Economy of the Falkland Islands

The economy of the Falkland Islands, which first involved sealing, whaling and provisioning ships, became heavily dependent on sheep farming from the 1870s to 1980.

[2] There was also trade in cow hides from the wild descendants of cattle introduced by French settlers in the late 18th century.

The Falkland Islands Development Corporation was formed in mid 1984 and in its annual report at the end of that year it set out to increase employment opportunities by encouraging diversification, to increase population levels through selective immigration, to aim for long-term self-sufficiency and to improve community facilities.

To achieve this, the Corporation identified agricultural improvements, tourism, self-sufficiency in energy, development of the industrial and service sector, fisheries, and land subdivision as areas to tackle.

[8] Desire Petroleum and Rockhopper Exploration began drilling for oil in the vicinity of the Falklands in the first half of 2010, sparking strong protest from the Argentine government.

Buenos Aires refused permission for charter flights from Chile that served cruise ships to fly over Argentina to reach the islands.

[13] The constitution requires the governor of the islands to seek the approval of a British Secretary of State before assenting to any bill that affects "the currency of the Falkland Islands or relating to the issue of banknotes" or any bill that establishes "any banking association or altering the constitution, rights or duties of any such association".

Farmland accounts for a little over 80% of the Falklands land area[15] and a sheep appears on the islands' coat of arms, but agriculture is now less than 2% of the economy.

A summary of the prices for the period 2002 to 2010, which are often dictated by Australian exchange rate and weather conditions[19] is shown below:[20] Although the production of wool is spread across the islands, the breeding of animals for slaughter is concentrated on East Falkland where the EU accredited Send Bay abattoir is situated.

As of 2010, the ferry company making the crossing charged commercial vehicles £30 per metre for a single trip plus £2 per head of sheep.

[24] Selected statistics for the year 2008/9 relating to sheep farming are given below: There are also a small number of cows, pigs and horses on the islands that are reared for local use.

At the same time that the FOCZ was declared, the Argentine declared its 200-nautical-mile Exclusive Economic Zone (EEZ) and together with the British Government (acting on behalf of the Falkland Islands) set up the South Atlantic Fisheries Commission (SAFC) to coordinate the management of fishing stocks in the area.

The Illex squid (Illex argentinus) which typically has a mantle length of 20 to 28 centimetres (8 to 11 in) and a weight of 150 to 500 grams (5 to 18 oz) is the most important fish to the Falklands economy followed by its smaller cousin, the Patagonian squid (Doryteuthis gahi) which typically has a mantle length of 10 to 15 centimetres (4 to 6 in) and a weight of 75 to 150 grams (3 to 5 oz).

[33] The catch for the 2010 season in the Falklands recovered to 12105 tonnes, but still the fourth lowest since the beginning of the licensing system.

Following the collapse of the Illex industry in 2008/9, the rock cod has become, by weight, the most heavily harvested species in the area.

In 2006, a Spanish vessel on an exploratory trawl found commercial quantities of grenadiers (Macrourus spp., Coelorhynchus spp.)

If the SSB drops below a threshold of 40000 tonnes the SAFC recommend will early closure of the fishing season.

[45] The table below shows the average catch in tonnes of various species (as categorised by FIFD - Falkland Island Fisheries Department) for successive five-year periods.

[10] Tourism forms a significant part of this figure with land-based visitors expected to contribute £2.7 million to the Islands' economy in 2010.

[50] The islands have become a regular port of call for the growing market of cruise ships to Antarctica and elsewhere in the South Atlantic.

[51] In 2013 passengers from cruise ships faced protests in Latin American ports over the British military presence.

Such visits are arranged in conjunction with LAN Airlines (Chile) who, on such occasions, use larger aircraft than normal for the weekly flights.

[56][57][58] In 2023, Rockhopper (working with Tel Aviv-listed Navitas Petroleum) indicated that it had been presented with a new development plan for its Sea Lion project that aimed to cut costs and proceed in phases.

[59] A public consultation on the project took place in the summer of 2024 and was reported to have garnered widespread support from Falkland Islanders.

[60] In November 2024, the Falkland's government Executive Council indicated that, while the public consultation process had been successfully concluded, "some matters" related to the Environmental Impact Statement required "further discussion" and that any development and production program would need to be considered separately by the Executive Council.

[61] Navitas Petroleum subsequently indicated that a final investment decision was delayed to mid-2025 with first oil not anticipated until late 2027, at the earliest.

The island's government has plans to install a 2 MWh battery storage system which will allow surplus wind energy to be stored.

The first stamps, 1d, 6d, and 1 shilling values featuring the usual profile of Queen Victoria, were issued 19 June 1878.

In many cases the set-up and production costs are carried by the mint concerned, who pay the FIG a royalty on coins that it sells to collectors.