Speech held by Svein Ludvigsen, Norwegian Minister of Fisheries – seminar hosted by the Brazilian Ministry of Fisheries - Brasilia - 7. October 2003

Minister, Ladies and Gentlemen

First of all I want to direct a sincere thanks to the Brazilian Ministry of Fisheries for receiving us and hosting this seminar during our visit here in Brazil.

During my stay in Santa Catharina this weekend I have learnt a lot about Brazilian fisheries and aquaculture industry. I am therefore utterly convinced that our stay will be both interesting and valuable for myself and the other members of our delegation!

Although it is only one year since my last visit to Brasilia, changes have taken place here in Brazil as regards the fisheries – administration.

So for me – as the Minister of Fisheries in Norway – it is a special pleasure and honour to give you the warmest congratulations on your newly established Ministry of Aqua culture and Fisheries here in Brazil. I hope – that this will give us the possibility to continue the excellent cooperation we have experienced between our two countries so far, as well as develop the cooperation even further!

The establishment of a Ministry for Fisheries in Brazil, emphasizes in many ways how the aquaculture and fisheries sector experience an emerging importance, not only in this country, but also internationally. The global production of seafood products has increased for the last decade, mainly as a result of growth in the productions of aquaculture products. On global basis, fisheries and aquaculture products are important as sources of food, employment and revenue in many countries and communities. The fact that the potential for growth in traditional fisheries is limited makes aquaculture increasingly important.

Another evidence for this emerging importance is the fact that the Food and Agricultural Organisation of the United Nations (FAO), in recent years has established its own Sub-Committee on Aquaculture. An arena for discussion of the broad issues that is essential for sustainable development of the aquaculture food-producing sector.

In this relation - Norway had the pleasure of hosting the second meeting of this Sub-committee in August this year, which was also the time and the place for the last meeting between our two countries. In this regard - it is my sincere hope that the Brazilian delegation experienced some valuable and interesting days throughout the stay in Norway.

Before I continue, let me give you a short presentation of my speech here today. At my last visit in Brazil I presented the Norwegian fisheries and aquaculture on a broad basis. My main focus today will be on the possibilities and challenges within the aquaculture sector, both nationally and globally. I will first look into our countries current situation on the topic, before I turn to some of the history and reasons behind Norway’s success within fish farming. Finally I will describe some of the future challenges I see for my own country and globally. Hopefully this will give a good base for a fruitful conversation and discussions later on.

Norway’s history/current situation

In an international aquaculture context Norway is both a small and a big nation. We are small in terms of total geographical area and population and our history in fish farming is relatively short. Only thirty years have gone by since a couple of Norwegians did their first attempts to grow salmon in a net cage in the sea. On the other side; in no more than thirty years has Norwegian aquaculture grown from close to nothing into a thriving modern industry .

The salmon and trout industry, which are our main aquaculture export products, represented in 2002 about one third of the total export value of our seafood, and in numbers about 1,4 billion dollars. For a small country like Norway this represents a substantial value, and fish is in fact one of our major export articles, after oil and gas.

In terms of production figures I am very impressed with your latest results! From 3.000 tonnes produced farmed shrimp in 1997 to some 47.000 tonnes in 2001 represents an impressive growth! I have also learned that Brazil is the country in the world believed to have the largest potential for further growth in the aquaculture sector.

Favourable conditions

For Norway this success is due to many factors. The most important ones are:

• Long and clean coastline with large potential for marine production
• Good public infrastructure
• Predictable and stable regulation regime
• Globally competitive expertise
• Innovative thinking and creativity based on an exchange of expertise

In the following I will deepen some of these points.

Long and clean coastline

First – the national advantages with a long and clean coastline with large potential for marine production has given Norway excellent opportunities to play important parts in developing the aquaculture sector. These are advantages our two countries share. With your 8.500 kilometre coastline you offer ideal conditions for further aquaculture projects.

The coastal zone though, represents a great advantage, but also great challenges.

We have experienced an increase in the number of user conflicts, which I am sure is familiar problems to you as well. In this relation we have also learnt that there is of great importance that both local authorities, fishing authorities and the different groups of users - all participates and acts responsible in the numerous coastal zone planning processes which takes place.

Good public infra structure

Further - Norway hold good public infrastructure in the coastal regions, and we have adequate access to fishing resources. This is especially important in terms of covering our need for marine feed for the farmed fish.

Regulatory framework

The Ministry of Fisheries in Norway has always played an active role on the regulatory side. We see it as important to arrange for the aquaculture sector, so that the industry can operate under circumstances, which gives them at all times predictable and stable working conditions. Side by side with the growth and progress within the industry, there has always been a goal to develop a suitable and appropriate regulatory framework.

To give you an adequate picture of the aquaculture sector in Norway I will continue by giving you some points about the regulatory framework we have developed. The points – as you can see – are highlighted here on the slide.

The Norwegian aquaculture industry is regulated both by law and administrative regulation. Our first regulation entered into force in 1973, but the current act came in 1985. The Ministry of Fisheries has made amendments to the act several times and are now in the process of fully revising the law to make it a modern tool for administering the industry.

The principal objective in the legal framework for aquaculture in Norway states that the fish farming industry shall have a balanced and sustainable development and be a profitable and viable regional industry.

In Norway everybody need a licence from the authorities to start fish and shellfish farming. To get a licence, the applicant must ensure that his establishment will not pollute or disseminate fish diseases and that the installations are not in conflict with local interests.

The Ministry of Fisheries has restricted the number of licences for fish farming of salmon and trout as one instrument to control the total production. The total number for this type of licence is at the moment 848. This fall we will allot 60 new licences. So far, there are no limits regarding the number of licences given to fish farming of other species and shellfish.

Special licences for salmon and trout are given for R&D and teaching, but these are normally smaller than the ordinary licences and they are time limited.

It is the Directorate of Fisheries whit its 9 regional offices which gives licences/rejects applications. This is coordinated with other government bodies’ i.e. veterinary authority, environmental, harbour and port authority.

Most licences are given free of charge except for new licences to fish farming of salmon and trout which are subject up to a $ 70.000 charge. All applications for new licences are subject to a handling fee of $ 1700.

Today feed quotas control the production of salmon. Other marine species are not subject to this kind of regulation. The feed Quotas was introduced in Norway in March 1996 by request of the Norwegian Fish farmer's Association and prior to the Salmon Agreement with the EU in 1997 whereas Norway agreed that the annual growth in salmon exports to the EU should not exceed 10%. This means that Norwegian salmon does not have free market access to the EU, which is our single most important market.

The feed quotas have been working as planned preventing excessive production. Still, Norwegian fish farmers were almost shut out of the EU-market second half of 2001 because of drop in market price below the minimum floor prize in the Salmon Agreement. The feed quotas are regulated in an administrative regulation, which is amended every year in cooperation with the fish farming organisations.

Due to the ending of the Salmon Agreement this spring, the salmon industry had a whole new market situation, and it was time to undertake some shifts within the aquaculture policy. Therefore - the arrangements with the feed quotas will be closed, with effect from 2005. The responsibility for the production will then be moved to the industry itself, which in many respects will normalize their situation compared to any other industrialized sector.

Further - to improve the aquaculture industry, the Norwegian authorities are now working on a new system for regulating production. Environmental concerns are key factors in administrating the aquaculture sector, and the new system will safeguard this. In this way, environmental considerations will become an integral part of the system of production regulation in the future. A working group administrated by the Directorate of Fisheries has been given the task to develop the new system.

And finally! The last contribution within the broader term aquaculture is the establishment of a new regulation within sea ranching. The objective is to arrange for a whole new sector within aquaculture, which we believe has the potential to grove into a value-generative industry in the years to come.

But as we are talking about regulations – I must emphasize the importance of promoting the industry rather than restraining it. The key role for the Government is to play the role as an organiser and a promoter. “Wealth creation” is our main objective.

Globally competitive expertise and innovative thinking

The last point, which has played an important role in the success of the Norwegian aqua culture, is the Norwegian tradition of openness and willingness to share information.

This goes to and from all key players within and outside the industry. In its first 30 years the aquaculture industry in Norway has been recognised by innovative thinking and creativity based on an exchange of expertise and on cooperation between actors in the industry, aquaculture organizations, research institutions and the public administration.

Over the years we have build up a substantial expertise within many fields relevant to establish and to continuously develop a sustainable and future-orientated aquaculture industry. The resources put into research has over the last years been tremendous, and a lot of effort has resulted in lower mortality rate, more efficient breeding, faster growth and better vaccines. This example of interdisciplinary cooperation can be observed through the excellent state of health of our farmed fish, which has been achieved by close cooperation between research institutions, actors in the industry and the public administration.

The Government of Norway is very much concerned to create and to carry out a policy, which is innovation- and research orientated. A policy, which makes it possible to obtain the value added potential within the marine sector. As for now there is a big focus on a relatively new specie for fish farming, namely cod.

And the late situation we have experienced in Norway, with low salmon prices and several subsequent bankruptcies, shows in all respects how vulnerable the salmon industry is. And also how important it is to develop multiplicity within the aquaculture sector.

Reduction in antibiotics

One example to pinpoint this even further is the dramatic reduction of use of antibiotics within the Norwegian fish farming. Today the use is less than 0,5 % of what is was ten years ago. Vaccines have brought about great reductions in the use of antibiotics and other chemicals.

Challenges

Even though Norway has been one of the pioneers within modern, intensive commercialised fish farming, Norway faces a number of challenges - also in the years to come.

A yearly growth in the production of salmon and trout emphasize the importance of implementing principles of sustainability in every regulation we introduce to the industry and the fish farmers. This includes environmental issues, animal health and welfare.

The Minister of Environment and I have prepared a white paper on healthy marine environment. We are focusing on different pollution's leading to a deterioration of the environment, the spreading of foreign species, depletion of marine stocks and escapees from the aquaculture industry. Efforts to prevent environmental damage from sectors such as industry and shipping are therefore of crucial importance

A healthy marine environment is an essential basis for harvesting marine resources!

In this context it is with great interest I observe that you have developed Environmental Guidelines for the Fisheries Sector and based these on international standards as the Code of Conduct for Responsible Fisheries, the Convention on Biological Diversity and Agenda 21. And further implemented these guidelines as the bases for your Master Plan for Fisheries and Fish-Farming.

We must ensure that the marine environment is clean, and this is not only important in terms of sustainable development, but also to ensure that products are safe to eat.

Which brings me to another challenge: safe seafood.

Internationally food safety has become a focal point when it comes to seafood and food generally. This is particularly clear, as the European Union recently has founded the European Food Safety Authority. A healthy marine environment is an essential basis for harvesting marine resources. We want the consumers to perceive Norwegian seafood as both safe and pleasurable to eat. We must therefore ensure that the marine environment is clean, and we must implement systems that can ensure this. These basic requirements can only be met by means of active efforts from both the authorities and actors in the industry.

Today, access to many markets - the third challenge on my list - can only be obtained if documentation is available and products can be traced back to their origins and this also includes the fish feed which we need to ensure does not contain any harmful substances.

Because most of our fish is exported, it is vital that we have access to the already established fish markets and that the industry continues on developing new markets. In this respect - one of the goals is to ensure the best possible market access for Norwegian seafood by means of a stable and long-term, and thus predictable, regulatory framework in all markets.

The world

If we now step back for a moment and look at the big picture, we see that the future of the international aquaculture industry is – of course – very much more than salmon and trout. It includes farming of shellfish and different marine species, sea ranching, by- products and biotechnology.

The globalisation process that has taken place since the Second World War has resulted in a major liberalisation of international markets. The merits of a global market are obvious and widely appreciated. Globalisation offers opportunities and a wide range of new possibilities, but can of course also represent new difficulties.

On global basis, fisheries and aquaculture products are important sources of food, employment and revenue in many countries and communities. The fact that the potential for growth in the fisheries is limited makes aquaculture increasingly important. And as I stated introductorily we experience a stronger international focus on the resources found in the blue field.

The Economist

Even the weighty periodical “The Economist” dedicated their August front-page publicity to aquaculture. With the headline: “Blue Revolution – The promise of fish farming”!

The article highlights some of the main challenges within aquaculture globally, but the author is just as engaged with the promising of this sector. And I could not agree more!

According to FAO;

210 different farmed aquatic animal and plant species were reported in 2000.

This large number of species cultivated, reflects the wide range of potential candidate species available within the different countries and regions of the world. We are probably talking about the world’s fastest growing form of production. Already, as an example

About half of the fresh and frozen seafood consumed by America is farmed.

The Economist goes as far as to express that the stage is set for an aquaculture revolution! In this context it is more important than ever to realize the challenges within aquaculture AND to deal with them.

In order to be able to succeed in taking advantage of these opportunities we all need to be innovative and learn more - from each other and by investing in research and economic development, but also by providing the farmers and the industry the best possible frames to work within. Only in this way we can secure a growing industry, which at the same time is sustainable and most of all - sought after by the consumer.

To sum up we can see that aquaculture holds many possibilities, and of course many challenges! But it is important to realize that the modern aquaculture is at an early stage of development and I am absolutely convinced that we have only seen the very start of what this sector will offer in the future!

So, then again, it is for me a great pleasure to see how Brazil sets stronger focus on the aquaculture and fisheries sector by establishing a Ministry of Aquaculture and Fisheries!

And for me, this occasion in Brasilia is an opportunity to exchange views and in this view strengthen connections between our two countries. It is my hope that we will experience a closer cooperation between our countries in the field of fisheries in the further.