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Project Re port No. 23

Canada. [Dept. of] Fisheries. Industrial Development Service

PROJECT REPORT

REPORT ON VISIT TO ICELAND, FAROE ISLANDS AND NORWAY TO OBSERVE AND STUDY FISH CATCHING, HANDLING AND PROCessiNG METHODS WITH

PARTICULAR EMPHASIS ON SALTED CODFISH PRODUCTION

(April 18 -- May la, 1968)

by

w. D. McDougall and M. Barnes

for

Industrial Development Service I

Department of Fisheries of Canada, Ottawa July 1968

• Report on Visit to Iceland, Faroe Islands and Norway to Observe and study Fish Catching, Handling and Processing Methods with

Particular Emphasis on Salted Codfish Production

(April 18 -- May 10, 1968)

by

w. D. McDougall and M. Barnes Industrial Development Service

Department of Fisheries of Canada

Opinions expressed and conclusions reached by the authors of this report are not necessarily endorsed

by the sponsor of this project.

This was a project carried out by the Industrial Development Service of the Department of Fisheries of Canada.

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ICELAND

Iceland is a republic with a population of just under

200,000. Reykjavik, the capital, has a population of over

80,000, and is located just north of the 64th parallel. The

surface area of Iceland is about 40,000 square miles, of which

approximately 10% is covered by permanent ice. The climate,

however, is not as cold as the name and geographical location

would suggest since the island is encircled by the relatively

warm waters of the Gulf Stream. The island contains active

volcanoes, glaciers and hot springs. As a matter of interest,

Reykjavik is heated by water from nearby hot springs, whose

steam has inspired its original name "Smoky Bay".

The fishing industry accounts for more than 90% of total

exports and plays a very important role in the economy of the

country. A very small percentage of the catch is consumed

domestically.

Fishing Vessels and Methods

Most of the cod, in particular for the salted production,

is taken during the period January to May on the south and west

coasts in inshore waters. Daily landings are made when weather

permits.

Large combination fishing vessels of up to 120 ft., many

of which are of steel construction, are used in the cod fishery.

They are designed and equipped for seining, longlining and

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gi11netting. After the cod fishing season they are used primarily

for herring seining. During the early part of the cod fishing

season, most of the vessels use 10ng1ines because weather

conditions restrict the lifting of gi11nets daily and increase

the chance of gear loss. During March, or as early as weather

conditions permit, most of the vessels use gillnets. Regulations

permit the use of up to 105 gil1nets per vessel.

A small number of vessels also purse seine for cod and

some excellent catches are made when weather permits. The

peak cod fishery takes place around the middle of April and

involves a spawning population of mainly large cod. Some gillnet

vessels were making daily landings of up to 50 tons, round weight,

of large cod. There is also a small boat cod fishery from the

north coast during the summer, but this involves a relatively

minor production.

Salt Codfish Plants, Processing and Quality Control

There are approximately 200 salt fish processing plants

in Iceland. The larger plants handle up to 4,000 tons annually,

and the small plants less than 1,000 tons round cod. About 40

of the larger plants are equipped with mechanical heading and

splitting machines. Some of the smaller plants are equipped with

mechanical heading machines, but splitting is usually done by

hand in these plants. Most of the plants do not have mechanical

refrigeration, since during the cod fishing and processing season

••••• J

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o the temperature would seldom reach 50 F. Most of the product

is exported in the wet salted state and, under normal conditions,

it is practically all shipped by early ,June.

Some plants are equipped with mechanical dryers, but only

fish not suitable for shipment in the wet salted state is hard

dried. Brazil is the principal market for dried codfish.

There would appear to be a very rigid inspection on the

quality of fish at the time of discharge from the vessels. The

fish is landed in the round state but must be bled at sea when

caught. In the case of gillnet-caught fish, it is bled and

separated onboard as live bled and dead bled, and is landed

separately.

Quality is determined by a government fish inspector

from samples collected from each vessel. The samples are gutted

and split and the inspector examines each fish and determines

the percentage of each grade.' Receipts are issued by the buyer

on the basis of the inspection. It was understood that periodic

disagreements from fishermen occur regarding quality determination;

however, all fish is purchased subject to inspection, and the

inspector's decision is final. This system of inspection assists

greatly in improving the quality of fish landed because fishermen

make a much greater effort to' lift their nets daily, if at all

possible, as the more live bled fish delivered, the higher the

percentage of No.1 quality. Prices are paid according to

quality, size and season.

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The plant has complete control over the entire processing

operation as well as, indirectly, the catching and handling at

sea because of the incentive for landed quality. The following

steps are involved in the processing operations:

1. Bled fish is headed either by machine or hand with

the gut still in.

2. The fish is then ripped and the gut removed by hand.

After being gutted, any fish that might be soft or

considered unsuitable for splitting and salting is

washed and prepared for hanging for stock-fish

production. It seems that only the poorer quality of

fresh fish is used for stock-fish.

). After gutting, the fish is split by machine or by hand

and is thoroughly washed before salting.

4. It is then salted in long kenches; salt is shovelled

(aluminum shovels) on the fish in the proportion of

1 pound of salt to 1 pound of split fish.

5. After 4 - 6 days in bulk, the fish is repiled with the '

top of the bulk going in the bottom. Each fish is again

carefully salted using the same salt and extra salt is

added if required.

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5

6. After 12 - 14 days in the second bulk, all fish is

again repiled. The bulks are stacked higher than

previously, and salt from the original salting is

used again. The reason for repiling is to ensure that

the fish is uniformly salted and pressed. It is

recommended that fish should remain in salt not less

than one month.

7. The fish is graded for size and quality. Wet salted

fish for export is classified in three grades. Fish

of lower quality than third grade is hard dried. All

wet salted is tied in bundles of 50 kilos and wrapped

in hessian.

Observations would indicate that the industry is very

quality-conscious, especially with wet salted fish, where there

is obviously a good market for good quality fish.

Approximately 90% of the salted fish production is exported

to European markets as wet salted. Normally there is a large

production of stock-fish which is exported mainly to Nigeria;'

however, due to present difficulties within this country, sales

are being adversely affected. There is also a market for good

quality stock-fish in Italy.

Cod roe, a very worthwhile by-product, is recovered and

processed. It is graded and the better quality is preserved in

barrels (about 200 pounds each) with salt and sugar; the poorer

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quality with salt only. This product is exported to European

markets. The recovery of roe was averaging about one barrel

per five tons of round cod.

Export Organization

The Union of Icelandic Fish Producers is the main exporter

of salted fish. This organization works on a commission basis,

such that the processors receive the fullest possible benefit

from prevailing market prices. They have recently constructed a

modern two-storey salt fish processing plant including mechanically

refrigerated cool storage and mechanical dryers. This plant

is used primarily for the storage and further processing, when

required, of salted fish, mainly from plants which do not have

the required facilities. In addition, the branding and distribution

of all packaging materials for salted fish is carried out at this

plant.

Prices and Fishermen's Unions

Minimum prices for landed fish are stipulated in advance

by a Price Board. Prices are determined by mutual agreement

between sellers and purchasers. The representatives of the

groups involved are members of the Price Board. The fishermen's

Trade Unions take an active part in the price negotiations.

Prices are determined on the basis of size, landed quality and

season. There are three prices for both large cod (over 22 inches)

and small (16 to 22 inches). A subsidy of approximately t cent

per pound is paid for line-caught fish.

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Factors Contributing to the Quality of Salted Fish

(1) All fish must be bled at sea.

(2) Price incentive to fishermen for landed quality.

()

(4)

(5)

(6)

Inspection of fresh fish landings.

Entire processing operation carried out in plants.

Good processing procedures.

Cool temperatures prevail during catching and

processing operations.

(7) All wet salted fish normally exported by end of May.

(8) Plant operators very quality-conscious.

Other Fish Plants

In addition to the salted fish operation, limited

observations were carried out on two of the larger frozen fish

operations, which were operating at capacity. It was noted in

one plant that considerable modern mechanical equipment for

processing of herring for food purposes had not been in operation

during the past few years. It was understood that this was

attributed to a lack of suitable markets for this product.

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FAROE ISLANDS

The Faroes are a self-governing community within the

Danish State consisting of a group of 18 islands situated at

approximately 610 North latitude. The total land area is

about 550 square miles and 17 of the islands are inhabited.

The population is just under 40,000. The largest town is ,

Torshavn, the capital, with a population of about 10,000.

The climate is mild and damp all year round, due to the

influence of the Gulf Stream. There is a poor covering of soil

and an almost total lack of trees and bushes, although grass

grows abundantly in the valleys.

The fishing industry accounts for about 98~ of exports.

The main industry is the production of salted fish.

Fishing Vessels and Methods

Most of the cod catch is taken from Greenland waters

from March to November by modern longliners (100 to 120 ft.).

These vessels usually operate with a crew of up to 25,and

they split and salt the catch onboard. A trip may last 2 monthe

or more, and they may make 2 or J trips during the March to

November period. A catch of 200 tons per trip would be considered

reasonable. The longliners usually fish the Icelandic or local

waters during the winter. The trawlers (relatively few) fish the

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Greenland waters during the summer, but usually fish the

Newfoundland and Labrador waters during the Winter. They carry

a crew of about 50, and a trip may last J months with a catch of

500 tons or more. Gillnets have not been permitted for catching

groundfish in Faroe, although 4 vessels with special permits for

experimental purposes fished gillnets this year. There is a

Bill before Parliament seeking to grant permission for the use

of gillnete in certain areas. The longliners object to the use

of gillnets because of the limited longlining grounds available

around Faroe. A substantial number of fishermen and small boats

are transported to Greenland annually, where a summer inshore

cod fishery is carried out (similar to Labrador stationers).

There is also a small boat inshore seasonal fishery around the

Faroe Islands. but this fishery accounts for a small percentage

of the overall production.

Processing

The fish is bled (all fish must be bled at sea), split,

washed and salted as soon after catching as is practicable.

although it is preferred to let the fish bleed at least one hour

before further processing is carried out. About 40 pounds of

salt per 100 pounds of split fish is used, with a repiling after

two days, at which time 15% extra salt is added.

Total cod landings amount to approximately 200 million

lb. (equivalent round weight). and about 80~ 9f this amount is

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salted. The bulk of the salted landings is exported wet salted

(about 10% for dried). Some of the wet salted catches are not

landed in Faroe, but may be carried direct to market. There

is a subsidy for top quality wet salted, only, if landed in

Faroe; the subsidy is higher for line-caught fish than trawler­

caught fish.

The wet sal ted fish fr10m vessel is graded in plant as

discharged. It is wrapped in hessian for export and held in

refrigerated cool rooms if there is any delay in export shipment.

Dried fish is also held in refrigerated cool rooms if any delay in

shipment is involved.

Production of dried salted cod has fallen off sharply

in the last few years, the main reason being the declining market

in Brazil, although Brazil must still be considered as a fairly

substantial market. The wet salted production is exported to

Italy, Spain, Norway and Greece. Apparently some of the wet

salted sold to Norway is dried in Norway and exported to Brazil.

There appears to be excess drying capacity available

because of the decrease in production of dried salted and an

increase in wet salted export.

The salt fish plants are used mainly for packing and

storing wet salted fish and for drying and packing of dried

fish. Plants observed were large multi-floor structures with

mechanical dryers and refrigerated cool room facilities.

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Fishermen's Union

The Faroese Fishermen's Union (more than ),000 members)

appears to be quite strong and well organized. It represents

the fishermen in matters of fish prices and payments. Only

those who "sign on" as crew members and are full-time fishermen

are eligible for membership. The share payments of the vessel

crew is negotiated by collective agreement. There is a minimum

wage guarantee which is supported by a levy on fish exports.

The crew also receives 7~ of their annual income corresponding

to holiday pay.

Summary

1. All fish must be bled at sea as soon after catching

as is practicable.

2. Fish allowed to bleed for at least 1 hour prior to

processing.

). Fish then split, washed and salted as quickly as

possible.

4. Fish salted with about 40 pounds of salt per 100 pounds

split fish, repiled after 2 days, at which time a

further 15% salt is added.

5. Fish may be in salt aboard vessel up to ) months.

6. Most cod for salted prodUction caught by modern

large longliners in distant waters, although large

trawlers also used for salt fish production.

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7. Longliner and trawlers (from limited observation)

landed good quality wet salted fish.

8. Wet salted fish graded on discharge from fishing vessels

as payments to fishermen on basis of size and quality

in accordance with set prices.

9. Subsidy for top quality wet salted fish landed in Faroe.

Subsidy for line-caught fish higher than for trawler­

caught fish.

10. Dried salted production declining, wet salted production

increasing.

11. Fishermen have strong,w.ell organized union.

12. Vessel crews guaranteed minimum wage.

13. Vessel crews paid 7~ of annual income corresponding to

holiday pay.

NORWAY

The fishing industry of Norway is primarily an export

industry, where most of the catch is processed and exported.

The export value of fish products, however, is a small

percentage (about 15%) of the total value of all exports,

compared with Iceland and Faroe. The entire fishing industry

is very dependent on sales conditions in export markets.

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The total Norwegian fish landings in 1967 amounted to

about 6.6 billion pounds with a landed value of about $170

million. (Canada's total seafish landings in 1967 amounted

to about 2.4 billion pounds with a landed value of about

$145 million.) Over 80~ of the Norwegian catch was herring,

mackerel and capelin, and about 93% of this total was processed

into fish meal and oil. The 1967 Norwegian cod catch was

about 450 million pounds compared with the 1967 Canada cod

catch of about 513 million pounds.

A large part of the cod catch is processed as stock-fish

and salted fish. Most of the salted fish is dried. Saithe and

ling are also processed for dried salt fish production. Due

to market difficulties in Nigeria, there is a large quantity of

stock-fish being held in Norwegian warehouses at this time.

(The annual export of stock-fish is in the order of 60 million

pounds.) The distant water catch, mainly from Greenland and

Newfoundland waters, increased considerably during 1967 with the

addition of two new factory stern trawlers and a number of

large shelter deck longliners producing salted and frozen fish.

Most of the distant water wet salted production is landed at

Aalesund for further processing or as required for market

consignment. A good proportion of the Lofoten wet salted

production is also dried at Aalesund. All fish is bled at

sea as soon after catching a's practicable. The distant water

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wet salted catch is then split, washed and salted aboard vessel.

Trips may last several months. The inshore catch is usually

landed head-off gutted.

* Almost all fish landed in Norway is sold at first-hand

through the fishermen's sales organizations, all of which enjoy

statutory protection by the Raw Fish Act. All the white fish

is sold at first-hand by ten. different sales organizations of

which Norges Rafisklag is the most important. A minimum price

system is used for all white fish sold by Norges Rafisklag.

The minimum prices, which a~e determined by the sales organizations

with the various buying groups, are differentiated according

to species, quality, size, district where catch landed, periods

when catch landed (season), and processing purposes (drying,

salting, freezing, or fresh). In prinCiple, the fishermen have

the right to deliver their catches to any buyer who has been

approved by the sales organization, and the individual sales

are made between the fishermen and the buyers. However, the

seller and buyer are obliged to observe the rules and regulations

laid down by the sales organization, as regards prices and

sales conditions.

As already mentioned, a large part of the white fish

catch landed in county of Suhnmore og Romsdal (Aalesund area)

is caught in distant waters and landed in a semi-processed

* (Information on price systems from "Price Systems in the

Fishing Industry" O.E.C.D. 1966.)

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form as wet salted fish. The sales organizations which cover

this district, take an active part in the actual selling.

Minimum prices are ruling, but beyond this level the fish

is, in fact, sold in a way similar to the auction system; the

buyer offering the highest price gets the fish. This is not

usual and represents a speCial case.

From limited observations, the salt fish appeared to be

of generally good quality. Dried (salted) fish is generally

held in refrigerated storage after processing.

S~~

1. All cod bled at sea as soon after catching as

practicable.

2. Cod catch is normally landed head off, gut out.

3. Salted fish from distant waters is bled, split, washed

and salted aboard vessel. (Trips may last several

months.)

4. Almost all fish landed in Norway is sold at first-hand

by the fishermen'S sales organizations.

5. Minimum prices, which are determined by the sales

organizations with the various buying groups, are

differentiated according to species, quality, size,

district where landed, season and processing purposes.

6. The sales organizations involved take an active part

in the actual selling of wet salted fish from distant

water landed in the county of Sunnmore og Romsdal.

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Minimum prices are ruling, but beyond this the fish is

sold in a way similar to the auction system. This,

however, is a special case.

7. A large part of the cod catch is processed as stock­

fish.

8. Most of the salted fish is dried, but some is exported

wet salted.

9. Dried fish ready for export is generaliy held in

refrigerated cool storage.

Notes on Plants

AALESUND

Visited large salt fish plant; about 70~ of production

cod, the remainder ling and pollock. It would appear that a

fair amount of the production is dried (compared to plants

visited in Iceland and Faroe) although wet salted is also

exported. Observed some excellent quality dried cod. Heavy

pickling some ling at time of visit. Wet salted landings

are mainly from Greenland and Newfoundland waters. A mechanical

splitting machine is used mainly for ling caught in Aalesund area.

Dried fish kept in very clean refrigerated (about 400P.) cool

rooms o The plant also handles fish from Lofoten area. Visited

government operated freezing plant; both groundfish and herring

(for human consumption) processed with emphasis on herring • •

Mechanical herring filleting machines are used. Brine freezing

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equipment for herring but changing to blast freezing at

minus 400 F. Capacity 8,000 herring/hr. Cold storage capacity

20 million pounds - several rooms from OOP. to minus 200P.

Mechanical heading, filleting and skinning machines are used

for groundfish.

Visited large reduction plant; capacity 1,000 tons/day

with 40,000 tons raw material storage consisting of huge open

concrete bins. Storage of herring may be up to 8 weeks

(with preservatives) during the winter operation. Dry storage

capacity 5,000 tons. Good year would be 5Q,000 tons raw

material. Plant not operating at time of visit. Poor herring

fishing past winter.

HONNINGSVAG

Honningsvag is located at about 72oN. which is the

most northerly point of Continental Europe. At time of visit

temperature was in ~he Jots, with 24-hour daylight. Much snow

with little evidence of any real melting. Town has population

of about 5,000; apparently quite prosperous.

Visited medium size frozen fish plant. Potential landings

at time of visit (peak season) estimated at 250,000 pounds

per day, not including trawlers - 2 stern and 2 side. Small

boats fish mainly with longlines but also use jiggers .during

peak season. When jigging, 1 man may operate 2 hand-powered

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reels with 7 or 8 hooks per line (3,000 pounds per day per

2 men would be considered -good for jigging). Main production

is frozen groundfish with some stock-fish production, very

little salted. Lack of labour is a problem, and many female

plant workers are from Finland. Plant has glazed tile walls

and a stone-like tile floor. Mechanical filleting equipment.

A large fleet of boats fishes out of Honningsvag (all sizes).

There is, at this time, a gdvernment subsidy of .12 N.K.

or about 3/4 cents/lb. for fresh large codfish with head off,

gut out for freezing.

Also visited large reduction plant processing capeline

Good offshore capel in fishery in Finmark county this winter.

Raw material storage capacity about 50,000 tons, some in tanks,

other in open concrete bins with some protection over. Raw

material may be held up to 8 weeks (with preservative) during

winter. (Mainly 32oF. and lower during this time.) Plant

operates with 8 men per shift.

Also visited fisheries school (Statens Fiskarfagskole).

There are four other government operated fisheries schools

in Norway. Training emphasis in Honningsvag school appears

to be on crew vessel requirements; navigation, and marine

engineering. Only cost to students is books and pocket money •

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HAMMERFEST

Visited the Pindus operation. They apparently

accommodate many plant visitors, during the summer in particular,

at which time a guide is hired for this requirement. Have

a relatively large theatre-type room where visitors are given

a short talk on the history of the organization, products

produced, capacity, etc. with colour slides for demonstrations.

A very large modern plant in all respects; capacity

about 100,000 pounds fillets in 15 hours, although maximum

capacity of about 60,000 pounds fillets has been reached in

7* hours. Lack of labour is a real problem apparently, and

many female workers are imported from Finland. Total organization

at Hammerfest involves about 700 people. Plant is pretty much

self-sufficient. All filleting and skinning operations performed

by filleting and skinning machines. A very large line for

production fish sticks, portions, etc. Plant and eq~ipment

very clean and in good condition. All fish is bled at sea,

head off, gutted and boxed (with ice) in 100 pound (fish) boxes.

Apparently much care and attention emphasized on quality at

sea. Maximum time at sea 7 to 8 days. (Will E21 process fish

in excess of 8 days old.) Fish individually graded in plant for

size and quality prior to processing. Boxes (wooden) thoroughly

washed. Investigating plastio boxes. Tried aluminum boxes

with unsatisfactory results.

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Products labelled "guaranteed boneless". Recovery from

pin bone waste used for production of "fish balls".

Blocks and fillets are frozen to minus 250 0. (minus

130 F.) core temperature and stored at minuB 300 0. (minus 220F.).

Filleting offal frozen for mink food. A very impressive plant

and operation, obviously very quality-conscious throughout

the entire operation.

It was understood that under Norwegian regulations,

fish plants are not permitted to own fishing vessels. Hence,

all vessels operating for this plant are chartered, but this

still enables the plant to have quite adequate control of the

fishing operation, especially on quality. Trawlers, mainly

side type, only two stern type; one of which is now operating

with 8 men rather than the normal 14 for a vessel of this size.

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Salt Fish Plant, Iceland

Stockfish, Iceland

Iced Fish in Plant. Icel~nrl

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Salting Codfish, Iceland

Salting Codfish, Iceland

Torshavn, Faroe Islands

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(

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Harbour at Torshavn, Faroe Islands

Unloading Fish, Faroe Islands

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Frozen Fish Plant, Faroe Islands

Dried Salt Fish, Faroe Islands -------,

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Honningsvag, Norway

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Frozen Fish Plant, Faroe Islands

f

Net Loft, Faroe Islands

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'\

Large Saltfish Plant, Aalesund, Norway

Fisheries School, Honningsvag, Norway

Aalesund, Norway

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Aalesund, Norway

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Stock Fish, Norway r-~------_____ -

Dried Salted Fish, Norway

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Concrete Storage Tanks for Raw Herring for Reduction, Norway

,

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