Fish industry gains on financial crisis

A sea food analyst in a Norwegian bank believes that the prospects for Norwegian fish industry can be the best of all times. The fish industry is Norway’s second largest industry. With a falling oil price, historically god stocks of fish, rising quotas for the ship owners and a weak Norwegian kroner, are all crucial factors which indicate that there are good times to come for people involved in the fish industry.

A substantial part of Norwegian fish is exported. When currencies like Euro, Pound and Dollars are strengthening in comparison with NOK, it is a very positive development for the fish industry, says senior analyst Kolbjørn Giskeødegård in Nordea Markets to Norwegian Newspaper Dagens Næringsliv. Even though there is a financial crisis, the global demand for fish is still high.

However, good prospects are not enough to make Norwegian banks promise financing of all projects. Historically the fish industry has suffered heavy losses, and many banks are therefore precautious before financing large projects in this business sector.

In the first months of 2009 Norwegian banks will be asked for 300 million EUR in financing of cod purchases in northern Norway. At the same time most banks are more selective in which projects they are willing to finance, because of the current global situation. Many actors in the fish industry therefore fear a credit draught because of financing difficulties.

– If so happens we will have to ask the government to take special measures in order to secure full production in the industry, says Trygve Myrvang in the Norwegian Fish Association.