October 2, 2007

Norway sees slight revival in shrimp industry
 

The Norwegian shrimp processing industry is finally showing signs of revival after years in the doldrums, according to data from Fiskeriforskning for 2006.

The data show that the industry is again generating profits, with exception for factories in Royal Greenland.

Total turnover for the Norwegian shrimp processing industry was NOK 710 million (US$160.63 million) , with profits before tax of NOK 22 million (US$4.05 million) , or a 3.1 percent margin.

Increased competition from the shrimp industry in Canada, Greenland and Iceland, coupled with duties paid to the vital EU market had hobbled the industry earlier.

The industry has been racking up losses totaling more than NOK 160 million (US$29.45 million ) for the past five years, and 2006 was the first profitable year since 2000.

Factories were able to profit despite higher prices paid for raw materials in 2006.

Industry sources say the factory closures brought about by the years of losses could have finally led to profitability for those that remained.

Moreover, Norway has negotiated an higher quota of duty-free shrimp allowed into the EU, which improves the margin for such products, he noted. .

EU is the most important market for peeled, frozen shrimps, the industry's largest product by volume.