Introduction
Salmon aquaculture has since its modest start about 50 years ago grown to a production of around 3 million tonnes in 2022, to become the second largest aquaculture species by value after shrimp (Garlock et al., 2019). Norway is the largest producer of salmon, with around 55 % of total production (Iversen, Asche, Hermansen, & Nystøyl, 2020). The Norwegian seafood industry has since 2004 grown from 0,8% of Norwegian GDP to around 3%, mostly thanks to this growth in aquaculture. As employment in fisheries decrease, this growth in aquaculture, including its suppliers, has become vital for coastal communities.
The success of salmon farming can be attributed to an increasing degree of control over the production processes that has facilitated innovations in biology, technology, organization, products and marketing (Anderson, 2002; Asche, 2008; M. D. Smith, Asche, Guttormsen, & Wiener, 2010). Much of this innovation is found with suppliers. At the same time, many of the tasks originally performed by the salmon farmer is now performed by skilled and specialized suppliers. Together, these factors explain why salmon farming creates activity and value creation way beyond the industry itself. This paper documents the value creation in salmon farming and explores its importance for other sectors and for different regions.
Methods and results
Salmon farming in Norway employs close to 10.000 people directly, but in total we count 62.000 people directly or indirectly employed by the industry. We have performed an extended and modified IO-model to fully cover the ripple effects of the industry. Firstly, we have used detailed ledgers from a range of firms to establish a detailed pattern of purchase (both by industry and region/municipality), to calibrate the model and secondly, we have included specialized suppliers in the population. This has two main advantages, as it allows us to better cover investments, that are not covered by traditional IO-analyses, and also exports from the specialized suppliers. With Norway providing just over 50%, and salmon technology spreading to farming of other species, export is an important aspect also not previously covered in I/O-models. For many communities along the coast, salmon farming has replaced fisheries as the primary private sector employer, both through the direct activities and its ripple effects. Salmon farming has also become important for its tax contribution, from companies, employees and salmon farming tax schemes.