USD 369 M) was paid to 143 aquaculture municipalities and 8 counties in 2024. This is in addition to the other tax contribution. Value creation per employee in the aquaculture sector was NOK 2.69 million (USD 244k) per employee.

"This only confirms that the fishing industry is the lifeblood of rural Norway. The industry creates jobs, settlements and value creation. It helps to supply healthy and sustainable food to a growing world population. We are a significant contributor to maintaining the welfare state. In addition, we are the largest and most important industry in safeguarding the country's food security," concludes Robert H. Eriksson, Managing Director.

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