30. June 2017 Marita Rasmussen, director Program 1) About the - PowerPoint PPT Presentation

Aquaculture conference 30. June 2017 Marita Rasmussen, director

Program 1) About the House of Industry 2) History of aquaculture 3) Natural conditions 4) Management of biological risk 5) Financial results 6) Tax regime 7) Exports 8) Jobs and wages

About us - the House of Industry • Private businesses are organised in Vinnuhúsið • Privately funded • Over 500 business entities are members of an employer’s organisation and/or branch organisation Covers all branches of business, except fishing ship owners • The fishing ship owners are organised in the Ship Owners • Association (SOA) with office in the House of Industry.

Aquaculture 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 fish down, 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, Director Agriculture and Environmental Services Department World Bank

History of Faroese Aquaculture • Started in the sixties and seventies - 60 licenses and several companies pr. fjord • Uncontrolled growth in the eighties and nineties - 1998 on farmer pr. fjord ISA crisis in 2003 – new regulatory regime • • Growth and consolidation followed by large investments in land based smolt production • Tackling the sea lice challenge

Natural conditions

Faroe Island perfect for Salmon farming

Sea temperature 14 13 12 11 10 9 8 7 6 5 4 3 2 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 d

Wave height

Regulations from 2003 is the base Very good regulations • One fjord one generation of salmon • All in all out • Biosecurity • Protection of the environment Better performance • Health - Low mortality • Growth • Food Conversion • Quality potential

The biggest challenge Salmon lice is a world wide problem • Very Large usage of chemicals • Resistant problems – Very few options left • Much handling of fish (single largest cause of mortality) • Large scale quality downgrade • Stagnation in Production How do we meet the challenge • Moving more of the production on Land • Using Lumpfish, Lazer technology, Thermolicer, fresh water • Lobby authorities to take appropriate measures Question of time before the Salmon lice problem is solved

Reduction in production time – 540 to 400 days 2010 2017 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Land Sea

Total production of Salmon 100 90 80 New legislation 70 60 50 40 30 20 10 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Tøka 19,8 19,1 18,4 15,6 9,1 18,6 21,7 20,4 42,5 34,8 56,9 56,1 71,9 46,1 23,5 18,6 30,0 47,4 58,9 47,7 60,9 76,6 76,5 86,0 80,0 85,0

Export value of farmed salmon 600 500 400 € mill. 300 200 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Price trend salmon – whole gutted - dkkr 60 50 40 30 20 10 0 ´98 ´99 ´00 ´01 ´02 ´03 ´04 ´05 ´06 ´07 ´08 ´09 ´10 ´11 ´12 ´13 ´14 ´15 ´16 Price 21 24 28 20 19 16 18 22 30 25 24 28 37 31 28 41 41 43 55

Salmon Farming vs. export total • Total export of goods: € 1.100 mill. (2016) • Fish products dominate (>95%) • Half farmed fish – aprox 500 €; only Salmon Other half wild (caught) fish – Cod, Haddock, Saithe and pelagic • spicies

Globalization of aquaculture exports 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EU non-EU

Trends in employment in Faroes 3.500 3.000 2.500 Fiskiskapur 2.000 Fiskavøruídnaður Bygging 1.500 Handil og umvæling Aling og landbúnaður 1.000 500 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Private sector employment 1.000 DKK Employees 1.000.000 3500 900.000 3000 800.000 2500 700.000 600.000 2000 500.000 1500 Wages 400.000 Employees 300.000 1000 200.000 500 100.000 0 0

Pack Ship aging yards Equip IT ment Aquaculture Process Fisheries Storage Fish Farming ing Fish Ship farming ping gear Logi Fishing stics gear

Thank you!