Troubled Norwegian fishing industry flourishes in Sweden – Food Industry Report

Troubled Norwegian fishing industry flourishes in Sweden – Food Industry Report – Brief Article

Neighbouring EU member state Sweden has come to the Norwegian fishing industry’s rescue after troubles at home has seen many companies go out of business.

In Sweden, Norwegian fish industry groups have set up or acquired processing production plants in a move to circumvent punishing EU import taxes. Import fees on raw fish from Norway to the EU is only 2% while processed fish such as smoked salmon is levied with 13%.

It makes more sense for Norwegian fishery groups to export raw fish for processing in Sweden.

The Norwegian presence on the Swedish West coast is ever increasing.

The largest Norwegian operator is the Leroy Seafood Group. “Sweden is a key market if you want to work on the EU market. We’re very keen on making it here and already today we are the largest Norwegian supplier of fish to the processing industry in Sweden”, said Ole-Eirik Leroy, group president.

Leroy Group bought the Swedish Strannes fish processor, renamed to Leroy Smogen Seafood, this summer. Other big Norwegian players are also the Domstein and Abba, owned by Orkla.

HUGE POTENTIAL

“Smoked salmon is a world-wide product today. Everyone knows what it is. We have a huge potential, but we would not have been able to take the leap out on the world markets alone,” said Lars Stranne, Leroy Smogen Seafood managing director.

The Swedish operations offers some relief to the otherwise badly battered Norwegian fishing industry.

Low world market prices have hit several heavily leveraged groups.

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