The effects of fisheries management on the Icelandic demersal fish value chain

Ögmundur Knútsson; Dadi Már Kristófersson; Helgi Gestsson

doi:10.1016/j.marpol.2015.03.015

The effects of fisheries management on the Icelandic demersal fish value chain

Ögmundur Knútsson^*, Dadi Már Kristófersson, Helgi Gestsson

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

17 Citations (Scopus)

Abstract

Iceland's fishing industry has outperformed fishing industries in neighboring countries in recent years. This paper identifies key factors in market structure in recent decades that contribute to long run profitability of the Icelandic fishing (and fish processing) industry using semi-structured interviews with industry participants, and compares those with similar results from Norway. Further, the development of profitability in the Icelandic and Norwegian demersal fishing industries is used to assess the long run effects of different management systems on quality, product focus and profitability. The results indicate that three key changes in Icelandic regulation during the 1980s were important to the development of long run profitability within the fishing industry: the abolition of export barriers, the introduction of an individual transferable quota (ITQ) system and the establishment of fish auctions. A large and growing literature supports the role of ITQs in ensuring long run profitability. The importance of market structure for profitability has only recently been identified, affecting the ability of value chains to become market oriented and supply homogenous product flow from heterogeneous raw material. Comparison with Norway indicates that while individual transferable quota management does improve profitability in fishing to a certain extent, management systems must facilitate a strong market connection from consumers, through the stages of retail and processing, to fishers for the full realization of profit potential in the fishing industry.

Original language	English
Pages (from-to)	172-179
Number of pages	8
Journal	Marine Policy
Volume	63
DOIs	https://doi.org/10.1016/j.marpol.2015.03.015
Publication status	Published - 1 Jan 2016

Bibliographical note

Funding Information:
The authors would specially thank the New Zealand Asia Institute at the University of Auckland , for sponsoring the workshop in Auckland leading to this publication. They also thank Aleksandra Haneczko and Alexander Næss for their work on collecting data in Norway. Financial support from The Research Council of Norway Grant no. 199564 and research funding from the University of Akureyri and University of Iceland is appreciated.

Publisher Copyright:
© 2015 Elsevier Ltd.

Other keywords

Demersal fishing
Iceland
Market structure
Norway ITQ
Profitability

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10.1016/j.marpol.2015.03.015

Cite this

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title = "The effects of fisheries management on the Icelandic demersal fish value chain",

abstract = "Iceland's fishing industry has outperformed fishing industries in neighboring countries in recent years. This paper identifies key factors in market structure in recent decades that contribute to long run profitability of the Icelandic fishing (and fish processing) industry using semi-structured interviews with industry participants, and compares those with similar results from Norway. Further, the development of profitability in the Icelandic and Norwegian demersal fishing industries is used to assess the long run effects of different management systems on quality, product focus and profitability. The results indicate that three key changes in Icelandic regulation during the 1980s were important to the development of long run profitability within the fishing industry: the abolition of export barriers, the introduction of an individual transferable quota (ITQ) system and the establishment of fish auctions. A large and growing literature supports the role of ITQs in ensuring long run profitability. The importance of market structure for profitability has only recently been identified, affecting the ability of value chains to become market oriented and supply homogenous product flow from heterogeneous raw material. Comparison with Norway indicates that while individual transferable quota management does improve profitability in fishing to a certain extent, management systems must facilitate a strong market connection from consumers, through the stages of retail and processing, to fishers for the full realization of profit potential in the fishing industry.",

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note = "Funding Information: The authors would specially thank the New Zealand Asia Institute at the University of Auckland , for sponsoring the workshop in Auckland leading to this publication. They also thank Aleksandra Haneczko and Alexander N{\ae}ss for their work on collecting data in Norway. Financial support from The Research Council of Norway Grant no. 199564 and research funding from the University of Akureyri and University of Iceland is appreciated. Publisher Copyright: {\textcopyright} 2015 Elsevier Ltd.",

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N1 - Funding Information: The authors would specially thank the New Zealand Asia Institute at the University of Auckland , for sponsoring the workshop in Auckland leading to this publication. They also thank Aleksandra Haneczko and Alexander Næss for their work on collecting data in Norway. Financial support from The Research Council of Norway Grant no. 199564 and research funding from the University of Akureyri and University of Iceland is appreciated. Publisher Copyright: © 2015 Elsevier Ltd.

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AB - Iceland's fishing industry has outperformed fishing industries in neighboring countries in recent years. This paper identifies key factors in market structure in recent decades that contribute to long run profitability of the Icelandic fishing (and fish processing) industry using semi-structured interviews with industry participants, and compares those with similar results from Norway. Further, the development of profitability in the Icelandic and Norwegian demersal fishing industries is used to assess the long run effects of different management systems on quality, product focus and profitability. The results indicate that three key changes in Icelandic regulation during the 1980s were important to the development of long run profitability within the fishing industry: the abolition of export barriers, the introduction of an individual transferable quota (ITQ) system and the establishment of fish auctions. A large and growing literature supports the role of ITQs in ensuring long run profitability. The importance of market structure for profitability has only recently been identified, affecting the ability of value chains to become market oriented and supply homogenous product flow from heterogeneous raw material. Comparison with Norway indicates that while individual transferable quota management does improve profitability in fishing to a certain extent, management systems must facilitate a strong market connection from consumers, through the stages of retail and processing, to fishers for the full realization of profit potential in the fishing industry.

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The effects of fisheries management on the Icelandic demersal fish value chain

Abstract

Bibliographical note

Other keywords

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