Case Study in France Saithe Fillets
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CASE STUDY SAITHE FILLETS IN FRANCE PRICE STRUCTURE IN THE SUPPLY CHAIN SEPTEMBER 2018 WWW.EUMOFA.EU Maritime Affairs and Fisheries Contents SUMMARY ............................................................................................................................................... 1 0 TASK REMINDER – SCOPE AND CONTENT ........................................................................... 2 0.1 CASE STUDY SCOPE ........................................................................................................................ 2 0.2 CONTENT OF THE DOCUMENT ........................................................................................................ 2 1 DESCRIPTION OF THE PRODUCT ............................................................................................ 3 1.1 BIOLOGICAL AND COMMERCIAL CHARACTERISTICS ..................................................................... 3 1.2 PRODUCTION AND AVAILABILITY OF SAITHE ................................................................................ 4 2 STRUCTURE OF THE EU MARKET .......................................................................................... 7 2.1 EU MARKET FOR SAITHE ................................................................................................................ 7 Apparent market by Member State ......................................................................................... 7 Imports ................................................................................................................................... 8 Exports ................................................................................................................................. 12 2.2 MARKET SEGMENTATION ............................................................................................................ 15 2.3 THE FRENCH MARKET .................................................................................................................. 16 Supply balance ..................................................................................................................... 16 Imports ................................................................................................................................. 17 Exports ................................................................................................................................. 19 3 PRICES ALONG THE SUPPLY CHAIN .................................................................................... 20 3.1 PRICE INFORMATION SOURCES .................................................................................................... 20 3.2 FIRST SALE PRICE ......................................................................................................................... 20 3.3 IMPORT PRICES ............................................................................................................................. 21 3.4 WHOLESALE PRICE....................................................................................................................... 22 3.5 RETAIL PRICE ............................................................................................................................... 22 3.6 PRICE AND MARGIN AT THE DIFFERENT STAGES OF THE SUPPLY CHAIN...................................... 23 4 PRICE TRANSMISSION IN THE SUPPLY CHAIN IN FRANCE ......................................... 24 4.1 ANNEXES ................................................................................................................................... 26 Sources used ......................................................................................................................... 26 Interviews ............................................................................................................................. 26 i EUROPEAN MARKET OBSERVATORY FOR FISHERIES AND AQUACULTURE PRODUCTS – Saithe fresh fillets in France Summary Context • Saithe is an important commercial species for the EU fishing industry. However, catches have decreased sharply over the past decade, especially due to TAC reduction, which aims to sustainably manage saithe stocks. According to FAO, world production of saithe reached 298.086 tonnes in 2016, experiencing a 40% decrease since 2006. • In 2016, the EU accounted for 14% of the world catches of saithe; EU catches reached almost 41.000 tonnes. The main EU fishing countries for saithe are France (35%), the UK (30%), Germany (18%), and Denmark (10%). • Saithe fishery concerns mostly off-shore bottom trawlers landing fresh fish (France, Germany, Iceland) and freezer trawlers (France, Norway, Iceland). The main fishing season takes place from February to May. • In 2015, most of the EU landings of saithe occurred in Denmark (42%) and in the UK (40%). Significant volumes of saithe are also landed in France (10%) and Germany (4%). • The French fleet lands saithe in France and in other Member States. When landings take place in another MS, first sale may occur: o in France (product is transported by truck to France), or o in the MS where the fish is landed. French supply balance • Apparent consumption for saithe is estimated at 41.949 t. The French supply mainly relies on imports (72% of volume). • Imports are mainly made up of fillet (frozen and fresh) and, to a lesser extent, fresh whole saithe. French imports mainly come from Denmark (frozen and fresh fillet, fresh whole saithe), the Netherlands (frozen fillet) and the United Kingdom (fresh fillet and fresh whole saithe). Price structure • The product covered by the present analysis is fresh fillet of saithe, from fish landed in France to the retail stage (large scale retailers). • Based on this price structure analysis: o Raw material (whole gutted fish) accounts for 36% of the final price; o Filleting costs account for 15% of the final price; o Loss at retail stage and distribution costs and margin account for 35% of the final price; o The final price for the consumer is 9,34 EUR/kg (incl. VAT). Based on interviews and store checks, the price may range between 6,95 EUR/kg (fresh fillet with discount) and 17,76 EUR/kg (frozen loin). 1 EUROPEAN MARKET OBSERVATORY FOR FISHERIES AND AQUACULTURE PRODUCTS – Saithe fresh fillets in France 0 TASK REMINDER – Scope and content 0.1 Case study scope Reminder The scope of the case study, aiming to analyse saithe fillets’ (Pollachius virens) price transmission and distribution of value in the French supply chain, is described in the table below. Product Origin Characteristics Market and price drivers Found both fresh and frozen TACs and quotas on the market Fisheries Fresh saithe (fillets) (EU + extra-EU) Supply/demand balance (stability of the Affected by TAC and quotas market) evolutions Key elements of the analyses will concern: • EU production; • The characteristics of the French market for saithe (processing, segmentation, etc); • Price structure. Species - Products Main MS (focus) Other MS (overview) Saithe (Pollachius virens), fresh fillets France - 0.2 Content of the document In conformity with the methodology developed within the EUMOFA, the document includes: • a description of the product; • a description of the main EU markets for saithe products, with a special focus on the French market; • an analysis of the price transmission along the supply chain in France. 2 EUROPEAN MARKET OBSERVATORY FOR FISHERIES AND AQUACULTURE PRODUCTS – Saithe fresh fillets in France 1 DESCRIPTION OF THE PRODUCT 1.1 Biological and commercial characteristics The case study focuses on fresh saithe (also named coalfish) in France, which is the largest EU market for saithe. Saithe is a gregarious pelagic fish found in inshore and offshore waters to above 200 m depth. It belongs to the same family as cod and haddock, but is distinguished from other species of the genus Gadus by its dark colour. Although it can be found from the Arctic Ocean to the Mediterranean, it is commonly a northern fish. It usually enters coastal waters in spring and returns to deeper water in winter.1 Its growth is rapid and can reach a total length of nearly 130 cm, but common size is from 30 to 110 cm. The maximum age is 25 years. Smaller fish in inshore waters feeds on small crustaceans and small fish, while the larger saithe mostly preys on fish species (such as pout, sprat and blue whiting).2 In EU waters, the minimum conservation reference size for saithe is 35 cm (except in Skagerrak and Kattegat: 30 cm)3. The four main stocks4 are sustainably exploited and several fishing companies have been certified by the Marine Stewardship Council (MSC) for saithe products. Case study product Name: Saithe (Pollachius virens) FAO 3-alpha code: POK Presentation: Fresh whole or in fillets, steaks, loins5, flanks; frozen whole headed and gutted, cuts (IQF6), blocks; dried (for African market); preserved7. Commercial size: the species can reach nearly 130 cm total length, but common size is from 30 to 110 cm. Main commercial categories are: • Fresh whole: 5 kg and +, 3-5 kg, 1,5-3 kg, 0,3-1,5 kg; • Fresh fillets or loins: 600 g and +, 400-600 g, 200-400 g. 1 http://www.seafish.org/media/Publications/2006_COLEY_REPORT.pdf 2 http://www.fao.org/fishery/species/3016/en 3 Council Regulation (EC) No 850/98 of 30 March 1998 for the conservation of fishery resources through technical measures for the protection of juveniles of marine organisms. 4 North-East Arctic, North Sea/Skagerrak/West Scotland and Rockall, Iceland/East Greenland and Faroe Islands shelf. 5 See details on the