The reason fisheries have always been such a central component of Norwegian business and industry is that Norway controls some of the richest fishing grounds in the world. The North Sea, Norwegian coast, Barents Sea and the polar front in the Norwegian Sea are all highly productive areas, and major fish resources spawn right outside the coast of Norway. The coastline is also particularly well suited to environmentally friendly fish farming, and the aquaculture industry has grown tremendously in recent years, becoming a new, valuable industry for the coastal areas.

In 1945, Norway became the first country in the world to establish a separate Ministry of Fisheries.

Sustainable management
In the last 25 years, Norwegian fisheries, once virtually free and open, have become a regulated, profitable and sustainable industry managed by quotas and licenses. The technological revolution after WWII has created such an effective fishing fleet that measures like these are necessary in order to prevent overfishing and depletion of resources. The migration of fish stocks across economic zones and international ocean areas, and increased pressure from fishing vessels from many countries, make it necessary to have binding international agreements on managing the fish resources in the world's oceans. The 1995 UN Agreement on Straddling Fish Stocks and Migrating Fish Stocks is an important step in the right direction, and Norwegian authorities place great emphasis on implementing the principles of the agreement.

It is crucial that Norway's abundant fisheries be managed in a sustainable way. Norway's goal is to protect and build up stocks so that every year it can harvest as high and stable fishing quotas as possible, based on the principle of responsible fishing. In order to succeed, Norway is committed to marine research, including multi-species studies, which tell us about the relationship between the various species of fish and sea mammals in the ocean. Several of the species that are the most important to Norwegian fisheries are now large and healthy. The situation in the North Sea is not good, but close cooperation has been initiated between Norway and the EU in order to achieve better management of this important and highly productive ocean area.

Sea mammals are at the top of the food chain in the sea, and it is natural to harvest them, within safe biological limits in the same way we harvest fish stocks. This holistic approach to management of marine resources is the basis for the multi-species model adopted by the Norwegian authorities. Comprehensive research has been carried out to survey the size of the minke whale population, which is the species hunted in Norway, and to promote humane and effective slaughter methods. Sealing and whaling are subject to extremely strict requirements and rules.

Aquaculture has been dominated by Atlantic salmon and trout farming, although considerable efforts have been brought to bear in expanding profitable production to other species. The combination of aquaculture and traditional fishing - sea ranching - is at the trial stage.

For the authorities, the goal is to increase value creation in the industry through sound management of resources, further growth of the aquaculture industry with new species in addition to Atlantic salmon and trout, increased fish processing and better utilization of fish by-products. Profitable and successful operators in the fishing fleet, in aquaculture and in the fish processing industry are crucial in order to ensure thriving towns along Norway's long coast.

An important industry for Norway
Fishing and aquaculture are the backbone of the economy along large parts of the coast. The industry provides work to over 23,600 people in the fishing fleet (of whom more than 11 ,000 have fishing as their sole or main occupation), about 12,000 in the fish processing industry and accounts for about 2,500 man- years at fish farms.

The fishing industry also generates considerable ripple effects in the form of shipbuilding and shipyard operations, the fishing gear industry, production of technological equipment, feed production, packaging, transport, and research and development.

Figures for 1995 show that over 2.5 million tons of fish with a landed value of $l.3 billion were brought ashore. Aquaculture sales in 1995 totaled close to 249,000 tons of Atlantic salmon and about 13,000 tons of trout, with a landed value of nearly $1 billion. Exports of fish and fish products amounted to $3.l billion. Of this, nearly $l.l billion came from the aquaculture industry. Approximately 90 percent of Norwegian caught or farmed fish were exported, and Norway currently sells fish and fish products to 141 countries. In recent years, the export value has increased by 10-12 percent annually, a growth rate that will be maintained in 1996.

Norway's combined exports of goods in 1995 totaled nearly $41.6 billion. Exports of oil and gas dominated, accounting for 41 percent, followed by machinery and transport equipment with 13 percent, metals with 11 percent and fish with 8 percent.

Fishery in a global context
With a catch of 2.55 million tons in 1994, Norway was the 11th largest fishing nation in the world, with 2.2 percent of the world's total catch, freshwater fish included. In the postwar period, global fishing operations surged and fleets of large, ocean-going boats were built to locate new fishing grounds and resources which previously had not been utilized. It was not until the 1910's that the annual catch stabilized at about 60 million tons, and in many fishing regions pressure on resources increased and it became necessary to limit fishing. From the mid-'10's, the total catch increased again, peaking in 1989 at 86 million tons. In 1993 the catch amounted to 84 million tons. Calculations by the UN Food and Agriculture Organization show that expected demand for fish will increase by 2-3 percent per year until 2010.

This constitutes a major challenge, because many fish stocks today are fully or over exploited. There are also large fish resources that see little or no use, for technical and economic reasons, and it is impossible to know for sure what impact they will have in the future. Over the next few years, the most important addition to the food supply from the marine environment will expectedly come from further growth of the aquaculture industry.

International co-operation
Effective 1 January 1977 Norway established a 200-nautical-mile economic zone outside the Norwegian mainland. Later that year it established a 200-mile fishery protection zone around Svalbard. A 20O-mile fishery zone around Jan Mayen was added in 1980. These measures have given Norway control over and the responsibility of regulating large marine resources. The most important commercial fish species are joint stocks managed in co-operation with other countries. Norway has fisheries agreements with the EU, Russia, the Faeroes, Iceland, Greenland and Poland and holds annual conferences with these countries to set quotas. The Norwegian delegation comprises government officials, marine scientists and the industry.

The main objectives of these agreements is to manage resources prudently, set total quotas on a scientific basis and strike a reasonable balance in mutual fishing rights in each others' zones.

Fisheries projects play an important role in the general support Norway gives to developing countries, and the fisheries sector has gradually become a major influence in Norwegian bilateral assistance programs. The fisheries authorities and the fishing industry take part in the FAO and contribute to the World Food Program.

Fisheries officials work on trade policy with other countries, both in international organizations with individual countries and groups of countries such as the EU and the like.

The fisheries authorities also work within global and regional marine environmental processes, conventions and agreements, in order to ensure that the principle of sustainable use of living marine resources based on scientific foundation is preserved when environmental considerations are to be integrated in marine management.

Varied fleet
Norway has a varied and technologically advanced fishing fleet, encompassing everything from one-man sjarks (small inshore fishing vessels) to large trawlers and purse seiners. A number of these are equipped with processing machinery for on-board production. At the end of 1995 the fleet totaled 14,196 fishing vessels. Of these, 5,531 were open boats and 8,665 had decks. Only a small portion of the registered vessels are used for year-round fishing. At the end of 1995, 1,639 vessels over 13 meters were registered. About 1,300 of these were operated year-round.

Cod fisheries, which comprise fishing for cod, saithe, haddock, bream, ling, halibut and a number of other species, are harvested with nets, lines, hand-lines, Danish seines, seines and trawls. Fishing for pelagic species such as herring, mackerel and capelin is done for the most part with ring nets. Industrial fish such as Norway pout, sand eel and blue whiting are caught with trawls.

Despite many years of work to regulate fishing and fishing operations, the capacity and capital investment in the fleet are still too large in relation to resources. As a result, profitability is in general too low, even with the significant boost provided by the good catches of cod, herring and mackerel in recent years. Nevertheless, capacity has to be reduced in the ocean fishing and coastal fleet. In the spring of 1996 a unit quota system was introduced for ocean-going purse seiners, whereby the quotas for one vessel may under certain rules and for a limited period be combined and applied to one or several other vessels, in exchange for the permanent withdrawal of the first vessel from fishing. In the autumn of 1996 a similar scheme was introduced for the cod trawler fleet. The objective of these programs, is to reduce the pressure on resources by cutting capacity and promoting the profitability of the remaining vessels in order to make it easier to renew the fleet. Similar programs are being prepared for other ocean fishing groups and the coastal fleet.

Since the 1970's, offshore oil operations in the Norwegian economic zone have created a new situation for the fishing industry. Areas that previously were important fishing grounds are now being used by the oil industry. Norway's goal is to provide a supportive framework so that both industries can develop and operate side by side.

Environmentally friendly aquaculture
In the past 15 to 20 years the Norwegian aquaculture industry has grown tremendously. Most of the production consists of Atlantic salmon, the rest trout. Arctic char is a new aquaculture species, and work has been done on species such as halibut, Atlantic wolf-fish (catfish) and scallops. Production from fish farming is now greater than the combined production of meat in Norwegian agriculture. In the longer term there is little doubt that aquaculture will play an essential role in the production of seafood, provided it is done in an environmentally friendly way. The government outlined Norway's future aquaculture policy in an aquaculture report submitted to Norway's national assembly, the Storting, in 1995, and fisheries officials are strongly involved in the work of planning the future use of Norway's inshore areas. The point of this planning is to balance the various user interests, and fish farming, fishing and exploitation of kelp and sea tangle will play an important role.

Many Norwegian municipalities are highly dependent on the aquaculture industry to provide employment and a stable population base. At the beginning of 1996, 335 licenses for hatcheries and 819 licenses for fish farms spread along the entire coast from Hvaler in southeastern Norway to Aust-Finnmark in the far north. In order to adapt production to the market, Norway has taken several steps in the past year to limit growth. These included a six-week feeding freeze in late 1995 and early 1996, which reduced growth by 45,000 tons, the introduction of feeding quotas, stricter control of density regulations in fish farms; and work on legislation that will allow the industry to establish producer organizations. Great strides have been made in recent years in work on environmental protection and health. Work has also been done on technical standards and guidelines for operating fish farms.

Industry and export
In the home market, annual sales of fish total billions of kroner The majority of the fish and fish products is nevertheless exported.

The EU is the most important market. In 1995, 65.4 percent of fish exports went to EU countries. The biggest single markets are Denmark, France and Japan. The last few years have seen promising developments in several markets and there has been a surge in fish exports to Russia and a number of other countries in Eastern Europe. In South America, Brazil buys large quantities of clipfish (split cod) and exports to the United States are on the rise again.

The Norwegian Seafood Export Council in Tromso has representatives in key markets and coordinates marketing campaigns for the industry overseas. The Council also has management responsibilities and is an advisory body to the Ministry of Fisheries.

Norway imported over $469 million worth of fish in 1995. Part of this was direct landings from foreign vessels for processing in Norwegian plants. Cod, mackerel, herring and shrimp were the main species involved.

The regulations governing exports of fish were simplified in 1991, and the laws have been changed to improve the framework conditions of the fishing industry. Over the past 20 years the number of fish processing companies has declined from 860 to under 500. In 1996 there were 13 herring meal and oil plants along the coast. Much work has been invested in adjusting the capacity of the fishing industry to resources and in promoting co-operative measures between companies and market-orientated and profitable production. In 1995 three-year program for the fishing industry was implemented through the Norwegian Industrial and Regional Development Fund. The processing industry, based on raw material from both fishing and aquaculture, has a huge impact on activity, jobs and economic development in the coastal districts.

Global development has gone in the direction of more and more free trade in fish and fish products, and it is an important objective to create framework conditions which will make Norway's fishing industry profitable and competitive. 0ne of the goals of Norway's industrial policy is to increase processing of raw materials in the domestic fish-processing industry.

Research
Norway carries out comprehensive and multifaceted research in aquaculture, sea-fishing, sealing and whaling. Fisheries research has been a priority budget item for many years, with projects in a number of areas including resources, the marine and coastal habitats, fishery technology, aquaculture, fish food, industry, business development, food and market issues. A total of $78 million is appropriated annually for fisheries research. Key words in aquaculture are hatching and feeding of fry, genetics and fish health. Biotechnology is a focus of both aquaculture and other fisheries research.

Part of the public funding of fisheries research has been channeled through the Research Council of Norway. The Research Council is an advisory body to the Ministry of Fisheries on research issues.

The Institute of Marine Research in Bergen is for the most part funded directly by the Ministry of Fisheries, has major assignments in researching and monitoring fish stocks and sea mammals, marine and coastal habitats and work on aquaculture and sea ranching. The Institute works closely with marine scientists in other countries. Much of the international co-operation takes place through the International Council for the Exploration of the Sea (ICES). The Norwegian Institute of Fisheries and Aquaculture in Tromso also conducts research in biology, products and markets.

The Directorate of Fisheries Institute of Nutrition in Bergen advises fisheries officials on nutrition issues and conducts research in this field. A number of other research institutes also conduct research in fishing and aquaculture, including the Norwegian College of Fishery Science at the University of Tromso, the Universities of Trondheim, Bergen and 0slo, several colleges and many other institutions.

A number of upper secondary schools along the coast offer vocational programs in fishing, sealing and whaling, aquaculture, fish processing and coastal industry. Higher education in fisheries science is offered at regional colleges, maritime colleges and universities. The Norwegian College of Fishery Science has a degree program and the four universities all offer Master's degrees in fisheries science-related fields. The Norwegian School of Economics and Business Administration and Norwegian Institute of Technology at the University of Trondheim also offer fisheries-related studies.

Regulation, supervision and control
The Directorate of Fisheries in Bergen is the executive agency of the Ministry of Fisheries with respect to regulation, guidance, supervision and control. Norwegian fishing quotas are divided annually among the different types of vessels, and in many cases each vessel receives a fixed vessel quota for the various fish species. In other cases each vessel is allowed to fish a maximum quantity within a group quota. When quotas are reached the fishing is stopped. There are several technical regulations to prevent the fishing of below-standard fish, and throwing caught fish back into the ocean is prohibited. Supervising and control to ensure compliance with laws and regulations are high priority tasks. Both Norwegian and foreign fishing vessels are subject to stringent controls in all Norwegian fishing waters. This applies to controls both at sea and during the landing of the catch, and to the technical regulations aimed at preventing the fishing of immature fish. At the same time, Norway is developing fishing gear that is better able to prevent the catching of young fish. The Coast Guard carries out controls at sea. The Directorate of Fisheries also has important functions in connection with regulation controls and monitoring. In later years much has been done to co-ordinate and improve the efficiency of control activities.

In co-operation with other countries, both in the northern areas and in the North Sea, Norway places great emphasis on achieving agreements that will ensure responsible fishing. Norway currently has co-operative agreements with Russia, Ireland and Scotland.

Norway takes part in several international management agencies such as the North-East Atlantic Fisheries Commission (NEAFC), the Northwest Atlantic Fisheries Organization (NAFO), the International Whaling Commission (IWC) and the North Atlantic Marine Mammal Commission (NAMMCO). Norway is committed to arriving at responsible management regimes and sustainable use of resources in international waters, and the UN agreement on straddling and migrating fish stocks in the high seas would be an important tool here.

Fisheries officials are working to ensure that Norwegian fish products are high quality products in the world market and the Directorate of Fisheries carries out inspections and laboratory research with a view to this.

The fisheries authorities ensure that the conditions under which fish and seafood are to be raised have been complied with. To this end, the fisheries authorities work with various other public agencies at the central, county municipal and municipal level, and with the police.

The Ministry of Fisheries is also responsible for supervising that the current regulations governing sales and exports have been complied with.

A renewable larder
Protection of resources based on the principle of sustainable and profitable development is the No.1 objective of Norway's fishery policy goals. The health of marine habitats is a guiding principle of Norway's fishery policy and of practically all activities concerning fishing, sealing, whaling and aquaculture. Nature's surplus shall be harvested, be it fish or sea mammals such as seals and whales. Norway's view is that it should be possible to harvest all fish and species of marine animals within biologically responsible limits.

If we succeed here, and succeed in preventing the decimation of the world's oceans, the sea will always be a renewable larder for humans. For a fishing nation like Norway, it is fundamentally important that the acceptance of conservation and scientific principles is embraced in all management of marine resources.

Bjarne Myrstad has been head of information at the Ministry of Fisheries since 1990. Prior to that he worked for 20 years as a journalist, serving as editor of "Dag og Tid" from 1974 to 1979, and fisheries reporter for "Bergens Tidende" from 1983 to 1990. In 1996 he published the book "Vestlandsfiske".

Exchange rate NOK 6.4 = 1 USD

Produced for the Ministry of Foreign Affairs. Printed Nov. 1996.