Acronym NA
Category
Fisheries
Seafood Processing
Title Konsekvenser ved ulike typer strukturering/kapasitetstilpasning i pelagisk sektor - Consequences of different types of structuring / capacity adjustment in the pelagic sector
Programme National Programme
Instrument (FP6)
Contact Type (FP7)
Strand (Interreg)
NA
Theme (FP7)
Activity Area (FP6)
Regional Area (Interreg)
Action (COST)
NA
Specific Programme (FP7)
NA
Funding source National
Coordinator Stein Ivar Steinshavn
Coordinator email stein.steinshamn@snf.no
Coordinator institution
SNF - Institute for Research in Economics and Business Administration (Norway)
Institutions involved
NA
Start year 2011
End year 2011
Funding (€) € 78,228
Website https://www.fhf.no/prosjekter/prosjektbasen/900635/
Summary "On the ownership side of the pelagic consumer industry, there have been major changes in recent years. According to the Operations Survey in the fishing industry in 2009, three companies, which together have 20 factories in operation, account for 60% of the quantity and value in the industry. The 17 other companies operate a total of 21 factories. In recent times, there have been further consolidations, which may lead to the three largest players, overall, becoming even larger in the future (Bendiksen 2010). Such a consolidation may indicate overcapacity in the industry.
Although the quotas for Norwegian spring-spawning herring (NVG herring) have been large in recent years, and the utilization of production capacity has been high in the peak seasons at the same time as the profitability in the industry has been good and increasing, the receiving capacity in the industry must be said to remain large to the quota basis for pelagic fish. In the next few years, smaller quotas are expected for NVG herring. This could lead to reduced margins and poorer profitability in the industry in the years ahead. In addition, one knows from economic theory that it is not necessarily optimal to have the capacity to take all the peaks if these occur infrequently.
Goal:
To map how changes in processing and production capacity can affect the profitability of the pelagic consumer industry.
Sub-goals
• To map economic facts / key figures when structuring the production capacity in the industry.
• To uncover how much structural change is needed to achieve a better fit between production capacity and profitability in the Norwegian pelagic consumer industry. ” In short: what is the optimal structure given different conditions? The plan is to analyze a number of different scenarios with regard to structure and capacity adaptation, such as:
• simulating the current structure, capacity and profitability
• what a reduction in capacity has to say for value creation and employment in the industry
• given fixed first-hand prices for fish, where efficient must the industry be to achieve a given contribution margin?
• scenario analysis: Analyzing any other specific scenarios specified by the steering group/reference group
In addition to the model analysis, fundamental issues that the static model does not capture directly will also be discussed. Fundamental questions include, among other things:
• What does seasonal variation in catches and annual variation in quotas mean for the capacity adjustment?
• What does uncertainty have to say about the decisions?"
Keywords
Market;
Fish;
Quota regulation;
Herring;
Fishing industry;
Policy;
Marine Region
76
Not associated to marine areas
0
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