case study - EUMOFA

CASE STUDY

GILT-HEAD SEABREAM IN ITALY PRICE STRUCTURE IN THE SUPPLY CHAIN

LAST UPDATE: SEPTEMBER 2017

WWW.EUMOFA.EU Maritime Affairs and Fisheries

EUROPEAN MARKET OBSERVATORY FOR FISHERIES AND AQUACULTURE PRODUCTS – Gilt-head seabream in Italy

Contents 0

TASK REMINDER – SCOPE AND CONTENT.................................................................................. 1 0.1 CASE STUDY SCOPE ............................................................................................................................. 1 0.2 CONTENT OF THE DOCUMENT ............................................................................................................... 1

1

DESCRIPTION OF THE PRODUCT................................................................................................ 2 1.1 BIOLOGICAL AND COMMERCIAL CHARACTERISTICS .................................................................................... 2 1.2 PRODUCTION CYCLE ............................................................................................................................ 4 1.3 PRODUCTION AND AVAILABILITY OF GILTHEAD SEABREAM ......................................................................... 4 1.3.1 Structure of the supply ........................................................................................................... 4 1.3.2 Supply from capture fisheries................................................................................................. 5 1.3.3 Supply from aquaculture ........................................................................................................ 6 1.4 SEABREAM AQUACULTURE IN ITALY ....................................................................................................... 8 1.4.1 Farming systems .................................................................................................................... 8 1.4.2 Location of production ........................................................................................................... 9

2

THE EU MARKETS FOR FRESH SEABREAM.................................................................................. 9 2.1 STRUCTURE OF THE EU MARKET ........................................................................................................... 9 2.2 THE ITALIAN MARKET ........................................................................................................................ 10 2.2.1 A mature market .................................................................................................................. 10 2.2.2 Seabream species n°1 in the Italian consumption of fresh fish............................................ 10 2.2.3 A market widely depending on import ................................................................................. 11 2.2.4 Supply balance ..................................................................................................................... 13 2.2.5 Segmentation of the market ................................................................................................ 14 2.3 OVERVIEW OF THE MAIN EU MARKETS ................................................................................................. 20 2.3.1 Greece .................................................................................................................................. 20 2.3.2 Spain..................................................................................................................................... 21

3

PRICES ALONG THE SUPPLY CHAIN ......................................................................................... 23 3.1 PRICE INFORMATION SOURCES............................................................................................................ 23 3.2 PRODUCER PRICES ............................................................................................................................ 23 3.3 FIRST SALE PRICES ............................................................................................................................. 23 3.4 IMPORT PRICES ................................................................................................................................ 24 3.5 WHOLESALE PRICES .......................................................................................................................... 24 3.6 RETAIL PRICES .................................................................................................................................. 24 3.6.1 MIPAAF................................................................................................................................. 24 3.6.2 API ........................................................................................................................................ 26 3.6.3 ISMEA ................................................................................................................................... 26 3.6.4 EUMOFA ............................................................................................................................... 27

4

PRICE TRANSMISSION IN THE SUPPLY CHAIN .......................................................................... 28

5

ANNEXES ............................................................................................................................... 30 5.1 SOURCES USED................................................................................................................................. 30

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0 TASK REMINDER – Scope and content 0.1 Case study scope Reminder The rationale for the choice of seabream to analyse price transmission and distribution of value in the Italian supply chain is described in the table below. Product

Seabream (whole, for fresh market)

Origin

Aquaculture (EU + extra-EU)

Characteristics

Market and price drivers

Growing reference in the fresh whole fish market

Supply/demand balance (market stability)

Largest species consumed fresh

Price of imported seabream/seabass (Greece, Turkey)

Species particularly requested by big retailers

Origin : quality and differentiation of Italian products vs. imported products

Key elements of the analyses will concern: • • •

The influence of Eastern Mediterranean supply (Greece, Turkey, Croatia) on prices and balance; The role of GDO (“Grande Distribuzione Organizzata”, literally “Large Organized Distribution”, i.e. large-scale retailers) in the marketing of farmed species; The market dynamics and the effects of private labels and innovation (fillets, carpaccio) on prices and demand.

The study focuses on the Italian market for fresh whole seabream. It also provides an insight into the other two big markets: Greece and Spain. This is an update of a previous study, initially carried out in March 2012. Species - Products

Main MS (focus)

Other MS (overview)

Seabream (fresh, whole)

Italy

Greece, Spain

0.2 Content of the document In conformity with the methodology developed within EUMOFA project and published in the website (http://www.eumofa.eu/price-structure), the document includes: • • •

A description of the product; A description of the most relevant EU markets for seabream, with a special focus on the Italian market; An analysis of the price structure along the supply chain.

1


1 DESCRIPTION OF THE PRODUCT 1.1 Biological and commercial characteristics The case study focuses on fresh farmed gilt-head seabream.

Case study product Name: gilt-head seabream (Sparus aurata) FAO code: SBG Presentation: quite exclusively whole fish, ungutted, fresh or chilled. Fresh fillets and frozen fillets marginal (fillet yield: 25%). Commercial size: 200 - 800 g (mostly), but some farms offer individuals up to 1,5 kg.

2


Biological parameters Parameter Temperature Habitat Diseases in farming Maturation Diet in the wild Diet in farming

Characteristics

22 - 26°C Saltwater Vibrio spp, Pseudomonas spp, Pasteurella spp, Trichodina; Cryptocaryon spp After 13 months Carnivorous Juvenile phase : live feed Grow-out : fish feed (50% of marine origin, hereof 35% fishmeal) Juvenile phase 140 days Grow-out 14-16 months Distribution in the wild Mediterranean, Black Sea, North Eastern Atlantic Farming Greece, Turkey, Italy, Spain, France, Malta, Croatia, Cyprus, North Africa, Egypt, Israel Farming systems Ponds/lagoons, tanks, cages, offshore systems Source : Kontali analyse

Related codes in the product nomenclature. Gilt-head seabream is distinguished in the Combined Nomenclature (CN)1. From 2012 onwards the fillet and the frozen forms are differentiated: CN code: 03 02 85 30 — “Gilt-head seabream (Sparus aurata), fresh” CN code: 03 03 89 55 — “Gilt-head seabream (Sparus aurata), frozen”.

1

CN is a tool for designating goods and merchandise which was established to meet simultaneously the requirements both of the Common Customs Tariff and of the external trade statistics of the EU. The basic regulation is Council Regulation (EEC) n°2658/87; an updated version of the Annex I is published every year as a Commission regulation (latest version: Commission Implementing Regulation (EU) n°2016/1821).

3


1.2 Production cycle Figure 1 – Production cycle of seabream/seabass BROODSTOCK  EGGS

HATCHING  LARVAE

3-4 days

WEANING  FRY

2 months

DISTRIBUTION TO MARKETS

NURSING  JUVENILES

ON GROWING  FISH

1-2 months

PACKAGING

16-22 months

TRANSPORT

HARVESTING

Source : Kontali analyse

1.3 Production and availability of gilt-head seabream 1.3.1 Structure of the supply The European supply of gilt-head seabream depends at 96% on aquaculture. Table 1 - Structure of the EU supply of gilt-head seabream (Sparus aurata) t

Fisheries

Aquaculture

2000

4 001 5 649 5 174 4 848 5 396 2 093 2 351 2 563 2 449 2 834 3 095 3 246 2 742 3 118 3 250 3 558

59 547 64 545 60 498 72 134 64 704 72 480 73 909 85 743 87 815 97 714 93 076 80 030 86 503 93 218 86 914 82 526

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total production

% aquaculture

63 548

93,7%

70 194

92,0%

65 672

92,1%

76 982

93,7%

70 100

92,3%

74 573

97,2%

76 260

96,9%

88 306

97,1%

90 264

97,3%

100 548

97,2%

96 171

96,8%

83 276

96,1%

89 245

96,9%

96 336

96,8%

90 164

96,4%

86 084

95,9%

Source : based on FAO-Fishstat

4


1.3.2 Supply from capture fisheries Catches of gilt-head seabream are dominated by France, Italy and Spain in the EU and by Tunisia, Egypt and Turkey outside of the EU. In recent years EU catches have been quite stable around 3.000 tonnes. Yearly world catches of gilt-head seabream average 8.000 tonnes. The Mediterranean Sea provides almost all of the world supply. Figure 2 – World catch of gilt-head seabream (tonnes)

Table 2 - World catch of gilt-head seabream (tonnes) 2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Other EU-28

376 1 229 1 939 183 248 25 1

369 2 164 2 675 213 176 11 41

474 1 174 3 004 268 199 6 49

618 954 2 999 94 172 6 5

748 978 3 349 175 131 8 7

567 744 265 137 357 16 7

675 1 054 303 150 138 19 12

549 1 126 424 240 166 44 14

496 1 189 339 189 208 18 10

951 1 151 293 200 194 33 12

1 215 1 022 341 220 227 59 11

1 018 1 235 439 286 187 74 8

696 816 672 230 184 74 77

928 944 641 283 205 77 40

1 198 819 523 298 293 96 23

1 167 826 931 241 194 141 58

EU-28

4 001

5 649

5 174

4 848

5 396

2 093

2 351

2 563

2 449

2 834

3 095

3 247

2 749

3 118

3 250

3 558

Egypt Tunisia Turkey Morocco Mauritania Other non-EU

2 478 757 830 6 75

2 312 399 1 070 3 131

2 480 822 700 10 251

1 373 1 026 794 18 76

1 353 1 140 879 78 69

1 334 1 121 1 215 248 92

2 569 1 228 867 320 138

2 884 695 759 389 88

2 705 699 1 526 275 138

2 798 538 1 186 340 313

2 072 495 1 164 368 711 457

1 702 409 766 301 907 220

1 663 789 918 192 1585 211

1 503 928 944 146 372 200

1 457 1 087 606 159 5 139

825 3 282 481 103 12 177

Non-EU

4 146

3 915

4 263

3 287

3 519

4 010

5 122

4 815

5 343

5 175

5 267

4 305

5 358

4 093

3 453

4 880

TOTAL

8 147

9 564

9 437

8 135

8 915

6 103

7 473

7 378

7 792

8 009

8 362

7 552

8 107

7 211

6 703

8 438

% EU-28

49%

59%

55%

60%

61%

34%

31%

35%

31%

35%

37%

43%

34%

43%

48%

42%

France Spain Italy Portugal Greece Croatia

Source : FAO-Fishstat

5


Other species of seabreams, about 6.000 tonnes per year, are also caught in the EU, mostly black seabream (Spondyliosoma cantharus) for 3-4.000 tonnes, mainly in France, and red seabream (Pagellus bogaraveo) for 1.500 tonnes, primarily in Portugal.

1.3.3 Supply from aquaculture For the purposes of this study, aquaculture production was analysed making reference to datasets coming from two different sources: FAO and FEAP2. According to FEAP data, the European production of farmed gilt-head seabream has considerably increased from 2005 to 2008, reaching a record level of 166.000 tonnes3 in 2008. On the other hand, it is worth noting that, according to FAO, this peak is reflected in 2009 production figures, while for 2008 only a limited increase of 2% over the previous year is recorded. The overproduction situation of 2008 led to a price crisis, which entailed a reduction of the supply of the two main producers (-21% for Greece and -11% for Turkey) in 2009-2010. In 2011 the Greek production continued to fall (-15%) whereas Turkey increased back to pre-crisis level. In 2012 the Greek started to grow again (+20%) as well as the production of the second-largest EU producer, Spain (+15%). In the last years the European production (Turkey included) has stabilised at around 146.000 tonnes, with Turkey increasing its share (from 18% in 2009 to 33% in 2015) at the expense of the EU (from 82% in 2009 to 67% in 2015). Table 3 – Evolution of gilt-head seabream farming production (t) Country

CYPRUS FRANCE GREECE ITALY

PORTUGAL SPAIN CROATIA EU-28

TURKEY TOTAL

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

1.266 1.361 37.944

1.181 1.100 55.000

1.356 1.600 48.000

1.465 1.900 50.000

1.879 2.200 66.000

1.404 1.392 79.000

1.600 1.636 94.000

2.572 1.648 90.000

2.799 1.377 74.000

3.065 1.500 63.000

3.121 1.300 72.000

8.000

9.000

9.050

9.500

8.900

9.800

9.600

9.600

9.600

9.700

8.700

1.855 11.335 700 62.461 11.681 74.142

1.449 12.442 1.000 81.172 16.735 97.907

1.685 1.519 1.623 1.930 1.635 1.383 851 1.200 1.000 13.034 15.577 20.220 22.320 23.930 23.690 20.360 16.930 19.430 1.000 1.200 1.500 1.500 1.800 2.000 2.000 1.793 2.105 75.725 81.161 102.322 117.346 134.201 130.893 110.987 97.188 107.656 20.435 27.634 28.463 33.500 31.670 28.362 28.157 32.187 30.743 96.160 108.795 130.785 150.846 165.871 159.255 139.144 129.375 138.399

2013

2014

2015

4.444 2.919 3.656 1.477 1.105 1.502 75.000 71.000 65.000 8.400 8.200 7.360 1.500 1.500 1.400 16.800 16.230 16.231 2.466 3.640 4.500 110.087 104.594 99.649 35.701 41.873 48.000 145.788 146.467 147.649

Data for Malta has not been included due to lack of reliability (FEAP)

Source : FEAP

The Italian production remained relatively stable between 9.000 and 10.000 tonnes along the period 2003-2011. Then it regularly declined, due to the harsh competition from Greece and Turkey, to reach 7.360 tonnes in 2015, its lowest level since 2000. Italy represents 7% of EU production in 2015 (against 10% in 2011 and 13% in 2002). After a period of high increase leading to the record year of 2006 and to the overproduction crisis of market size seabreams in 2008, the EU production of seabream juveniles decreased until 2009. Then it rose again and from 2011 onwards the production is relatively stable around 425-440 million juveniles.

2

FAO data (Tab. 1) allow the comparability between fishery and aquaculture production. Data collected by FEAP (Tab.3) do not cover fishery production but give information also on juvenile production. The big 2008 price crisis due to overproduction which led farmers to reduce the production appears clearly in FEAP statistics: 2008 is the highest year with 134.200 t, with a high increase of production over previous year (+17.000 t).

6


At the Mediterranean basin level4 a record has been reached in 2012 with 599 million seabream juveniles produced, due to a strong increase of the Turkish production of juveniles, which led to a record level of the production of market-size seabreams in 2014-2015 for this country. Table 4 – Evolution of the production of gilt-head seabream juveniles (thousands) Country

GREECE ITALY

FRANCE SPAIN CYPRUS CROATIA PORTUGAL EU-28

TURKEY TOTAL

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

170 000 160 000 142 500 207 000 273 000 220 000 214 000 150 000 160 000 242 000 245 000 266 000 237 000 245 000 40 000

30 000

40 000

45 000

61 000

52 000

50 000

48 000

48 000

62 000

70 000

65 000

67 000

60 000

21 000 19 500 24 000 34 000 33 000 26 740 31 317 22 300 29 100 41 742 30 400 43 728 47 103 54 510 53 000 64 200 48 300 56 235 56 757 67 370 47 282 32 180 36 451 52 900 54 985 51 420 65 786 39 250 15 000 14 000 9 000 8 086 8 176 12 502 13 000 8 589 8 929 18 479 7 976 14 267 23 588 27 927 2 000 2 000 2 000 2 000 5 000 6 000 7 000 6 000 6 000 6 900 5 400 3 400 0 0 14 000 14 000 14 000 14 794 19 252 29 722 21 722 3 810 1 378 1 000 0 0 0 0 315 000 303 700 279 800 367 115 456 185 414 334 384 321 270 879 289 858 425 021 413 761 443 815 440 477 426 687 20 000 20 000 35 000 75 000 93 000 103 000 80 000 72 000 85 000 140 000 185 000 138 000 149 000 120 000 335 000 323 700 314 800 442 115 549 185 517 334 464 321 342 879 374 858 565 021 598 761 581 815 589 477 546 687 Source : FEAP

4

Egypt and Israel are also significant producers of farmed gilt-head seabream (16.100 tonnes and 1.700 tonnes respectively in 2015, according to FAO), but their production of juveniles is not known.

7


1.4 Seabream aquaculture in Italy 1.4.1 Farming systems The Italian seabream aquaculture rests on two main farming systems: sea cages and land-based systems. Table 5 – Farming systems in the Italian seabass/seabream aquaculture Features

Farming systems Wetland

Land-based system

Sea cages

Specialized hatchery

Fishing lagoon, lagoon, coastal lake

Coastal zones

in/off-shore

land

≥ 5 ha

0,7 - 3 ha (pond)

15 000 - 120 000 m3

-

Brackish (sea water by natural rising, wells)

Well (sea diversion)

Sea

Well (water supply point in sea and water treatment)

Extruded feeds

Extruded feeds

Rotifers, artemia, microencapsulated, crumbled, extruded

Location Zone Technical Average area

Water use

Feed

Pellets, extruded feeds, natural trophism

Seabream and seabass Predominantly seabass, (> 90%) Seabass and seabream but also seabream, White seabream, drum, ... Other sparids mullet and eel

Seabass, seabream Other sparids

Pre-growing On-growing

Pre-growing On-growing (some of them equipped with a hatchery)

Pre-growing On-growing (some of them equipped with a hatchery)

Reproductionhatchery

≤ 120 t/year

100 - 1 000 t/year

200 - 1 800 t/year

Farming density

1 - 7 kg/m3

20 - 40 kg/m3

10 - 25 kg/m3

3 - 50 millions of juveniles -

Length of farming period

36 - 60 months

20 - 36 months

14 - 24 months

5 - 9 months

Feed conversion ratio

2,0-2,5

1,8 - 2,5

2,25

-

Species farmed

Farming phases

Production Capacity

Commercial Product size Markets Customers

500 - 1 500 g

300 - 1 500 g

300 - 600 g

2-4g

Regional/national

Regional/national Large scale retailers Traders, wholesalers, catering

Regional/national/export

National/export

Large scale retailers Traders, wholesalers

Fish farmers

Traders, wholesalers, restaurants

Source : ISMEA - EUMOFA

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1.4.2 Location of production The two regions of Central Italy, Lazio and Tuscany, represent more than half of total production (27% and 25%, respectively), followed by Sicily (20%) and Sardinia (15%). Table 6 – Production of farmed seabream by region in 20145

Region Friuli Venezia Giulia Veneto Emilia Romagna Liguria Toscana Lazio Puglia Sardegna Sicilia TOTAL

Production (tonnes) 170 23 16 410 1 692 1 805 390 979 1 345 6 830

Source : UNIMAR/MIPAAF

2 THE EU MARKETS FOR FRESH SEABREAM 2.1 Structure of the EU market The EU apparent consumption of EU-28 for fresh seabream amounts to 107.300 tonnes in 2015, stable compared to 2014. Italy is the largest market, followed by Greece and Spain. These three Member states account for 77% of the EU overall market in volume. The highest apparent per capita consumption is observed in Greece (2,8 kg), followed by Cyprus (0,7 kg), Portugal (0,6 kg) and Italy (0,5 kg).

5

Table 6 data come from the Ministry (MIPAAF). They do not match with EUROSTAT data (total Italian production: 7.400 tonnes in 2014) and with the data in Table 3 (8.200 tonnes in 2014), which are provided by FEAP based on data transmitted by API (Associazione Piscicoltori Italiani).

9


Table 7 - The EU main national markets for seabream in 2015 Production Fisheries (t) 900

Production Aquaculture (t) 7 400

Import (t)

Export (t)

26 100

3 300

Apparent market (t) 31 100

Greece

200

Spa i n

800

65 000

500

34 800

30 900

16 200

6 500

5 500

18 000

Fra nce

1 200

1 500

8 300

700

10 300

Portuga l

200

1 400

9 100

100

6 300

Germa ny

-

-

4 800

1 300

3 500

Uni ted Ki ngdom

-

-

2 500

100

2 400

Croa tia

100

4 500

-

2 900

1 700

Cyprus

-

3 600

-

3 000

600

Member States Ital y

Other MS EU-28

Ɛ

Ɛ

5 800

3 300

2 500

3 400

99 600

63 600

55 000

107 300

Consumption per capita (kg)

0,512 2,846 0,388 0,155 0,607 0,043 0,037 0,402 0,708 0,015 0,211

Sources : EUROSTAT (Production Fisheries), FEAP (Production Aquaculture), COMEXT (Import-Export)

2.2 The Italian market 2.2.1 A mature market The Italian market for fresh seabream amounts to 31.400 tonnes. After a period of strong rise in the years 2009-2012 (+26%), the market has experienced a decreasing trend (-9% between 2009 and 2012). Indeed, due to the intense competition of exporters (Greece, Turkey), the Italian aquaculture production has decreased and refocused on quality, e.g. organic production, which rose from 402 tonnes of organic seabreams in 2013 to 968 tonnes in 2014 and 1.526 tonnes in 20156. Table 8 – The Italian apparent consumption of fresh seabream tonnes Production -aquaculture Production - catches Import Export Apparent market

2008 9 600 300 19 200 1 800 27 300

2009 9 600 300 19 300 2 300 26 900

2010 9 800 300 22 500 2 100 30 500

2011 9 700 400 22 700 1 600 31 200

2012 8 700 700 25 500 900 34 000

2013 8 400 600 25 500 2 000 32 500

2014 8 200 500 25 900 2 300 32 300

2015 7 400 900 26 100 3 300 31 100

Source : API, FAO, COMEXT

2.2.2 Seabream species n°1 in the Italian consumption of fresh fish With almost 9% of the total fish quantities consumed fresh, seabream is the species n°1 in Italy and has significantly increased its position in the years 2005-2010, with a market share rising from 7,7% in 2005 to 8,9% in 2010. Since 2010 the share of seabream is quite stable.

6

Source: CREA-BioBreed-H2O project

10


Table 9 – Main species consumed fresh in Italy

Species Seabream Mussel Salmon Trout Anchovy Seabass Clam Squid Shrimps Hake/pollack Octopus Swordfish Cuttlefish Sole Perch Mullet Other Total

2010 2015 In volume (%) In value (%) In volume (%) In value (%) 8,9 8,1 8,8 8,6 8,9 2,1 8,5 2,1 4,0 4,8 7,4 8,8 6,2 5,2 7,0 6,9 6,8 3,9 6,1 3,6 6,5 6,5 6,0 6,3 4,7 3,8 4,7 3,9 3,6 3,9 4,0 4,0 3,5 5,0 3,8 5,4 3,9 4,5 3,8 4,2 4,3 4,6 3,3 3,8 3,1 6,0 3,1 5,5 2,9 2,9 2,4 2,6 2,2 3,9 1,9 3,2 2,2 2,4 1,7 1,9 1,7 2,0 1,5 1,6 28,3 30,4 27,5 27,6 100,0 100,0 100,0 100,0 Source : ISMEA

Farmed seabream remains attractively priced and maintains a positive image in the mind of consumers. According to information collected through stakeholder interviews, main substitutes to fresh seabream are: •

farmed seabass (Dicentrarchus labrax), which is produced by the same producers with the same farming process,

•

other regularly available farmed fish, either locally produced (mullets) or imported (salmon),

•

and, to a lesser extent, wild “Mediterranean” species (in addition to the wild gilt-head seabream) : common dentex (Dentex dentex), blackspot seabream (Pagellus bogaraveo), pandoras7, etc.

2.2.3 A market widely depending on import The Italian seabream market is supplied at more than 75% by imports. Greece is by far the main supplier, providing 60% of total imports (in 2015), followed by Turkey (21%), Croatia (7%) and Malta (6%). Turkey and Croatia strongly developed their exports to Italy in the last years, from less than 1.900 tonnes in 2008 to 5.400 tonnes in 2015 for Turkey, and from 300 tonnes to 1.800 tonnes for Croatia over the same period.

7

Italian catches in 2015: pandoras 1.070 tonnes, gilt-head seabream 931 tonnes, blackspot seabream 136 tonnes, common dentex 179 tonnes.

11


Spain, France and Portugal deliver smaller volumes, but higher value products, as can be seen in the unit price table. Table 10 - Evolution of Italian imports of fresh gilt-head seabreams (in tonnes) (CN 03 02 69 95 until 2011, CN 03 02 85 30 from 2012) Origin GREECE SPAIN FRANCE MALTA NETHERLANDS PORTUGAL CROATIA Other EU EU28-INTRA TURKEY Other non-EU EU28-EXTRA TOTAL

2000

8 758 208 269 1 409 9 44 42 6 10 744 122 110 231 10 975

2001

10 449 334 264 993 18 65 81 14 12 218 124 62 186 12 404

2002

10 012 408 182 1 015 10 76 131 13 11 845 302 56 359 12 204

2003

9 867 418 179 774 3 51 140 25 11 456 538 19 557 12 013

2004

10 260 332 271 723 4 56 203 156 12 005 711 118 829 12 834

2005

10 772 401 279 544 12 59 406 129 12 601 1 561 95 1 656 14 257

2006

9 936 377 302 728 110 32 499 7 11 990 813 11 824 12 814

2007

13 803 552 216 883 64 40 384 84 16 026 1 525 57 1 582 17 608

2008

14 894 522 268 1 107 75 30 344 60 17 299 1 874 37 1 911 19 210

2009

14 711 529 354 1 015 49 36 583 20 17 298 2 003 16 2 020 19 317

2010

17 144 487 287 1 508 175 51 681 44 20 377 2 152 5 2 156 22 533

2011

17 165 659 379 1 869 252 30 651 76 21 081 1 597 5 1 602 22 683

2012

2013

18 910 664 224 1 624 228 14 835 366 22 865 2 548 54 2 602 25 467

19 583 483 187 1 037 158 26 911 534 22 919 2 520 37 2 557 25 476

2014

18 184 575 267 1 210 544 31 1 183 311 22 305 3 576 14 3 590 25 895

2015

15 653 941 185 1 473 433 24 1 753 199 20 661 5 380 13 5 393 26 054

Source : EUROSTAT-COMEXT

The period analysed (2000-2015) has been marked by strong fluctuations: an important price drop in 2008 caused by the overproduction crisis (Greece, Turkey). In 2011, these two main suppliers experienced a dramatic price increase, 17% for Greece and 25% for Turkey, resulting from limited supply. Prices fell sharply in 2012 (around 20%), caused by a significant production increase and remained at this low level in 2013. They strongly increased again in 2014 (+10%) and 2015 (+11%) and returned to their 2011 level. Greece is by far Italy’s main supplier (70% of Italian imports in 2014) and the Greek production decreased in 2014 (from 75.000 to 71.000 tonnes) and 2015 (from 71.000 to 65.000 tonnes), leading to price increases. As Greece is price-maker, Turkish prices increased at approximately the same rate. In 2015 the seabream shortfall has been particularly severe in the summer months, with very high prices which significantly impacted the average import price of the year. The decrease of Italian production in 2014 and 2015 has also to be taken into account in this respect. Seabream of Spanish origin is characterised by a markedly different price evolution: an increase during the period observed, particularly since 2005 (a 50% increase between 2005 and 2013). Spain was able to increase its prices thanks to higher quality and larger sizes than those provided by the Greek and Turkish production, and also because they export not only farmed seabream but also some wild seabream (as well as France and Portugal), which are more highly valued. Table 11 - Average import prices of fresh gilt-head seabream (EUR/kg) (CN 03 02 69 95 until 2011, CN 03 02 85 30 from 2012) Origin

GREECE SPAIN FRANCE MALTA PORTUGAL CROATIA TURKEY TOTAL

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

4,51 8,99 4,76 3,12 11,60 3,91 4,12 4,44

3,70 7,99 5,89 2,82 11,93 3,27 3,56 3,83

3,64 8,30 6,99 2,62 11,97 3,47 3,28 3,80

3,69 8,85 6,98 3,79 11,65 4,10 3,37 3,94

4,31 8,94 6,55 5,07 11,56 4,25 4,45 4,55

4,25 7,39 6,45 4,79 11,65 4,53 3,64 4,37

4,30 7,73 7,18 4,74 14,56 4,37 3,58 4,50

4,03 7,88 8,41 4,15 14,24 4,85 3,44 4,21

3,37 8,69 8,67 3,26 11,76 4,53 2,84 3,59

3,76 9,55 7,16 3,45 11,20 4,30 3,18 3,95

4,30 10,51 9,32 4,01 13,15 4,49 3,74 4,48

5,02 10,27 9,06 4,86 13,62 4,97 4,69 5,26

4,18 10,14 9,07 4,09 16,74 4,61 3,53 4,35

4,13 11,11 10,54 4,23 14,18 4,71 3,86 4,33

4,65 10,44 7,23 4,71 16,03 5,40 4,36 4,78

5,22 9,41 11,69 5,21 16,97 4,71 4,84 5,32

Source : EUROSTAT-COMEXT

Italy also imports limited quantities of frozen gilt-head seabream (297 tonnes in 2015), provided by the Netherlands (196 tonnes), Greece (44 tonnes), Turkey (28 tonnes) and Spain (21 tonnes).

12


2.2.4 Supply balance The figure below gives an overview of the structure of the Italian market. Figure 3 – The Italian supply balance for fresh gilt-head seabream (2015)

Aquaculture production

Fisheries

Import

900 tonnes

26.100 tonnes

7.400 tonnes

Supply 34.400 tonnes

Export 3.300 tonnes

Apparent consumption 31.100 tonnes (512 g per capita)

Source: EUMOFA based on Eurostat and FEAP data

Fresh seabream is predominantly sold in the fish counters of the supermarkets. In 2010, the market share of large scale distribution was much bigger for seabream (66%) than for the whole of fresh fish (59%). Indeed aquaculture products fit, much more than fisheries products, the needs of supermarkets, which are looking for steady supply all along the year, stability of prices and traceability. The situation has changed a little bit since then. Fresh seabream is still sold a little bit more than other fish species in supermarkets, but the difference is now very small.

13


Table 12 – Places of purchase of the fresh seabream (volume)

2010 2015 All species Seabream All species Seabream 59,1 66,2 67,1 68,1 28,9 22,1 24,3 24,0 9,0 8,0 7,5 6,7 3,0 3,7 1,1 1,1 100,0 100,0 100,0 100,0

%

Supermarkets Fishmongers Mobile shops and local markets Other Total

Source : ISMEA

Figure 4 – Places of purchase of fresh seabream in 2015

Source: ISMEA •

Large retailers market more than 2/3 of the volumes. They develop private labels on Italyfarmed products;

•

Since Italian aquaculture production decreased in the last years (from 9.700 tonnes in 2011 to 7.360 tonnes in 2015 – see table 3), the demand is met by imports or by a reduced export supply.

2.2.5 Segmentation of the market The market for seabream is segmented according to production method (aquaculture/fisheries), size, origin, quality, and, to a lesser extent, presentation. 2.2.5.1

Segmentation by production method

The wild seabream market can be estimated at less than 1.000 t, i.e. less than 3% of the total market. Local catches are complemented by some imports from Spain.

14


Wild species are viewed as superior to farmed species, more natural and of higher quality. This is reflected in the price which can reach up to 40 EUR/kg at retail level (compared to 9-17 EUR/kg for farmed seabream). The demand for wild seabream exists mostly in traditional channels (fishmongers) while large scale retailers generally focus on farmed seabream.

Table 13 - Market segmentation: offer of fresh seabream in a major large-scale retailer (Esselunga) in July 2016

Consumer price (EUR/kg)

Product Packed (self service counter)

Seabream - farmed 10,90 Origin Greece (approx. 250 g/piece) Seabream - farmed Origin Italy 16,80 Private quality label NATURAMA Approx. 500 g/piece Seabream fillets - farmed special offer : 19,80 Origin Greece (normal price : 24,76) Approx. 150-200 g (2 fillets) Aromatized seabream fillets - farmed special offer : 22,30 Origin Greece (normal price : 27,88) Approx. 300 g (2 fillets) Unpacked (fresh fish counter) Large seabream - farmed 17,50 NATURAMA (origin Tuscany) Large seabream - wild 33,90 Caught in the Western Mediterranean Source: surveyed by EUMOFA

The wild seabream caught and landed by the Italian fishermen is paid around 13 EUR/kg to the producer, that means around twice the price paid to the Italian farmer. Table 14 - Landings of gilt-head seabream (Sparus aurata) in Italy

2007 2008 2009 2010 2011 2012 2013 2014 2015

t

EUR

EUR/kg

407 326 282 341 439 672 641 523 931

5 984 5 270 4 701 5 113 6 832 5 637 7 170 6 724 n.a.

14,70 16,16 16,69 14,98 15,57 8,39 11,19 12,85 n.a.

Source : Eurostat

15


In the auctions (first sale markets) the price of the wild seabream can vary from 4 to 28 EUR/kg, in connection with the size, the fishing technique and the volume landed. In 2015 the most frequent price (Civitavecchia in the table below) was between 15 and 19 EUR/kg.

Table 15 – First sale prices for wild seabream in some Italian auctions in the last three years Mercato

Size

2013

Fishing technique

Packaging

2014

2015

Volume

Min P

Max P

Volume

Min P

Max P

Volume

Min P

Max P

kg

EUR/kg

EUR/kg

kg

EUR/kg

EUR/kg

kg

EUR/kg

EUR/kg

Ancona

medium

trawl

plastic box

803

6,88

8,35

1 147

6,63

8,27

794

7,12

9,36

Ancona

big

trawl

plastic box

486

7,23

10,37

393

8,04

11,49

512

11,08

14,44

Cesenatico

medium

trawl

plastic box

1 455

4,86

7,29

2 177

5,05

6,74

131

4,80

6,67

Civitanova Marche

mixed

trawl

plastic box

233

5,29

7,07

666

4,88

7,52

837

5,62

9,20

Civitavecchia

-

trawl

polystyrene box

5 697

12,97

20,71

2 614

12,53

19,76

867

15,26

19,19

Corigliano Calabro

-

trawl

polystyrene box

114

14,84

15,03

12

14,50

15,50

10

11,00

12,50

Goro

medium

trawl

plastic box

628

6,52

7,15

1 791

6,89

9,13

3 036

6,38

8,77

Livorno

-

trawl

bulk

124

18,63

20,69

32

26,56

28,40

19

20,16

22,56

Livorno

medium

trawl

polystyrene box

88

8,96

10,28

50

14,52

16,03

66

14,36

15,37

Livorno

big

trawl

polystyrene box

114

17,91

18,15

917

23,47

26,22

925

22,85

25,93

Manfredonia

medium

trawl

polystyrene box

-

-

-

50

7,00

10,00

6 125

9,36

15,34

San Benedetto del Tronto

medium

trawl

plastic box

929

4,12

7,31

712

3,39

6,55

1 104

3,76

6,39

Viareggio

0,5-1 kg

entangling nets polystyrene box

88

27,91

27,91

55

26,71

26,71

51

28,59

28,59

Source : ISMEA

2.2.5.2

Segmentation by size

Italian farmers try to stand out from Greek and Turkish competitors by producing bigger sizes. These competitors generally produce small fish (mainly 250-300 g). Italian seabream farmers achieve better prices and create a more positive image when offering larger fish. Compared to a 300-400 g seabream, the price premium is about 0,60 EUR/kg for a 400-600 g fish, 1,80 EUR/kg for a 600-800 g and 3,40 EUR/kg for a seabream above 800 g.

Table 16. Ex-farm price of farmed gilt-head seabream in Italy in September 2016

Size

North-West

North-East

Centre

300-400 g 400-600 g 600-800 g > 800 g

6,60 7,30 8,60 10,20

6,60 7,30 8,40 10,20

6,80 7,50 8,80 10,60

South and Islands 6,30 7,10 8,50 10,00 Source : ISMEA

2.2.5.3

Segmentation by origin

Seabreams of Italian origin are selling at a premium, compared to Greek products, as can be seen in ESSELUNGA’s offer of fresh seabream (table 13).

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But this premium is mainly connected to the size, since Italian seabream is generally marketed at sizes bigger than Greek fishes, as explained above. Turkey and Malta also supply low/average quality and small sizes8,9. Spain and France are selling higher quality and bigger sizes (and a part of wild seabream in the export volume also partly explains the higher average price); this represents a niche market. The products of Italian origin represent a quarter of the total consumption, while low-priced products imported from Greece, Turkey, Malta and Croatia, represent more than 70%. Table 17 – Segmentation of the Italian market by origin in 201510

t Italy Greece Turkey Croatia Malta Spain France Other Total

EUR/kg

7 500 14 200 4 700 1 800 1 200 900 200 600 31 100

5,22 4,84 4,71 5,21 9,41 11,69 6,02

Market share 24% 46% 15% 6% 4% 3% 1% 2% 100

Source : elaboration EUMOFA

The price differentiation between Italian production and import is to be found at the wholesale level, as it is shown in the tables below.

Table 18 – Prices of fresh seabream in the Wholesale Market of Milan (EUR/kg) 2005 Origin

Size

National > 800 gr National 400-600 gr Import 400-600 gr Import 200 - 400 gr

System Fisheries Farming Farming Farming

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

P. min P. max P. min P. max P. min P. max P. min P. max P. min P. max P. min P. max P. min P. max P. min P. max P. min P. max P. min P. max P. min P. max 19,28 26,45 16,79 24,78 18,00 25,64 17,76 24,00 12,08 18,33 14,40 19,94 18,00 22,00 18,00 22,00 18,00 22,00 8,02 9,61 7,55 9,72 4,60 11,50 4,45 8,17 4,32 5,21 4,76 6,68 7,50 8,50 6,78 7,68 5,17 5,56 5,27 6,62 4,47 5,33 4,50 5,40 4,50 5,40 4,55 5,62 4,48 5,35 5,35 5,94 4,91 5,92 5,18 7,97 4,41 5,53 4,61 5,02 4,60 5,00 4,23 4,93 4,13 4,89 4,38 5,22 4,83 5,25 4,83 5,25 4,83 5,25

18,00 22,00 18,00 22,00 5,25 5,57 5,25 5,57 5,10 6,50 5,20 6,30 4,60 8,49 4,72 12,48 Source : ISMEA

8

There is no direct link between size and quality (although a minimum length of breeding is necessary to guarantee a minimum level of quality), but there is a segmentation of the market based on the size/quality couple and the market often associates, maybe wrongly, small sizes and low quality. 9

As it is substantiated in Globefish (“European Seabass and Seabream Report” – March 2015) concerning Italy: “Many retailers use three product categories: the large volume and low-priced Turkish origin, Greek product as standard, and Italian product, which is somewhat larger sized, as the top product”. 10

To compile this table, the following assumption has been made: out of the 3.300 tonnes of gilt-head seabream exported by Italy according to COMEXT statistics, 800 tonnes are coming from Italian farms and the rest is reexport from fish imported from Greece (1.500 tonnes), Turkey (700 tonnes) and Malta (300 tonnes).

17


Figure 5 – Evolution of minimum prices of fresh farmed seabream (400-600 g) in the Wholesale Market of Milan (EUR/kg)

Figure 6 – Evolution of maximum prices of fresh farmed seabream (400-600 g) in the Wholesale Market of Milan (EUR/kg)

While minimum and maximum wholesale prices of imported seabreams observed in the Wholesale Market of Milan follow a quite regular trend, prices of domestic products follow different patterns: price increases in the beginning of the period surveyed, followed by sharp price falls in 2008-2009, as a consequence of the overproduction crisis, and strong increases in 2011. In the last years (2014-2015), import and national prices tend to converge. This confirms that Greece and Turkey are making the price on the Italian market, at least for the 400600 g segment.

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2.2.5.4

Segmentation by labels / brands

The major large-scale retailers have developed private labels on aquaculture products. The market leader, COOP Italia, has for instance 7 aquaculture species under this scheme: rainbow trout, seabass, seabream, salmon, turbot, tropical shrimp, striped bass, with specifications in particular on traceability, sustainability and animal welfare. For seabream COOP has selected a few suppliers, who all produce in sea cages. In December 2016, the 300-400 g seabream under the COOP brand11 was sold 14,90 EUR/kg, while the 450-600 g seabream of Greek origin without COOP label was sold at 10,90 EUR/kg (and even 7,90 EUR/kg in special offers). ESSELUNGA includes farmed seabream in the offer under its NATURAMA12 quality scheme of the retailer. In July 2016 the NATURAMA seabream of Italian origin was sold at a price 54% higher than the Greek seabream (16,80 vs. 10,90 EUR/kg). Italian products also generally have a higher unit weight (500 g for the Italian product vs. 250 g for the Greek seabream). The NATURAMA seabream is farmed only in Italy (in Sardinia or in Orbetello) and is monitored for traceability and for respect of the scheme’s provisions.

2.2.5.5

Segmentation by presentation

One of the main features of the Italian seabream market is that it is mostly fresh-based with large price swings (as shown in figures 5 and 6). By tradition Italian consumers are consumers not only of fresh fish, but also of whole fish, especially for seabream. The market is therefore characterized by limited value addition and limited product development. Filleted products have recently started to develop, and most large-scale retailers offer fillets of seabream. For instance in July 2016, ESSELUNGA sells fillets of seabreams (seabreams are filleted in Greece, where filleting costs are lower than in Italy) at 24,76 EUR/kg13 (19,80 EUR/kg in special offers) and AUCHAN also sells fillets of seabreams at 28,29 EUR/kg. ESSELUNGA also proposes aromatized seabream fillets, sold at 27,80 EUR/kg in July 2016: fillets with a slice of lemon, halved tomato cherries, sea salt, rosemary, garlic, sage, juniper, oregano, parsley and aromatic plants.

11

Fish under COOP brand are subject to high quality and safety standards: the farming process is submitted to a double certification by two autonomous bodies, who certify the control of the supply chain, the absence of animal ingredients of terrestrial origin in the feed, the Italian origin for seabream, seabass and trout, the absence of GMOs, the traceability, the absence of colourings, and the fat content for seabream, seabass and trout fillets (source: Coop Italia). 12 Naturama, ESSELUNGA’s quality assurance brand, is used for fresh meat, fish, fruit and vegetables and eggs. It focuses on quality and traceability and introduces quality control schemes in all production phases. 13 See table 13.

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2.3 Overview of the main EU markets 2.3.1 Greece Greece has the biggest seabream production in the EU (and in the world) and is the exporter n°1 but it has also a strong domestic market with a per capita consumption approaching 3 kg in 2015.

Figure 7 – Greek apparent market for seabream in 2015

Production 65.200 tonnes

Import 500 tonnes

Supply

Export

65.700 tonnes

34.800 tonnes

Apparent consumption 30.900 tonnes (2,846 kg per capita)

After the overproduction crisis of the year 2008 (record year, with a production of 94.000 tonnes) the Greek production of farmed seabream decreased to reach 63.000 tonnes in 2011 according to FEAP data. The sector, which is stable in capacity as there have not been any new licenses since 2006, has recovered after the crisis, thanks to strong demand, higher prices and market stabilization. Anyhow the production is on a decreasing trend in the last years (2013-2015)14. Greece provides the two thirds of the EU seabream production and exports 40.000 to 50.000 tonnes per year. The main destinations are Italy (49% of total volumes exported by Greece in 2015), France (15%), Portugal (12%) and Germany (6%).

14

Production data differ according to sources, but the trends are the same: -13% for FEAP for the years 20132015, -16% for Eurostat.

20


Table 19 – Greek exports of fresh seabreams (CN 03 02 69 95 and, from 2012, CN 03 02 85 30), in tonnes Year ITALY SPAIN FRANCE PORTUGAL GERMANY UNITED KINGDOM NETHERLANDS Other TOTAL

2005 10 487 2 739 1 273 507 329 362 96 404 16 196

2006 12 998 4 213 2 384 1 393 638 676 439 560 23 302

2007 17 109 5 296 4 141 2 112 1 377 996 726 1 507 33 264

2008 23 517 8 916 6 243 3 074 1 746 1 269 1 033 2 270 48 068

2009 23 891 7 431 6 712 3 354 2 741 1 349 1 040 2 537 49 053

2010 23 141 6 781 6 618 3 147 2 180 1 335 1 133 2 762 47 098

2011 18 733 5 368 5 733 3 994 1 981 1 453 1 029 2 202 40 493

2012 20 513 5 152 5 777 4 426 2 379 1 671 1 086 2 693 43 697

2013 20 716 6 378 5 713 4 858 2 501 1 262 1 069 4 903 47 400

2014 19 394 2 886 5 888 4 699 2 390 963 1 039 2 996 40 255

2015 17 066 1 728 5 089 4 232 2 063 891 1 193 2 498 34 760

Source : Comext

After the heavy fall of 2008 (the price fell from 3,97 EUR/kg in 2007 to 3,23 EUR/kg in 2008), the average export price of the Greek seabream recovered: it rose to 3,65 EUR/kg in 2009 and reached a new peak in 2011 (5,12 EUR/kg) before coming back to more normal levels in 2012 (4,28 EUR/kg) and 2013 (4,10 EUR/kg). In 2014 and 2015 the export price increased again following a reduction in the Greek production (from 75.000 tonnes in 2013 to 71.000 tonnes in 2014 and 65.000 tonnes in 2015). In 2016 the price started to decrease again to 5,39 EUR/kg in July, 5,01 EUR/kg in September and 4,43 EUR/kg in November.

Figure 8 – Evolution of the average export price of the fresh Greek seabream (EUR/kg)

Source: Comext

2.3.2 Spain The Spanish market is the third-largest after Italy and Greece. The apparent consumption of seabream registered a strong decrease in the early 2010s, falling from 24.800 tonnes in 2010 to 18.100 tonnes in 2012, and remained at this level since then. Unlike the Italian market, the Spanish market is mainly supplied by the domestic production.

21


Figure 9 – Spanish apparent market for seabream in 2015

Production 17.000 tonnes

Import 6.500 tonnes

Supply 23.500 tonnes

Export 5.500 tonnes

Apparent consumption 18.000 tonnes (388 g per capita)

The Spanish seabream farming production was exceeding 20.000 tonnes in the late 2000s, peaking at 23.930 tonnes in 2008. After a strong decrease in 2010-2011, the production has stabilized at a level slightly over 16.000 tonnes in the years 2013-2015 (see table 3). Two companies, CULMAREX and TINAMENOR Group, control 60% of the Spanish production. Spain mainly exports to its two neighbours, Portugal (3.100 tonnes in 2015) and France (1.400 tonnes). Sales to Italy are limited (900 tonnes). Imported seabreams (6.400 tonnes in 2015) are supplied by Turkey (67% of the total) and Greece (27%). Market prices recovered in 2010-2011 and average wholesale prices of farmed seabream reached 5,69 EUR/kg in Mercabarna in 2011 (same level as farmed seabass). In 2012 seabream prices decreased to 4,94 EUR/kg (-13% compared to 2011) while prices for seabass kept rising to reach 6,51 EUR/kg (+14%). From 2012 trends have reversed: seabream prices continuously increased to reach 6,04 EUR/kg in 2015 and thus to be slightly above seabass prices (5,97 EUR/kg in 2015).

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3 PRICES ALONG THE SUPPLY CHAIN This chapter proposes to analyse prices and trends at the various stages of the seabream supply chain in Italy, with the objective to set the framework for price transmission analysis (chapter 4).

3.1 Price information sources While chapter 4 relies on data gathered through direct interviews with stakeholders, chapter 3 lists the consistent sources regularly accessible and the content of the information provided by each of them.

Table 20 – Price information sources on the seabream supply chain in Italy Supply chain stage First sale Import

Type of price

Frequency

Producer prices (aquaculture, ex-farm) Monthly Yearly Producer prices (fisheries) Daily, weekly, monthly, yearly

ISMEA EUROSTAT

Import price

COMEXT

Monthly, yearly

Wholesale Wholesale price (in two major markets: Daily, weekly, monthly, yearly Milan, Rome)

Retail

Source

ISMEA

ISMEA

Retail price (all channels)

Daily

MIPAAF (Ministry of Agriculture) service suspended in 2013

Retail price (all channels)

Weekly, monthly, yearly

EUMOFA (EUROPANEL)

Retail price (large-scale retailers)

Monthly

API (service suspended, data until September 2013) Source: EUMOFA

3.2 Producer prices ISMEA (Istituto di Servizi per il MErcato Agricolo alimentare) collects price data from a sample of about 70 aquaculture companies on a monthly basis for three major species species (trout, seabass, seabream) and another seven (sturgeon, carp, eel, catfish, mullet, clam and mussel). As can be seen in Table 16, data for seabream are broken down by region (North-West, North-East, Central Italy, South and Islands) and by size category (300-400 g, 400-600 g, 600-800 g, > 800 g).

3.3 First sale prices First sale prices are provided by ISMEA, on a daily, weekly, monthly and yearly basis, for wild seabream. Prices collected by ISMEA in auction halls cover 11 “mercati di produzione” or “production” markets (Aci Trezza, Ancona, Cesenatico, Civitanova Marche, Civitavecchia, Corigliano Calabro, Goro, Livorno, Manfredonia, San Benedetto del Tronto, Viareggio) and 4 “mercati misti” or mixed markets (Cagliari, Catania, Chioggia, Molfetta).

23


The data provided are differentiated by origin (local, regional, national), by production method (fisheries, aquaculture), and by weight category.

3.4 Import prices Import prices are provided on a monthly and yearly basis by COMEXT (as can be seen in Table 11 for yearly prices).

3.5 Wholesale prices Wholesale prices are provided by ISMEA for two wholesale markets (Milan and Rome) on a daily, weekly, monthly and yearly basis, as can be seen in Table 18 for Milan. The data provided are differentiated by origin (national, import), production system (fisheries, aquaculture), and weight category.

3.6 Retail prices 3.6.1 MIPAAF The Italian Ministry of Agriculture (MIPAAF) used to monitor the daily retail prices of a basket of 84 major food products, out of which 12 fish species (farmed seabream was one of them). Consumers had access to this service, called SMS Consumatori, and could request prices by SMS. This service has been stopped in 2013 for budget reasons.

24


Figure 10 – Example of data on farmed seabream - SMS Consumatori – Screenshot 17 05 2013

25


3.6.2 API The Association of Italian Fish Farmers (API) monitored the consumer prices in the large-scale retail (“grande distribuzzione”) for 10 aquaculture products (6 trout products + Italian seabream + imported seabream + Italian seabass + imported seabass). The prices issued (on API website) were average consumer prices surveyed in the points of sale of 19 retail chains in a two week period. This service has also been suspended in 2013 for budget reasons. Table 21 shows the last report.

Table 21 – Average consumer prices in the large-scale retail in the period 16-29 September 2013

Group AGORÀ NETWORK BENNET C3 CATENE INDIPENDENTI CONAD COOP ITALIA DESPAR SERVIZI ESSELUNGA FINIPER GRUPPO AUCHAN GRUPPO CARREFOUR IT GRUPPO LOMBARDINI GRUPPO PAM GRUPPO SUN IL GIGANTE REWE SELEX COMMERCIALE SIGMA SISA

Seabream Import 10,05 8,68 9,62 9,44 9,84 8,94 8,81 7,66 10,90 9,06 11,20 9,90 9,15 8,10 8,75 -

Seabream Italy 9,50 11,40 8,90 7,50 14,32 13,73 14,22 13,74 13,69 12,41 14,05 13,90 10,70 18,80 14,95 15,88 12,23 12,40 Source : API

3.6.3 ISMEA Until the end of 2015, ISMEA was collecting retail prices of food products (including fishery and aquaculture products) through a collaboration with large-scale retailers (Carrefour, Auchan, Coop, Conad…) who transmitted prices automatically to ISMEA on a weekly basis. This collection has been discontinued because of its high cost.

26


3.6.4 EUMOFA EUMOFA provides weekly and monthly data on consumer prices, provided by Europanel. Table 22 - Monthly consumer prices in Italy by main commercial species in 2016 Main commercial species

Month 2016 / 01

Month 2016 / 02

Month 2016 / 03

Month 2016 / 04

Month 2016 / 05

Month 2016 / 06

Month 2016 / 07

Month 2016 / 08

Month 2016 / 09

Month 2016 / 10

Month 2016 / 11

Month 2016 / 12

Clam

8,34

8,34

8,16

8,75

8,74

8,67

8,47

8,21

8,40

8,66

8,12

8,94

Mussel

2,31

2,36

2,45

2,35

2,41

2,41

2,37

2,30

2,29

2,43

2,47

2,38

Cuttlefish

10,24

9,43

10,03

10,28

10,08

9,59

10,20

9,58

9,82

9,43

8,49

9,23

Octopus

9,15

9,86

9,83

10,10

9,90

10,05

10,06

10,24

9,72

9,60

9,38

9,63

10,14

10,15

10,08

10,55

9,76

10,04

9,58

9,91

10,00

10,55

10,11

10,22

Cod

9,01

9,03

9,40

9,63

9,15

8,87

8,64

8,63

8,66

9,71

9,33

9,03

European seabass

9,63

9,46

9,14

9,09

9,37

9,23

9,19

9,21

9,11

8,96

8,78

9,00

Gilt-head seabream

8,91

8,72

9,15

9,01

9,19

8,97

9,14

8,85

8,47

9,21

8,29

9,28

Salmon

12,06

11,64

11,28

11,47

11,84

12,03

11,81

11,99

11,19

11,30

12,18

11,93

Anchovy

5,96

5,75

5,55

5,37

5,37

5,06

4,92

5,31

5,42

4,92

5,41

5,70

Squid

Source: EUMOFA based on EUROPANEL

The prices reported by Europanel are low compared to the prices of Italian seabream analysed in the following chapter, for two reasons: o the dominant weight of low-price import seabreams (seabreams imported from Greece, Turkey, Croatia and Malta at an import price close to 5 EUR/kg represent 71% of the market), o they take into account the many special offers made by large-scale retailers (up to 30 weeks a year).

27


4 PRICE TRANSMISSION IN THE SUPPLY CHAIN Chapter 4 complements the data of chapter 3 with information obtained through direct interviews with stakeholders.

Table 23 – Costs and margins for the fresh farmed seabream in the large-scale retail in Italy (July 2016)

Purchase price (to the producer) Transport farm --> platform Packaging Labour cost Delivered at platform Ditribution cost Weight loss Shrink Labour cost (fish counter) Operating cost (fish counter) Net margin Average selling price, exclusive of VAT VAT Average selling price

EUR/kg 6,60 0,40 0,05 0,45 7,50 0,38 0,07 0,13 2,01 1,68 1,64 13,41 1,49 14,90

Source : elaboration by EUMOFA workteam from interviews with supermarket chains’ purchase managers in July 2016 for seabream 300-600 gr origin Italy Assumptions : - cost of a box: 0,25 € - weight loss: 0,5% - shrink: < 1% - labour cost (fish counter): 14-15% - operating cost (fish counter): 12,5% - VAT: 10%

Figure 11 illustrates the price transmission in the supply chain for fresh seabream. This figure has been drawn up from interviews of fish purchase managers of the GDO (large retailers) in July 2016.

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Figure 11 - Price transmission for fresh farmed seabream sold in Italy – large retailers (July 2016) EUR/kg

Source : interviews of fish purchase managers of the GDO (large retailers) in July 2016 o

cost of a box: 0,25 EUR o

weight loss: 0,5 %, o

o o o

shrink: < 1 %

labour cost (fish counter): 14-15 % of selling price,

operating cost (fish counter): 12,5 % of selling price, VAT: 10% o Selling price: 14,90 EUR/kg.

Contacts with the large-scale retail (December 2016) indicate that the average consumer price for 2016 has been lower than the price in the figure above, due to promotional pressure. One major largescale retailer indicates an average retail price of 12,59 EUR/kg in 2016, because farmed seabream has been on special offer during 30 weeks. In this case the price paid to the farmers is 5% lower. This, together with a moderate retailer’s margin, made possible an increase of volumes sold compared to 2015. The decision to use promotion is a commercial choice made by the retailer to counter the low prices of Greek and Turkish seabream.

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5 ANNEXES 5.1 Sources used - EUMOFA - EUROSTAT - FAO - FEAP - API (Associazione Piscicoltori Italiani) - UNIMAR/MiPAAF (Ministero delle Politiche Agricole, Alimentari e Forestali) - ISMEA (Istituto di Servizi per il MErcato Agricolo alimentare) - AUCHAN - ESSELUNGA - COO.P.AM - API (Associazione Piscicoltori Italiani)

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“Gilt-head seabream in Italy” is published by the Directorate-General for Maritime Affairs and Fisheries of the European Commission. Editor: European Commission, Directorate-General for Maritime Affairs and Fisheries, DirectorGeneral. Disclaimer: Although the Maritime Affairs and Fisheries Directorate General is responsible for the overall production of this publication, the views and conclusions presented in this report reflect the opinion of the author(s) and do not necessarily reflect the opinion of the Commission or its officers. © European Union, 2017 Catalogue number: KL-01-17-177-EN-N ISBN: 978-92-79-66575-2 DOI: 10.2771/591660 Reproduction is authorized, provided the source is acknowledged. FOR MORE INFORMATION AND COMMENTS: Directorate-General for Maritime Affairs and Fisheries B-1049 Brussels Tel: +32 229-50101 E-mail: [email protected]


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