SIFACOccasionalPaperNo.35 EIFAC/OP35 ISSN02SS-6006 EUROPEANINLANDFISHERIESADVISORYCOMMISSION Reportofthe ADHOCEIFAC/ECWORKINGPARTYONMARKETPERSPECTIVES FOREUROPEANFRESHWATERAQUACULTURE Brussels,Belgium,14-16May2001 Kuropean Commissioo Copyrightedmaterial Ct>piesofFAQpublicalionscanberequestedfrom: SalesandMarketingGrt>up InformationDivision FAO VialedelleTermediCaracalla 00100Rome.Italy E-mail:publicaiions-sales@^fao.org Fax:(+39)0657053360 Copyrightedmateria! EIFACOccasionalPaperNo.35 EIFAC/OP35 EUROPEANINLANDFISHERIESADVISORYCOMMISSION Reportofthe ADHOCEIFAC/ECWORKINGPARTYONMARKETPERSPECTIVES FOREUROPEANFRESHWATERAQUACULTURE Brussels,Belgium,14-16May2001 FOODANDAGRICULTUREORGANIZATIONOFTHEUNITEDNATIONS Rome,2001 'THl.® Or»€ 0W6L-9Z0-SNPF material vnTioheewwsvaiyoefwat^nhteeicxli-pplrauerlsocspxeeadtnhieCnoEmtuhmriisosprseeiaponorntCoodrmoomfinsiottssisnoeerncs'eisscseasfr.uitTluhyriersesfrtleaepncotcretthiinen thisarea TtwtdtehehhhrileaersiitmitUdsionnetorfisayeot,itvreigmeodncarniattNtooiyaifontonoinittrphsosrenfeaosrpmrdoaepuncrtaclotitoneooycrdfrseeotrdhononrefoaibtFnnoiogdituomsnttpddhhlaeaaeuyrtnptihlrdheoeeersAgsi.ageetlrxniitepscsartu,tealisttoosuunrsireooocnfOfortonghfacaenaenynmriaynztciaoeontprugiiinoantnlitrohyoine,fn ISBN92-5-104700-6 AwbiapisIlrnnnryhulifffootteooovuht-rrrrileoimmmmddngnaaaaehitzttpdtlibiieesoooedttrnnnohmr(ewiDaecpKiissdorotsvsepdoidhoirydrsouuovriueucrenoicttscdngtsoef..hafoetfFrnidtoORsAyrhrfeeQeftapsepu.ooarlrcdll.iooVuyeotoipdcrharyouaaelgrrtccweiitokngCdotitnhhenhototilaenewelrlhnefloc,eaTolopdnredmePgdermrouermmetbsddirehl..isceidsAsristRpsiaheCpneoilaplmonnrpriingaoucnf-cadrarcaatuptoolnicoimimodtosamnine.tseohsMr0nfeuoI0coflsr1ioctpfaos0irmpluo0mamyhtcearpRiedhtiuboriegiripmahntapeetealord.SlsmhewiieoIriintsslnvtasdihlttieaycohhorreuoiins.etsrs Copyrightedmaterial Ill PREPARATIONOFTHISDOCUMENT Thisreportsummarizesthepresentations,discussionsandrecommendationsoftheAdHoc WorkingPartyonMarketPerspectivesforEuropeanFreshwaterAquaculture,Brussels, Belgium,14-16May2001,whichwasjointlysponsoredbytheEuropeaninlandFisheries AdvisoryCommissionandtheEuropeanCommission. EuropeanInlandFisheriesAdvisoryCommission. ReportoftheAdHocEIFAC/ECWorkingPartyonMarketPerspectivesfor EuropeanFreshwaterAquaculture.Brussels,Belgium,14-16May2001, EIFACOccasionalPaper.No.35.Rome,FAO.2001.136p. ABSTRACT TheAdHocEIFAC/EC Working Party on Market Perspectivesof EuropeanFreshwaterAquaculturemettoaddressthecurrentsituationof thefreshwateraquaculturesectorintheEIFACregionwithparticularfocuson problemsinmarketing.Theoutcomeoftheworkshopaimstoprovidekey informationandstrategicadviceonhowtofulfiltheproductionpotentialof thesectorto(i)policymakers,administratorsandlegislators;(ii)fumre investors;(iii)consumers,and,particularly,(iv)producers.Troutandcarp (about94percent)dominateEuropeanaquaculture,whereasthereareother promisingcandidatesforculturethathavenotbeenprofitablyexploited.The freshwateraquacultureindustryinEuropeisproductorproducerdrivenalong traditionallinesandsuflersparticularlyfromalackofverticalintegration, linkingproducerstoconsumersthroughthemarketingchain.Theproducers willremainatadisadvantageunlesstheydevelopbetterlinksthrough associationorcooperation.Whilethepreparationandimplementationof marketingplansisaresponsibilityoftheindustry,andmustbefinancedfrom thissource,additionalprogressandgreatbenefitcouldbederivedfroma comprehensivepolicyframework.Aquacultureasafoodproducingsystemin somecaseshasbeenperceivedasbeinginconflictwithotherpartsoftheeco- system.Thiscanbestbeaddressedbythedevelopmentanddisseminationof codesofgood aquaculturepractice. Whilethedemand fororganically producedaquacultureproductsisgrowing,certificationisstilllargelybased onthestandardsofprivateeertificationbodies. Distribution; EuropeanCommission ParticipantstotheWorkingGroup FAOFisheriesDepartment FAORegionalFisheryOfficers EIFACMailingList Copyrightedmaterial 3 V CONTENTS Page L BACKGROUND 1 2. STATUSOFEUROPEANFRESHWATERAQUACULTURE I i REGULATORYFRAMEWORK 2 3.1 EnvironmentalLegislation 3 3.2 HygieneinFoodstuffs 3 3.3 FishDisea.se 4 3.4 Markets 4 3.5 FinancialAssistance 4 4. PRODUCTION.PRODUCTSANDSALES 4 5. FOODQUALITYANDSAFETY.TRACEABILITYANDLABELLING 5 6^ IIFMrP.IA.SCITAOTINONT;RAADTEROAFDEENRVAIRRRIOFNRME>NTALANDHEALTH/HYGIENE 2 7. MARKETS.DISTRIBUTIONANDTRADE 7 8. NEWMARKETS.NEWCOMPETITORSANDPROMOTION 8 i rONriII.SIDNSANDRF.rOMMF.NnATION.S 9 APPENDIX1Agenda 11 APPENDDC2ListofParticipants 1 APPENDIX3Summaryofsomecodesofconductandcertificationprogramnies thatimpactontheaquaculturesector 17 APPENDIX4Strengths,Weaknesses,Optwitunities,ThreatsTable 19 APPENDIX5PapersPresented 23 CurrentstateofEuropeanfreshwateraquacultureproductsandmarkets, byCourtneyHough 23 RegulatoryframeworkinEuropeanCommunityaquaculture. byConstantinVamvakas 29 Productdeyelopmenttrendsandnewproductsfromcurrentlyfarmed species,includingmedium-andlong-termperspectives. byVibekeKristensen 36 Afreshviewonfreshwaterfishlikecarp,eelandtrout-Goodnessand conveniencefromtheneighbourhood,byHerbvNeubacher 39 Newspeciespotential:developmentofcurrentlyunderproducedfish species,byAndrasPeteriandTamasBardocz 43 ThecatfishindustryintheUnitedStates,bySt^phaneVrignaud 52 Theinfluenceofenvironmentalpoliciesonaquaculturedevelopment. byRolandRdschandStephanHofer 56 Copyrightedmaterial 51 VI Developmentofpolicies,bestpracticesandstandardsforhygieneand humanhealth-impactonproductionforEuropeanfreshwater aquaculturebyJohnRyder 61 Quality,traceabilityandlabellinginaquaculture?Amusttobecomea preferredsupplier!byAldinHilbrands 7 Organicproductsashighqualitynicheproducts:backgroundand prospectsfororganicfreshwateraquacultureinEurope, byStefanBerglciter 84 Markettrendsandconsumerattitudes,byNickTrachet 95 Whichnewproductsforaquaculture?Ananalysisbasedonthestudy oftheFrenchmarket,byPhilippePaquotteandCatherineMariojouls 103 Impactontradeofenvironmentalandhealth/hygienelegislation:atrade barrier,byRichardBates 109 Measurestofindandpromotenewmarketoutlets:howtoraisethe profileoffreshwaterspecies,byAudunLem 11 NilePerch:acompetitorforEuropeaninlandAquaculture byStefanoBoserman 123 CompetitionbetweenEuropeanaquacultureproductsandinternational fiKtdmarkets(pork,poultry,etc.),byIstvanSzucsandEmeseBekefi 127 Copyrightedmaterial 1 1. BACKGROUND ProductionoffreshwaterfishisamajorbranchofEuropeanaquaculture,butthe productshavearelativelylowmarketvalueinrelationtoproductioncostsandproducers’ profitmarginsarclow.Moreover,marketdemandforfreshwaterspecies,otherthantrout andcarp,iscurrentlyratherlimitedthroughoutEurope. Themainmarketingproblemsassociatedwithfreshwateraquacultureproducts includelowprices,lackofreliablecommercialinformation,alimitedproductrange,based onasmallnumberofspeciesandproducts(notalwaysadaptedtomodemmarket requirements),difficultiesindiversification,andlackofpromotion.Significantgrowthof marketdemandforfreshw'aterfishintheEIFACregioninthenearfutureseemsunlikely, unlessinitiativesaretakentochangecurrenttrends.Futuredevelopmentsmustbe consideredinaninternationalstrategiccontext. TheadhocEIFAC/ECWorkingPartyonMarketPerspectivesforEuropean FreshwaterAquaculturewascalledtoaddresstheseissueswithparticularfocuson visions and scenarios forthe market and production potential ofthe freshwater aquaculturesectorintheEIFACregion.Theoutcomeoftheworkshopaimstoprovide keyinformationandstrategicadviceto(i)policymakers,administratorsandlegislators; (ii)futureinvestors:(iii)consumers,and,particularly,(iv)producers.TheAgendaofthe WorkshopandtheListofParticipantsareattachedasAppendix1and2,respectively. 2. STATUSOFEUROPEANFRESHWATERAQUACULTURE AlthoughfreshwateraquacultureinEuropefacesseriousconstraintstherearealso significantopportunities,particularlyfromthegrowinggapbctw'eensupplyanddemand forfishproducts,resultingbothfromthestagnationordeclineofmarinecapturefisheries andincreasesindemand. Inthedecadefrom 1988-1998freshwateraquacultureproduction inEurope dipnrrcoordpeupacestdeidofnrforsmotmaatib1sot5ui0tcs(6X0f)00ro10m(tXo)t6ht6et0oF04A,030O010,F0ei0sxhc1s.ltuaTdthiindsgatcmaoobmlaplsuaesrce(ssFawAniOdtha2qm0ua0ar0ti)inceipsalaqanuvtaasci.ullaAtbulredeig(weuhsntidceohrf asMtiegenthitiftinpcg:a/n/Dtwo'wcduiwfm.ffeeanrote.noscreiT;sw/efnbite/ybt-owfdeiver/esnitfaWScee/ssestiiefoarncn.aEsaIpnF.dAC/EXaTXshtIee/sr2en00Eg0ur/rolosnspfe4,f)igouWnrhesti,hleeEhopIwrFeoAdvCuecrtw,i'cobnhsiidtieen WesternEuropeincreasedfrom1955001to2500001duringtheperiod,inEastern TEhuerroepearietfaellslofmraojmor41di1ff5e0r0en1cteosi1n80sp0ec0i0est,cmoamipnolsyitaisonr.esuIlnttohfeteau.rsbtuclaernptsedcoomnionmaitcedtiwmietsh. around86percentwhile salmonidswere restrictedto9.4percent(althoughtrout productiondidincreaseduringtheperiod). Inthewestthereversewastruewith salmonidsjustover85percentandcarpsalmost9percent. Thebalanceinthewest representsdiversificationtosmallquantitiesofcel,andsmallerquantitiesofsturgeonand catfish. Itisimpossibletoavoidtheconclusionthat,asaresultofavarietyoffactors, freshwateraquaculturehasbeeneclipsedbymarineaquaculturebothinimportanceand diversity. Thetaskofidentifyingthesefactorsisnotsimpleandthecorequestionis whethertheycanberesolvedinordertoallowsectoraldevelopment. Inthefreshwateraquaculturesectorproductionisinfluencedbytwomajorfactors: theclimateandthewateravailabilityataspecificsite(thiseffectivelydetermineswhether cyprinidsorsalmonidsareproduced).Whilewaterlimitationshavetraditionallygoverned themaximumproductioncapacityforalocation,environmentallegislationonwaste Copyrightedmaterial 2 loadinghaslargelyreplacedwateravailabilityasthecriterion. IntheEuropean Communitysuchproductionlimitationshavegenerallyrestrictedcorporategrowth.This hasconfirmedthedominanceoffamily-ownedandoperatedunits,(micro-enterprisesin EuropeanCommunityterms).However,incertainareastherehasbeenadegreeof concentration ofproduction leading to cooperative structures for processing and distribution. Inotherca.sesmergersandbuy-outshaveledtoestablishmentoflarger companies,abletoprovidetheretailsectorwithmodemconsumerproducts. Intheeast thetransitiontoamarket-ledeconomyhascausedthedismantlingofsomeofthelarge state-runaquacultureenterprisesandtheemergenceoffamily-runoperationssimilarto thoseintheEuropeanCommunity. Therearefourclearmarketareasavailabletotheproduceroffreshwaterfish:the foodmarket,restocking,productionofornamentalfishandsportfisheries. Thefood marketisthepredominantoutletforallfreshwateraquaculturewhetherforimmediate localconsumption,distributiononawiderscalee.g.,throughsupermarketsorforexport. ExportopportunitieshavebeenlimitedtosometradebetweentheeastandGermanyfor carpbecauseofproductioncostdifferences.Carpisregardedasatraditionalproductand Germanyisthemajormarket. Althoughinrecenttimesconsumptionhasbeen increasinglyrestrictedtofestiveseasonsattemptsarebeingmadetoreversethistrend. Troutontheotherhandhasbeenabletodevelopamoremodemconsumer-friendly image,enablingthetroutsectortokeepupwithdevelopmentsinothercompetingfood products. However,salmonfrommarineaquaculture,supportedbyveryeffective promotion,isaseriouscompetitor. Theimportantles.sonstobelearntbythetrout producersareobvious. Thereisadegreeofinterestintheproductionoforganicallycertifiedfreshwater fishproductsbutthisishamperedbythedropofproductivityneededtomeetorganic standards(asignificantaspectinallorganicproductionpracticesistheissueoftransition fromthe"traditional"practicetoorganicproduction),thehighcostofcertificationandthe lackofregulationofprivatecertificationbodies. Ifcommonandtransparentstandards, basedonsoundscience,areintroducedthefuturecouldbebrightinsomeselected markets. Themarketforstockingfishintorivers,lakesandreservoirsisofinterestand shouldincreasewithgrowingenvironmentalpressuretoreturnspeciesthatusedtobe abundantinspecifichabitats. Salmon,sturgeonandthetraditionalsportsspecies (includingbothbrowntroutandcoarsefish)areproducedinhatcheriesthroughoutEurope forenhancingnativestocksorforrestocking.Restockingofspeciessuchassturgeonalso hasapromisingfuture,bothforconservationandcommercialpurposes. Ornamentalfishproductionfortheaquariumtradeisofgrowingimportance,not leasttoreplacethehighlevelofimports. Sportfisheriesofferanattractivediversificationopportunityforsomefreshwater fishfarms.Increasingleisuretimeandthegrowthofagro-tourismprovideaviablemarket forthedevelopmentofon-farmfreshwateranglingfacilities. Thesecaneasilybe integratedwithfoodfishproductionandcanalsoprovidepublicityforthefoodfish throughu.seinrestaurantsassociatedwithsuchdevelopments. 3. REGULATORYFRAMEWORK ThroughoutEuropeaquaculturesuffersfromthelackofanadequateregulatory framework.Itisimportantthatassuchaframeworkisdevelopeditisdonesoin Copyrightedmaterial 3 consultationwiththeindustry.Theindustrythereforehastheresponsibilityofcooperation asacoherentpartnerfordiscussion. regulatoWriythsitnructthuereEaCndittheirseraerceogmnoisveedstthoatmaakqeuactuhlisturmeoreprotdruancseprasrenfta.ceAadciormecptloerxy containingthemostimportantregulations,directivesanddecisionscurrentlyinforce regardingaquaculture,aswellasprocessingandmarketingoffisheryproducts,hasbeen preparedbytheECDCFisheriesservices. Thiswillbethenucleusofadatabase a3v5a0ilaacbtlsecounrretnhtelyweibnsitthee:dihrtetcpt:o/r/yeuarpoppra.oexui.miantte/lcyomhma/ldfgsa/rfeisgheerrimeasn/eindteoxaqeuna.chutltmu.re.OfTthhee keylegislativeactsarelessnumerousandaresummarisedbelow. 3.1 EnvironmentalI^egislation Environmentalprotectionhasassumedacentralroleintheobjectivesofthe EuropeanCommunity. Whilecurrentenvironmentalprovisionsdonotcreateaspecific- frameworkforaquaculture,theyhaverelevanceforthesector.Whensettingupafishfarm locationandenvironmentalconstraintshavetobetakenintoaccount.Natureconservation requirementsareprincipallyfoundinDirective79/409/EEContheconservationofwild birds;aswellasDirective92/43/EEContheconservationofnaturalhabitatsandwild floraandfauna.SinceOctober2000,mostwaterqualityissueshavebeentakeninto accountthroughDirective2000/60/EECwhichestablishesaframeworkforCommunity actioninthefieldofwaterqualitycoveringinlandsurfacewaters,transitionalwaters, coastalwatersandgroundwater. Inthelongtermthisdirectivewillintroduceriverbasin management,monitoringofthechemicalandecologicalstatusofwaterandpollution measurement.Itrepealsearlierdirectivesonwaterqualitystandards. Directive85/337/EEContheassessmentoftheeffectsofpublicandprivate projectsontheenvironmentrequiresthatprojectslikelytohaveasignificanteffectshould besubjecttoenvironmentalimpactassessment(ElA). AccordingtotheDirective,the MemberStatesdecidewhetheranintensivefishfarmshouldundergoanEIA. Directive 76/464/EEConcontrolofpollutionbydischargeofdangeroussubstancesintotheaquatic environmentalsocoversbiocidesandorganicsubstancesusedinaquaculture. Aquacultureactivitieswillbesubjecttomonitoringandpossibleenforcement actiontoensurethattheymeetemissionstandardsfixedunderDirective76/464/EEC. Theremayalsoberestrictionsontheuseofsomechemicalsinaquacultureunderasetof Directivesrelatingtorestrictiononthemarketinganduseofcertaindangeroussubstances. Therearealsoothercontrolsthatmayhaveaneffectonaquaculture.Examplesare Directive76/464/EECcontrollingdischargesofdangeroussubstancesfromindustry (includingheavymetals)andDirective91/271/EEConurbanwastewatertreatment.Both shouldcontributetoachievingbetterwaterqualityforaquaculture. 3.2 HygieneinFoodstuffs EClegislationonfood.safetyiscomplexandnotalwaysclear.Consolidationhas progressedundertheSimplificationofLegislationfortheInternalMarket(SLIM),witha draftproposalmerging16Councildirectivesonanimalhealthandfoodhygieneintofour regulationsandonedirective.ThesearenotyetadoptedbytheCouncilbutareexpected toenterintoforceinJuly2002. Thelegislationplacesthefullresponsibilityforfood safetyonthefoodproduceratalllevelsofthefoodchain,fromprimaryproductiontothe consumer. Theveterinaryruleshavealsobeenrecasttopreventthespreadofanimal di.sea.sesthroughproductsofanimalorigin.Thenewdirectivewillrepealprevioustexts andwillapplybothtoECproductsandimpiortsfromthirdcountries. Fishfarmerswill Copyrightedmaterial