Current external conditions for the Icelandic seafood industry are favourable following a rise in product prices in foreign markets simultaneously to depreciation of the ISK. This is positive development for the Icelandic seafood industry. Conversely, the cut in the fishing quota has had an adverse effect, and, in addition, the position of the capelin stock is uncertain. Growing demand for seafood products worldwide can be expected to sustain high prices. Wild marine products are increasingly classified as a luxury good in foreign markets, a trend which we consider positive for the Icelandic seafood industry.
Dwindling weight of the seafood industry
The weight of the seafood industry in the total exports of the Icelandic economy has waned in the past decade. This year, 32% of export revenue can be expected to come from the export of marine products, but as a comparison the ratio in 1990 was 55%. The trend will continue in coming years and we expect that in 2012 the weight of marine products in export revenue will have dwindled down to 27%. Moreover, aluminium exports can be expected to generate more in export revenue than marine products as years go by, amounting to 33% of Iceland’s total export revenues in the year 2012. (AÓ)
Source: Glitnir
