Suppliers should also be considered in "holistic approach" to regulation, says Norway seafood trade body

Norway's Association of Seafood Companies Sjømatbedriftene has responded to a new report by Nofima indicating that seafood suppliers are also affected by uncertainties caused by new government policies, such as fishing quotas and the ground rent tax on aquaculture, sometimes referred to as the "salmon tax".

"The report shows that the seafood industry is far more than just what happens in the sea. Both aquaculture and fisheries require an enormous apparatus with suppliers from various sectors, who contribute to value and job creation throughout the country," said Robert H. Eriksson in a Sjømatbedriftene press release.

"It is important, and correct, that the supplier industry's importance to the seafood industry is highlighted in a clear way, as is done in the report from Nofima," Eriksson added.

The report, released this week, showed that aquaculture and fishing supplier industries in Norway now account for greater employment and growth than seafood producers, in large part spurred by the need for technology and innovation in the burgeoning aquaculture industry.

However, the report author Audun Iversen also highlighted that the challenges facing producers also have a knock-on effect on suppliers.

"We see a certain amount of uncertainty related to future investments in both the farming industry and fisheries. This naturally affects the supplier industry. They are crucial for the seafood industry's success, and we must recognize that with the challenges they face, the industry and the authorities must work together to ensure continued growth and innovation," Iversen said.

Eriksson also underscored reports of redundancies, downsizing and bankruptcies that have taken place in some supplier sectors in recent years.

"It is good that there is growth in the supplier industry, but the fact is that the political focus is still on the core business of the seafood industry," Eriksson said.

"Concretely, we have missed a holistic approach from the authorities when new regulations are introduced. When the consequences for measures aimed at the seafood industry are investigated, the consequences for the supplier industry are not highlighted to a sufficient extent."

"In particular, we can point to how the ground rent tax was introduced, where there are still many supplier companies that have had their projects put on hold due to a slowdown in investment in the aquaculture industry."

"Unfortunately, political risk has become a phenomenon we have to deal with, and this also applies to a large extent to the supplier industry. We therefore hope that this report can contribute to the authorities seeing the industry as a holistic unit when new regulations are to be drawn up," Eriksson added.