european aquaculture competitiveness

142 Pages·2009·5.86 MB·English

Directorate-General For internal Policies
POLICY DEPARTMENTB
STRUCTURAL AND COHESION POLICIES
Directorate-General For internal Policies
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DIRECTORATE GENERAL FOR INTERNAL POLICIES
POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

FISHERIES

EUROPEAN AQUACULTURE
COMPETITIVENESS: LIMITATIONS
AND POSSIBLE STRATEGIES

STUDY
This document was requested by the European Parliament's Committee on Fisheries.

AUTHOR(S)
John Bostock, University of Stirling Institute of Aquaculture (UoS).
Francis Murray, University of Stirling Institute of Aquaculture (UoS)
James Muir, University of Stirling Institute of Aquaculture (UoS)
Trevor Telfer, University of Stirling, Institute of Aquaculture (UoS)
Alistair Lane, European Aquaculture Society (EAS)
Nikos Papanikos, APC Advanced Planning – Consulting SA (APC S.A)
Philippos Papegeorgiou, APC Advanced Planning – Consulting SA (APC S.A)
Victoria Alday-Sanz

RESPONSIBLE ADMINISTRATOR
Jesús Iborra Martín
Policy Department Structural and Cohesion Policies
European Parliament
B-1047 Brussels
E-mail: [email protected]

LINGUISTIC VERSIONS
Original: EN
Translation: DE, ES, FR, IT.

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Manuscript completed in September 2009.
Brussels, © European Parliament, 2009.

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DIRECTORATE GENERAL FOR INTERNAL POLICIES
POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES

FISHERIES

EUROPEAN AQUACULTURE
COMPETITIVENESS: LIMITATIONS
AND POSSIBLE STRATEGIES

STUDY

Abstract
This study examines the competitiveness of the EU aquaculture sector, as a
contribution to the wider review of EU aquaculture policy being carried out by the
European Community institutions. EU aquaculture competes with its international
equivalents, with outputs from capture fisheries, and more fundamentally within
global food markets. With small exceptions, the sector invests in production within
the EU, and as little of its product is exported, competition is so far primarily defined
within EU markets. Whilst EU aquatic food consumption has risen over the past 10
years, with stable or declining capture fisheries supply, most of this increase has
come from imports rather than growth of EU aquaculture. To substantially increase
aquaculture production at competitive prices for mainstream EU markets will require
larger entities capable of scale economies, although small and micro-enterprises can
also provide niche products and help sustain rural and coastal livelihoods. As spatial
expansion is highly constrained by environmental regulation and conflicts with other
resource users, productivity gains will be important in increasing output.
Technological solutions are emerging, but are costly, so under current conditions,
investments are more likely to be made in lower-cost production systems in third
countries that export to the EU.

IP/B/PECH/IC/2008_177 December 2009

PE 431.569 EN

European Aquaculture Competitiveness: Limitations and Possible Strategies

CONTENTS

GLOSSARY 5
LIST OF ABBREVIATIONS 7
LIST OF FIGURES 9
LIST OF TABLES 9
EXECUTIVE SUMMARY 11
1. INTRODUCTION 15
1.1. Background 15
1.2. Aims 15
1.3. Research approach 16
1.4. Competitiveness concepts 17
2. EUROPEAN AND GLOBAL SEAFOOD TRENDS 19
2.1. EU and global seafood production and demand 19
2.2. EU supply characteristics: regions and sub-sectors 20
2.3. Company characteristics and consolidation trends 27
2.4. Product differentiation, standards and certification 31
2.5. International trade rules and market volatility 36
3. INDICATORS OF COMPETITIVENESS 41
3.1. Availability of indicators 41
3.2. Comparative economic performance 44
3.3. National and Regional Comparisons 46
3.4. Aid to the sector 51
3.5. External factors 52
4. IDENTIFYING LIMITATIONS: SWOT ANALYSIS BY SECTOR AND
THEME 53
4.1. Legal and administrative constraints 54
4.2. Environmental aspects 57
4.3. Availability of production sites 59
4.4. Food safety and other aspects related to consumption 62
4.5. Animal health and welfare 64
4.6. Third countries competition and market issues 68
4.7. Fish oil and fishmeal availability 76
4.8. Technological issues 79
4.9. Production costs 85
5. CONCLUSIONS & RECOMMENDATIONS 89
5.1. Introduction 89
5.2. General SWOT analysis for European aquaculture 90
5.3. Market orientation 92
5.4. Sustainability and access to resources 94
5.5. Industry structure 95
5.6. Innovation and industry support 96
5.7. Industry image 98
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Policy Department B: Structural and Cohesion Policies

REFERENCES 99
ANNEX 1: INDUSTRY STRUCTURE STATISTICS 105
ANNEX 2: SWOT ANALYSIS FOR MAIN INDUSTRIES 111
A2.1 Salmon SWOT 111
A2.2 Trout SWOT 113
A2.3 Sea bass and sea bream SWOT 115
A2.4 Carp SWOT 117
A2.5 Shellfish SWOT 119
A2.6 Other species SWOT 120
ANNEX 3: POTENTIAL STRATEGIES: SCENARIO ANALYSIS 123
A3.1 Approaches 123
A3.2 Developing the market and stewardship scenarios 124
A3.3 Supply chain scenarios 127
A3.4 Implications for policy 128

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European Aquaculture Competitiveness: Limitations and Possible Strategies

GLOSSARY

Competition Institutions, policies, and factors determining national
productivity, which, in turn sets rates of returns to companies,
growth rates and ultimately sustainable economic prosperity

Cost leadership Efficiency driven competition strategy usually associated with
economies of scale and low unit costs for commoditised products
Economies of scale Reductions in unit-cost as the size of an enterprise increases

Future contract A contract to buy or sell a specified commodity of standardized
quality at a future date at an agreed (market-determined) price
Genetic Movement of gene(s) from a hybrid or selectively-bred (farmed)
Introgression species back into the parental (wild) gene pool by (escape and)
backcrossing
Horizontal Acquisition or merger between firms in the same industry and
Integration stage of production
Recirculating Tank-based aquaculture system where the water flow is treated
Aquaculture System and re-used (as opposed to flow-through water supply which only
passes through the farm once before discharge)
Product Competition strategy based on development of distinctive product
differentiation qualities, tangible and intangible often targeting narrower ‘niche’
premium markets

Vertical integration Hierarchy of different market-specific production or service
entities under common ownership combining to satisfy a common
need

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Policy Department B: Structural and Cohesion Policies

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