Dec 27, 2024 09:00:00

What is the reversal story of 'king crab' that turned a small town on the brink of extinction into a millionaire?

Bugoynes , located in the northernmost part of Norway, was a small village with a population of about 300 people in 1991. The only industry, cod fishing, was lost due to a sharp decline in the population, and the village was in a state of considerable poverty. However, Bloomberg Originals , a YouTube channel operated by Bloomberg, tells the story of how the village, which was on the verge of extinction, made a great recovery due to two invasions: the increase in the invasive species 'king crab' and Russia's invasion of Ukraine.

How Russia's War Made King Crab Big Business in Norway - YouTube


Bugøynes is a fishing village in the northernmost part of Norway, located on the border with Russia.

Bugøynes was a poor village with a small population, and its mainstay, fishing, was also declining. At one point, Bugøynes was in danger of disappearing, so much so that a newspaper article carried a message asking, 'Is there a town that will take in 300 residents?'

What saved Bugøynes was the king crab. King crab and snow crab from

the Barents Sea in Norway and the north of Russia were exported from the Far Eastern waters by Stalin during the Soviet era, and became commercially available in the 2000s. For this reason, king crab is colloquially known as 'Stalin's crab' in some parts of Northern Europe. For Bugøynes, king crab was a thorn in their side, as they were an enemy of cod, which was their main traditional fishing resource, and caused the population to decline.

As of 2022, Russia accounted for 94% of the world's king crab market. This was dramatically changed by Russia's invasion of Ukraine, which began in February 2022. In response to the Russian invasion, the United States and other countries have implemented severe economic sanctions, including trade restrictions and corporate boycotts.

How much damage has Russia been hit by economic sanctions? - GIGAZINE

The trade restrictions also include king crab, and with exports from Russia, which accounts for 94% of the market, now unlikely, Norway has become the most likely source for European countries to import king crab. Once hated as an enemy of the cod, a major industry, king crab has suddenly grown into an industry worth tens of millions of yen per year. Norway exported almost all of the 5.4 million pounds (about 2.44 million kg) of king crab it caught in 2023, earning sales of $110 million (about 17.3 billion yen), a 42% increase from the previous year.

Where once there were only three ships at most, Bugøynes' harbour now houses hundreds of fishing boats at any one time.

In addition, services such as red king crab catching experiences have become popular in Bugøynes, and it is becoming increasingly popular not only as a trade resource but also as a tourist resource. 'Welcome to the most exciting city in the world, in Europe. We have very positive prospects for fish farming and fishing,' said Magnus Marland, mayor of the

Norwegian municipality of Sor-Varanger.

Joan Olav Marijnen, who used to run a fish factory in Bugøynes, spoke of the changes in the industry: 'In the late '80s, fish factories went bankrupt one after another, and my company went bankrupt too. For years, only a closed building remained, but recently a new owner bought the factory and is using it as a storage facility for keeping live king crabs that are landed. The king crabs are tagged so that details can be tracked, and people who receive them after they are exported can learn about the quality of the crabs, as well as the area where they were caught and the history of the fishermen.'