"Aquaculture is the part of the seafood industry that creates the biggest ripple effects. They alone accounted for NOK 74 billion in value creation and ripple effects," Nofima stated.
Photo: Audun Iversen, Nofima
Norway's seafood industry has achieved a record year, generating a total of NOK 139 billion (EUR 11.5bn / USD 12.8bn) in value creation and ripple effects in 2023, according to a newly-released report by Norwegian research organization Nofima.
The counties of Vestland and Nordland led this economic surge, contributing NOK 49 billion (EUR 4.1bn / USD 4.5bn) collectively, followed closely by Møre og Romsdal and Trøndelag. The report attributes much of this success to Norway’s thriving aquaculture sector, which alone accounted for NOK 74 billion (EUR 6.1bn / USD 6.8bn) in value creation and employment impacts.
According to the report, seafood industry growth translated into jobs for approximately 96,000 people, both directly and indirectly, in sectors spanning from small fishing communities to urban centers.
Aquaculture, the largest contributor, supports 41,600 direct jobs and an additional 54,000 roles in connected businesses, the research found.
“The seafood industry has always been important to Norway, and in recent years its importance has increased," said lead researcher of the study Audun Iversen, in a press release.
Aquaculture also outshone other seafood industry segments with value creation per employee reaching NOK 2.69 million, while the industry overall averaged NOK 1.89 million per worker.
The report highlighted not only the direct economic effects on the coastal communities, but also the "ripple effects" across Norway.
"We see that the seafood industry is a district industry, with great activity along the entire coast. At the same time, the industry creates ripple effects throughout the country, through suppliers and subcontractors," Iversen said.
The Nofima report found that seven counties - Vestland, Nordland, Trøndelag, Møre og Romsdal, Troms, Finnmark, and Rogaland - dominate the industry, contributing 85% of total value creation and economic spillovers.
However, Oslo also benefits from the industry, with over NOK 3.1 billion (EUR 257m / USD 285m) in value creation generated for the Norwegian capital, largely due to service providers for finance, insurance, and legal needs tied to seafood businesses.
Beyond employment and regional growth, the seafood industry has become a substantial contributor to public finances, the report states. Excluding oil, the seafood sector contributes 10.5% of Norway’s business tax revenue, amounting to NOK 40.7 billion (EUR 3.4bn / USD 3.7bn). Local municipalities and county councils also benefit directly through the Aquaculture Fund, supporting community infrastructure and welfare.
Responding to the report in a separate news release, Norwegian seafood trade organization Sjømatbedriftene CEO Robert H. Eriksson emphasised the importance of seafood for Norwegian food security in addition to the economy.
"There is little doubt that the seafood industry is the country's largest and most important food producer when it comes to the country's food security. In addition, the industry plays a significant role when it comes to the country's overall preparedness," he said.
He went on to say that the Nofima report "only confirms that the seafood industry is the lifeblood of rural Norway. The industry creates jobs, settlement and value creation. It helps to supply a growing world population with healthy, sustainable food."
"We are a significant contributor to maintaining the welfare state. In addition, we are the largest and most important industry for safeguarding the country's food security," Eriksson added.
Commissioned by the Norwegian Fisheries and Aquaculture Research Fund (FHF), Nofima’s annual reports have tracked the seafood industry’s value creation for nearly 20 years. The full Norwegian language report can be viewed here.