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DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

FISHERIES

ICELANDIC FISHERIES: A REVIEW

NOTE

This document was requested by the European Parliament's Committee on Fisheries.

AUTHORS

Irina POPESCU, Katrin POULSEN Policy Department B: Structural and Cohesion Policies European Parliament E-mail: [email protected]

EDITORIAL ASSISTANCE

Virginija KELMELYTE

LINGUISTIC VERSIONS

Original: EN Translations: ES, FR, IT, PT.

ABOUT THE EDITOR

To contact the Policy Department or to subscribe to its monthly newsletter please write to: [email protected]

Manuscript completed in March 2012. Brussels, © European Parliament, 2012.

This document is available on the Internet at: http://www.europarl.europa.eu/studies

DISCLAIMER

The opinions expressed in this document are the responsibility of the author and do not necessarily represent the official position of the European Parliament.

Reproduction and translation for non-commercial purposes are authorized, provided the source is acknowledged and the publisher is given prior notice and sent a copy.

DIRECTORATE GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

FISHERIES

ICELANDIC FISHERIES: A REVIEW

NOTE

Abstract

This note was requested by the Committee on Fisheries for its Delegation to (2-4/05/2012). Significant developments in recent years have affected the Icelandic fisheries sector and its future evolution: the global financial crisis in 2008, the migration of the mackerel stock in the Icelandic EEZ and the dispute around it, Iceland's application for EU membership and the perspective of its participation to the CFP. This note provides a snapshot of the Icelandic fisheries in the light of these developments.

IP/B/PECH/NT/2012-06 March 2012

PE 474.540 EN

Icelandic fisheries: a review

CONTENTS

CONTENTS 3 LIST OF ABBREVIATIONS 4 LIST OF TABLES 5 LIST OF MAPS 5 LIST OF FIGURES 6 EXECUTIVE SUMMARY 7 1. INTRODUCTION 11 2. FISHERIES MANAGEMENT 15 2.1. Legal and institutional framework 15 2.2. The Individual Transferable Quotas system 16 2.3. EU accession negociations 18 3. CATCHES 21 4. THE MACKEREL ISSUE 25 5. FISHING FLEET 31 6. EXPORT OF MARINE PRODUCTS 35 7. EMPLOYMENT 37 8. AQUACULTURE 39 9. MARINE RESEARCH 41 REFERENCES 43

3 Policy Department B: Structural and Cohesion Policies

LIST OF ABBREVIATIONS

CFP

EEA European Economic Area

EEZ

GRT Gross Register Tonnage

GT Gross Tonnage

FAO Food and Agriculture Organisation of the

ICES International Council for the Exploration of the Sea

ISK Icelandic króna

ITQ Individually Transferable Quotas

IWC International Whaling Commission

MRI Marine Research Institute

NAFO North Atlantic Fisheries Organization

NAMMCO North Atlantic Marine Mammal Commission

NEAFC North-East Atlantic Fisheries Commission

TAC Total Allowable Catches

4 Icelandic fisheries: a review

LIST OF TABLES Table 1 Key data Error! Bookmark not defined. Table 2 Icelandic catches: volume and value of major species (2010) 23 Table 3 Mackerel in the Northeast Atlantic - combined Southern, Western and spawning components: Catches by country, in tonnes (2002-2010) 28 Table 4 Mackerel in the Northeast Atlantic - combined Southern, Western and North Sea spawning components: Catches by country, in percentage of the total catch for each year (2002-2010) 29 Table 5 Total catches of Northeast Atlantic mackerel, compared to ICES advice (2008- 2011) 30 Table 6 Icelandic fishing fleet (2011) 31 Table 7 Number of vessels in the main Icelandic fishing ports (2011) 34 Table 8 Employment in the Icelandic fisheries sector (2011) 37

LIST OF MAPS Map 1 Iceland 11 Map 2 Seafloor morphology around Iceland 12 Map 3 EEZ delimitation in the Northeast Atlantic 13 Map 4 Northeast Atlantic mackerel stock components and their spawning areas 25 Map 5 The main migration pathway of the Western mackerel until the 2000s 26 Map 6 Distribution of Icelandic mackerel catches (2007-2010) 27 Map 7 Location of the MRI branch laboratories 41

5 Policy Department B: Structural and Cohesion Policies

LIST OF FIGURES

Figure 1: Total catches of Icelandic fisheries (1993-2010) 21 Figure 2: Total catches by species in Icelandic waters, including catches of Icelandic vessels in other waters (1900-2010) 22 Figure 3: Icelandic catches by species (2010): A. Volume, B. Value 24 Figure 4: Northeast Atlantic mackerel catches - combined Southern, Western and North Sea spawning components (2002-2010) 27 Figure 5: Evolution of the Icelandic fishing fleet by category (1999-2011) 32 Figure 6: Total catch of Icelandic fleet by fishing gear (1992-2008) 33 Figure 7: The catch quotas of the main fishing ports 34 Figure 8: Quantity and value of exported marine products 35 Figure 9: Value of exported marine products in EU countries and Norway (1993-2010) 36 Figure 10: Value of exported mackerel (2006-2010) 36 Figure 11: Estimated number of employees in fishing and in Iceland (1991-2011) 38 Figure 12: Total aquaculture production in Iceland by fish species (1985-2010) 39 Figure 13: Total export of Icelandic aquaculture products in volume (left axis) and value (right axis, ISK million at current prize) (1985-2010) 40

6 Icelandic fisheries: a review

EXECUTIVE SUMMARY

Iceland is one of the most important fishing nations in the world (19th on a global scale in 2009), in spite of the reduced size of its population (Table 1). Few nations are as dependent on fisheries as Iceland. Since the early 1900s, fishing has been Iceland's most important industry, and its contribution to the national economy has remained essential ever since.

Table 1: Key data

Area 103 000 km2

Population (at 1/01/2012) 319 575 Capital Reykjavík Flag

North , Norwegian Sea, Seas Sea, Strait Exclusive Economic Zone 758 000 km2 Shelf area 111 000 km2 Length of continental coastline 4970 km

Source: Diverse

Iceland is widely considered to have managed its in a profitable way. The Icelandic fisheries management system is based on setting Total Allowable Catches (TAC) consistent with the scientific recommendations, and on the Individual Transferable Quotas (ITQs) system which gives each holder the right to catch a certain part of the TAC.

Iceland submitted its application for EU membership in July 2009 and accession negociations have been opened one year later. The fisheries chapter, unanimously considered to be the most challenging one, has not been opened so far. Joining the EU means that Iceland would participate to the Common Fisheries Policy (CFP). The progress report of the European Commission notes the Icelandic restrictions on the internal market acquis (regarding the right of establishment and the freedom to provide services), and on the free movement of capital in fisheries production and processing. Other problematic issues are whale hunting and Iceland's self-attribution of significant quotas of mackerel.

In 2010 the total catch by Icelandic vessels reached 1063 thousand tonnes, with a total of 133 billion ÍSK. Demersal species accounted for about 40% of the total Icelandic catch and dominate the total value of the catches (ca. 70%). The main demersal species are (34%) and haddock (12%), followed by redfish and saithe. Landings from pelagic fisheries are more than half of the total annual Icelandic catches (56% in 2010), but they only account for ca. 21% of their value. Among the pelagic species, herring and capelin have long been exploited, whereas Atlantic mackerel catches have increased abruptly in recent years, reaching 11.5% of the total volume and ca. 6% of the total value in 2010 (the second pelagic species after the Atlantic-Scandic herring).

In recent years the Northeast Atlantic mackerel stock has changed its migration pattern and significantly expanded north-westwards, entering the Icelandic Exclusive Economic Zone (EEZ). This change caused a major crisis in the management of the stock by the Coastal States, which could not reach agreement on sharing the TAC recommended by the

7 Policy Department B: Structural and Cohesion Policies

International Council for the Exploration of the Sea (ICES), but have unilaterally set national quotas. As a result, catches since 2008 have been considerably in excess of ICES advice. The absence of international agreement on the exploitation of the stock between the nations involved in the fishery is a critical concern, as at the current level of catch, the spawning stock biomass in 2013 could decline to the precautionary level.

The fishing fleet is usually separated in three main classes: trawlers, decked vessels and undecked vessels. The total number of fishing vessels at the end of 2011 was 1655, with a total gross tonnage of 82 777 GT, and a total engine power of 281 403 kW. Trawlers accounted for 4% of the fishing fleet, but for 46% of the total gross tonnage. The importance of the different categories of the fleet varies greatly in terms of catch volume and value. In spite of their relatively large number, the undecked vessels are limited in terms of aggregate volume and value. In turn, the decked vessels dominate the harvest value, due to the large volumes of the purse seine pelagic fleet. In terms of value the trawlers account for almost as much as the decked fleet.

The Icelandic fishing fleet uses a variety of fishing gears and techniques. Purse seines, and more recently pelagic trawls, provide the highest volumes (usually around two thirds of the total catches), as they are used in the fisheries of a few but very abundant pelagic fish. The fishing gear that catches the highest value is the bottom trawl with 40-50% of the value of the total catch. The second most profitable catch is from longlines. With the exception of lobster, fisheries for invertebrates are quite low in both value and catch volume.

In 2010, the export of marine products reached 632 thousand tonnes, with a total value which amounted to 220.5 billion ISK. More than half of the export value comes from demersal species, in particular from cod. The EU is the most important market for Icelandic marine products: in 2010 the export value to EU reached 145.6 billion ISK (around 66% of the total export). The , Norway and are the main importers of Icelandic marine products. Export of mackerel has spectacularly increased from virtually zero until 2007, to 107 388 tonnes in 2010 (17% of the total volume of exported products), with a value of 8.47 billion ISK (3.8% of the total export value). The main market for mackerel is Russia, with ca. 66% of the value of the export. Lithuania has also a significant share (ca. 9% of the mackerel export value), followed by Nigeria and Malaysia.

The Icelandic economy is heavily reliant on the fishing industry. The average share of fisheries in GDP over the last decade (2000-2009) was 9%. While the relative contribution of the fishing industry to the Icelandic economy has decreased in recent years, the fishing industry brings important secondary effects to the entire economy. Employment data show that in 2011, around 4600 people were estimated to work in harvesting (ca. 2.7% of the total employment in Iceland) and around 4200 people worked in the fish processing industry (2.5% of the total workforce). The fisheries sector altogether employs around 5.26% of the total workforce. Fisheries and fish processing companies provide the most important source of livelihood in coastal communities, where employment opportunities are limited. Regionally, the share of employment in the fishing industry is the most important in the .

The Icelandic aquaculture has a very limited production. Fish farming mainly produces Atlantic salmon, Artic char and . The highest annual aquaculture production year was 2006, with about 5000 tonnes exported and about 2 billion ISK in value. The provides the largest market for Icelandic aquaculture products, where a large part of the Arctic char products is exported.

8 Icelandic fisheries: a review

The main Icelandic centre of marine research is the Marine Research Institute (MRI), which provides the Ministry of Fisheries with scientific advice. The most extensive of the MRI activities is the systematic assessment of marine stocks and its advisory role for the management of fisheries.

9 Policy Department B: Structural and Cohesion Policies

10 Icelandic fisheries: a review

1. INTRODUCTION

Iceland is a Nordic European island country located between the North Atlantic Ocean, the Norwegian Sea, the Greenland Sea and the (Map 1). It is the westernmost European country, and the second largest island in Europe (after ). Iceland has a total land area of 103 000 km2: the main island is 101 826 km2 but there are also thirty minor islands, including the lightly populated island of Grímsey and the archipelago. The population is 319 5751, of which 64% live in the capital city of Reykjavík and adjacent municipalities. The largest town outside the capital area is , located in North Iceland. Most of the remainder live in small towns along the coast. With only 3 inhabitants/km2, Iceland is one of the least densely populated countries in Europe.

Iceland is a constitutional republic and parliamentary democracy. It gained limited home rule from Denmark in 1874, and subsequently full independence in 1944. The incumbent president is Ólafur Ragnar Grímsson who was first elected in 1996. The incumbent head of government is Johanna Sigurdardottir, elected in 2009. The legislative branch consists of the unicameral Althingi with 63 seats.

Despite its high latitude tangent to the Arctic Circle, Iceland has a temperate climate due to a branch of the Gulf Stream (the Irminger Current) flowing around the southern and western coasts of the country. Iceland is mostly mountainous and of volcanic origin, with the highest peak reaching 2110 m. The interior mainly consists of a plateau characterised by sand fields, mountains and glaciers. Lowlands stretch from the coast towards the interior, mainly in the south and the west. Several glaciers, one of them the largest in Europe, distinguish the landscape.

Map 1: Iceland

Source: Wikipedia

1 On 1 January 2012 (Statistics Iceland)

11 Policy Department B: Structural and Cohesion Policies

The Icelandic coastline is 4970 kilometres long. The coasts are rocky and of irregular outline, with numerous fjords and inlets, except for the south where there are sandy beaches with no natural harbours.

The sea bottom around Iceland is flat on the continental shelf, down to ca. 400 m depth. Beyond the shelfbreak the depths increase steeply, reaching 2000-3000 m in the Irminger and Iceland Basins and more than 3500 m in the Norwegian Sea. Iceland is located on the Mid-Atlantic Ridge, a divergent tectonic plate boundary along the floor of the Atlantic Ocean, which separates the Eurasian Plate and North American Plate. The section of the ridge which includes Iceland is also known as the Reykjanes Ridge (Map 2).

Map 2: Seafloor morphology around Iceland

Norwegian Kolbeinsey Sea Ridge

Iceland-Greenland Ridge

Jan Mayen Ridge

Faroe-Iceland Irminger Ridge Basin

Reykjanes Iceland Ridge Basin

Source: Global Multi-Resolution Topography www.marine-geo.org (Ryan et al., 2009)

Iceland first officially declared a fishing limit in 1901 with a maritime zone of 3 nautical miles. This remained in effect until 1952, when it was extended to 4 miles, and then in 1958 to 12 miles. In 1972 the Icelandic government decided unilaterally to extend the jurisdiction to 50 miles and again in 1975 to 200 miles. The decision was contested, as these waters had been traditionally fishing grounds of foreign fleets (mainly from Britain - ca. 60%, and - ca. 30%, in particular the British cod fleet), whose demersal catches roughly equalled those of the Icelandic fleet. Britain imposed a landing ban on Icelandic ships after each of the four extensions, and West Germany imposed a ban after the last two extensions. At the third conflict in 1972 sanctions were applied through Protocol 6 in the EEC agreement, stating that Iceland would not enjoy specific reductions on import duties on fish to EEC countries without reaching a satisfactory agreement with EEC countries. On several occasions the conflicts escalated to direct confrontations between Icelandic patrol vessels and British , known as the "Cod " (in 1958, 1972-73 and 1975-76). The trade sanctions lasted from 1972 to 1976 when Iceland reached an agreement with regard to the 200-mile limit. Subsequently the notion of a 200-mile Exclusive Economic Zone became generally accepted and was codified in the UN convention on the Law of the Sea, finalised in 1982 and entered into force in 1994. Since 1976 fishing by foreign ships in Icelandic waters has been very limited and does not play an important role in the total catch (Knútsson et al., 2011).

12 Icelandic fisheries: a review

Map 3: EEZ delimitation in the Northeast Atlantic

Jan Mayen

Greenland

Norway Iceland

UK

Ireland

Source: Arctic portal, after Maritime Boundaries Geodatabase (VLIZ, 2008)

Iceland's EEZ has an area of 758 000 km2, seven times the area of Iceland itself (Map 3). In spite of Iceland's northerly position, its waters are very rich in marine life. This is due to the ocean currents around Iceland: the warm North Atlantic drift (the northeast extension of the Gulf Stream) approaching from the southwest meets the polar current from the north, which causes considerable upwelling of nutrients from the deep layer towards the ocean surface. The nutrients feed microscopic life in the surface layers, notably phytoplankton and zooplankton, and thus the ocean's entire food web.

Very rich fishing grounds and some of the largest fish stocks in the North Atlantic are found in Icelandic waters, including the cod stock, which is Iceland's most important stock, and the capelin stock, which is generally the largest in size. Large migratory stocks move in and out of Icelandic waters, including the Atlanto-Scandian herring stock, blue whiting and, more recently, Atlantic mackerel, while other stocks such as the oceanic redfish mostly remain close to the 200-mile limit (Knútsson et al., 2011).

The most productive cod banks are off the southwest coast during winter and off the Westfjords in the northwest all year round. Redfish is mostly found in the south, the west and the southeast. Herring is largely confined to the Eastfjords and southeast coast, whilst capelin feeding grounds are to the north and spawning grounds off the south and west coasts. Greenland is found in deep banks off the West Fjords as well as elsewhere off the north, west and east coasts. Oceanic redfish is harvested along the Reykjanes Ridge, inside and outside the 200-mile limit southwest of Iceland. Other stocks such as inshore shrimp, scallop, Norway lobster and deep-sea shrimp are fairly localised (Ministry of Fisheries, 2005).

13 Policy Department B: Structural and Cohesion Policies

Few nations in the world are as dependent on fisheries as Iceland. Although Iceland is one of the smallest nations of the world considering the size of its population, it is among the world’s most important fishing nations (19th on a global scale in 2009). Since the early 1900s, fisheries have been Iceland's most important industry, with its relative significance reaching a peak in the 1930s and 1940s. The second half of the 20th century saw significant economic growth which was driven primarily by the fishing industry. The contribution of the fisheries sector to the Icelandic economy has remained remarkably stable ever since. The Icelandic economy diversified substantially when the country joined the European Economic Area (EEA) in 1994, and other industries, especially services and manufacture grew rapidly. The decreasing trend of the relative importance of the fisheries in the last two decades is due to this diversification, as in fact the fishing industry has continued to grow.

Significant developments in recent years have affected the state of the Icelandic fisheries and its future evolution: the global financial crisis in 2008 which hit Iceland particularly hard, the migration of the mackerel stock in the Icelandic EEZ and the dispute around it, Iceland's application for EU membership and the perspective of its participation to the CFP. This note provides a snapshot of the Icelandic fisheries in the light of these developments2.

2 For a comparison with the state of the fisheries prior to 2008, see Olivert-Amado (2008)

14 Icelandic fisheries: a review

2. FISHERIES MANAGEMENT

2.1. Legal and institutional framework

The cornerstone of the current fisheries management system is the 1990 Fisheries Management Act. The act lays down a comprehensive fisheries management system based on ITQs. The objectives of the Fisheries Management Act include promoting the conservation and efficient utilisation of the marine resources and thus ensuring stable employment and economic viability of fishing communities. The stated aims are to ensure the sustainability of the fisheries while emphasising the economic benefits of the fisheries sector.

The Fisheries Management Act has been supplemented with a host of additional legal measures, such as The Act concerning the Treatment of Commercial Marine Stocks (1996), The Act on Fishing in Iceland’s Exclusive Fishing Zone (1997), The Act on Fishing Outside Iceland’s Exclusive Fishing Zone (1996), The Act on Fishing and Processing by Foreign Vessels in Iceland’s Exclusive Fishing Zone (1998) and The Act on Aquaculture (2008). In August 2006 the legislation was re-issued as Law no 116/2006, thus including all the changes made to the original 1990 legislation (Icelandic fisheries, online).

The Ministry of Fisheries and is the principal management organisation responsible for Icelandic fisheries. Its overall responsibilities include fisheries management, research, conservation and control. Importantly, it is the Fisheries Ministry who decides on the annual TACs upon receiving advice from the Marine Research Institute (MRI).

The Directorate of Fisheries (Fiskistofa) undertakes monitoring of the Icelandic fisheries to ensure that all rules are being followed. Iceland operates a comprehensive enforcement regime, in particular regarding port control and weighing of all catches. According to Icelandic law, discards are prohibited, and all catches must be landed.

The Directorate has the headquarters in Hafnarfjörður, just outside of Reykjavik, and runs offices at six locations in the country. Operationally, the Directorate of Fisheries is responsible for the implementation of Fishery Regulations on behalf of the Ministry. A large part of the surveillance at sea falls directly under the responsibility of the .

The Directorate's key functions include implementation of regulations, collection and collation of fishery catch data, supporting research, survey work, supporting the Coastguard and surveillance activities, managing and policing the Icelandic ITQ system. All catches of Icelandic fishing vessels must be weighted and recorded at the port of landing by an official from the Directorate.

The Marine Research Institute carries out wide ranging and extensive research on the status and productivity of the commercial stocks, and long-term research on the marine environment and the ecosystem around Iceland. The results of this research are the foundation of the advice on sustainable catch level of the fish stocks (see further in chapter 9).

The organisational structure of the fisheries management system can be described as straightforward, with the Ministry of Fisheries, the Directorate of Fisheries, the Marine

15 Policy Department B: Structural and Cohesion Policies

Research Institute and Coast Guard having central functions. There are other government departments linked to the management system for a range of purposes: the Ministry of Justice and Human Rights responsible for judicial proceedings, the Central Statistics Office for collation of fishery statistics supplied by the Directorate, the Port Authority who play a supporting role in monitoring and recording fish landings, overland transported fish and exports. Their role is quite seamless, in that they inspect, record and enter data on landing directly into the central database through official Port Controllers. The food safety control of fishery products is under the jurisdiction of the Department of Health, and all fish processing vessels and plants must be approved under the Icelandic Hygiene Regulations (Global Trust, 2010).

2.2. The Individual Transferable Quotas system

Iceland is widely considered to have managed its fishing industry in a profitable way. The management system is based on setting TACs consistent with the scientific recommendations, and on the ITQs system which gives each holder the right to catch a certain part of the TAC. The key features of this system are presented below3.

 Quota allocation Under the current ITQ system, the Ministry of Fisheries determines the TACs of each species. In determining this share, the Ministry takes into account the recommendations from the MRI, as well as from international research bodies. In informing the Ministry, the MRI uses all available data from the Directorate of Fisheries as a foundation for its management advice, as well as scientific advice generated from MRI scientific evaluations. This includes data on landings, data from logbooks, surveys and other sources that may prove helpful in determining the state of marine resources. Fishing vessels are allocated an annual catch quota based on the vessels' permanent quota shares, as well as the total quotas of the species that the vessels intend to catch. The permanent quota shares have been provided to eligible fishing vessels primarily based on historical catches, usually on the background of a three year period prior to the introduction of the quota system for the species. Furthermore, the combined quota for all vessels amounts to 100% of each species. Fishing years normally run from September of the year in question to August the following year even though some fisheries have shorter periods (OECD, 2010).

Smaller vessels do not adhere to the same system. For vessels below 6 GRT there are three different types of fisheries management regimes. While a few dozen of these vessels are in the normal ITQ system, most of them (ca. 500) are in a special ITQ system for small boats, and the rest (ca. 300) adhere to a system based on limited fishing days. Additionally, recreational fishing is exempt from the ITQ fisheries management system altogether, as such fishing is considered to be of little consequence to overall harvest (OECD, 2002).

 Transferability In the Icelandic ITQ system, the quota shares and the annual catch quotas are divisible and transferable to other fishing vessels. However, minor restrictions have been incorporated in the system to discourage speculative quota holdings. These include that no vessel may purchase quotas that are clearly excessive of what the vessel can harvest and that any vessel that does not harvest 50% of its annual catch quotas in two subsequent years will

3 For a detailed review of fisheries management in Iceland, see Mathiasson (2012), Rights-based fisheries management in Iceland and economic and financial crisis, European Parliament Policy Department B: Structural and cohesion policies, 44 pp.

16 Icelandic fisheries: a review

lose its permanent quota share. In addition, the quota shares held by any company or individual should not exceed certain limits, ranging from 12% of the TAC for cod to 35% for ocean redfish. Finally, any individual or company's quota share must not exceed 12% of the value of the total quotas allocated for all species.

Each year, a large share of the annual catch quotas is traded. Much of this trade concerns internal transfers between vessels owned by the same operator. A substantial part of the trade is in the form of interspecies exchange. This is when one operator trades parts of its annual quotas in one species for quotas in another species. Moreover, some of the annual catch quotas are also traded for money. The transferral of quota shares is overseen by the Directorate of Fisheries which verifies and registers the transfers. (OECD, 2010)

 Fishing fee The vessel catch quotas were initially issued by the Ministry of Fisheries free of charge. However, since September 2004 a special fishing fee has been levied on annual quota allocations, based on a 2002 amendment of the Fisheries Management Act. This is to cover the cost of monitoring and enforcing the fisheries management system, contribute to fisheries research costs etc. The fee is calculated based on the certain rate of net landed value, i.e. the value after deduction of operation costs and salaries from the total landed values of the species (OECD, 2010).

 Cod equivalents All commercial fish species in Iceland that are managed under the ITQ system are allocated according to the so-called cod equivalents or cod currency. This is a system under which the Ministry of Fisheries calculates the relative value of different species according to the value of gutted cod. For each vessel having a quota for several species, the total quota may be calculated in kilograms as cod equivalents. Furthermore, the cod equivalents enable trading of quota shares in multi-species fisheries to be carried out according to a unit of measurement, which simplifies trading one species for another in the quota share market. This system enables fishermen to catch other species and withdraw the catches from the cod quota, but not vice versa. An operator can thus catch all other species, without owning quota for it or having to lease it, and subsequently have the catches deducted from their cod quota. This increases the flexibility of the system and also helps prevent discarding (Christensen et al., 2009).

 Discard ban In 1996 a total ban of discards was introduced and any discards are subject to penalty. Practically, this means that if vessels do not have sufficient catch quota for their by- catches, it is required that sufficient catch quota is transferred from other vessels. Consequently, if vessels do not have sufficient catch quotas for their probable catches, they must suspend all fishing activities. This means that under the ITQ system, the discard policy primarily affects the composition of landings and not the aggregate volume.

However, the discard ban has some room for flexibility, as any 5% of demersal catches from a fishing trip, irrespective of fish species or size, may be excluded from quota restrictions (on the condition that catches are sold in public fish markets). The flexibilities of the quota system render the discard ban a functional solution, by attempting to decrease the need for fishermen to practice discarding. Furthermore, technical measures, such as closure of fishing grounds for a short period of time, are increasingly being used to protect juvenile fish, as a means to prevent it from being fished, and thus hindering that it should be discarded.

17 Policy Department B: Structural and Cohesion Policies

Box 1: Whaling

ICELAND:

Whaling

In 1982 the International Whaling Commission (IWC) adopted a moratorium which suspended commercial whaling. Whales are protected in the EU through strict legislation (Habitats Directive, EU wildlife trade regulations, fisheries measures), and commercial whaling is not allowed in EU waters.

In contrast, Iceland traditionally uses whales, considered to be a marine resource subject to sustainable use. Accordingly, the Icelandic government decided to resume commercial whaling in 2006, on fin whales (Balaenoptera physalus) and common minke whales (Balaenoptera acutorostrata). The Marine Research Institutes annually issues advice on the whaling quota, and bases this advice on recommendations of North Atlantic Marine Mammal Commission (NAMMCO) and the Scientific Committess of the IWC.

Source: www.hafro.is

It is widely acknowledged that the ITQ system has resulted in reduced discards. In fact, the relatively low levels of discards are generally not considered to be a direct consequence of the discard ban, but rather of the ITQ system itself. In the Icelandic ITQ system, there are economic incentives for adopting more selective harvesting techniques, as it would not be desirable to spend time or effort to harvest for discards. Finally, it is worth noting that in Icelandic public opinion, discarding of fish is considered immoral. The Directorate of Fisheries undertakes surveillance of fishing activities to curb discards, which is carried out by on-board inspectors. Alleged violations are reported and subject to sanctions (EC study, 2007).

 Closures Fisheries management in Iceland incorporates various forms of permanent closures to protect nursery areas and spawning grounds, and since 1977 has included temporary (real time) closures to protect juveniles and help reduce discards. Fishing is prohibited for at least two weeks when the catch of juveniles observed by inspectors exceeds a certain percentage. In the past 27 years there have been about 2000 closures (Bailey et al., 2010).

2.3. EU accession negociations

Following the collapse of the Icelandic banking system and currency in late 2008, Iceland sought stronger ties with the EU and submitted its application for EU membership in July 2009. Through decision of the European council in June 2010, accession negociations have been opened. Out of the 33 acquis chapters, 11 have been opened and 8 of them provisionally closed; the fisheries chapter, unanimously considered to be the most challenging one, has not been opened so far (March 2012).

Joining the EU means that Iceland would participate to the CFP. The progress report of the European Commission notes the Icelandic restrictions on the internal market acquis (regarding the right of establishment and the freedom to provide services), and on the free

18 Icelandic fisheries: a review

movement of capital in fisheries production and processing (EC, 2011). Other problematic issues are the mackerel dispute (see chapter 4), and whale hunting (Box 1).

The Icelandic authorities plan to negotiate to maintain the key features of Iceland’s fisheries management system that underpin its efficiency: the right to set TACs nationally based on scientific advice and the rights based management system (ITQs), as well as foreign ownership restrictions on ITQs. Given the economic and political significance of the fishing industry, the conditions that Iceland is able to negotiate for the sector will have an important bearing on whether joining the EU is attractive to or not (OECD, 2011).

19 Policy Department B: Structural and Cohesion Policies

20 Icelandic fisheries: a review

3. CATCHES

The total catch by Icelandic vessels has steadily decreased since 2002, with the total catch in 2010 reaching 1063 thousand tonnes (Figure 1). However, the value of the catch has not followed the same trend, but increased, partly in relation to the devaluation of the national currency (Icelandic króna - ISK). The total first-hand value of the catch in 2010 was 133 billion ÍSK (which is an increase of 15.2% compared with 2009, or approximately 11% when measured in constant prices). While demersal catches remain fairly stable (generally 450-500 thousand tonnes per year), pelagic catches can vary considerably.

Figure 1: Total catches of Icelandic fisheries (1993-2010)

2500000 140 Volume Value 120 2000000 100

1500000 80

60 1000000

40 500000 20 Total catches volumeTotal catches (tonnes) Total catches value (billion ISK) catches Total 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Data source: Statistics Iceland

Total catches in Icelandic waters increased from roughly 200 thousand tonnes prior to the First World , to about 700 thousand tonnes between the wars (Figure 2). After the Second World War, the catches of demersal species stabilized around this level, but total catches increased to 1.5 million tonnes because of the herring fisheries. Then the herring stocks collapsed and the total catches declined again. Production increased in the late 1970s and has fluctuated ever since between 1 and 2 million tonnes annually. These fluctuations are explained by the volatile size of the capelin stock, which makes up roughly half of the total recent catch. However, capelin is of relatively low value, as most it is processed into fish meal and oil (Knútsson et al., 2011).

In 2010, demersal species accounted for 430 366 tonnes which is about 40% of the total Icelandic catch (Table 2). Nevertheless, they dominate the total value of the catches (of which they represent ca. 70%), in particular cod (34%) and haddock (12%), followed by redfish and saithe (Table 2, Figure 3). Catches of the demersal species are fairly uniform over the year, but are highest during the spring which is the main fishing season, when some major species such as cod, concentrate for the spawning migrations.

21 Policy Department B: Structural and Cohesion Policies

Figure 2: Total catches by species in Icelandic waters, including catches of Icelandic vessels in other waters (1900-2010)

Iceland - Other species Other nations - Other species Iceland - Cod Other nations - Cod Iceland - Herring Other nations - Herring Iceland - Capelin Other nations - Capelin Iceland - Blue whiting Other nations - Blue whiting

Source: Knútsson et al. (2011), after ICES

Cod has always been the most important fish in Iceland, accounting for more than half of total demersal catch until the early 1980s (Figure 2). After the extension of the EEZ to 200 miles the number of Icelandic trawlers increased rapidly to more than 100 vessels. Cod catches also increased, followed by other species. With the recent decreasing TAC for cod, the relative importance of other species has been rising and in 2010 the cod was only about 17% of the total catch, down from 52% twenty years earlier and 69% forty years earlier (Knútsson et al., 2011). Nevertheless, cod remains one of the most valuable species and amounted to 44.6 billion ISK in 2010 (34% of the total catch value). The prices in the domestic markets also increased by 31.4% and accounted for 15.4% of the total cod catch. While the TAC for cod as issued by the Ministry of Fisheries in recent years has been quite conservative vis-à-vis the advice from the MRI, landings have still been marginally higher than the scientific advice prescribes (OECD, 2010).

Landings from pelagic fisheries are usually more than half of the total annual Icelandic catches (595 653 tonnes, i.e. 56% in 2010), but they only account for ca. 21% of their value. The fisheries for the pelagic species are highly seasonal. The pelagic fleet mainly fishes for capelin during its spawning migrations in late winter, it switches to blue whiting, Atlantic-Scandian herring or recently Atlantic mackerel in the summer, and to Icelandic summer spawning herring in early winter.

The herring fisheries have also been very important for Iceland. They were especially prominent in the 1960s, when nearly 590 thousand tonnes were caught. The herring stocks collapsed in 1967, and catches remained low for a long time. The herring stocks have however fully recovered, and catches in Icelandic waters have been around 100 thousand tonnes within the Icelandic EEZ since 1988. After the collapse of the herring stocks, the Icelandic purse seiners focused on capelin, which had been largely ignored before. This fishery increased rapidly to around 1 million tonnes annually. The capelin stock size can, however, fluctuate wildly, since it is short lived and dies after first spawning (Knútsson et al., 2011). Atlantic mackerel catches have increased abruptly in recent years, and in 2010 it constituted 11.5% of the total volume and ca. 6% of the total value (the second pelagic species after the Atlantic-Scandic herring; Table 2).

22 Icelandic fisheries: a review

Table 2: Icelandic catches: volume and value of major species (2010)

VOLUME VOLUME VALUE VALUE SPECIES (tonnes) (%) (Million ISK) (%) Demersal catch 430366 40,5% 93579 70,4%

Cod 178516 16,8% 44582 33,5%

Haddock 64948 6,1% 15236 11,5%

Saithe 53894 5,1% 8480 6,4%

Redfish 56305 5,3% 12016 9,0%

Oceanic redfish 14794 1,4% 3649 2,7%

Flatfish catch 24198 2,3% 9169 6,9%

Greenland halibut 13309 1,3% 6682 5,0%

Plaice 5983 0,6% 1164 0,9%

Pelagic catch 595653 56,0% 27565 20,7%

Herring 66579 6,3% 2919 2,2%

Atlantic-Scandian herring 187894 17,7% 7981 6,0%

Capelin 102196 9,6% 2637 2,0%

Capelin roe 11904 1,1% 2493 1,9%

Blue whiting 87121 8,2% 3265 2,5%

Atlantic mackerel 122031 11,5% 7824 5,9%

Pearlside 17912 1,7% 446 0,3%

Shellfish catch 10627 1,0% 2525 1,9%

Lobster 2541 0,2% 1018 0,8%

Shrimp 7742 0,7% 1418 1,1%

Miscellaneous 2623 0,2% 141 0,1%

TOTAL 1063467 100,0% 132979 100,0%

Data source: Statistics Iceland

After the extension of the EEZ to 200 miles, the catches by other countries decreased sharply (Figure 2). Currently the distant water fleets fishing in Icelandic waters are Norwegian and Faroese longliners fishing for groundfish, Norwegian, Faroese and Greenlandic purse-seiners fishing for capelin and herring, and Greenlandic and EU trawlers fishing for redfish. Russian and EU herring boats and Faroese boats fishing for blue whiting are allowed to fish up to a certain amount in Icelandic waters depending on annual agreements on the transboundary stocks (Knútsson et al., 2011).

23 Policy Department B: Structural and Cohesion Policies

Figure 3: Icelandic catches by species (2010): A. Volume, B. Value

A. Lobster; 0,2% Shrimp 0,7% Pearlside 1,7% Miscellaneous 0,2% Atlantic mackerel 11,5% Cod 16,8%

Blue whiting 8,2% Haddock 6,1%

Capelin roe 1,1%

Saithe 5,1%

Capelin 9,6% Redfish 5,3% Oceanic redfish 1,4% Greenland halibut 1,3% Atlantic-Scandian herring Herring 6,3% 0,6% 17,7%

B. Lobster 0,8% Pearlside 0,3% Shrimp 1,1% Blue whiting 2,5% Capelin roe 1,9% Atlantic mackerel 5,9% Miscellaneous 0,1%

Capelin 2,0% Cod 33,5% Atlantic-Scandian herring 6,0% Herring 2,2%

Plaice 0,9%

Greenland halibut 5,0%

Oceanic redfish 2,7%

Redfish 9,0% Haddock 11,5% Saithe 6,4%

Data source: Statistics Iceland

24 Icelandic fisheries: a review

4. THE MACKEREL ISSUE

The Northeast Atlantic mackerel is thought to be a single stock with three separate components which differ in their spawning location and their migration patterns (Map 4):  the Western component (ca. 77% of the entire stock). The catches of this component were low in the 1960s, but have increased since. The main catches are taken in directed fisheries by mid-water trawlers and purse-seiners. Large catches are taken in the northern North Sea, west of and in the Nordic seas.  the North Sea component (ca. 4% of the stock). Very large catches were taken in the late 1960s in the purse-seine fishery, reaching a maximum of about 1 million tonnes in 1967. The component subsequently collapsed and catches declined to less than 100 000 tonnes in the late 1970s. Annual catches in the last ten years are assumed to be about 10 000 tonnes.  the Southern component (ca. 19% of the stock). Mackerel in this component are taken in mixture of purse-seine, demersal trawl, line, and gillnet fisheries, with the highest catches (87%) taken in the first half of the year. Catches increased to about 40 000 tonnes in the early 2000s, reaching a peak at 108 000 tonnes in 2009 and decreasing to 63 000 tonnes in 2010 (ICES, 2011). Map 4: Northeast Atlantic mackerel stock components and their spawning areas

North Sea

Western

Southern

Source: ICES (map and divisions)

25 Policy Department B: Structural and Cohesion Policies

Map 5: The main migration pathway of the Western mackerel until the 2000s

The dark paths represent the migration to the spawning grounds (the thin line shows the pattern in the late 1970s, the thick line shows the pattern in the 1990s). The light path represents the track of the post-spawning migration. Months are in roman numerals. Source: Reid et al. (1997)

Mackerel from the Western and Southern components migrate to feed in the Nordic seas during the second half of the year, mix with the North Sea component and spend the winter in the deep water to the east and north of Shetland and on the edge of the Norwegian Deeps (Map 5). In the spring, the Western component migrates southwest along the western Scottish and Irish coasts, to mix with the Southern component, and spawn in an area stretching from the Bay of Biscay to the north of Hebrides (Simmonds, 2001). When spawning is finished, the Western Mackerel move back to the feeding grounds in the Norwegian Sea and the northern North Sea. The pattern of the southerly migration of the Western component to the spawning grounds has moved from a track inshore of the Hebrides (in the late 1970s) to a further offshore track in the 1990s (Map 5; Reid et al., 1997).

In recent years the stock has significantly expanded north-westwards during spawning and the summer feeding migration. This distributional change may reflect changes in food availability and may be linked to increased water temperature, and/or increased stock size. As a result, significant catches have been taken in Icelandic and Faroese waters since 2008, in areas where almost no catches were reported previously (Figure 4, Map 6). Traditionally, the fishing areas with higher catches of mackerel have been around the Shetland Isles, in the northern North Sea and off the west coasts of Scotland and Ireland. The southern fishery off Spain’s northern coast has also accounted for significant catches. In 2010, catches in the Icelandic and Faroese waters constituted approximately 21% of the total reported landings (Tables 3 and 4; ICES, 2011).

26 Icelandic fisheries: a review

Since 1999, the mackerel stock has been co-managed by the EU, Norway and the Faroe Islands in annual Coastal States consultations. A management plan was agreed by the Coastal States in October 2008 and evaluated by ICES as precautionary (ICES, 2008). However, since 2009, the management plan has not been followed. Iceland's request to participate to the management of the mackerel stock was initially rejected by the Coastal States. In 2010 Iceland decided to unilaterally allocate itself a quota of 23% of the TAC advised by ICES for mackerel fisheries. Similarly, the Faroes awarded itself an increased quota of 15%. In response, the Norwegian Ministry of Fisheries and Coastal Affairs issued a ban on Icelandic and Faroese landings of mackerel in Norwegian ports (except for the 2000 tonnes of mackerel which the Faroe Islands were entitled to catch in Norwegian waters as part of the fisheries agreement for 2010 between the Faroe Islands and Norway; Norwegian Ministry of Fisheries and coastal affairs, 2010a). No formal rules for similar actions were in place in the EU, however the industry closed their harbours to Faroese and Icelandic landings on several occasions (BBCnews, 2011).

Figure 4: Northeast Atlantic mackerel catches - combined Southern, Western and North Sea spawning components (2002-2010)

900000

800000 EU 700000 Norway Iceland 600000 Faroe Islands 500000 TOTAL

400000

300000 Catches (tonnes) Catches 200000

100000

0 2002 2003 2004 2005 2006 2007 2008 2009 2010

Data source: ICES Advice (2011)

Map 6: Distribution of Icelandic mackerel catches (2007-2010)

Source: Heidar (2011)

27 Policy Department B: Structural and Cohesion Policies

Table 3: Mackerel in the Northeast Atlantic - combined Southern, Western and North Sea spawning components: Catches by country, in tonnes (2002- 2010)

COUNTRY 2002 2003 2004 2005 2006 2007 2008 2009 2010

Belgium 22 2 5 1 3 1 2 3 29

Denmark 34376 27900 25665 23212 24219 25223 26726 23491 41445

France 21878 22906 20266 16338 14953 20038 15602 18340 11379

Germany 26532 24061 23244 19040 16608 18221 15502 22703 19055

Ireland 72172 67355 61102 45687 40664 49260 44759 61056 57994

Lithuania 0 0 0 0 95 7 0 0 0

Netherlands 33444 30424 27532 25127 24157 24234 19972 23568 23089

Poland 0 0 0 570 0 978 0 0 0

Portugal 2934 2749 2289 1509 2620 2605 2381 1753 2363

Spain 50123 23762 34455 52753 54136 62946 64648 114074 52845

Sweden 5232 445 4437 3204 3209 3858 3664 7303 3428

United 194045 183008 174730 152801 95815 133688 112149 157010 160403 Kingdom

Guernesey 0 0 0 0 10 0 0 0 0

Jersey 0 0 0 9 8 6 7 8 6

Faroe 19768 14014 13029 9769 12067 13429 11289 14062 70987 Islands

Iceland 53 122 0 363 4222 36706 112286 116160 121008

Norway 184291 163406 157364 119678 121993 131691 121524 121229 233952

Russia 45811 40026 49489 40495 33580 35408 32728 41414 59292

Misreported 6009 0 31 0 0 0 0 0 0

Unallocated 50543 59172 46596 13171 4954 12453 1069 -139 5163

Discards 23774 9481 10972 19760 17970 8615 26766 12854 6977

TOTAL 771007 668833 651206 543487 471283 579367 611074 734889 869415

Data source: ICES Advice (2011)

Iceland was recognised as a Coastal State with regard to the mackerel fishery in 2010, but the Coastal States have still not managed to reach a satisfactory share of the TAC and consequently all parties have unilaterally set their national quotas. In December 2010, the EU and Norway agreed on a bilateral management plan of the mackerel, with a distribution key awarding the EU with ca. 62% and Norway with ca. 28% of the TAC, respectively (Norwegian Ministry of Fisheries and Coastal Affairs, 2010b). This effectively left approximately 10% of the TAC for the remaining parties. As Iceland and the Faroes did not consider this amount to be sufficient, both countries unilaterally set a quota of approximately 23% of the TAC. Consequently, the stock was again overfished in 2011.

28 Icelandic fisheries: a review

Table 4: Mackerel in the Northeast Atlantic - combined Southern, Western and North Sea spawning components: Catches by country, in percentage of the total catch for each year (2002-2010)

COUNTRY 2002 2003 2004 2005 2006 2007 2008 2009 2010

Belgium 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Denmark 4,5% 4,2% 3,9% 4,3% 5,1% 4,4% 4,4% 3,2% 4,8%

France 2,8% 3,4% 3,1% 3,0% 3,2% 3,5% 2,6% 2,5% 1,3%

Germany 3,4% 3,6% 3,6% 3,5% 3,5% 3,1% 2,5% 3,1% 2,2%

Ireland 9,4% 10,1% 9,4% 8,4% 8,6% 8,5% 7,3% 8,3% 6,7%

Lithuania 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Netherlands 4,3% 4,5% 4,2% 4,6% 5,1% 4,2% 3,3% 3,2% 2,7%

Poland 0,0% 0,0% 0,0% 0,1% 0,0% 0,2% 0,0% 0,0% 0,0%

Portugal 0,4% 0,4% 0,4% 0,3% 0,6% 0,4% 0,4% 0,2% 0,3%

Spain 6,5% 3,6% 5,3% 9,7% 11,5% 10,9% 10,6% 15,5% 6,1%

Sweden 0,7% 0,1% 0,7% 0,6% 0,7% 0,7% 0,6% 1,0% 0,4%

United 25,2% 27,4% 26,8% 28,1% 20,3% 23,1% 18,4% 21,4% 18,4% Kingdom

Guernesey 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Jersey 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Faroe Islands 2,6% 2,1% 2,0% 1,8% 2,6% 2,3% 1,8% 1,9% 8,2%

Iceland 0,0% 0,0% 0,0% 0,1% 0,9% 6,3% 18,4% 15,8% 13,9%

Norway 23,9% 24,4% 24,2% 22,0% 25,9% 22,7% 19,9% 16,5% 26,9%

Russia 5,9% 6,0% 7,6% 7,5% 7,1% 6,1% 5,4% 5,6% 6,8%

Misreported 0,8% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Unallocated 6,6% 8,8% 7,2% 2,4% 1,1% 2,1% 0,2% 0,0% 0,6%

Discards 3,1% 1,4% 1,7% 3,6% 3,8% 1,5% 4,4% 1,7% 0,8%

TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 100%

Data source: ICES Advice (2011)

Iceland's position is based on the idea that the change in the migration pattern and the presence of mackerel in the Icelandic EEZ should be reflected in the sharing of the quotas. Iceland also argues that the invasion of mackerel in the Icelandic marine ecosystem interferes with other fish stocks such as herring and blue whiting and negatively affects the stock of small sandeel, and that the reduced fishing possibilities from these stocks should be compensated with a share in the mackerel fisheries. The economic value of the mackerel catches is recognised to have played a part in Iceland's reconstruction after the 2008 crisis (see also chapter 6 on mackerel export). The value of the mackerel catches increased significantly: while most of the 2008 and 2009 catches were used for fish meal and oil, the proportion of the catch used for human consumption increased to 60% in 2010, and to 90% in 2011 (ICES, 2011; Sigfússon, 2012).

29 Policy Department B: Structural and Cohesion Policies

For the EU and Norway, Iceland is a newcomer in the mackerel fishery, whose self- attribution of quotas threatens the sustainability of the stock. Within the EU, there is a strong dependency of coastal communities on the mackerel fisheries, which have been a major source of income for decades, both for large-scale and artisanal fisheries (EC, 2012). The mackerel stock is of great importance to several EU countries, in particular the UK and Ireland. Mackerel represents the most valuable stock to the Scottish industry, estimated at about a third of the value of landings by the Scottish fleet in 2009. Also, Scotland has the first large scale mackerel fishery in Europe which is accredited with the Marine Stewardship Council (MSC). The MSC has indicated that the certificates for all the Northeast Atlantic mackerel fisheries will be suspended on 31 March 2012, until agreed mechanisms are in place to ensure that mackerel catches are at sustainable levels. This measure affects fisheries organisations in the UK, Ireland, Denmark, the Netherlands, Sweden and Norway (MSC, 2012).

In response to the stalemate of the negotiations, in December 2011 the European Commission proposed a Regulation which would authorise the Commission to impose a range of measures against third countries that allow unsustainable fishing. The proposal, still to be approved by the European Parliament and the Council, is seen as a new tool to discourage unsustainable fishing practices swiftly and to promote international cooperation on shared fish resources. The measures foreseen will range from restricting imports of fish products from the concerned stock as well as associated fish species, to prohibiting the conclusion of chartering agreements with economic operators from countries allowing non- sustainable fishing (EC, 2011).

While all the Coastal States agree with the TAC advised by ICES, the criteria guiding the division of the TAC between them remain controversial. There was no international agreement on TAC sharing for 2009, 2010 and 2011. In spite of five rounds of negotiations in autumn 2011 and early 2012, there is no progress for the 2012 fishing season, and the Coastal States will again determine separately their quotas. Iceland's share has been defined as 16-17% of the total catches, and is expected to be around 145 000 tonnes (Ministry of Fisheries and Aquaculture in Iceland, 2012).

Meanwhile, catches since 2008 have been considerably in excess of ICES advice (Table 5). The absence of comprehensive international agreements on the exploitation of the stock between all nations involved in the fishery is a critical concern, and prevents control of the total exploitation rate. If the current level of catch is maintained in 2012 and 2013, the spawning stock biomass in 2013 could decline to the precautionary level Bpa (ICES, 2011).

Table 5: Total catches of Northeast Atlantic mackerel, compared to ICES advice (2008-2011)

MACKEREL 2008 2009 2010 2011

Total catches 611074 734889 869415 927245*

ICES advice (maximum catch) 456000 578000 572000 646000

Excess 34% 27% 52% 44%

*ICES estimation Data source: ICES (2007, 2008, 2009, 2010, 2011)

30 Icelandic fisheries: a review

5. FISHING FLEET

The official statistics traditionally separate the fleet in three main categories (OECD, 2010):

 Trawlers, which are relatively large fishing vessels between 200 and 2000 GT and between 130-300 feet in length (ca. 40-91 m). They are almost exclusively engaged in demersal fisheries employing bottom and mid-water trawls.  Decked vessels, which cover several different types of vessels and size range, from 10 GT to over 4500 GT. This is by far the most diverse category as it ranges from small boats (smaller than many undecked boats) to large vessels, and includes specialised scallop draggers, longliners and purse seiners as well as unspecialised vessels.  Undecked vessels cover numerous vessels up to 10 GT, although most in this category are less than 6 GT. Many of these small vessels are technologically advanced and driven by powerful engines.

However, the separation of decked boats and trawlers is not very clear, as many decked boats can also operate trawls. Many of the decked boats are also structurally similar to stern trawlers, and some of the old side trawlers were converted to purse seiners, which put them into the decked boat class. This classification is in fact an anachronism from the times when trawlers were much larger than all the other boats. This started to change around 1960 when large purse seiners began operating. However, Icelandic data sources still separate the boats into these classes (Knútsson et al., 2011).

The number of fishing vessels at the end of 2011 was 1655, with a total gross tonnage of 82 777 GT, and a total engine power of 281 403 kW4 (Table 6; Statistics Iceland). Trawlers accounted for 4% of the fishing fleet, but for 46% of the total gross tonnage. The average age of the fleet is 24 years (27 for the trawlers category). After a general tendency of decrease in recent years, the fleet slightly increased in 2011 in all categories (Figure 5).

Table 6: Icelandic fishing fleet (2011)

CATEGORY VESSELS TONNAGE POWER

No. % GT % kW %

Undecked vessels 833 50% 3988 2% 75371 16%

Decked vessels 764 46% 82777 52% 281403 59%

Trawlers 58 4% 73137 46% 119713 25%

TOTAL 1655 100% 159902 100% 476487 100%

Data source: Statistics Iceland

4 In addition there are four whalers in Reykjavík, not included in these statistics.

31 Policy Department B: Structural and Cohesion Policies

Not all registered fishing vessels participate in the Icelandic fisheries. While some lie idle, others do not hold a fishing license in Icelandic waters and instead fish in foreign fishing grounds. Similarly, some undecked vessels are solely used for recreational purposes. Overall, only about 80% of the registered fishing vessels in Iceland fished commercially in 2006 and 2007.

The importance of the different categories of the fleet varies greatly in terms of catch volume and value. In spite of their relatively large number, the undecked vessels are negligible in terms of aggregate harvest volumes and quite small in harvest value. In turn, the decked vessels dominate the harvest value. This is due to the large volumes of the purse seine pelagic fleet. However, in terms of value, the trawlers account for almost as much as the decked fleet. In 2009, about 42% of the total catch value was landed by trawlers, just over 1% by the small undecked vessels and 57% by other vessels by varying sizes and capacities. However, these numbers only apply to boats that hold licenses to fisheries in Icelandic waters (Statistics Iceland, 2011a).

Figure 5: Evolution of the Icelandic fishing fleet by category (1999-2011): A. Number of vessels, B. Gross tonnage

2500 Trawlers Decked vessels 2000 Undecked vessels

1500

1000 Number of vessels of Number 500

0 A. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

250000 Trawlers Decked vessels 200000 Undecked vessels

150000

100000 Gross tonnage Gross tonnage (GT)

50000

0 B. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Data source: Statistics Iceland

32 Icelandic fisheries: a review

The measurement unit for categorising the fishing fleet was changed in the 1990s from GRT to GT. However, the old measurement is still partially used, but is not universally applicable. This has caused an apparent break in the long-term development of the fleet, and renders difficult any interpretation of the gradual changes in the fleet composition. As there are relatively few vessels in the larger categories, any new large vessels entering the fleet can cause noticeable changes to the series (OECD, 2010).

The Icelandic fishing fleet is in general technologically advanced and uses a variety of fishing gears and techniques. The range of fishing gears for demersal species and flatfish includes bottom trawl, longline, gillnet, handline and Danish seine. Purse seine and pelagic (or midwater) trawl are employed for pelagic species, and various types of dredges and trawls for invertebrates.

Purse seines, and more recently pelagic trawls, provide the highest volumes (usually around two thirds of the total catches), as they are used in the fisheries of a few but very abundant pelagic fish species (Figure 6). However, this is not reflected in the value of the catch as the value of pelagic species is low in comparison to demersal species. The fishing gear that catches the highest value is the bottom trawl with 40-50% of the value of the total catch. The second most profitable catch is from longlines. With the exception of lobster, fisheries for invertebrates are quite low in both value and catch volume (Icelandic Fisheries, online).

Figure 6: Total catch of Icelandic fleet by fishing gear (1992-2008)

Source: Knútsson et al. (2011), after Statistics Iceland

Most of the fishing vessels are registered in the western part of the island (ca. 70%). The main fishing port is Reykjavík (Table 7, Figure 7). Other important harbours are Hafnarfjörður (in the Capital area), Stykkishólmur, Ólafsvík and (in the West region), Grindavík (in the Southwest region) and Bolungarvík (in the Westfjords). Trawlers are mainly located in Reykjavík (16% of the total number), Vestmannaeyjar and Akureyri (Table 7).

33 Policy Department B: Structural and Cohesion Policies

Table 7: Number of vessels in the main Icelandic fishing ports (2011)

UNDECKED DECKED PORT REGION TRAWLERS TOTAL VESSELS VESSELS

Reykjavík Capital area 31 38 9 78

Stykkishólmur West 42 27 - 69

Hafnarfjörður Capital area 32 26 2 60

Ólafsvík West 20 35 - 55

Grindavík Southwest 11 39 3 53

Akranes West 33 16 4 53

Vestmannaeyjar South 16 30 7 53

Bolungarvík Westfjords 23 24 1 48

Grundarfjörður West 23 20 - 43

Akureyri Northeast 31 6 6 43

Data source: Statistics Iceland

Figure 7: The catch quotas of the main fishing ports

Source: Ministry of Fisheries and Agiculture (2010)

34 Icelandic fisheries: a review

6. EXPORT OF MARINE PRODUCTS

In 2010, the export of marine products reached 632 thousand tonnes, with a total value which amounted to 220.5 billion ISK. While the quantity of exported products has decreased since 2008, the export value has increased substantially, due to the devaluation of the ISK (Figure 8). Frozen products generated more than half of the value of exported marine products, but the highest export revenues were from uncured salted cod. More than half of the export value comes from demersal species, in particular from cod. A sizable proportion is made up of haddock, saithe and redfish. Products from pelagic fish species and invertebrates have been roughly equal and make up the bulk of the rest (Statistics Iceland, 2011b).

The EU is the most important market for Icelandic marine products: in 2010 the export value to EU reached 145.6 billion ISK (around 66% of the total export). The United Kingdom, Norway and Spain are the main importers of Icelandic marine products, followed by the Netherlands, France and Germany (Figure 9). The bulk of the export to Europe consists of demersal species and their proportion has grown rapidly in the past few years. Pelagic species, such as capelin and herring, constitute a large and rather stable part of the export, whereas a significant but declining ratio originates from invertebrates, mainly northern shrimp and Norway lobster. Most of the exports to Europe are frozen products, with the main markets in the UK (cod and haddock for the traditional British fish and chips) and Germany (frozen redfish and saithe). The markets for fish meal products from the pelagic species are primarily in Norway, the UK and Denmark. Fish meal is included in feeds for land animals and used as aquaculture feeds. The market for fish oil is mainly in Norway (Knútsson et al., 2011).

In Asia the largest single market has been Japan, but the value of export to China and Taiwan has been increasing in recent years. The North American market (mainly the United States), traditionally a major market for Icelandic fish products, has declined considerably in the last decade. Somewhat surprisingly, a traditional market for Icelandic marine products exists in Africa: Nigeria is virtually the sole importer, but the Nigerian imports have a higher value than those of the USA, once the most important market for Icelandic fish (Knútsson et al., 2011).

Figure 8: Quantity and value of exported marine products

1000 250000 Quantity 900 Value 800 200000 700 600 150000 500 400 100000 300

200 50000 ISK) Value (Million 100

Quantity (thousand tonnes) Quantity (thousand 0 0 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Data source: Statistics Iceland

35 Policy Department B: Structural and Cohesion Policies

Figure 9: Value of exported marine products in EU countries and Norway (1993- 2010)

2010 2009 2008 2007 2006 2005 2004 2003 2002 United Kingdom 2001 Spain 2000 Netherlands 1999 France Germany 1998 Lithuania 1997 Belgium 1996 Denmark Portugal 1995 Poland 1994 Other EU countries 1993 Norway

0 20000 40000 60000 80000 100000 120000 140000 160000 180000 Value (Million ISK) Data source: Statistics Iceland

Export of mackerel has spectacularly increased from virtually zero until 2007, to 107 388 tonnes in 2010 (17% of the total volume of exported products), with a value of 8.47 billion ISK (3.8% of the total export value). The main market is Russia with ca. 66% of the value of the mackerel export. Lithuania has also a significant share (ca. 9% of the export value), followed by Nigeria and Malaysia (Figure 10).

Figure 10: Value of exported mackerel (2006-2010)

9000 Other countries 8000 China Taiwan 7000 Denmark 6000 Poland Spain 5000 Netherlands 4000 Malaysia Nigeria 3000 Lithuania Value (million ISK) Value 2000 Russia

1000

0 2006 2007 2008 2009 2010

Data source: Statistics Iceland

36 Icelandic fisheries: a review

7. EMPLOYMENT

The Icelandic economy is heavily reliant on the fishing industry. Fishing and seafood processing accounted for more than 11% of the GDP in 2010, although this was somewhat boosted by the low value of the exchange rate. The average share of fisheries in GDP over the last decade (2000-2009) was 9%. While the relative contribution of the fishing industry to the Icelandic economy has decreased in recent years, the fishing industry brings important secondary effects to the entire economy. Industries such as shipyards, electronic companies, shipbrokers are closely linked to the fisheries. Studies have shown that a 1% increase in the production value of the fishing industry results in a 0.3% short run increase in GDP (OECD, 2011).

In 2011, around 4600 people were estimated to work in harvesting, of which the vast majority (93%) are male employees (Table 8). This figure represents ca. 2.7% of the total employment in Iceland. Moreover, around 4200 people worked in the fish processing industry (2.5% of the total workforce), with women representing ca. 38%. The fisheries sector altogether employs around 5.26% of the total workforce. Although the contribution of the sector in the economy is not apparent from these figures, the fishing industry is fundamental for the whole economy and in particular for maintaining economic growth and well-being outside the capital area. Fisheries and fish processing companies provide the most important source of livelihood in coastal communities, where employment opportunities are limited. Regionally, the share of employment in the fishing industry is the most important in the Westfjords.

Table 8: Employment in the Icelandic fisheries sector (2011)

TOTAL EMPLOYEES FISHING FISH PROCESSING WORKFORCE

FISHERIES No. % No. % No. %

Males 4300 93% 2600 62% 87000 2.75%

Females 300 7% 1600 38% 80300 2.51%

Total 4600 100% 4200 100% 167300 5.26%

Data source: Statistics Iceland

There was a steady decline of employment in fisheries in all regions of the country until 2008 (Figure 11). The increase in efficiency in fisheries has had a negative impact on employment opportunities in rural areas which are highly dependent on the fishing industry. This was partially caused by the success of the ITQ system, which has encouraged rationalisation in the industry, with fishers in rural areas selling their quotas to more efficient operators elsewhere. Technical advances decreased the need for manual labour. Finally, another factor has been the decrease in TACs which has been necessary to secure the sustainability of fish resources (Knútsson et al., 2011).

This tendency reversed in 2008, and a constant increase has occurred in recent years.

37 Policy Department B: Structural and Cohesion Policies

Figure 11: Estimated number of employees in fishing and fish processing in Iceland (1991-2011)

18000 Fish processing 16000 Fishing 14000

12000

10000

8000

6000

4000

2000

0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Data source: Statistics Iceland

38 Icelandic fisheries: a review

8. AQUACULTURE

Although Iceland is one of the leading fishing nations in the world, this is not the case for aquaculture, which has a very limited production5. The main species produced in fish farming are Atlantic salmon, Artic char and Atlantic cod (Figure 12). In 2008 there were 86 registered fish farms in Iceland, out of which 45 were freshwater farms. About 30 fish farms produce juveniles, mainly for salmonid release, while four farms produce juveniles of marine species. Furthermore, there were 12 sea cage farms which mostly produce cod, as well as 30 land-based farms producing salmonid. Finally, there are 15 mussel farms in operation in addition to four research stations.

Figure 12: Total aquaculture production in Iceland by fish species (1985-2010)

Source: Knútsson et al. (2011), after Directorate of Fisheries

Aquaculture on a commercial scale began around 1985, with the first attempts at salmon (Salmo salar) farming. In 1990, after a large scale build-up, the production reached about 3 000 tonnes and remained at this level for more than 10 years (far from the production level of the Norwegian salmon farming conducted at similar latitudes). A second phase of development in salmon farming began in 2004 when the production doubled, but subsequently collapsed in 2007. Salmon farming has been on a very low scale ever since (Figure 12). However, one salmon farming sector is thriving, which is selective breeding and exporting of eggs and juveniles.

The development of Arctic char (Salvelinus alpinus) farming has developed quite differently. Farming began at about the same time as salmon farming on a very low scale. The growth has been slow but steady, and in recent years the Arctic char production exceeds all the other aquaculture species. Along with increased production, a strong marketing campaign was conducted to boost sales and prices. Arctic char farming proved successful, as Iceland has become the largest producer of Arctic char in the world.

5 This chapter is based on Knútsson et al. (2011) and Gunnarsson (2011)

39 Policy Department B: Structural and Cohesion Policies

Iceland has experimented with cod farming since 1992. The growth of this sector has been slow but steady. On-growing of wild caught fish has proven to be feasible and most of the production is from on-growing. Farmed juveniles are also produced in experimental stations, but have not yet proven to be economically efficient on a large scale.

Several other species have been experimentally farmed, but most of them have a minor contribution compared with the species above. Some success has been reached with Atlantic halibut farming, although production value is low since it is mostly exported for on- growing as juveniles. Other species still at experimental stages or grown on very small scale are (Scopthalmus maximus), blue mussel (Mytilus edulis), tilapia (Oreochromis niloticus), and rainbow trout (Oncorhynchus gairdneri).

The highest annual aquaculture production year was 2006, with about 5000 tonnes exported and about 2 billion ISK in value (Figure 13). This dropped the subsequent year, due to sharply reduced salmon production, but has grown again to previous levels partly due to successful marketing of Arctic char and partly because of favourable exchange rate for the ISK. The largest market for Icelandic aquaculture products is the United States, where a large part of the Arctic char products is exported. Halibut juveniles are mostly exported for on-growing to Norway and salmon eggs and juveniles to Chile.

Figure 13: Total export of Icelandic aquaculture products in volume (left axis) and value (right axis, ISK million at current prize) (1985-2010)

6000 3000

Quantity 5000 Value 2500

4000 2000

3000 1500

2000 1000 Quantity (tonnes) Quantity Value (million ISK) Value

1000 500

0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Data source: Statistics Iceland

40 Icelandic fisheries: a review

9. MARINE RESEARCH

Marine research has been conducted in Icelandic waters for over a century. The Icelandic Marine Research Institute - MRI (Hafrannsóknastofnunin) took over in 1965 from its predecessor, the Department of Fisheries of the University Research Institute, established in 1937.

The MRI is a government institute under the auspices of the Ministry of Fisheries in Reykjavik, which provides the Ministry with scientific advice based on its research. The MRI has five branch laboratories around Iceland, located in Akureyri, Höfn, Vestmannaeyjar, Ísafjörður and Ólafsvík, which provide data on fisheries and carry out research in close contact with local fishing communities. In addition, the MRI also runs an experimental laboratory in mariculture in Grindavík.

Map 7: Location of the MRI branch laboratories

Source: http://www.hafro.is

The MRI has a staff of about 170 including 1000 scientists and research assistants, and runs two research vessels, Bjarni Sæmundsson (55 m) and Árni Friðriksson (70 m). The research vessels operate a variety of fishing gear and provide facilities for sampling and measurements. They are equipped with onboard laboratories for sample analysis and data processing at sea.

The MRI typically conducts 100 research projects each year. The research of marine resources in Icelandic waters includes studies of exploitable stocks of fish, crustaceans and molluscs as well as research pertaining to whales, straddling stocks and underexploited species. The most extensive of the MRI activities is the systematic assessment of marine stocks and its advisory role for the management of fisheries. The institute publishes an extensive report in May each year, on the state of the marine stocks and prospects for the coming quota year. This includes recommendations to the Minister of Fisheries and Agriculture on the TAC for each stock.

The work of the MRI is organised into three main sections:

 The Marine Environment Section mainly focuses on environmental conditions (nutrients, temperature, salinity) in the sea, marine geology, the ecology of algae, zooplankton, fish larvae, fish juveniles and benthos. Among the major projects undertaken are the investigation of surface currents using satellite monitored drifters, the assessment of primary productivity, overwintering and spring spawning of zooplankton, and studies on spawning of the most important exploited fish stocks.

41 Policy Department B: Structural and Cohesion Policies

 The Marine Resources Section mostly works on estimating stock sizes and the TACs for each stock. Investigations are also undertaken on exploited stocks of fish, crustaceans, molluscs and marine mammals. Some of the larger projects within this section are annual demersal fish surveys covering the shelf area around Iceland, and surveys for assessing inshore and deep-water shrimp, lobster and scallop stocks. The pelagic stocks of capelin and herring are also monitored annually in extensive research surveys using acoustic methods. Recently an extensive program concentrating on multi-species interactions of exploited stocks in Icelandic waters has also been carried out.  The Fisheries Advisory Section scrutinizes stock assessments and prepares the formal advice on TACs and sustainable fishing strategies for the government.

In addition, the MRI has several supporting departments such as the Modelling Department, the Eletronic Department and the Fisheries Library. The Modelling Department deals with fisheries and ecologically related mathematical models and is also involved in projects concerning methodological problems in fish stock assessment. The Electronic Department supervises installation, testing and maintenance of research instruments. The Fisheries Library collects books and periodicals in all fields of marine sciences.

The mariculture laboratory in Grindavík was established in 1988 and was built in the vicinity of a large land-based salmon farm, Iceland Salmon Ltd, which supplies filtered seawater to the laboratory. The main emphasis has been on studying the farming potential of halibut, cod, turbot and abalone.

The MRI is involved in international research, and actively participates to the work of ICES and its advisory Committee on Fisheries Management. The stock assessment findings of the MRI are subject to review by ICES before the TAC recommendations are made. The MRI is also represented in several other organisations, such as the Northeast Atlantic Fisheries Commission (NEAFC), the Northwest Atlantic Fisheries Organization (NAFO), the North Atlantic Marine Mammal Commission (NAMMCO) and the International Whaling Commission (IWC).

MRI cooperates with the universities in Iceland and students can undertake practical training and carry out research projects at the Institute. Furthermore, the United Nations University Fisheries Training Program is operated under the supervision of MRI.

Matis is an independent research institute with 100% governmental ownership, working in research and development for the food industry, fisheries and aquaculture. It was founded in 2007, following the merger of three former public food research institutes: the Icelandic Fisheries Laboratories - IFL (an independent food research institute of the Ministry of Fisheries), MATRA (a joint venture of IceTec and the Agricultural Research Institute of the Ministries of Industry and Agriculture), and the research division of the Environment and Food Agency (which operated under the direction of the Ministry for the Environment). Matis also operates Prokaria, a private biotechnology company and Iceprotein, a protein production company.

Currently Matis has 9 branches around Iceland, including the headquarters in Reykjavik, and about 100 employees, among which scientists in food technology, food research and biotechnology, chemists, biologists, engineers and fisheries scientists.

42 Icelandic fisheries: a review

REFERENCES

 Bailey N., Campbell N., Holmes S., Needle C., Wright P., 2010. Real time closures of fisheries. European Parliament, Policy Department B: Structural and cohesion Policies, 49 pp, available at http://www.europarl.europa.eu/committees/en/studiesdownload.html?languageDocume nt=EN&file=32397  BBCNews, 2011. Q&A: Mackerel wars explained, available at http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-12180743  Christensen A., Hegland T.J., Oddson, G., 2009. The Icelandic ITQ System. In: Hauge K.J., Wilson D.C. (editors), Comparative Evaluations of Innovative Fisheries Management: Global Experiences and European Prospects, Springer, pp 97 - 118.  European Commision, 2011. Iceland 2011 progress report. Enlargement strategy and main challenges 2011-2012, SEC (2011) 1202 final.  European Commission, 2007. European Commission Studies and Pilot Projects for Carrying Out the Common Fisheries Policy (MRAG and IEEP): Impact assessment of discard policy for specific fisheries, available at http://ec.europa.eu/fisheries/documentation/studies/impact_assessment_discard_policy _2007_en.pdf  European Commission, 2011. Proposal for a Regulation of the European Parliament and of the Council, on certain measures in relation to countries allowing non-sustainable fishing for the purpose of the conservation of fish stocks, COM(2011) 888 final, available at http://eur- lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_ doc=COMfinal&an_doc=2011&nu_doc=0888  European Commission, 2012. Joint statement of Commissioner Damanaki and Norwegian Miinister Berg-Hansen on mackerel, Press release 16/02/2012, available at http://ec.europa.eu/fisheries/news_and_events/press_releases/090810a/index_en.htm  Global Trust, 2010. FAO-Based Responsible Fisheries Management Certification: Full Assessment and Verification Report For The Icelandic Cod Fishery (200 mile EEZ), available at http://www.responsiblefisheries.is/files/pdf-skjol/certification/fao-based- responsible-fisheries-management-certification---icelandic-cod-public-release-report-- jan-25th-2011.pdf?  Gunnarsson V. I., 2011. Aquaculture. Icelandic Fisheries: Information Centre of the Ministry of Fisheries and Agriculture, available at http://www.fisheries.is/aquaculture  Heidar T., 2011. Sustainable utilization of living marine resources, Presentation to the Committee on Fisheries of the European Parliament, 25/01/2011.  ICES, 2008. Mackerel in the Northeast Atlantic (combined Southern, Western and North Sea spawning components. ICES Advice 2008, Book 9, Chapter 9.4.2, 74-91.  ICES, 2009. Mackerel in the Northeast Atlantic (combined Southern, Western and North Sea spawning components. ICES Advice 2009, Book 9, Chapter 9.4.2, 1-16.  ICES, 2010. Widely distributed and migratory stocks. Mackerel in the Northeast Atlantic (combined Southern, Western and North Sea spawning components. ICES Advice 2010, Book 9, Chapter 9.4.2, 47-64.

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 ICES, 2011. Widely distributed and migratory stocks. Mackerel in the Northeast Atlantic (combined Southern, Western and North Sea spawning components. ICES Advice 2011, Book 9, Chapter 9.4.2, 5-23.  Knútsson Ö., Valtýsson H.Þ., Sævaldsson H., Gestsson H., Eiríksson B., 2011. A Comprehensive Overview of the Icelandic Fish Industry: A Background Report for a Value Chain Analysis of International Fish Trade and Food Security with an Impact of the Small Scale-Sector, The Fisheries Research Science Centre of The University of Akureyri.  Marine Research Institute, http://www.hafro.is/index_eng.php  Marine Stewardship Council, 2012. News, Certifiers give 90 days’ notice of mackerel certificate suspension, available at http://www.msc.org/newsroom/news/certifiers-give- 90-days2019-notice-of-mackerel-certificate-suspension/?searchterm=mackerel certification  Mathiasson T., 2012. Rights-based fisheries management in Iceland and economic and financial crisis. European Parliament, Policy Department B: Structural and cohesion policies, 44 pp.  Ministry of Fisheries and Agriculture of Iceland, 2010. Icelandic fisheries in figures, 16 pp.  Ministry of Fisheries and Agriculture of Iceland, 2012. Mackerel consultations concluded without agreement, Press release 16 February 2012, available at http://eng.sjavarutvegsraduneyti.is/news-and-articles/nr/10856  Ministry of Fisheries and Agriculture of Iceland, Icelandic Fisheries, http://www.fisheries.is/  Norwegian Ministry of Fisheries and Coastal Affairs, 2010a. Ban on landings of mackerel from Faroese and Icelandic vessels, available at http://www.regjeringen.no/en/dep/fkd/pressesenter/pressemeldinger/2010/forbod- mot-landing-av-makrell-fra-faroys.html?id=611793  Norwegian Ministry of Fisheries and Coastal Affairs, 2010b. Agreed Record of Conclusions on Fisheries Consultations between the and Norway on the Management of Mackerel in the North-East Atlantic for 2011, available at http://www.regjeringen.no/upload/FKD/Vedlegg/Kvoteavtaler/2011/Makrell/Bilateral_av tale_om_makrell_Norge-EU_10122010.pdf  OECD, 2002, Country Note on National Fisheries Management Systems -- Iceland, available at http://www.oecd.org/dataoecd/11/12/34429527.pdf  OECD, 2010. Review of Fisheries in OECD Countries 2009: Policies and Summary Statistics, available at http://www.oecd-ilibrary.org/agriculture-and-food/review-of- fisheries-in-oecd-countries-2009/iceland_rev_fish_pol-2009-22- en;jsessionid=2feme0ckei798.epsilon  OECD, 2010. Development of the individual transferable quota system in Iceland, in OECD, Fisheries Policy Reform: National Experiences, OECD Publishing. doi: 10.1787/9789264096813-8-en  OECD, 2011, Fisheries Policy Reform: National Experiences, available at http://www.oecd-ilibrary.org/agriculture-and-food/fisheries-policy-reform/development- of-the-individual-transferable-quota-system-in-iceland_9789264096813-8-en  Olivert-Amado A., 2008. Fisheries in Iceland. European Parliament, Policy Department B: Structural and cohesion Policies, 46 pp, available at

44 Icelandic fisheries: a review

http://www.europarl.europa.eu/committees/en/studiesdownload.html?languageDocume nt=EN&file=23331  Reid D.G., Turrell W.R., Walsh M., Corten A., 1997. Cross-shelf processes north of Scotland in relation to the southerly migration of Western mackerel. ICES Journal of Marine Science 54, 168-178.  Ryan W.B.F., Carbotte S.M., Coplan J., O'Hara S., Melkonian A., Arko R., Weissel R.A., Ferrini V., Goodwillie A., Nitsche F., Bonczkowski J., Zemsky R., 2009. Global Multi- Resolution Topography (GMRT) synthesis data set. Geochemisty Geophysics Geosystems 10, Q03014.  Sigfússon S., 2012. Joint responsibilities in mackerel fishing, available at http://euobserver.com/7/114871  Simmonds J., 2001. North Eastern Atlantic mackerel. Pelagic news, available at http://www.scotland.gov.uk/Uploads/Documents/MackerelStocks.pdf  Statistics Iceland, 2011a. Fish and fish processing, Statistical Yearbook of Iceland 2011, available at http://www.statice.is/lisalib/getfile.aspx?itemid=13170  Statistics Iceland, 2011b. Export and export production of marine products 2010, available at http://www.statice.is/lisalib/getfile.aspx?ItemID=12439

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46 Icelandic fisheries: a review

NOTES

47 Policy Department B: Structural and Cohesion Policies

48

DRAFTPRE-RELEASE! ! DRAFT ! DRAFT PRE-RELEASE! ! DRAFT ! DRAFT Directorate-GeneralPRE-RELEASE! !FO R DRAFTInternal Policies POLICY DEPARTMENT Directorate-General FOR Internal Policies STRUCTURAL AND COHESION POLICIES B

POLICY DEPARTMENT AgricultureAgriculture and Rural and Development Rural Development STRUCTURAL AND COHESION POLICIES B CultureCulture and Education and Education Role

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