How Norwegian aquaculture firms across the value chain were affected by and responded to COVID-19

Abstract

Previous research has shown that Norwegian aquaculture did not report being much affected by COVID-19 but had a strong response to the pandemic regarding cost reductions, market development, and business network development. In this study, we take a step further and investigate if COVID-19 affectedness and responsiveness were consistent across the aquaculture industry’s value chain. Also, we investigate if aquaculture industry involvement explains how firms were affected by and responded to the pandemic. Reexamining survey data from Norway shows that the firms, independent of value chain position or industry involvement, were not hit particularly hard by COVID-19 compared to firms in the manufacturing industry as a reference group. In addition, we show that the response to the pandemic in terms of cost reductions, market development, and business network development was strong across the value chain – chiefly among firms involved in producing or selling sea products and providing equipment and consulting services – compared to firms in the manufacturing industry. Finally, the response to the pandemic was consistently strong, independent of industry involvement. We conclude that aquaculture firms, across the value chain and independent of industry involvement, had a strong positive response to COVID-19, albeit not much affected.