Synthesis of Mediterranean marine finfish aquaculture

221 Pages·2010·2.74 MB·English

GENERAL FISHERIES COMMISSION FOR THE MEDITERRANEAN

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STUDIES AND REVIEWS

No. 88 2010

SYNTHESIS OF MEDITERRANEAN MARINE FINFISH
AQUACULTURE - A MARKETING AND PROMOTION
STRATEGY
Cover photos and design:
Front pictures left to right: gilthead sea breams (©FAO/R.Rorandelli); fish market in Cairo,
Egypt (©FAO/L.Spaventa); meagre fillets (courtesy Hatko Aquaculture, Turkey); floating
culture cages (courtesy F. De Rossi)

Cover design by F. De Rossi
Cover photos and design:
Front pictures left to right: gilthead sea breams (©FAO/R.Rorandelli); fish market in Cairo,
Egypt (©FAO/L.Spaventa); meagre fillets (courtesy Hatko Aquaculture, Turkey); floating
culture cages (courtesy F. De Rossi)

Cover design by F. De Rossi
STUDIES AND REVIEWS No. 88

GENERAL FISHERIES COMMISSION FOR THE MEDITERRANEAN

SYNTHESIS OF MEDITERRANEAN MARINE FINFISH AQUACULTURE –
A MARKETING AND PROMOTION STRATEGY

by

Lara Barazi-Yeroulanos

FAO Consultant

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 2010
The designations employed and the presentation of material in this information
product do not imply the expression of any opinion whatsoever on the part
of the Food and Agriculture Organization of the United Nations (FAO) concerning the
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not imply that these have been endorsed or recommended by FAO in preference to
others of a similar nature that are not mentioned.

The views expressed in this information product are those of the authors and
do not necessarily reflect the views of FAO.

ISBN 978-92-5-106617-1

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© FAO 2010
PREPARATION OF THIS DOCUMENT

This document is an output of the projet entitled “Support to the General Fisheries Commission for the
Mediterranean (GFCM) Working Group on Marketing of Aquaculture Products: Development of a
Strategy for Marketing and Promotion of Mediterranean Aquaculture (MedAquaMarket)” funded by
the Government of Spain, Secretaria General de Pesca of the Ministerio de Agricultura, Pesca y
Alimentación. The advance copy of this document was first presented to the CAQ Coordinating
Meeting of the Working Groups (CMWG) in Rome, Italy, 24-26 February 2010, and was circulated
during the 34th Session of the GFCM in Athens, Greece, 14-17 April 2010. Furthermore it was made
available on the GCFM web site under the title “Regional synthesis of the Mediterranean marine
finfish aquaculture sector and development of a strategy for marketing and promotion of
Mediterranean aquaculture (MedAquaMarket)”.
The purpose of this report is to provide an overview of the marine aquaculture industry in the
Mediterranean and its markets based on national country reports submitted by national experts
selected in the Mediterranean countries. All data submitted in the national reports have been used and
collated to allow a comparison across countries. Examples from individual countries, where available,
have been included to illustrate or explain a certain point or trend. Some data obtained from outside
sources have also been used when the relevant information was not available from the national reports.
Sources are referenced in the attached bibliography. Additional insight obtained through interviews of
industry professionals, members of the scientific and academic community and the author’s own
experience has also been used throughout the document.
The experience of this project has clearly illustrated the problem of consistent and reliable data
collection for the industry. Informal, experience-based information was often proved to provide a
more accurate picture of the state of the industry than official figures, with a discrepancy of more than
thirty percent in some countries. However, in comparison with past surveys, it is clear that official data
collection systems are becoming more accurate and the hope is that the next survey on the same topics
will present a much more consistent and accurate picture.

ACKNOWLEDGEMENTS

Special thanks are due to Fabio Massa, Ferit Rad and Maria Cozzolino for their comments and support
to this publication. Their insight and contribution has been invaluable. Thanks are also due to Phillipos
Papageorgiou, Yannis Pelekanakis and Nathalie Gamain for their kind assistance in the completion of
this document.
This document could not have been completed without the cooperation and contribution of the
national marketing experts from the Mediterranean Region. The timely and periodic collation of
production and market data is a precious tool for the correct development of this promising industry
and it is to be hoped that such collaboration will continue in the future.
Thanks are also due to the colleagues in the Mediterranean aquaculture sector; Thanasis Frentzos,
Panos Kolios, Pavlina Pavlidou, John Stefanis, Marco Gilmozzi, Philipe Riera, Gustavo Larrazabal
and Javier Piles for information, insight and inputs without which the compilation of this report would
not have been possible.
The Secretariat of the GFCM is acknowledged for the contribution given in the collection and
updating of information from the Mediterranean region and for the editing of the manuscript.

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Barazi-Yeroulanos, L.
Synthesis of Mediterranean marine finfish aquaculture – a marketing and promotion strategy.
Studies and Reviews. General Fisheries Commission for the Mediterranean. No. 88 Rome, FAO.
2010: 198p.

ABSTRACT

This document is a follow-up study of the MedAquaMarket project in support to the activities of the
General Fisheries Commission for the Mediterranean (GFCM) –Committee on Aquaculture (CAQ)–
Working Group on Marketing on Aquaculture (WGMA). The MedAquaMarket project was funded
by the Government of Spain (Secretaria General de Pesca, Ministerio de Agricultura, Pesca y
Alimentación). Based on fifteen national country reports and other relevant sources of information, it
provides an overview of the status and trends of the marine aquaculture industry in the
Mediterranean region and its markets. The production and market data availability and data
collection as well as the importance of having a common data system are indicated as relevant for
assessing marine aquaculture production, for making a comparison across countries and for
identifying market trends. The market characteristics of Mediterranean aquaculture products
including consumption patterns, distribution channels, the image of the industry and the organic
aquaculture market are described. The information gathered and analyzed at the regional and national
levels on the state of the industry from a production perspective (juveniles’ production, country
market share, product mix, price evolution at national and regional level analysis of industry
structure and of costs of production as well as the legal and regulatory framework) permitted a
quantitative and qualitative analysis and assessment of the Mediterranean finfish marine aquaculture
market and production. These were also useful in formulating a better understanding of the present
situation with particular attention to the market and to an industry characterized by a strong
cyclicality with uneven periods of production growth and retrenchment. Stabilizing measures are
indicated as essential to help smooth out the sharp boom and bust cycles of the industry, such as the
provision of timely production and market data, market studies in order to better understand the
demand potential of consuming markets and promotion tools to improve the image of Mediterranean
aquaculture products. Competition for space, simplification of the licensing procedure, simplification
of legislation improving the industry’s competitiveness and productivity, competition with imports
and high costs associated with compliance to stringent regulations are considered as the main
common problems addressing the future of aquaculture growth in the Mediterranean. Initiatives
which facilitate the legal and spatial framework for growth and initiatives which improve cost
competitiveness are indicated as the two basic priorities to ensure the future viable growth of the
industry. The document includes also the results of the final MedAquaMarket Workshop on
“Development of a strategy for marketing and promotion of Mediterranean Aquaculture”, held in
Morocco, 29-30 October 2009, including the discussion on the main findings of the MedAquaMarket
project in relation to the main strategies for promoting markets and marketing of Mediterranean
aquaculture products. Market data collection schemes, information networks, functionality of
producer organizations, image of aquaculture and sustainable development were among the issues
that were identified as priorities for the WGMA future activities.

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CONTENTS

PREPARATION OF THIS DOCUMENT ...................................................................................... iii
ACKNOWLEDGMENTS .............................................................................................................. iii
ABSTRACT ................................................................................................................................... iv
TABLES........................................................................................................................................... vii
FIGURES ........................................................................................................................................ ix
ABBREVIATIONS AND ACRONYMS ....................................................................................... xi
1. INTRODUCTION ....................................................................................................................... 1
1.1 Background ........................................................................................................................... 1
1.2 Overview of world fisheries ................................................................................................. 2
2. THE AQUACULTURE INDUSTRY IN THE MEDITERRANEAN AREA ............................ 6
2.1 History and evolution of the industry ................................................................................... 7
2.2 Overview of main producing countries ................................................................................ 8
3. PRODUCTION TRENDS 2003–2007 ....................................................................................... 27
3.1 Juvenile production ............................................................................................................ 27
3.1.1 Foreign trade ......................................................................................................... 35
3.1.2 Use ......................................................................................................................... 35
3.2 Ongrowing production .......................................................................................................... 39
3.3 Comparisons of official to estimated or actual production data ........................................... 45
3.4 Capture fisheries production of European seabass and gilthead seabream .......................... 49
4. STRUCTURE OF THE AQUACULTURE INDUSTRY............................................................ 55
4.1 System type .......................................................................................................................... 55
4.2 Size of enterprises ................................................................................................................ 58
4.3Analysis of production by size grade .................................................................................... 61
5. COSTS OF PRODUCTION ........................................................................................................ 61
5.1 Production costs reported from different countries .............................................................. 61
5.2 Production cost variations .................................................................................................... 73
5.3 Scope for reducing production costs .................................................................................... 74
5.3.1 Farm productivity .................................................................................................. 74
5.3.2 Automation ............................................................................................................ 74
5.3.3 Research and Development (R&D) ...................................................................... 74
5.3.4 Information systems ............................................................................................... 75
6. REGULATORY AND STRUCTURAL CONTEXTS ................................................................ 76
6.1 Laws and regulations ............................................................................................................ 76
6.2 Role and power of producer’s organization and collective action ....................................... 79
7. STATE FUNDING AND SUBSIDIES ....................................................................................... 81
7.1 Funding and subsidies in EU-Member States ...................................................................... 81
7.2 Funding and subsidies in non-EU States .............................................................................. 83
8. POTENTIAL FOR DEVELOPMENT ......................................................................................... 84
8.1 Likely future development of the industry ............................................................................ 84
8.2 Forecast production .............................................................................................................. 86
9. SEAFOOD MARKETS AND CONSUMPTION IN GFCM COUNTRIES............................... 87
9.1 General characteristics, consumer demographics .............................................................. 87
9.2 Consumption of capture fisheries products ......................................................................... 91
9.3 Market aspects of farmed fish ............................................................................................. 93
9.3.1 Domestic consumption, seasonality of consumption ........................................... 93
9.3.2 Consumption of European seabass and gilthead seabream .................................. 96
9.3.3 International trade in European seabass and gilthead seabream .......................... 104
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9.3.4 Distribution and retailing of farmed fish ............................................................... 108
9.3.5 Current product forms in each sector .................................................................... 115
9.3.6 Costs and margins in the distribution chain .......................................................... 116
9.3.7 Interaction between farmed and wild caught European seabass and
gilthead seabream ................................................................................................. 116
9.4 Marketing aquaculture products ........................................................................................... 117
9.4.1 The image of aquaculture and its products ........................................................... 117
9.4.2 Marketing activities for European seabass and gilthead seabream ....................... 118
9.4.3 Traceability, labelling and certification ................................................................. 123
9.5 Niche markets: organic aquaculture .............................................................................. 124
9.6 Future of the market for aquaculture products ...................................................................... 132
9.6.1 New product forms and species ............................................................................. 132
9.6.2 Strategic options .................................................................................................... 135
9.6.3 Actual or potential trade barriers ........................................................................... 137
9.6.4 Potential demand 2010–2015 ................................................................................ 138
10. PRICE EVOLUTIONS ...................................................................................................... 142
10.1 Introduction ......................................................................................................................... 143
10.2 Evidence for the crisis ......................................................................................................... 144
10.3 Causes and impacts in different countries .......................................................................... 147
10.4 Was the price crisis caused by over production? ................................................................ 149
10.5 Concluding remarks: price evolutions and supply and demand analysis............................ 150
11. SWOT ANALYSES (Strengths, Weaknesses, Opportunities and Threats)............................... 152
12. CONCLUSIONS ....................................................................................................................... 154
12.1 Production .......................................................................................................................... 156
12.2 Research and technology .................................................................................................... 157
12.3 Codes of Conduct ............................................................................................................... 157
12.4 The market .......................................................................................................................... 158
12.5 Information ......................................................................................................................... 158
12.6 Price observatory ................................................................................................................ 159
12.7 Collective actions and interbranch organizations ............................................................... 160
12.8 Future scenarios .................................................................................................................. 160
13. RECOMMENDATIONS (Development of a Strategy for Marketing and Promotion of
Mediterranean Aquaculture) .................................................................................................... 161
14. REFERENCES .......................................................................................................................... 163
Appendix 1: The pangasius phenomenon ....................................................................................... 167
Appendix 2: Organic market stakeholders ...................................................................................... 171
Appendix 3: EU organic regulations ............................................................................................... 175
Appendix 4: Organic issues ............................................................................................................. 177
Appendix 5: List of participants to the GFCM/CAQ Technical Meeting of the Working Group
on Marketing, Malabata – Tangier (Morocco), 26-27 October 2009 ......................... 179
Appendix 6: Aquaculture legislation – Greece ................................................................................ 183

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TABLES

1 – World capture fisheries and aquaculture production.......................................................................4
2 – European sea bass and gilthead seabream production : Spain, Turkey and Greece......................12
3 – Spain: Aquaculture production......................................................................................................12
4 – Spain: Size of enterprises..............................................................................................................14
5 – France: Aquaculture production ...................................................................................................15
6 – France: Juvenile hatchery production............................................................................................16
7 – Cyprus : Aquaculture production..................................................................................................17
8 – Cyprus: Aquaculture production by species..................................................................................18
9 – Malta: Aquaculture production, 2003–2007..................................................................................18
10 – Morocco: Aquaculture production...............................................................................................21
11 – Tunisia: Juvenile production........................................................................................................23
12 – European seabass and gilthead seabream juvenile production, 2007..........................................28
13 – Percentage growth in juvenile production and use by country, 2003–2007.................................29
14 – Production of and trade in European seabass juveniles, 2003–2007 ...........................................33
15 – Production of and trade in gilthead seabream juveniles, 2003–2007 ..........................................34
16 – Egypt: Juveniles production for all species..................................................................................35
17 – European seabass and gilthead seabream production mix............................................................35
18 – Greece: European seabass and gilthead seabream production mix..............................................36
19 – Greece: Licensed capacity for juvenile production......................................................................37
20 – Greece: Juvenile production, official vs. actual production.........................................................38
21 – European seabass and gilthead seabream production in the Mediterranean ................................39
22 – European seabass and gilthead seabream production: country ranking, market share
and growth...........................................................................................................................39
23 – Aquaculture production of European seabass, 2003–2007..........................................................43
24 – Aquaculture production of gilthead seabream, 2003–2007..........................................................44
25 – European seabass and gilthead seabream production estimates – Data comparisons
in Greece..............................................................................................................................46
26 – Spain: European seabass and gilthead seabream production estimates.......................................47
27 – Italy: European seabass and gilthead seabream production estimates.........................................47
28 – Egypt: European seabass and gilthead seabream production estimates.......................................49
29 – European seabass and gilthead seabream capture fisheries production (country reports)............50
30 – European seabass and gilthead seabream capture fisheries production (FAO, 2009)..................51
31 – Greece: Number of aquaculture production units.........................................................................55
32 – Italy: Aquaculture production systems type.................................................................................55
33 – Spain: Aquaculture production system type.................................................................................56
34 – Tunisia: Aquaculture production system type..............................................................................56
35 – Turkey: System type and volume in 2007....................................................................................57
36 – Mediterranean aquaculture average production size....................................................................59
37 – Company/farm production sizes 2007..........................................................................................59
38 – Fish-farming companies by annual turnover................................................................................60
39 – Mediterranean production by size category ................................................................................61
40 – Production costs for marine cage farms.......................................................................................63
41 – Share of feed, juveniles and labour in variable cost by production scale.....................................68
42 – Share of depreciation and maintenance in fixed costs by production scale.................................70
43 – Costs of production for land-based installations..........................................................................71
44 – Fixed vs. variable costs for land-based farms .............................................................................72
45 – Cost of production per kilo by production size ...........................................................................73
46 – National seafood per capita consumption ....................................................................................89
47 – Seafood per capita consumption for selected species...................................................................92
48 – National apparent seafood per capita consumption .....................................................................93
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