To the benefit of both parties - The fishing fleet's contribution to the industry on land

- From an industrial policy perspective, value creation in fishing is just as important as in the fishing industry on land, he comments.

The price mechanism

- Wild-caught fish is only available in limited quantities, and it is through the price mechanism that we can ensure that it is made available to those buyers who can create the most value in the next stage at any given time. It is then important that as much raw material as possible is traded in a free market.

On the fisheries side, Surofi's main customers are the ocean-going trawl fleet (70%), the autoline fleet and purse seine (20%) and the coastal fleet with fresh fish (10%). The buyers of fish are mainly local clipfish industry and traders.

Stable raw material source

Surofi's turnover differs from other sales teams in that 90 percent of landings come from the deep-sea fishing fleet, which is frozen on board.

- It is top quality raw material, it is caught all year round, independent of the large seasonal fisheries along the coast, the fish can be stored and thus constitutes a stable source of raw material for the local clipfish industry, says Flem.  

Some actors along the coast want a quota and district policy system where quotas are moved from the trawl to the coastal fleet, and argue that it will lead to more of the fish being processed on land – especially in the industry in Northern Norway.

- If you want to transfer more quota to the coastal fleet and at the same time are concerned with a stable supply of raw materials to the industry, then this is simply not compatible. There will be less raw material for the industry throughout the year if even more is to be caught, landed fresh and then exported directly to the markets without processing during the winter months, says Flem.

- In Surofi, over 70 percent of the frozen cod and saithe are sold at auction, which is far more than the mandatory share.

The story behind

Sveinung Flem says that the history behind the Norwegian fish sales teams began around the 1920s. At that time, fishermen joined together to become stronger against the powerful landlords when they came ashore to sell their fish.

- At that time, the fisherman often stood with his hat in his hand, and was at the mercy of the owner's willingness to pay. This may also apply today, but the need to stand together is most important for the small players with the smallest boats.

"Today, this is an open system that makes the fish available on the market. Which sales team will carry out the first-hand sales is determined by where the fish is landed," says Flem.

Has increased the auction share

- Not all fishermen think that the current requirement for an auction is good. Some want to negotiate the sale themselves – and believe that they are thus able to achieve a better price on their own. Some shipping companies have their own sales companies that export the fish through their own channels.

To increase onshore processing in Norway, shipping companies have been required to offer at least 50 percent of their fixed quotas of cod and saithe at auction starting January 1, 2022. This is a trial scheme that applies to shipping companies that land gutted, headed frozen cod and saithe, and applies throughout the country.

- There were relatively high auction shares in the past, but the auction obligation has led to an increased auction share for both cod and saithe after the tightening in 2022, says Flem and adds:

- Shipping companies that have used auctions a lot in the past have continued to do so, and shipping companies that have had low auction shares in the past have increased their auction shares through the obligation. A good market has also provided good traction for the auctions. In Surofi, over 70 percent of the frozen cod and saithe is traded at auction, which is far more than the obligatory share, says CEO of Surofi, Sveinung Flem.

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