The impact of aquaculture on the Faroese economy

29th of April 2014Hilton Reykjavik Nordica

Farmed fish will feed the world

Aquaculture has grown at an impressive rate over the past decades. It has helped to produce more food fish, kept the overall price of fishdown, and made fish and seafood more accessible to consumers around the world.

That’s why greater investment is needed in the industry — for new and safer technologies, their adaptation to local conditions, and their adoption in appropriate settings.

Juergen Voegele, DirectorAgriculture and Environmental Services DepartmentWorld Bank

Presentation

• History

• Management of biological risk

• Natural conditions

• Financial results

• Jobs and wages

History

• Started in the sixties and seventies

• Growth in the eighties and nineties

• ISA crisis in 2003

• Consolidation and fewer companies

• Growth in the last years

Production 1986-2013 (1.000 tonnes live weight)

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

20122013

14m0

10

20

30

40

50

60

70

80

90

Management of biolocical risk

• Distance between sites

• Fallowing

• Stocking densities

• Transport of live fish, products and risk material

• Vaccination

• Monitoring

Natural conditions

j f m a m j j a s o n d j f m a m j j a s o n d j f m a m j j a s o n d j f m a m j j a s o n d j f m a m j j a s o n d j f m a m j j a s o n d2

3

4

5

6

7

8

9

10

11

12

13

14

2007 2009 2010 20112008 2012

Sea temperature

Low mortality rates

0

10

20

30

40

50

60

99G 00G 01G 02G 03G 04G 05G 06G 07G 08G 09G 10G

Svin

n i %

Norge

UK

Færøyene

Chile

Low production cost

Financial results

Cost and price

1985198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009201020112012

0

5

10

15

20

25

30

35

40

45

PriceProduction cost

Financial results (mio. DKK)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

-600

-400

-200

0

200

400

600

800

1000

Salmon and total export of goods (value)

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Export around the world (value)

USA; 19.86%

Germany; 14.66%

UK; 12.64%

Russia; 10.86%

China; 8.18%

Denmark; 6.43%

Asia (other); 5.61%

Sweden; 4.66%

Other EU; 3.88%France; 3.73%

Poland; 2.86%

Production in 2013 (tonnes)

71.8%

16.1%

2.0% 10.1%

Whole fresh

Fillet

Whole frozen

Other

Job creation & destruction

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

500

1000

1500

2000

2500

3000

FisheriesFish processingAquaculture

Job creation & destruction

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

500

1000

1500

2000

2500

Fish processingAquaculture

Wages in aquaculture

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

50000

100000

150000

200000

250000

300000

Unemployment (%)

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20092010

20112012

20130

2

4

6

8

10

12

14

Other industries thrive

• Aquaculture equipment

• Well boats

• Other services for the industry

• Research and innovation

Extra taxation

• Extra license tax of 4,5%

• Extra species rent of 0,5% of the turnover

Thank you!