SEAVID19 Ensuring economic sustainability in the seafood industry during crisis

Norwegian seafood products are primarily globally traded products, encompassing varying degrees of social and economic dependency between producing and consuming countries and regions. In times of global shocks affecting production and markets, the Norwegian seafood industry may therefore be vulnerable. In March 2020, the World Health Organization (WHO) declared COVID-19 a pandemic. As a consequence, the Norwegian government implemented the strictest restrictions since World War II in the form of a national lockdown of society. The SEAVID19 project has studied how the seafood industry handled the effects of COVID-19, and pointed out some learning points. Key activities in the project include interviews, work shops and analysis of SSB data, panel data and evaluation of sustainability implications based on national and European statistics. The project has analysed the economic strength of different segments of the seafood supply chain in Norway: Aquaculture, fisheries, processing, services related to fisheries and aquaculture, and trade in seafood products. On an aggregate level, the project shows few negative effects of the COVID-19 pandemic on the sector's financial strength, which may be related to the resilience and adaptability of seafood producers in the face of external shocks. The pandemic showed that the seafood industry and other parts of the value chain are dependent on predictable and stable framework conditions. Initial measures, such as categorizing parts of the seafood industry as a critical societal function, as well as maintaining smooth communication between governments and industry players through the creation of a dedicated forum, played an important role in addressing the immediate effects of the pandemic. At the same time the pandemic showed that the whitefish sector is vulnerable to closed borders affecting seasonal workers. Even though local measures worked well overall, it was not always sufficient for robust crisis management. Results from SEAVID19 will be valuable for the industry, authorities, the scientific community and public in the future. SINTEF Ocean was project manager. Partners were: SINTEF Industry, SINTEF Digital, NORCE, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Seafood Norway (Sjømat Norge), the Norwegian Seafood Council, the Norwegian Seafood Companies Association and NCE Aquatech Cluster.

The SEAVID19 project has contributed knowledge that the industry and authorities may utilise in the future. The potential effects of the results relate to the utilisation of some key learning points from the project: • The pandemic showed that the seafood industry and other parts of the value chain are dependent on predictable and stable framework conditions that can facilitate required investments. • The pandemic showed the need for trade agreements to ensure market access for Norwegian seafood. • The pandemic showed that local measures worked well, but are not always sufficient for robust crisis management. • The pandemic showed that the flow of goods must be ensured, both for imported goods and for goods to be exported. The government's strengthening of the GIEK export financing scheme was an important contributor to exports during the pandemic. • The pandemic showed the importance of close dialogue between industry and authorities in order to find good solutions. • The pandemic showed that the whitefish sector is vulnerable to closed borders affecting seasonal workers. • The pandemic showed that the seafood industry, particularly the salmon sector, posesses significant versatility and economies of scale, which contribute to its resilience and adaptability in navigating the uncertainties of a volatile global market.

Norwegian seafood products are primarily globally traded products, encompassing varying degrees of social and economic dependency between producing and consuming countries and regions. In times of global shocks affecting production and markets, the Norwegian seafood industry may therefore be vulnerable. Hence, it is fundamental to understand how resilient the seafood industry is to environmental and socio-political shocks to identify domestic and external threats to economic sustainability. The primary objective of SEAVID19 is to systematically identify, understand, and analyse how the seafood industry has handled the effects of Covid-19 and to what extent the seafood industry has innovated and transitioned due to the crisis. The heterogeneity of the effects for different sectors and products within the industry will be captured with a comparative analysis. SEAVID19 aims to bring knowledge forward for tackling future market crises to ensure an economically sustainable seafood industry. In collaboration with the Seafood industry and other stakeholders, we collect data from in-depth interviews, participatory stakeholder workshops, surveys, financial databases, microdata on trade transactions and other relevant data sources. The main results from the project include key measures that may benefit the industry, making it more resilient to similar shocks in the future. The results from SEAVID19 will be valuable for industry, regulatory bodies, the scientific community, and the public moving forward. SINTEF Ocean is the project manager and is joined by an excellent team of partners who will form a stakeholder steering committee and participate actively in the implementation of the project: SINTEF Industry, SINTEF Digital, NORCE, The Leibniz Institute of Agricultural Development in Transition Economies (IAMO), Norwegian Seafood Council (NSC), Sjømat Norge, Sjømatbedriftene and Teknologi Akvarena (NCE Aquatech Cluster).