September 19, 2007

World fish production to rely on aquaculture

Aquaculture will lead the fish and fish-based production the world over, according to Kristjan Thorarinn Davidsson, managing director of Glitnir Bank, one of the three major commercial banks of Iceland and also a leading niche player in global seafood trade.

The world average catch from the seas is 100 million tonnes, while 50 million tonnes are produced through aquaculture. As most of the seas worldwide have been overexploited, development of aquaculture farming becomes the key to meeting the increasing demand for fish and fish products, says Davidsson.

Currently, the ratio of direct catch from the sea is shifting in favour of aquaculture and emerging economic giant India is placed in an advantageous position, on both counts. According to Davidsson, the Indian ocean is less exploited compared with other oceans and has a great stock of seafood. India has a tremendous potential in seafood exports as it is the world's second biggest producer of seafood after China.

Consolidation will be the key issue in the global seafood market in the immediate future, according to Davidsson. With the likely emergence of big players, small companies can survive by specializing in ethnic products with ready-to-eat fish is now the trend in global markets. Value addition is the main stay of export business.

Glitnir Bank is planning to finance the Indian seafood industry in a big way and collaborate with major Indian companies.

In order for India to gain a significant lead in seafood exports, Davidsson the country should strengthen and promote its seafood business with major global players. Quality, certification, food security and branding hold the key to consolidating one's position in the world seafood market, he said.