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Oyster - February 2007
Following some negative press coverage during 2006, French oyster
producers are no doubt relieved at what appears to have been a successful end
of year campaign with prices remaining firm going 2007.
Marketing efforts boost Christmas sales
With annual volumes estimated at over 125 000 tonnes, France is not
only the leading market for oysters in Europe but also enjoys the highest per capita consumption, at over 2kg, in
the world. Supplies are essentially from domestic production with aquaculture
activities spread along the Atlantic and, to a much lesser extent, the Mediterranean coasts. Output is
mainly focused on the ‘cupped’ oyster (Crassostrea
gigas) with production of the traditional flat
oyster (Ostrea edulis)
well behind, volumes having fallen over the past thirty years or so to the
current level of between 1 and 2 000 tonnes. Imports also play a role but
account for a relatively small share of total volumes and consist mainly of
bulk supplies for relaying. Sales are almost exclusively in live form and are
highly seasonal, December and early January accounting for over half of total
yearly volumes.
Faced with difficult market conditions, the French oyster industry has
responded in recent years with a series of marketing and quality initiatives
aimed at differentiating its products, achieving stronger margins and
expanding its customer base. The market is now segmented into a wide range of
geographical, quality and size categories. Oysters from the Marennes Oléron region enjoy
the strongest notoriety among consumers while Label Rouge oysters are
perceived as an upper end quality product. In terms of sizes, the 66-85gr
grade, the number 3, is the most popular at retail level.
Following a strong 2005/2006 season, trade indications suggest that the
current 2006/2007 season is also satisfactory with sales during the recent
Christmas/New Year period relatively good despite somewhat adverse media
reports earlier in the season. Fears of a serious biotoxin
problem in the Arcachon region in the south west of
France during the August/September period turned out to be unfounded but the
attendant media coverage was at national level. As a result, there was some
concern about adverse effects on the end of year trade.
Following the crisis, the industry launched, with government support, a
comprehensive promotional campaign centred on television and regional press
advertising to coincide with the Christmas festivities. The success of this
campaign, which complemented marketing initiatives undertaken by the regional
organizations, is being gauged by the fact that price levels have remained
buoyant into the second half of January, normally a weaker trading period. Price
levels have also been boosted by weaker production, due to mortalities, in
some regions, notably in the Mediterranean and south Brittany areas.
The relatively strong market situation also appears to be benefiting foreign
suppliers. Delivered prices for bulk oysters for relaying in France this
season are reported at around €2.25/kg for the standard quality and around
€2.70/kg for the higher “speciale” grade. In
general, these prices represent increases of some 5-10% above those of the
previous season.
Stronger export sales
2006 as a whole also appears to have been positive for French oyster exporters
with both higher volumes and higher average unit prices compared to 2005. Overall
export volumes increased by 10% to 6 200 tonnes during the first eleven
months of 2006 compared with the same period in the previous year. This
increase suggests that France will
have exceeded the 7 500 tonne mark for 2006 as a whole. The increase was
largely thanks to a 13% increase in sales to France’s
main oyster export market, Italy, and to
a 31% jump in volumes to Germany.
French Oyster Exports January-November (tonnes)
The increase in exports last year was achieved despite an increase in average
unit values: +5% for overall volumes to €3.49/kg while the increase for the
Italian market was 6%, to €2.99/kg. These increases appear consistent with
reports of a generally upward price trend in the industry over the past year.
Weaker Italian volume imports but values up during 2006
Despite increased sales from France during
2006, Italian oyster imports in general declined during the January-October
period with volumes down 7% compared to the corresponding period in 2005. In
value terms, the change was, however, positive with sales up 4% to €12.8
million over the ten month period. The drop in volumes was mainly as a result
of a fall in imports from both the Netherlands and Greece, down
respectively over 50% and 30% compared to the previous year. It is possible,
however, that full year figures will show a more positive outcome in volume
terms.
Italian Oyster Imports January-October (tonnes)
As in the case of French exports, unit values for Italian imports increased
last year, the overall average moving up 12% to €2.77/kg compared with the
first ten months of 2005.
Marketing impetus in French oyster industry likely to continue
The seemingly positive start in price terms to 2007 should, if confirmed,
boost confidence in the French oyster industry following the unwelcome media
coverage during the second half of 2006. Although supply shortfalls and
shortages in certain size grades have undoubtedly helped prices, the positive
outcome of the current season may also support the case for more active
promotional activity at consumer level and add further impetus to the impressive
efforts made by the French industry in recent years at product
differentiation and focused quality initiatives. These efforts have helped to
position the French oyster industry as a model for seafood sectors outside of
France in terms of achieving value added gains without recourse to
processing or sophisticated packaging techniques.
By Gerry O’Sullivan (GLOBEFISH)
© FAO GLOBEFISH 2007
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