Fisheries management as a regional business -The case of Norway Paper presented to: EAFE, Rome 5-7 th April 2004 Torbjørn Trondsen, NFH, University of.

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Presentation transcript:

Fisheries management as a regional business -The case of Norway Paper presented to: EAFE, Rome 5-7 th April 2004 Torbjørn Trondsen, NFH, University of Tromso, Norway & James A Young. University of Stirling, Scotland

T. Trondsen fishmarketing.com Fisheries management as a regional business2 Plan Background to the case for market orientation Background to the case for market orientation Pertinent trends in Norwegian fisheries Pertinent trends in Norwegian fisheries The relative position of North Norway The relative position of North Norway An alternative model: concept & application An alternative model: concept & application Conclusions Conclusions

T. Trondsen fishmarketing.com Fisheries management as a regional business3 Background to the case for market orientation Property rights values Property rights values Resource rent management & allocation Resource rent management & allocation Property rights & fish business development Property rights & fish business development Governmental motivation to act Governmental motivation to act Political & industry pressure groups Political & industry pressure groups EU ? EU ?

T. Trondsen fishmarketing.com Fisheries management as a regional business4 Pertinent trends in Norwegian fisheries Decline in number of fishermen & vessels Decline in number of fishermen & vessels Increased engine capacity Increased engine capacity Concentration of fishing activities Concentration of fishing activities Regional imbalance of effort & catch Regional imbalance of effort & catch

T. Trondsen fishmarketing.com Fisheries management as a regional business5 Fishermen Vessels Engine capacity < Trends in Norwegian fisheries

T. Trondsen fishmarketing.com Fisheries management as a regional business6 Concentration of pelagic fishing rights: Owners and regions Entry regulation

T. Trondsen fishmarketing.com Fisheries management as a regional business7 Pelagic fishing grounds Spring herring Capelin Blue whiting Mackerel North Sea Herring Hordaland: Pelagic capitol Catch

T. Trondsen fishmarketing.com Fisheries management as a regional business8 The relative position of North Norway Catches 2001 Finnmark Northern Norway Ålesund: Factory trawler fleet capital Saithe Haddock Cod

T. Trondsen fishmarketing.com Fisheries management as a regional business9 The relative position of North Norway: share of total Norwegian cod catch Entry regulation coastal fishing vessels Northern Norway Finnmark

T. Trondsen fishmarketing.com Fisheries management as a regional business10 An alternative model: the drivers for change Closure of fisheries due to overcapacity Closure of fisheries due to overcapacity Fishing rights traded Fishing rights traded Expansion in factory vessels (auto longliners) and big purse seiners in Western Norway Expansion in factory vessels (auto longliners) and big purse seiners in Western Norway Localization of fishing rights a function of capital and market control Localization of fishing rights a function of capital and market control Investment in overcapacity rewarded with fishing rights. Investment in overcapacity rewarded with fishing rights. Exit of Coastal fishers without individual quotas Exit of Coastal fishers without individual quotas Weak regional management of fishing rights Weak regional management of fishing rights –Former county fishery administration taken over by the governmental Directorate of Fisheries in Bergen –Norwegian Fishermen’s Association dominated by “quota barons” & influence over Fishery Management Policy

T. Trondsen fishmarketing.com Fisheries management as a regional business11 An alternative model: North Norway’s demands Regional & Societal ownershipRegional & Societal ownership Fairer regional allocation of fishing rightsFairer regional allocation of fishing rights Efficient economic utilization of resourcesEfficient economic utilization of resources Value adding in the coastal communitiesValue adding in the coastal communities Compatibility with prospective EU frameworks?Compatibility with prospective EU frameworks?

T. Trondsen fishmarketing.com Fisheries management as a regional business12 An alternative model: background The main ideas published The main ideas published –Toward Market Orientation: The role of auctioning individual seasonal quotas (ISQ). Marine Policy-(in press): –Fisheries Management and Market Oriented Value adding (MOVA). Marine Resource Economics Vol. 16 No. 1. (2001): Experiences from. Experiences from. –EU’s regional co-management systems –Regional/group quotas management in the US & NZ –Japanese co-management Norwegian attitudes regarding regional and fisheries management and policy Norwegian attitudes regarding regional and fisheries management and policy General Model SCP : General Model SCP : –Structure –Conduct –Performance Region as a value adding competition arena Region as a value adding competition arena

T. Trondsen fishmarketing.com Fisheries management as a regional business13 An alternative model: Regional business management of fishing rights Regional Resource Enterprises (RRE) Regional Resource Enterprises (RRE) –Owned by County authority (eg Norwegian Energy) –Non transferable license leasing contracts to individual fishermen Quota asset value and leasing income Quota asset value and leasing income = resource rent for regional development

T. Trondsen fishmarketing.com Fisheries management as a regional business14 ALLOCATION MODELS OF FISHING RIGHTS Regional managementVessel Group management

T. Trondsen fishmarketing.com Fisheries management as a regional business15 An alternative model: application of RREs & consequences for fishing operations No extra barriers on grounds or landing ports No extra barriers on grounds or landing ports Opportunity for flexible combinations of leases Opportunity for flexible combinations of leases Greater involvement of individual fishermen & industry participants Greater involvement of individual fishermen & industry participants More stable competitive framework More stable competitive framework

T. Trondsen fishmarketing.com Fisheries management as a regional business16 An alternative model: application of RREs & consequences for fishing operations Better focus on market oriented value adding Better focus on market oriented value adding Compliance with PO & co-management trends Compliance with PO & co-management trends Compatibility with emergent EU CFP? Compatibility with emergent EU CFP?

T. Trondsen fishmarketing.com Fisheries management as a regional business17 Conclusions Limits on enthusiasm for change in existing power centres Limits on enthusiasm for change in existing power centres Local initiatives necessary Local initiatives necessary –Co-existence of regional & standard vessel group management models? Regional variations possible Regional variations possible –Finnmark and W Norway – different models? Political and Industry studies - reviews ongoing Political and Industry studies - reviews ongoing Finnmark County currently leading – but wider transnational considerations may dominate? Finnmark County currently leading – but wider transnational considerations may dominate?