Domestic prices were down by just half a per cent in February from the previous months and when measured in foreign currency. However, prices in foreign markets have risen by 6.1 per cent over the past 12 months, with most species regarded as expensive.

The Glitnir Bank's specialist seafood department says that external conditions for fish companies are mixed at present. "Catchers and processors have suffered a cut in the cod quota in the current fishing year, which of course is not in their favour. In addition, the price of oil is still rising."

The Bank adds: "High product prices in foreign currency and depreciation of the Icelandic krona recently can be said to be the reason why the performance of seafood companies is good at present. The supply of wild fish has generally not increased worldwide recently, but demand is high. However, a substantial increase in aquaculture (including in Asia) means that the overall supply of marine products has increased significantly."

It also maintains that the continuing strong demand for sea caught fish should sustain the high product price in foreign markets which was a positive development for the Icelandic seafood industry.

Another set of figures says that in the the first seven months of the current quota related fishing year (Sept. 2007 to March 2008), 12,041 tonnes of cod were sold in Iceland´s fresh fish markets. This was 5,959 tonnes or 33 per cent less than in the year-ago period when 18,000 tonnes were handled. The average market price for one kilo of cod was 16.1 percent higher than in the previous period.

In a more upbeat development, Icelandic vessels will be able to catch more Norwegian Icelandic herring in the current quota period. The catch has been increased by 34,500 tonnes - or 18 per cent - to a total of 220,262 tonnes. This coupled with the news from the Marine Research Institute that the cod stock is 12 per cent higher than in 2007, is giving rise to a little more optimism in the industry.

www.fishupdate.com is published by Special Publications. Special Publications also publish FISHupdate magazine, Fish Farmer, the Fish Industry Yearbook, the Scottish Seafood Processors Federation Diary, the Fish Farmer Handbook and a range of wallplanners.

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