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
• rganisation 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

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

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

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 2017 2010

Land Sea

Total production of Salmon

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

10 20 30 40 50 60 70 80 90 100

New legislation

Export value of farmed salmon

100 200 300 400 500 600 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

€ mill.

Price trend salmon – whole gutted - dkkr

´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

10 20 30 40 50 60

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

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

Trends in employment in Faroes

500 1.000 1.500 2.000 2.500 3.000 3.500 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 Fiskiskapur Fiskavøruídnaður Bygging Handil og umvæling Aling og landbúnaður

Private sector employment

1.000 DKK Employees

500 1000 1500 2000 2500 3000 3500 100.000 200.000 300.000 400.000 500.000 600.000 700.000 800.000 900.000 1.000.000 Wages Employees

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

Thank you!