Hinweis zum Urheberrecht
Bericht / Forschungsbericht / Abhandlung zugänglich unter
URL: https://epub.sub.uni-hamburg.de/epub/volltexte/2008/1452/
Study of the market for aquaculture produced seabass and seabream species
Department of Marketing & Institute of Aquaculture University of Stirling
| Originalveröffentlichung: |
| (2004) http://ec.europa.eu/fisheries/publications/studies/aquaculture_market_230404.pdf |
| pdf-Format:
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| BK - Klassifikation: |
| 48.68 |
| Sondersammelgebiete: |
| 21.3 Küsten- und Hochseefischerei |
| DDC-Sachgruppe: |
| Biowissenschaften, Biologie |
| Dokumentart: |
| Bericht / Forschungsbericht / Abhandlung |
| Sprache: |
| Englisch |
| Erstellungsjahr: |
| 2004 |
| Publikationsdatum: |
| 27.08.2008 |
| Kurzfassung auf Deutsch: |
| Introduction
1. The aim of this study is to provide a detailed analysis of the production and marketing of seabass and
seabream in Europe, to assess the causes and impacts of the 2001-2002 price crisis, to evaluate the
potential market demand for these species over the next 5 years and to suggest marketing strategies to
enhance demand.
2. The University of Stirling led the study, begun in September 2003, and was responsible for administration
and compilation of the main report. Partner organisations were given responsibility for reporting on the
situation in one or more countries with which they were familiar.
Production of seabass and seabream
3. The first efforts to breed seabass and seabream were made in the late 1970s and early 1980s in France and
Italy. Production increased rapidly during the 1990s and by 2003 had reached nearly 200,000t.
4. Seabass and seabream are produced in most countries bordering the Mediterranean Sea. The main
producers are Greece, Turkey, Spain, Italy and France, which in 2002 accounted for 90% of production.
Smaller producers are Portugal, Croatia, Cyprus, Israel, Malta, Egypt, Tunisia and Morocco.
5. Production of both species increased from 108,000 t worth €655 million at first sale in 1998 to 181,000t
worth €764 million at first sale in 2002, and is expected to have reached nearly 200,000t in 2003.
However, like other aquaculture sectors, as production expanded unit values declined. Average first sale
prices per kg over the period fell from €6.32/kg to €4.39/kg for seabass and from €5.79/kg to €4.07/kg for
seabream. The relative proportion by volume and value of seabass to seabream has remained much the
same at 45% to 55% respectively throughout the time period.
6. Greece is the most significant producer, accounting for 57% of all production in 2002. The sheltered and
extensive coastline offers many suitable sites for cage farming, and ideal environmental conditions. There
have been major discrepancies in Greece between officially reported and actual production; actual
production is estimated to have been around 60% higher in 2002 than the official figure.
7. Production of seabass and seabream from capture fisheries remains relatively static at between 16,000 and
20,000t per annum. Seabass is the more important species with production in the region of 11-12,000t
p.a.. Prices for wild seabass have apparently not been affected by the fall in prices for farmed fish.
8. The bulk of aquaculture production to date has been in the size range of 300g to 500g, but as the industry
has matured and prices have fallen, producers have increasingly looked to differentiate their products
through ongrowing to larger sizes which to date have also fetched higher prices. However, the cost of
producing larger fish is significantly higher than for smaller fish, and it is likely that as production of larger
sizes increases, market prices will come down, thus reducing the attraction of this option.
9. Seasonality of production varies from country to country, depending on growing conditions and market
demand. There is a tendency to stock fry in the spring and to harvest in the autumn of the following year
before the winter. This results in large volumes of fish coming onto markets at a time of year when
demand is naturally falling, thus exacerbating the decline in prices. Some producers now grow a greater
proportion of fish to larger sizes and target different markets. In addition, some hold stocks over the
winter despite the extra costs and risks in order to satisfy large multiple clients who demand continuity of
supply.
10. Fry are produced on an increasingly large scale in hatcheries, and availability is no longer a constraint on
the industry. Fry costs have fallen by around 50% since 1990, but still represent 15-20% of the cost of
production. Greece is the main producer of fry, and also the main importer. Turkey is self sufficient, with
Page iv Study on the market for the aquaculture produced sea bass and sea bream species (Fish/2003/05).
a small export of seabass. France and Italy are significant exporters. Spain imports bass and exports
bream.
11. Production in 2002 was spread across more than 1000 hatchery and ongrowing sites, operated by more
than 700 companies, and employing over 7000 people. 80% of production in Greece was from companies
producing more than 500t p.a., with 4 companies producing more than 5,000t each. In Spain and France
also, most production was from companies of over 500t. In Italy, Turkey and Portugal, however,
production was mostly from farms producing less than 500t p.a.. Around 85% of production is from cages,
and 15% from land based systems. Productivity amongst the main producers was estimated to be 18.45
tonnes per full time employee.
12. Average production costs (350-400g fish) typically vary between €3.68/kg in Turkey and €5.24/kg in
Portugal. However, large vertically integrated companies in Greece producing their own fry have
production costs of as low as €3.50/kg. Feed, fry and labour account for around 70% of production costs.
Maximum cost efficiencies, for the main part, have already been effected and any further gains are likely to
be marginal and realised only slowly.
13. In all countries, licensing procedures are difficult and time-consuming, in some cases taking up to 5 years.
Aquaculture is a relatively new industry and commonly lacks specific legislation. There is often conflict and
competition with other users eg fisheries and tourism. In Greece especially, it is an acknowledged fact
that most existing sites are exceeding their licensed capacity, and this matter clearly needs resolution to
enable more effective policy decisions. The uncertainty over the scale of discrepancy in Greek production
necessarily created problems in the estimations contained in this report, which we have attempted to
minimise through triangulation and cross-referencing wherever possible.
14. The use of EU structural funds (presently FIFG) has played a major role in the rapid development of the
bass and bream sector over the past 20 years, especially the funding of new production capacity. In
autumn 2002, in response to the price crisis, the EC invited member states to suspend all financing of
projects which might entail a risk of creating surplus production capacity for seabass and seabream. Future
support is likely to focus more on market development initiatives, such as improved quality and channel
infrastructure, new product development, promotion, and measures to reduce production cost.
15. The main factors affecting the future development of the industry are site availability, cost of production,
economic stability, and market demand. Greece and Turkey in particular have good site availability and
growing conditions, low costs of production and it is likely that most future production will come from
these countries.
16. Production in the short term however is forecast to fall to around 185,000t in 2005, before increasing
again to nearly 220,000t in 2008. The anticipated fall in production is attributable mainly to industry
rationalisation, especially in Greece, due to falling prices and financial losses. An optimistic forecast,
considered less likely, anticipates production remaining level in 2003 and 2004, before rising to around
283,000t in 2008. This assumes the best possible conditions for development of the industry to be
effective during the interim period, including strong government support for development of new capacity
and major investment in market development initiatives.
The market for seabass and seabream
17. The main market for seabass is Italy (42,500t in 2002, 46% overall share). Spain and Turkey are next in
importance at 13% and 11% of the market respectively. Turkey however is self-sufficient and is a net
exporter of bass, whilst Spain as with Italy depends on imports. The main markets for seabream are Spain
(26,500t in 2002, 25% share) and Italy (24,000t in 2002, 22% share), with Greece (16%) and Turkey (11%)
next in importance. The over riding pattern of international trade is the majority of exports coming from
Greece and supplying the largest markets in Italy and the Iberian Peninsula.
18. Amongst the main producer/consumer countries, per capita consumption of seabass ranges from 0.1kg in
France to 0.7kg in Italy. For seabream the range is from 0.06kg in France to 1.6kg in Greece. Trends in
consumption over the period 1998-2002 indicate no growth in Greece and Turkey, slow growth in Italy,
modest growth in France, and very rapid growth in Spain and Portugal. Consumption in northern
European and Scandinavian countries is low and although demand is growing slowly, these markets are
unlikely to account for more than 5% market share in terms of volume by 2008. However, there is perhaps
greater scope for expansion in terms of higher unit value products.
Final report, 23 April 2004 Page v
19. The markets for bass and bream may be broadly segmented in two principal areas: foodservice (or
catering) and the retail sector. Multiple retailer chains increasingly dominate the retail market in all
countries studied, with the market share of traditional fishmongers diminished and decreasing. The
catering markets are of particular importance in Spain and Italy, and are increasingly met by relatively
cheap Greek imports.
20. A particular feature of all markets studied is the expressed preference of consumers for locally grown
products over imports; a common factor seems to be the favourable image of local products enhanced
through quality assurance schemes. Imports are commonly unbranded and quality is reported to be highly
variable owing to long transit times and post-harvest handling.
21. Within all the markets it was evident that the supermarket chains are either already, or are fast becoming,
the dominant force. The concentration of retail power within a comparatively small number of chains
results in the need for producers to be able to negotiate and trade with organizations much larger than
their own, and there are now signs of producer cooperation and consolidation in this respect.
22. Seabass and seabream are still almost universally sold as whole fish. However, as one moves away from
regions bordering the Mediterranean, there is an increasing demand and willingness to pay for value added
product forms, including quality assured and branded whole fish. Filleted and gutted products are starting
to make an appearance, but are still relatively insignificant in relation to the size of the overall market.
23. Seabass and seabream have inherent disadvantages for product development compared with other
cultured species such as salmon and trout. Most notable are the high costs of production and the typically
small harvest size. This is likely to mean that new product forms are, initially at least, based on more
limited whole fish transformations, rather than filleted products which have to compete with other well
established round and flat fish products which can be produced at significantly lower cost.
24. Deficiencies within the marketing chain were widely reported and were most evident from those points of
the market furthest from the production centres. Ironically those markets where quality problems seem
worst are typically expected to pay the highest prices to cover the transport costs incurred.
Internationally traded product frequently has to pass through transport hubs with a negative impact on
transit time and product quality. There is considerable scope and need to improve the logistical aspects of
the industry.
25. Promotional efforts in the industry to date have been limited or non-existent. A 4 year programme of
generic promotion funded by the EU and the Greek government has been agreed and is expected to start
in 2004. It should be emphasised however that promotion should only be undertaken if there is
confidence of being able to deliver the product expectations created.
26. Two forecasts of demand have been made, baseline and optimistic. Both forecasts assume demand
remains relatively flat over the period to 2005, whilst industry rationalisation occurs, prices stabilise, and
market development plans are made. From 2005 the baseline forecast anticipates that demand could rise
to around 255,000t by 2008, assuming that there is only a limited impact from market development
initiatives, and production costs remain the same, The optimistic forecast suggests that demand could
increase to 322,000t by 2008, assuming that industry rationalisation has largely been completed, and that
market development efforts are much more stringently and successfully pursued.
The 2001-2002 price crisis
27. After a period of relatively stable pricing during the late 1990s and 2000, over the period January 2001 to
March 2002, prices for bass and bream (300-450g, Greek fish in Italy) fell from €5.75 and €5/kg to around
€3.75 and €2.75/kg respectively, and this fall was reflected for other fish in other countries.
28. The fundamental cause of the price crisis was an imbalance between supply and demand caused by rapidly
rising production especially in Greece without proper planning, market support or promotion. The
situation was exacerbated by the intrinsic seasonality of bass and bream production, which naturally tends
to result in the largest volumes being harvested in the autumn when demand is falling. Over production
appears to have been a major factor, especially of bream in Greece and Spain.
29. The impact of the crisis was to reduce profitability and in many cases cause losses. Many smaller farmers
were either taken over or subsequently went out of business, and larger companies have assumed greater
Page vi Study on the market for the aquaculture produced sea bass and sea bream species (Fish/2003/05).
prominence in the selling of fish. However, for the most part the industry is still dominated by small and
medium producers and there is still much further scope for rationalisation.
The use of FIFG funds for the further development of the bass and bream industry
30. With regard to recent price trends in the industry, it appears that whilst prices improved slightly in 2003,
they were still on average below the cost of production for sea bream produced in Greece and Spain,
sectors which together account for nearly 40% of all bass and bream production in all countries. In
addition, in the short term it appears that sufficient production capacity already exists to meet existing
demand; this situation should prevail given that supply is forecast to fall. Any measure to increase
production capacity in the short term, in the absence of appropriate measures to stimulate demand, runs
the risk of again creating surplus capacity and putting further downward pressure on prices.
31. In the short term, therefore, FIFG funds should be mainly focussed on market development initiatives, such
as improved quality and channel infrastructure, new product development and promotion, and measures
to reduce production cost. In addition, the evolution of the market should be continually monitored, and
more effective planning and control of the development of the industry should be implemented.
Conclusions
32. Production grew rapidly over the period 1998-2002, encouraged by a favourable economic climate
especially in Greece. In 2001-2002, market prices fell significantly, often to below the cost of production;
many companies incurred losses in 2002 which started a process of industry rationalisation.
33. Growth in production over the period was not matched by market development and although the volume
demanded clearly grew, unit prices fell. The main cause of disruption on the markets was the rapid
increase of Greek exports, especially in the autumn. Such exports were made without any planned
strategy, and were essentially a stock clearing exercise without much thought for the end price received.
Consequently the product has to some extent been devalued in the eyes of the consumer, and it will be
difficult to restore former price levels.
34. There are important exceptions to the overall patterns observed above: prices for seabass have not
declined to the same extent as seabream and for the most part this sector appears to have remained
profitable. In addition, efforts to differentiate product (both seabass and seabream) on grounds of origin,
size and quality appear to have been successful in Italy, Spain and France, where price levels for home
produced product do not seem to have been as badly affected as those for Greek imports.
35. Production is anticipated to fall back in the short term, driven mainly by industry rationalisation in Greece.
This is likely to result in a more efficient industry and one that is hopefully more in tune with the market.
Growth in demand and production is expected to rise in the longer term, but will require a concerted
effort by all producers, especially on the following fronts:
• market research to determine consumer requirements, followed by action to promote existing
products and development of new ones
• improved production planning to shift production away from the weak autumn market to the stronger
summer market
• continuing efforts to bring down costs of production
• implementation of effective quality assurance schemes, especially emphasising traceability of product
from producer to final consumer
• Improved logistics to promote quality and minimise transit times for product delivery, especially for
exports
36. One of the reasons for the crisis in the industry has been a lack of control of production in Greece by the
authorities: actual production exceeds official production by a large margin, causing difficulties in overall
industry strategic planning and management. Moves are now underway to rectify this.
Recommendations
37. A more effective means of recording actual production needs to be implemented in all countries, but
especially Greece, together with a better system of administering and enforcing licence conditions.
38. There is a need for better production planning to ensure supply is more in tune with demand.
Final report, 23 April 2004 Page vii
39. The use of EU structural support for the industry should be reviewed. In the short term funds should be
mainly directed towards market development initiatives and measures to reduce production cost.
40. The evolution of the market should be continually monitored, and more effective planning and control of
the development of the industry should be implemented.
41. Support for R & D should be strengthened, with emphasis on reducing production costs, delaying maturity,
realising environmental benefits and new technologies for species and systems.
42. The design, implementation, management and monitoring of quality schemes should be encouraged and
supported as an integral part of the enhanced marketing function.
43. Greater cooperation between producers, both nationally and internationally, should be encouraged, both
on the production planning and marketing functions.
44. New product development should be market focussed and examine the fullest range of options including
whole fish, gutted, headless, filleted and otherwise transformed products.
45. New product development should be more focussed on key attributes such as freshness, origin,
traceability, image, environment, apposite pricing, and contemporary packaging.
46. Entry strategies for emerging North European markets should focus on comparative USPs (unique selling
points) and infrastructure support rather than depending upon promotional spend alone.
47. The greatest emphasis should be placed in the short term on improving existing distribution and marketing
channel infrastructures to the main markets.
48. The development of marketing organisations representing producers should be encouraged to allow more
effective negotiation with larger customers.
49. Any promotion undertaken by the industry should be founded on sound marketing principles, ensuring
that promoted attributes can be delivered. |
