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Seabass and Seabream
Market Report - May 2007
General trends
The global production of farmed European seabass (Dicentrarchus labrax)
and gilthead seabream (Sparus
aurata) approached 200 000 tonnes in 2006. Provisional
figures report an output of 87 000 to 104 000 tonnes of seabream
and of 88 500 tonnes of seabass. Greece remains
the main producer of both species, followed by Turkey, Spain and by Italy at a distance.
Only ten years before, in 1996, world production of seabass
and seabream amounted to 54 000 tonnes, of which 33
000 tonnes of seabream and 21 000 tonnes of seabass. Over time, the expansion of the seabass and seabream
aquaculture industry increased the supply of farmed fish which caused prices
of both species to decline.
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At present, according to GLOBEFISH industry correspondents, price quotations
of farmed seabass and seabream
are experiencing a relative growth, like every year between January and June.
In fact, prices are increasing for all grades of seabass
and most seabream grades. However, from June
onwards, when the new generation fish will have reached the marketable size,
demand will not be able to absorb supply anymore and prices will start
declining again.
Italy:
imports and domestic production declining
Italian imports of seabass and seabream
declined by -3 percent both in volume and in value between 2005 and 2006. In
2006, Italian imports totalled 31 300 tonnes, equivalent to EUR150.5 million,
this making Italy
once again the main importer of seabass and seabream within the EU. Species breakdown is 53 percent
European seabass and 47 percent seabream,
mostly S. aurata but also Dentex spp. and Pagellus spp. The main
countries of origins are Greece and Turkey.
Italy
can count on a long-standing tradition of seabass
and seabream culture, however Italian production of
seabass declined from 12 200 tonnes in 2001 to 9
000 tonnes in 2006. At the same time, seabream
production declined from 10 500 tonnes in 2001 to 8 800 tonnes in 2006 (See
Production table). Italian farmers could not cope with the challenges posed
by internationalization, hence remained small, fragmented and struggling. However,
domestically-farmed fish remains a good quality product, generally preferred
to imported fish.
Spain:
imports declining, domestic production growing
Spanish imports of seabass and seabream
from, mainly, Greece
and Turkey
declined from 15 000 tonnes in 2004, equivalent to EUR70.2 million, to 14 600
tonnes in 2006, equivalent to EUR67.4 million.
Domestic production of seabass and seabream grew between 2001 (14 400 tonnes) and 2006 (28
400 tonnes; see Production table). This rapid growth has been achieved
through the implementation of a set of business partnerships, mergers and
acquisitions between large-scale Spanish producers and international seafood businesses
(with the Norwegian Marine Farms ASA and, more recently, the Greek Nireus entering the picture, see News Section). The market
is expected to grow further.
France:
some limited growth expectations
French seabass and seabream
imports increased from 8 000 tonnes, equivalent to Euro 34.8 million, in
2004, to 9 400 tonnes, equivalent to Euro 41.4 million, in 2006. Greece is the
country of origin of 60 percent of French imports of seabass
and seabream. France can also
count on a relatively significant domestic production of seabass
(5 000 tonnes estimated in 2006) and on a limited production of seabream (1 900 tonnes estimated in 2006).
Other EU markets
Imports into other EU27 countries, that is excluding Italy, France and Spain,
increased by 9 600 tonnes in 2000 to 23 800 tonnes in 2006. However,
countries with significant consumption of seabass
and seabream include only Portugal and the United Kingdom,
followed by Germany
and Greece
(even if a large portion of Greek imports is supposed to be at farm-to-farm
level). Exports to Central and Eastern
Europe are growing, albeit their overall volumes
are very modest. However, it may be interesting to follow the development of
these markets as economic wealth in the region increases. Exports to Northern
European countries are virtually
nil.
Demand of seabass and seabream
in Italy
looks as it has reached its saturation point. The French market has still
some (limited) scope for growth and in Spain the
market for domestic product is growing, while imports are declining. In the
rest of the EU, the market for seabass and seabream remains a niche, with some limited exceptions
such as Portugal
and the United
Kingdom.
The Spanish case shows that international, large-scale producers should
consolidate the presence on traditional markets but also increase their
presence in other countries through the implementation of business
partnerships aimed at fostering production on site. This may prove to be a
winning strategy especially in southern Europe,
where domestically-produced foodstuffs are traditionally preferred to
imported products.
On the other hand, as the Italian case shows, small producers may be soon out
of the picture. They should therefore focus on investing in the quality and
sustainability of their products, for example, through labelling and
partnerships with supermarket chains and restaurants, in order to reach
consumer niches focused on top quality or environmentally friendly products.
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Norwegian group Marine Farms ASA expands in Spain....
The Norwegian company Marine Farms ASA has entered into an agreement to
acquire the remaining 80 percent of the shares in PIAGUA (Spain). PIAGUA
has a production capacity of approximately 1 500 tonnes of seabass and seabream. An
application has been made to increase the production capacity up to 2 500
tones, which will make it the biggest production site in Spain. The
acquiring entity will be Culmarex SA which is a 100
percent owned subsidiary of Marine Farms, running its seabass
and seabream business in Spain.
...But the Greeks become shareholders of Marine Farms! On 24 April 2007
the Greek aquaculture company Nireus S.A announced
the acquisition of 17.9 per cent of the shares of the Norwegian Company Marine
Farms ASA, a company listed on the Oslo Stock Exchange. Marine Farms has
developed vertical structures in the production of sea bass and sea bream in
Spain with an annual production capacity of 7 200 tonnes and 15 million
juveniles. Nireus intends to increase its
international exposure through acquisitions and direct investments in Turkey and Spain.
By Camillo Catarci (GLOBEFISH)
© FAO GLOBEFISH 2007
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