According to Statistics Iceland the price of marine products has remained high this year and is now historically high measured in foreign currency (SDR). It is told that the prices have risen by 4.2 percent in the past 12 months. There is no doubt that the marine industry currently faces mixed external conditions. High product prices in foreign currency and depreciation of the ISK means that the EBITDA of seafood companies is strong despite rather adverse external conditions.
Statistics Iceland informed that the cod quota cut has been an encumbrance for seafood companies. Then depreciation of the ISK has led to a sharp rise in seafood companies¿ foreign debts recently and interest expenses have increased. On the other hand, oil prices have fallen in recent weeks and the substantial mackerel catch of pelagic vessels this summer was a welcomed windfall.
It is fact that the supply of wild fish has generally not increased worldwide recently, but demand is increasing. However, a substantial increase in aquaculture (including in Asia) means that the overall supply of marine products has increased. Now it looks that wild catch is increasingly considered a luxury good. Eventually this would sustain the high product price in foreign markets and is positive development for Icelandic seafood industry.
