Icelandic Fisheries Status and Outlook

1. Icelandic FisheriesStatus and Outlook • Fisheries are one of the main pillars of the Icelandic economy and have served as the driving force behind the country’s economic progress for more than a century. The fisheries sector in Iceland provided 42% of the earnings of exported goods, and 28% of all exports in 2007 and it is the single most important exporting industry in Iceland. • Commercial fishing stocks in Icelandic waters are utilised sustainably.The status of individual stocks of both demersal and pelagic species varies, however.

2. Icelandic FisheriesStatus and Outlook • Fisheries management policy is enforced with active supervision and decisions on total allowable catches (TACs) are based on the best scientific advice currently available. • The fishing sector in Iceland has undergone extensive restructuring: the number of vessels has dropped, margins have improved and for the past 20 years the sector has operated at a profit.Processing has also been the scene of major technological progress.Both the quality and healthiness of Icelandic marine products is high.

3. Icelandic FisheriesStatus and Outlook • General uncertainty and a slowdown on export markets affects the fisheries sector adversely. • Fluctuations in the ISK exchange rate make it difficult for companies to plan their operations. • Icelandic fishing companies have considerable debts, although their situation varies considerably, and access to credit has grown much more difficult.

4. Icelandic Fisheries Status and Outlook • Fisheries in Iceland do not receive state subsidies, it is self-supporting and a net contributor to the national economy. • Icelandic fisheries are well positioned to withstand temporary difficulties and can be expected to continue to provide the main basis for economic independence and progress in Iceland well into the future.

5. Icelandic AgricultureStatus and Outlook • Icelandic agriculture produces high quality products in a clean environment but at a relatively high cost making it vulnerable to international market forces accentuated by small size of the domestic market. Export from Iceland is not significant. • Characterized by harsh nature and short growing season, soils sensitive to wind erosion. • Animal production from unique indigenous breeds based on grassland management for winter fodder and grazing is a dominant feature of the industry.

6. Icelandic AgricultureStatus and Outlook • High investment in production capacity, in cultivation, housing and machinery has led to considerable increase in productivity in latter years. • Agriculture is very important in relation to communication and diversification into new industries, environmental services in relation to rural development. • Government support for agriculture is very high and the industry will be sensitive to international competition due to its smallness.

7. Icelandic AgricultureStatus and Outlook • Many farmers experince economic difficulties due to high capital costs aggravated by steep increases in running costs, such as prices of fertilizers, fuel and machinery. High interest rates and uncertainty in banking services aggravate the problem. • Economic voes have resulted in increased public awareness of the importance of domestic agricultural production and support for the industry.

8. Icelandic AgricultureStatus and Outlook • Efforts are made in enhanching sustainability of Icelandic agriculture through diversification. Emphasis also on increased selfsufficiency such as through increased grain cultivation and increased greenhouse cultivation using electricity and thermal energy. • Increasingly agricultural land management involves rendering environmental services through ambitious afforestation, land reclammation and wetland restoration significantly contributing to the countries reaction to climatic change.