Ministry of Fisheries' priority project on added-value for marine catch (AVS project)

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Ministry of Fisheries' priority project on
added-value for marine catch (AVS project)

Friðrik Friðriksson, chairman of Rf, Icelandic
Fisheries Laboratories and AVS steering group
September 6th. 2002
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Seafood 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

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..and other important issues, cross value chain

• Food safety
• Quality
• Traceability
• Transport
• Markets
• Consumers

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Export value of seafood and related products
(IKK milliards)
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Seafood export value in USD (fob)
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Is there a need for special effort to increase
value of 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 Icelands Minester of Fisheries says
  yes to the question that there is a need for new
  inititives

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

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Main tasks of the stearing 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

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...... 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

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What Norwegians have done Founding the new FHF
fund 2001

• The industry took the initiative, the board of
  FHF comes mainly from industry
• Totally new source of funding RD in seafood
• The 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

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The 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

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Annual funds in Iceland for seafood research and
development

• 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 RD in the
  seafood industry annually or 0,3 of export value.

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The industry should lead 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 RD
• AVS steering groups proposal will be address
  vision as well as programs that will to foster
  growth in industry.

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

• Sustainable fisheries
• Enviromental monitoring clean ocean
• Food safety
• Education
• Basic research
• Funding for RD projects

• Create financial and competetive environment for
  companies in Iceland
• New development
• Venture capital
• Ensure market access internationally

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.further role of government

• 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.

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Potential growth in seafood value (IKK milliards)
2007 and 2012