Report cover of the National Ring Efects of the Seafood Industry in 2019 by NOFIMA

Formidable growth of the seafood industry shows a report

NORWAY
Thursday, October 01, 2020, 00:10 (GMT + 9)

Over the last 15 years, the seafood industry has increased its value creation sixfold, and an employee in the industry creates an average value of more than 2 million a year.

This is stated in a report prepared by Menon, Nofima and Norce. Through the purchase of goods and services, the seafood industry lays the foundation for employment and value creation throughout the country. The total employment effects of the seafood industry's activity in 2019 were just over 90,000, while the total value creation was 127 billion.

Growth has been driven by increased salmon production, higher prices and a weaker Norwegian krone.

"Hardly any industries have grown more than the seafood industry in recent years, and the growth is important for Norwegian value creation and welfare. The industry has almost twice as high value creation per employee as the average of mainland Norwegian industries", says project manager Roy Robertsen in Nofima.

Important along the entire coast

The report shows how important the seafood industry is for the regions along the coast. In direct value creation, Møre og Romsdal is the highest with NOK 15 billion in 2019. In second place is Vestland with a value creation of NOK 13.5 billion.

However, it is in northern Norway that the seafood industry has the strongest relative importance. In Troms and Finnmark, the seafood industry accounts for close to 12 per cent of all jobs in the private sector. This is followed by Nordland with 11.5 per cent and Møre og Romsdal with just over 11 per cent.

There has long been a competition between different municipalities about who is the most important seafood municipality. The report names Bergen as the winner measured in turnover, while Frøya is most important measured in value creation, closely followed by Ålesund. The latter is also the municipality with the most employees in the seafood industry.

Creates major ripple effects

Through the purchase of goods and services, the seafood industry lays the foundation for significant value creation and employment. Menon Economics has calculated that the total employment effects of the seafood industry, including ripple effects, were 92,000 employees in 2019. Converted into full-time man-years, this amounts to close to 80,000 man-years.

The employment effects are spread throughout the country, but are naturally strongest in the largest seafood counties. The report also shows a significant effect in counties such as Viken with a total employment effect of just over 10,000 employees, and Oslo with close to 9,000 employees.

Formidable growth

Since 2004, growth has been significant. At that time, the seafood industry had a turnover of NOK 50 billion, while value creation was less than NOK 10 billion. Last year, the figures were increased to 320 billion and 76 billion.

"In 2020, the industry will be affected by the global corona crisis. Upon completion of the report, the salmon price is the lowest in several years. However, the industry is doing significantly better than several of the other major Norwegian export industries such as oil and gas, the maritime industry and the process industry. Based on completely updated statistics for 2020, however, we estimate that the value creation effects in the seafood industry in particular will be reduced somewhat", says Sveinung Fjose, from Menon Economics, who is responsible for the calculations in the project.

At the same time, he emphasizes considerable uncertainty about this, and that the crisis will probably not affect employment to the same extent.

Read the full report here (only available in Norwegian language)

Author: Camilla Klaevold / Norges Sildesalgslag (Article has been translated from original in Norwegian)

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