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Klofningur ehf. – Suðureyri

Company Fact File:

 

Company address: Aðalgata 59, 430 Suðureyri

Tel.: +354 456 6293

fax: +354 456 6294

Email: kl@kl.is

Website: NA

 

Number of employees: 30

Director: Guðni Einarsson

Species: Mainly haddock and cod

Company capital stock: NA

Last year turnover: NA

 

Mission statement:

The processing of fish remains into edible and desirable products.

 

History:

In January 1997, two companies were founded: Kambur, in Suðureyri and Fiskiðjan Freyja, in Flateyri. The company owners, in chronological order, have been: Óðinn Gestsson and Guðni Einarsson, Hinrik, Guðmundur Kristjánsson, Einar Oddur and Páll Önundarson.

 

Market:

At the company’s inception the one and only market was the Nigerian market.  Nigeria has long held a market for dried fish and has conducted business with Iceland for many years. When this market initially opened, the company processed primarily whole fishes. Yet current demand has tended to favour only fish heads. In more recent years demand in the USA andEurope led to expanded foreign trade for the company. Nigeria is presently still the lead market, followed by Europe, the USA and the UK.

 

Production:

Klofningur is a fish processing company; the company uses all the by-products from all fishing companies in the area (except for those in Þingeyri, which have their own by-product factory in the south). The company’s main materials are any usable remains from neighbouring fish companies. Fish heads - typically dried and used for soups - constitute the highest demanded product. Fish remains that are not suitable for human consumption are processed and sold as animal feed. The quantity of raw materials that the company inherits largely depends on other fishing companies’ production; if their quota increases so does their by-product, hence there is more raw material to buy and process. In recent years the company has begun to buy remains from mariculture production such as salmon farms – the finished product is commonly used for mink food.

 

Environmental impact:

Klofningur adheres to a sustainable production framework. It processes the remains of other fishing companies as well as using geothermal heat to dry and process its product, thus minimising the environmental impact typically incurred by the fish processing industry.

 

Quality control:

Daily quality control inspections take place, and safety measures are routinely carried out. InNigeria inspections are conducted several times a year.

 

Output in tonnes:

The production output in dried tonnes was about 1,650 tonnes in 2010. Mincing production is currently produced at about 500 tonnes per year, and Klofningur ehf produces approximately 3,000- 4,000 tonnes of mink food annually.

 

Processing machinery:

The production line machinery involves industrial-grade fans and heaters and relies on geothermal water to heat the products.

 

Transportation:

Klofningur ehf uses trucks to transport its products to Reykjavík and boats for overseas trade. The mink food is shipped in a boat direct from Ísafjörður, which comes every two to three months.

 

Employees:

Many of Klofningur’s employees arrived through the Icelandic Employment Agency. To begin employment, new employees are briefed by more experienced or upper level employees. Once-a-year the company organises seminars to educate employees on the company’s status, product development, and the current market.

 

Working hours:

Employees work until they meet their daily quotas or finish their assigned projects. Once an employee has completed his/her daily task, their work shift is finished for the day.

 

Facilities:

The company currently owns and operates all its facilities.

 

Marketing:

Klofningur has an export marketing agent for its dried products. This agent corresponds and negotiates with wholesale buyers in Nigeria. Company representatives go to Nigeria on a regular basis; as the company has a good reputation in terms of quality, services and the brand itself, promoting sales and finding buyers has never turned out to be too challenging. 

 

Future market possibilities:

Klofningur is striving to enhance production and increase sales to Nigeria, as it claims that “Nigeria is actually an incredible market”. Since the company began selling to Nigeria, Icelandas a nation has increased its production threefold and dollar prices have more than doubled.

 

Research and Development:

Most research is carried out independently by the company itself, yet at times in collaboration with other research institutions. Klofningur often collaborates with Matís (a food and biotech research facility) and other processing companies. Presently, the exporter itself is involved in conducting research on new products - “In our last research, we were engaged with Kerecis and have since become partners,” one company spokesman said.  Klofningur also established a smaller company which is engaged in the beginning phases of producing fish bouillon powder and cubes.

 

Social benefits:

Klofningur provides free membership to the local swimming pool and gym for its employees. In addition it organises holiday dinners and parties. The company initiated its own “fish day” in which all employees are welcome to join and fish dinners are served.

 

Investment in new technology:

Klofningur actively invests in new product development to expand its current sales menu. New products typically undergo a profitability and feasibility evaluation to determine whether the production can be justified. This involves research, financial analysis, and market analyses.