Glitnir strong on seafood

glitnirA new report from Glitnir indicates that despite cooling economic conditions, Iceland’s seafood industry has a strong outlook for the future, according to reports in

In order to succeed, like other industries, the fishing industry will need to deal with rising oil prices. Unlike other industries, however, the Icelandic seafood industry will have to tackle the fluctuating nature and policy on cod stocks as well as competition in Asia.

Glitnir pointed out that a growing number of Icelandic seafood companies are taking themselves off the Nasdaq OMX exchange, a factor which is reshaping the industry. Another key factor is the increasing number of consolidations in the industry.

Together, the ten largest fishing companies in Iceland hold approximately 53 per cent of the total allowable catch allocated by the Icelandic government, an increase from 24 per cent in 1992.

Profits have also risen considerably in the industry, despite the increasing price of oil and equipment. Since 1980, profits have almost doubled and currently stand at around 20 percent.

Another change in the industry has been its diminishing role in the Icelandic economy. In 1990, marine products accounted for 56 per cent of all Icelandic exports whereas in 2007, that figure dropped to just 32 per cent.