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Seafood industry in northern norway
1.
Business Opportunities in
Seafood Industry in Northern Norway Finpro Norway Antti Mäkikyrö, Saara Annola
2.
Introduction (1) -
Business opportunities in Northern Norway • In recent years, the northern Norwegian economy has grown faster than the rest of the country - a development that is expected to continue in the coming years. Norway's future welfare depends on growth in the north. – The government’s national budget includes investments of NOK 3,15 billion in the northern Norway for 2015. The focus areas will be: international cooperation, business, education, Infrastructure and the environment, and security. – Unemployment will remain low and the continued growth means that the region needs more expertise. • It is estimated that there will be total investments of NOK 300 billion in Northern Norway during 2014-2022. From these investments, there will be: – Private investments: NOK 211 billion – Public investments: NOK 89 billion • At the moment, the situation in Northern Norway is: – Ongoing investments: NOK 32 billion – Financed investments: NOK 57 billion – Planned investments: NOK 210 billion (Source: The Norwegian Labour and Welfare Administration (NAV), www.kbnn.no, Government’s National budget 2015) 4/28/2015 © Finpro2
3.
Introduction (2) -
Business opportunities in Northern Norway • In Northern Norway, the estimated investments of almost NOK 300 billion are divided by following sectors (during 2014-2022): – Housing Construction (NOK 100,715 billion) – Offshore (NOK 65,418 billion) – Infrastructure (NOK 38,953 billion) – Energy (NOK 36,547 billion) – Public Construction (NOK 21,328 billion) – Food & Nourishment (NOK 13,613 billion) – Health (NOK 13,461 billion) – Industry (NOK 5,147 billion) – Maritime infrastructure (NOK 4,171 billion) – Seafood industry (NOK 2,337 billion) (Source: www.kbnn.no) 4/28/2015 © Finpro 3
4.
Introduction (3) - Business
opportunities in Northern Norway • Estimated investments during the years 2014-2022 in Northern Norway by areas: – East-Finnmark: NOK 17,4 billion – West-Finnmark: NOK 37,5 billion – Tromsø, Mid-Troms, North-Troms: NOK 72,8 billion – Hålogaland region: NOK 33,4 billion – Bodø region: NOK 45,0 billion – Helgeland: NOK 27,5 billion – In addition, NOK 60,0 billion in offshore (continental shelf) (Source: www.kbnn.no) 4/28/2015 © Finpro4
5.
Seafood Industry - Market
Demand (1) • Many important and profitable activities are linked to the sea: – fish farming • In 2013, the first-hand value of Norwegian fish farming reached NOK 40 billion, up 35 per cent from 2012. The produced quantity was 1.25 million tonnes. – biotechnology – high quality products – logistics • There is a big potential in seafood industry. The world’s population is growing rapidly and in 2050 it will reach 9 billion people. According to the FAO (the Food and Agriculture Organization of UN), this means that the current food production must increase by 70 percent. – Seafood industry is an industry for the future. In 2010, the marine turnover in the Norwegian seafood sector was 10 billion pounds (NOK 110 billion), and it is estimated that by 2050 this number will increase by six times. – The modern seafood sector is a sector built on research, innovation and technological solutions. • 95 per cent of what is produced is exported, in the form of over 2 000 different products, to around 150 countries. The industry employs about 30 000 people, of whom 14 000 work in fishing, 6 000 in fish farming, and 10 000 in processing. (Sources: Invest in Norway, Statistics Norway, Norway’s Minister of Fisheries) 4/28/2015 © Finpro5
6.
Seafood Industry -
Market Demand (2) • The Norwegian seafood industry is globally leading in several areas. The following factors contribute to making the industry globally leading: – A knowledge base which is internationally leading when public research and higher education institutions and government administration are included – Technologically leading suppliers in aquaculture and fisheries – Large R&D capacity compared with other countries in terms of research institutions, researchers and R&D budgets – Internationally leading public management of fisheries and aquaculture in terms of competence, design of regulations and ability to implement regulations and other measures – Internationally leading equity financing of the seafood industry, with Oslo as the leading stock exchange for seafood companies – Consolidation into internationally leading companies with substantial internal human and financial capital, and potential to develop internal capacities related to R&D and innovation – Subsidiaries in other countries in supplier industry and aquaculture which provides access to foreign knowledge workers, R&D institutions etc. • Within the seafood industry the salmon aquaculture value chain is leading the way. It is the value chain where Norway has the strongest position in terms of human capital, knowledge base, technologies, financing of operations and R&D, and international ownership. (Source: Invest in Norway) 4/28/2015 © Finpro6
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Seafood Industry -
Market Demand (3) • Norwegian seafood has never enjoyed a stronger position in the world market. In 2014, Norway exported seafood worth of NOK 68.8 billion, which is 12 %, or NOK 7.3 billion more than in 2013. • It is estimated that there will be investments of NOK 2,337 billion in Northern Norway in seafood industry during 2014-2022. Some examples: – Finnmark: NOK 44 million (Molo), NOK 41 million (Mudring) – In general, NOK 300 million (10 new fish boats) (Source: www.kbnn.no) 4/28/2015 © Finpro7
8.
Contact information Finpro Norway,
Finland Trade Center Antti Mäkikyrö Head of Trade Center +358 29 4695 380 antti.makikyro@finpro.fi 4/28/2015 © Finpro8
9.
Thank You! 4/28/201 5 © Finpro9
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