Better news on Iceland fishing and economy – Fishupdate.com

THE first official day of summer in Iceland yesterday was heralded by good news on the economy and fishing fronts.

The economy was lifted up with the prediction that the Icelandic krona is likely to rise by at least eight per cent against the euro over the next few months.

Although it will make fish exports that much more expensive in European markets, a lift in the fortunes of the national currency would help to restore optimism throughout the country as a whole.

Bear Stearns’ chief currency expert, Steve Barrow, believes the krona “has probably fallen enough” and predicts its value will bounce back to around 110 to the euro by July, according to one report.

At one point the currency experienced a 35 per cent fall against the euro since the beginning of 2008 but is now making up with modest gains. Losses against the dollar have been less severe at 12 per cent over the past 12 months.

Meanwhile, Iceland’s Marine Research Institute is continuing to come up with better news on the cod stock, with a report that it is still increasing. Research in the last week has been carried out by two research ships and three operational ocean going trawlers operating under the management of the Marine Institute.

The industry should know by the end of July whether there will be any significant increase in the cod catch when the new quota year starts at the end of August, but hopes are rising. Last year’s cut is certainly continuing to impact.

Figures show that in the first seven months of the current fishing year 12,041 tons of cod were sold in Iceland´s fresh fish markets. This was 5,959 tons or some 33 per cent less than a year ago when 18,000 tons were handled. The average market price for one kilo of cod was 16.1 percent higher than in the previous period.

Iceland’s Trade Minister Bjorgvin G. Sigurdsson has flown to China with the aim of strengthening trade relations between the two countries. It is thought likely that China will want to increase seafood imports from Iceland and the Nordic regional in general.

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