New Paths in the Raw Material Flow

The Norwegian fish processing industry is an old industry and organising of production has been solved by fishing vessels catching fish and selling it fresh directly to processing plants located on shore close to the richest fishing areas. During the last decade an increasing part of the catch has been frozen on board. This change in supply, from fresh to frozen fish, has triggered investments in new cold storage plants along the Norwegian coast. These changes are about to change the entire market for raw materials and also the fish processing industry itself. Technological changes among the suppliers have created a totally new competitive position for the processing plants. In the new competitive setting one of the most valuable resources among the processing plants, i.e. a location close to fishing areas, is devaluated. The bargaining power to the local processing plants is decreased mainly because new entrants have achieved easier access to the local raw material market