The aquaculture industry alone accounts for 33,000 jobs in the supplier industries.
A recent report from Norwegian research institute Nofima reveals that the supplier industries supporting Norway’s seafood sector have grown to surpass the core fisheries and aquaculture industries in terms of employment.
According to the report, 46,300 individuals are now employed in these supplier industries, compared to 40,000 working directly in fisheries and aquaculture.
The rapid expansion of the aquaculture sector, driven by larger and more advanced facilities, has fueled demand for a wide array of goods and services from suppliers. The report highlights that the aquaculture industry alone accounts for 33,000 of the jobs in the supplier industries, with the remaining 13,300 jobs linked to the fishing industry.
These supplier industries are diverse, encompassing everything from traditional shipyards and fishing gear manufacturers to cutting-edge technology firms developing solutions for aquaculture.
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Challenges equal opportunities
The increased focus on biological challenges, such as disease and sea lice, has created significant market opportunities for suppliers of specialized equipment and services, including lice skirts, laser technology, and well boat capacity. Additionally, there are numerous service providers involved in logistics, transport, insurance, and finance.
The report emphasizes the critical role that these suppliers play in the seafood industry’s value chain. A striking 71 percent of turnover in the aquaculture sector is spent on the purchase of goods, compared to 31 percent in the fisheries sector. This significant spending by the seafood industry creates extensive economic ripple effects.
“A significant portion of the innovation within the seafood industry is driven by suppliers,” noted Audun Iversen, the researcher and project manager for the report. He pointed out that while feed producers and companies specializing in fish health are major innovation hubs, many small and medium-sized enterprises are also contributing with new technologies and solutions.
Geographical distribution
The supplier industries are not confined to coastal areas but are spread across the country, with a trend towards greater specialization in larger cities and regional centers. This geographic distribution underscores the broad impact of the supplier industries on national employment and economic activity.
However, the report also highlights growing challenges and uncertainties within the supplier industries. Factors such as reduced fishing quotas and uncertainty surrounding the ground rent tax in aquaculture have led to layoffs, downsizing, and bankruptcies in certain segments.
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Uncertainty
“There is some uncertainty regarding future investments in both the farming and fishing sectors,” said Iversen. “This naturally impacts the supplier industry. Their success is crucial to the seafood industry’s continued growth, and it is essential that the industry and government work together to overcome these challenges.”
In 2022, the seafood industry purchased goods and services worth NOK 130 billion ($12.2 billion/€11.05 billion), including NOK 110 billion ($10.3 billion/€9.35 billion) spent on operational purchases and around NOK 20 billion ($1.9 billion/€1.7 billion) on investments.
The report, part of a broader research initiative funded by the Norwegian Fisheries and Aquaculture Industry’s research funding (FHF), offers a comprehensive overview of the significance of supplier industries to Norway’s seafood sector.
