The Effects of ITQ on the Icelandic Demersal Fish Value Chain

• Main Authors: Knútsson, Ögmundur, Kristófersson, Daði Már, Gestsson, Helgi
• Format: Article in Journal/Newspaper
• Language: Icelandic
• Published: Research in applied business and economics 2012
• Subjects: Demersal fishing; profitability; ITQ; Market structure; L1; L2; M210; Q22; Virðiskeðja; hagnaður; botnfiskveiðar; fiskveiðistjórnunarkefi; markaðs kerfi; Iceland
• Online Access: https://ojs.hi.is/index.php/efnahagsmal/article/view/a.2012.9.2.1

In regards to profitability the Icelandic fishing industry stands out among the fishing industries of its neighboring countries. It has often been pointed out that the design of the fisheries management system affects the operational behavior of fishing companies, and thus their earnings. When changes in the fisheries management system are considered it’s of vast importance that an extensive knowledge of the system’s enablers of profitability has been acquired. Importantly, changes made to the system will still have to enable the industry to maintain such a high profitability. Former research by the authors has indicated that the three external factors that have significantly affected the effectiveness of the Icelandic fishing industry´s value chain are the abolishment of export barriers, the fisheries management system and the establishment of fish markets in Iceland. Research also indicates that the fisheries management system increases the efficiency of the industry´s value chain, leads to a decrease in the cost of catching, to the intensification in the specialization of fishing and can ensure a steady supply of raw material. In this paper two different methods are used for analyzing the effects of the Icelandic fisheries management system on the operations of the fishing companies. Firstly, by applying semi-structured interviews the views of Icelandic managers are used to describe the industry´s opinion of the management system’s influence on the development of its value chain. Secondly, in order to find out why the development of the Icelandic fishing industry differs from that of the Norwegian one and point out possible reasons for that, a comparative analysis of data on profitability from both the Icelandic and the Norwegian fishing industry is used. Íslenskur sjávarútvegur hefur nokkra sérstöðu samanborið við sjávarútveg nágrannaþjóðanna hvað varðar arðsemi. Margir hafa bent á að fyrirkomulag fiskveiðistjórnunar hefur áhrif á rekstrarhegðun útgerðarfyrirtækja og þar með afkomu þeirra. Afar mikilvægt ...