FAO Consultative Industry Forum

1
FAO Consultative Industry Forum

• Aquaculture and/or Capture Fisheries
• Impact of Food Retailers

• Jochen Nierentz
• Senior Officer

2
(No Transcript)
3
Purpose

• Dialogue and information sharing
• Resources for food security come from private
  sector
• FAO needs to provide policy advice on promoting
  private sector development in developing
  countries
• Generate interest in supporting investment in
  developing countries
• Private sector to support specific FAO programmes.

4
Participants in Bremen Industry Consultative Forum

• Mr John Connelly, President, National Fisheries
  Institute/ICFA, USA
• Mr Bruno Correard, CorreardB consulting, France
• Mr Nguyen Huu Dzung, President, VASEP, Viet Nam
• Mr Kenjiro Fujimoto, Director and General
  Manager, Nippon Suisan Kaisha, Ltd., Japan
• Ms Jayne Gallagher, Director, Seafood Services,
  Australia
• Mr Magnús Gústafsson, Consul General of Iceland,
  USA
• Mr Reid Hole, Senior Adviser, RHconsulting,
  Norway
• Mr Volker Kuntzsch, Managing Director, Hangana
  Seafood Ltd, Namibia
• Mr Bernard Leveau, Director General, Multivac,
  France
• Mr Itamar Rocha, President, ABCC, Brazil
• Mr Joern Scabell, Director Quality Management,
  Deutsche See, Germany
• Mr Ng Joo Siang, Managing Director, Pacific Andes
  Group, Hong Kong
• Mr Trond Williksen, President, Aker Seafood ASA,
  Norway

5
Topics at first CIF in Bremen, February 2006

• Aquaculture and/or Capture Fisheries
• Impact of Food Retailers and Food Service Sector
  on the Value Chain.

6
Future Fish Supply

• FAO projections for 2015 probably too
  optimistic for capture fisheries
• Industry expects levelling off and decline of
  landings in the future
• While better management efforts have to be put in
  place to maintain current levels
• On contrary, aquaculture projections considered
  too low, sea ranching.

7
FAO Projections

• Projected world supply and demand for food
• and feed fish at constant relative prices

8
Capture Fisheries
9
Aquaculture
10
Factors Influencing Capture Fisheries

• Cost of Capture Fisheries Increases
• Oil price
• More efforts to catch same volume
• Average size decreases
• Subsidies are under review
• More sophisticated equipment and ships
• More regulations
• Environmental
• Food Safety
• Handling at sea more costly than when
  aquacultured

11
Aquaculture Development

• Expanding in all Areas
• Marine
• Inland
• Ranching/Fattening
• Widening the Species Range
• Offers variety to processors
• Salmon, Shrimp, Tilapia, Catfish, Seabass,
  Seabream, Basa, Cod, ........

12
Factors Influencing Aquaculture

• Problems
• Environmental requirements
• Trade disputes (dumping, labeling)
• Fast technological productivity growth leads to
  overproduction and lower prices
• Limiting factor wild seed and feed (fishmeal
  trap)?
• Price of feed?

13
Opportunities, Advantages

• Globalization
• Planning Security
• Creation of Regular Supply
• Consistency of Quality
• Lower cost in Value Chain
• Promotion Activities based on Available Supplies
• Demand for Fresh Fish
• Technical Innovations

14
Aquaculture Production of Selected Species (1000
tonnes)
15
Imports in Developing Countries (US million)
16
Top 10 Seafoods ConsumedAquaculture now driving
consumption
Source National Fisheries Institute from NMFS
data
17
Demand Factors

• Will be shaped by
• product prices,
• substitution,
• consumer perceptions

Media, NGOs.
18
Common Perceptions

• FAO is asked to expand technical guidelines for
  ecolabelling to include all fisheries.
• FAO should work on instruments that will
  diversify possibilities and systems of
  ecocertification.

19
Demand

•  
• Increase significantly (China, India)
• Consumer income and population growth
• Prices not expected to increase.
•  

20
FAO GLOBEFISH Fish Price Indicators 
21
Japan Price Indicators
22
Utilisation Graph
23
FAO Statistics on Stock Assessment

• Exploitation or Utilization?
• Detailed Breakdown of Stocks Monitored by FAO
• Enhance the role of the fishing industry to
  contribute to sustainable fishing activities

24
Strengthening the Communication Agenda

• Improvement of Stronger Role of Industry in
  Public and FAO Fora
• Role in Food Security and Employment
• FAO more proactive with neutral and scientific
  based Facts

25
Impact of Food Retailers and the Food Service
Sector on the Value Chain

• Developing Countries play growing Role
• Value Addition in Countries with lower labour
  Cost
• Vertical Integration
• South - North
• North - South

26
Increasing impact of Retail Chains

• USA Top 20 retailer 52 of food sales
• SPAIN Retail chains 43 fish sales
• GERMANY Retail chains 82 fish sales
• UK Retail chains 60 of fresh seafood

27
Impact of Food Service Sector on SeafoodU.S.
Restaurant SalesRestaurant industry now 46.4 of
food dollar
28
Market Impact of retail chains and food service

• Competition Oligopsonistic (few buyers, many
  suppliers)
• Main parameter Price coupled with Safety and
  Quality Assurances
• Big Retailers request their own Standards
  creating additional Cost Factors

29
Summary

• Role of Developing Countries in Fish Trade
  continues to increase
• Competition between Capture and Aquaculture keeps
  prices low
• Aquaculture species play a more and more
  important role for retail and food sector
• Sophistication of final products put pressure on
  raw material price and expectations on
  quality

30
THANK YOU