Ministry of Fisheries' priority Ministry of Fisheries' priority project on added-value for project on added-value for

marine catchmarine catch (AVS project) (AVS project)

Friðrik Friðriksson, chairman of Rf, Icelandic Fisheries Laboratories and AVS

steering group

September 6th. 2002

Seafood value chainSeafood value chain 1. Raw material

Enviromental issues, handling, pretreatment, storage, new species 2. Processing

Primary processing : Heading, gutting, filleting, salting, freezing, transport, traceability

Seccondary processing: Thawing, smoking, drying, marinating 3. Byproducts

From cod, herring, capelin, shrimp 4. Aquaculture

Species, methods, production, feed 5. Biotechnology

Enzymes, proteins, medicine 6. Equipment & competence

Machines, programming, counseling

....and other important and other important issues, cross value chainissues, cross value chain

Food safety

Quality

Traceability

Transport

Markets

Consumers

Export value of seafood and related products (IKK milliards)

71

46

610,36

2001

Raw material Processing

Byproducts Aquaculture

Biotechnology Equipment & competence

130

Seafood export value Seafood export value in USD (fob)in USD (fob)

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.00019

82

1983

1984

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

fob - USD x 1.000

Is there a Is there a needneed for for special special efforteffort to to increase valueincrease value of of

seafood?seafood? Statistics tell that growth in the industry over last

decade has been insufficient There are great opportunities for increased value within

seafood in Iceland Continuous effort and vision needed over the whole

field Such an effort should be stimulating for companies and

has to be in line with their longterm interests Therefore Iceland’s Minester of Fisheries says yes to the

question that there is a need for new inititives

Stearing group for increased Stearing group for increased value of seafood (AVS) since value of seafood (AVS) since

January 2002January 2002 9 members from industry, markets, research and university

environment form the group appointed by the Minester of Fisheries

Steering group has worked extensively since January in analysing the current status and preparing proposals

It has met with many people and local interest groups Some members made a field trip to Norway/Denmark A full working day in May with 60 people from industry for

information sharing and consultation Final paper and recommendations to be presented to the

Minester early October 2002.

Main tasks of the Main tasks of the stearing group 2002stearing group 2002

To map the six main fields, raw material, processing, aquaculture, biotechnology, equipment and competence where opportunities lie for AVS and define projects which would lead to more value in each field

To investigate what has been done in these fields in other countries, esp. Norway and Denmark and bring positives to Iceland

To look for and enhance better understanding within the fishing industry that an effort in Increased Value of Seafood (AVS) is needed

...... stearing group 2002...... stearing group 2002

To define the role of government, industry and other intrested parties

To set measurable goals for 5 years effort to increase value of seafood and related products. Where do we want to be in 5 or 10 years ?

To propose ways to finance AVS projects during the next 5 year

To make recommendations regarding the management of the AVS program during 2003-2007

What Norwegians have done: What Norwegians have done: Founding the new FHF fund Founding the new FHF fund

2001 2001

The industry took the initiative, the board of FHF comes mainly from industry

Totally new source of funding R&D in seafoodThe income for the fund is a 0,3% tax on

export of seafood from Norway, self imposed by industry

The fund has around 1.200 million IKK for the first year in budget

The FHF - FundThe FHF - Fund

The board sets the main guidelines for how to split the funds as below with three year horizon. The

1.100 million goes to:

•General projects for the industry 279 •Fishing and catch 239•Fish industry and production 272•Aquaculture 224•Small projects and planning 45•Information 22•Evaluation 22

Annual funds in Iceland for Annual funds in Iceland for seafood research and seafood research and

developmentdevelopment

Annual state budget funding 130 million IKK Icelandic Research Council 50 “ EC 50 “ Nordic funds 30 “ Minestries and institutions 30 “ Industry 30 “

Total about 310 millions IKK goes to R&D in the seafood industry annually or 0,3% of export

value.

The industry should lead The industry should lead new inititives in AVS new inititives in AVS

Important that the industry is responsible for projects coming from AVS

Create a common forum for research and industry to cooperate

Government can facilitate new programs, and increase funds allocated to R&D

AVS steering group’s proposal will be address vision as well as programs that will to foster growth in industry.

Role of government in Role of government in AVS, a plan should be in AVS, a plan should be in

placeplace Sustainable fisheries Enviromental

monitoring; clean ocean Food safety Education Basic research Funding for R&D

projects

Create financial and competetive environment for companies in Iceland

New development Venture capital Ensure market access

internationally

…….further role of .further role of governmentgovernment

Play leading part in offering vision for the fishing industry in Iceland

Position Iceland among other fishing nations on the market place

Creating the AVS program and securing support and financing is part of that.

Potential growth in seafood value (IKK milliards)

2007 and 2012

0

50

100

150

200

250

300

Equipment & competence 6 8 12

Biotechnology 0,3 1,8 11

Aquaculture 1 6 36

Byproducts 6 12 24

Processing 46 58 72

Raw material 71 78 86

2001 2007 2012

130

164

240