Seafood News
Challenges in the Seafood Industry
How the current global conditions will affect the industry
In relation to the upcoming European Seafood Exposition in Brussels, Glitnir Bank will put the effects current economic condition of the industry on the agenda.
The current economic environment of the world poses new challenges to the seafood industry and it is ever more important to play the cards right in order to stay at the top. In every challenge there is an opportunity and this is valid for seafood as for any other industry.
The economic turmoil affects the seafood industry in a number of ways:
- Changing consumer behavior, looking for more economical options.
- Increases in cost of energy, transport, finance, ingredients etc.
- Tighter access to funding in capital markets
All of these factors create challenges for management of any seafood company and changes in the currency rates, notably the US dollar, will affect industries in different countries in different ways. Some will face challenges in pricing, others will enjoy increased marketing opportunities and some will find new opportunities for organic growth or via acquisitions that were not available a short time ago.
Challenging conditions in general naturally emphasize and increase the difference between the performers and the non-performers, creating opportunities for the market leaders to improve their position. Some will cope and improve their operation and some will not, with the result that some can utilize the situation to grow, organically and by acting on the acquisition opportunities. And acquisition opportunities are many in this still fragmented industry.
The overall outlook for the industry can only be characterized as good, demand is good and continues to grow and product prices are high. While traditional harvesting is facing limitation and catches are either stagnant, in some areas declining, favourable market conditions help offset the effect of this for producers. Aquaculture continues to grow as increased demand for seafood can only be met with growth in this sector. Consolidation continues to yield increased efficiency in the fishing industry as well as aquaculture.
Glitnir Bank has a century long history of working and understanding these fundamentals in the global seafood sector - it is both our heritage and our focus. Glitnir Bank is actively supporting the seafood industry's growth and helping the performers to take advantage of opportunities. We believe these challenging economic times provide for some unique opportunities to those with an entrepreneurial spirit and will be pleased to discuss these with you.
Glitnir will be present at the European Seafood Exposition in Brussels:
Brussels Exhibition Centre - Parc des Expositions - European Seaffod Exposition:
Hall 6 - booth 935-4 (Glitnir) - Place de Belgique - B-1020 Brussels, Belgium
For further information contact:
Kristján Þ. Davíðsson, Managing Director, Global Seafood
Tel: +354 844 4517 kristjan.davidsson@glitnir.is
Kjartan Ólafsson, Managing Director, Global Seafood
Tel: +47 959 26 015 E-mail: kjartan.olafsson@glitnir.no
