Eurofish magazine 2 2018

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Eurofish Magazine

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Marel Salmon Showhow reveals smart new machinery Successful EuroďŹ sh Business Platform at ďŹ sh international Lithuania: Programme in aquaculture entrepreneurship proves popular is a member of the FISH INFO network

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In this issue

Polish processors expand their sites further The Polish fish and seafood processing industry was responsible for a healthy 0.58 (or EUR2.5bn) of Polish GDP in 2016. What is striking is that the fraction has risen steadily since 2004, even as Polish GDP has more than doubled over the same period. In 2016 the sector employed over 18,000 people many of them in small towns and cities making a sizeable contribution to employment in some rural and semi-urban areas. The products they make are sold on the Polish market as well as overseas, and include a variety of fresh, frozen, canned, marinated, smoked and otherwise processed fish and seafood. Polish factories are generally state of the art with all the necessary certifications for safe, healthful, and nutritious products thanks to the assiduous upgrading at regular intervals with support from EU funds. Learn more about the Polish processing industry from page 33

Spring features the world’s biggest and most international seafood show, the Seafood Expo Global in Brussels. Organised by Diversified Communications, a company headquartered in the United States, the show brings together the global seafood industry for three days of hectic activity. Companies exhibiting at the fair typically find it a highly useful event to get an overview of developments in the industry, not only in terms of products, packaging, and equipment, but also intangibles such as legislation and issues, for example illegal fishing or the impact of climate change. A number of talks, workshops, seminars etc. are also held at the venue, so visitors and exhibitors can return with some intellectual ballast as well. Several Eurofish member countries have pavilions at the show which are previewed from page 23

Insurance for fish farming is gradually coming of age as the industry matures and develops. Today every second fish sold is farmed representing an opportunity for the insurance sector. However, globally, the number of policies is still very small compared to the number of fish farms and most insurance is taken out in the west although most fish is farmed in Asia. Salmon and shrimp farmers are the most likely to have insurance. But information about fish farming is growing and insurance companies can now make more informed decisions about how to evaluate risks and where to peg premiums. Knowledge amongst insurers about different species and production methods is also growing. While insuring physical infrastructure (boats, vehicles, buildings, gear and equipment) is the most common, companies are also learning to insure stock. Read Dr Manfred Klinkhardt’s article on page 29

IUU (illegal, undocumented and unregulated) fishing is a significant threat to stocks, legitimate fishermen, the environment, and in addition is also associated with other illegal practices such as human trafficking. There are thus several very good reasons to try and reduce the extent of IUU fishing if not eliminate it altogether. But the problem is complex and is often a symptom of bigger issues, such as a failed state, massive corruption and weak governance, the fixing of which often takes a concerted effort involving a lot of funding and the participation of several countries. Illegal fishing by its very nature is hard to quantify, which makes it still more difficult to combat. Efforts to reduce illegal fishing require close international collaboration and a lot of investment. Satellite monitoring and better controls both at sea and on land need to be implemented. Markets need better policing and regulations need to be enforced uniformly. Read more on page 57

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Table of News 6 International News

Events 17 Salmon Showhow, 7 February 2018, Copenhagen Data driven salmon processing equipment

19 Germany’s seafood trade show draws larger crowds 22 AquaFarm, 15-16 February, Pordenone AquaFarm successfully takes aquaculture off the ground

23 Seafood Expo Global/Seafood Processing Global, 24-26 April, Brussels The seafood world gets ready to meet again

23 Food from Denmark, Patio Innovative products on display

24 Croatia, 6-1015 Salted and marinated anchovies and sardines from the Adriatic

24 Latvia, 8-4581 Value-added products will feature heavily

28 Danish Fish Tech Group, Hall 4 Technology solution providers will be present in force 28 Estonia, 5-639 Supplying products to a variety of markets

26 Turkey, 11-2101, 11-2201, 11-2301 More than just seabass and seabream 27 Poland, 11-2551 Polish national pavilion looks forward to welcoming visitors

26 Italy, 11-2221, 11-2321, 11-2421, 11-2521 Seafood consumption in Italy increases in 2017

Aquaculture

29 Aquaculture insurance – Is it worth it? Coverage of operational risks linked to strict conditions

Poland 33 Fish and seafood processing in Poland Stiff competition at home encourages search for new markets 37 With its own processing plants, laboratories, and cold stores Abramczyk caters to most demands Frozen products expert now eyes the fresh fish market 39 Gdansk Coldstore can distribute fish from the North Atlantic around the world Successful response to national and international competition

Front cover picture courtesy Abramczyk Ltd

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Contents 41 Kolobrzeska Fish Producers’ Group restructures its processing facilities Adding value to the catch is the only way forward (CC BY-SA 3.0) Map based on https://commons.wikimedia.org/wiki/File:Location_European_nation_states.svg by Hayden120 and NuclearVacuum

44 Losos today concentrates exclusively on canned fish products Investments in R & D are critical

RU

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46 Mirko has repositioned the traditional marinated herring Modern and health-oriented combinations make herring a gourmet product 48 Seamor smokes seafood for upmarket customers Exploring opportunities in foodservice 51 Seko is expanding – again A new line of products for younger consumers

KZ

Lithuania 55 Compensation for losses caused by seals Fishers UZ and Phocids can now coexist amicably 56 Šilute˙ Agricultural School is the first institution in Lithuania to offer a specialisation in aquaculture Programme to create aquaculture entrepreneurs

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Worldwide Fish News Bosnia and Herzegovina page

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Croatia

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Denmark

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Ireland

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Italy Lithuania

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53 Stanpol processes and trades in Baltic and Atlantic cod, as well as salmon A family-owned business, run by three generations

Norway Poland Russia

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page SY page LB IL CY page

AM 7 6, 13, 16

10 12 11

Spain

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Turkey

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57 IUU fishing torpedoes sustainable fisheries management When licensed fishing and adherence to quotas is penalized

Processing 61 Seamark is expanding frozen warm-water shrimp sales in Eastern Europe IR Made in Manchester for sale on the continent

Guest Pages: Giampaolo Buonfiglio 63 The Mediterranean Advisory Council has managed to get its two sets of stakeholders to collaborate Harmonising sometimes conflicting opinions

Service 65 Diary Dates 66 Imprint, List of Advertisers

10, 11 16 SA 6, 13

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[ INTERNATIONAL NEWS ] UK: Criminals have trafďŹ cked 110 million eels to Asia so far this season The Sustainable Eel Group (SEG) is calling for EU action to prevent illegal fishing and trafficking of European eels before it is too late. The European eel is critically endangered; key measures for its protection are limiting of fishing and enforcing existing trade control measures. Within these restrictions it is forbidden to export eel outside the EU. Enforcement agencies estimate, however, that at least 110m juvenile eels have already been trafficked from Europe to Asia’s eel farms this season. Trafficking has to stop, because this wildlife trade undermines the measures for the protection of the eel. Andrew Kerr, Chairman of SEG stated: “The failure to control the selling and distribution of European Eel is threatening the whole recovery effort – for every eel legally eaten, 3 to 5 are being traffickedâ€?.

Evidence shows that the trade ban adopted by the EU in 2010, is not being sufficiently implemented by EU Member States. The French Le ComitÊ national des pêches maritimes et des Êlevages marins recently stated that France’s declared catch alone had reached 140 million glass eels and has another month to run. An instant market survey this week revealed that only some 30 million had been sold to legitimate European markets. The rest had vanished. SEG is calling on the European Commission to enforce existing measures restricting trade of the eel under CITES and the Commission Regulation (EU) no 1320/2014, banning all imports and exports of European eel to and from the EU. Additionally, full traceability of all eel trade is obliged by the EU Eel Regulation

Two hundred kilos of European glass eel coming from Portugal via Amsterdam were seized at Hangzhou Airport in 2017.

and in particular its Article 12 on control and enforcement of trade. Insufficient implementation of trade controls and the resulting trafficking frustrates the European Eel Recovery Programme

as mandated by the EU Eel Regulation. Consequently, trafficking threatens the survival of the species, by undermining its protection and sustainable use and ultimately some 10,000 jobs.

documented the socio-economic impact of salmon farming and showed how sustainable salmon farming was in comparison to other kinds of terrestrial animal protein production. It also committed not to farm geneticallymodified salmon.

will bring down costs. Among the new ideas are closed offshore cages, and closed systems based on large vessels. Research into land-based farming is also ongoing and while commercial production of a market-sized fish on land may still be some distance away, it may be possible to raise a larger smolt that needs to spend less time in the sea to reach market size. Salmon farming will continue to develop and expand addressing on the way the biological, economic, and social issues it faces, but just as the sector has evolved almost beyond recognition in the last decades, so will the industry of the future bare little relation to that we see today.

Denmark: The future of salmon farming While the salmon industry is not going to be able to feed the world with fish in the future, it acts as an incubator for knowledge, technology, and expertise that is used in other areas of the aquaculture industry, Trond Davidsen, President of the International Salmon Farmers Association said at the Marel Salmon ShowHow in Copenhagen in February. Growth in salmon production has been more or less stagnant over the past four or five years, something that is mirrored in the production of other species, such as seabass and seabream. Reasons vary from country to country, from biology to bureaucracy

to a lack of farming sites. But common to most countries is the growing opposition to growing fish in open cages. Between 1980 and 2000 the industry’s focus was on the market, on growing and developing it, which it did very successfully. The widespread use today of salmon in sushi and sashimi, and the vast expansion of sushi eating places is one example of this success. In terms of popular acceptance of the industry, however, the tide started to turn around the beginning of the new millennium, driven by criticism from parts of the media and some NGOs. Some of this censure was based on misinformation and to counter this the association has

There is, however, no doubt that the comparative advantage of open-cage farming is under pressure with higher costs due to sea lice treatment, as well as taxes and fees paid to local communities. However, in Norway at least, companies are investing in new and expensive licenses because they believe that the high price is an incentive to develop new technology that

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[ INTERNATIONAL NEWS ] Croatia: First online ďŹ sh market opens In February, Croatia opened its first electronic fish market. Buy Fish Shop is the name of the electronic fish market, which will help fishermen sell their fish at the best possible price, said Danel Kolec, the President of the Association of Professional Fishermen, Mare Croaticum. “The exchange is smooth and simple; a fishermen

registers the quantity and type of fish he catches using his mobile phone or a computer; the buyers sends their offers and can follow the bidding and the fishermen chooses the deals that suit him best, after which the customer is notified. From that moment on, the fish are registered as ‘e-Stock’, Mr Kolec said, highlighting that

the fishermen and the customer are free to decide and agree on the pick up point and the payment method. The platform is not just for professional traders. Registered OPGs (Family Owned Enterprises) can also buy and sell on the electronic fish market, as long as they are registered with the public authorities. Kolec

mentioned that a manual has been developed to allow first time users to understand the rules and procedures. All fishermen and customers need to register at Buy Fish Shop and can thereafter trade at will. The electronic fish market will soon also be made available for the Italian, Slovenian, and Austrian market.

Lithuanian hope for help in the Baltic Sea As a result of major quota cuts in the Baltic Sea Lithuanian fishermen have turned to the European Commissioner for advice. Fishermen in the Baltic Sea are suffering from the drastic reduction in quotas, which has occurred over recent years. Since 2014, fishermen in Lithuania have lost more

than 50 percent of their quota for cod, and therefore, Lithuanian parliamentarian, Rolandas Paksas, has asked EU Commissioner Karmenu Vella about possibilities for support. According to the Commissioner, permanent cessation aid for fishermen ceased at the end of 2017, and EU

support schemes do not allow direct compensation for fishing if the quota falls. He pointed out that the local Lithuanian fisheries support scheme contains a number of measures such as subsidies for reducing impacts on marine resources, helping competitiveness and finding new markets.

Finally, the local authority can also offer de minimis support (amounts of aid that are so small as to be construed to have a negligible impact on competition and trade) up to an amount of EUR 30,000 for the individual fisherman in total for a period of three years.

SCAN FOR QUALITY The QC Scanner detects color, melanin and blood spots, trimming defects and fillet weight so you can accurately monitor the quality of your salmon. Meet us in Brussels 24-26 April at SPG stand #6227 and experience the new standard for quality control in salmon processing. marel.com/SPG18

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[ INTERNATIONAL NEWS ]

Nordic Aquafarms, based in Norway and one of the largest developers of land-based aquaculture, disclosed that it will invest between $450 million and $500 million to build one of the world’s largest land-based salmon farms outside Belfast in Maine, USA where 40 acres of land will be turned into a salmon operation with an annual production capacity of 33,000 tonnes. Construction will begin as early as the fall of 2019 and the first fish could be sold by 2021. A local company, Whole Oceans, has also announced plans to invest $250 million in several phases to create another aquaculture farm that at full production will be able to produce 50,000 tonnes of Atlantic salmon per year from its location in Bucksport, just 35 km from the Belfast site. High prices for salmon, developments in technology, challenges of sea lice, and more restrictive licensing regimes has driven a wave of interest in land-based

John Gutwin, Pepperchrome.

Maine, USA to become hub of land-based salmon production

Rendered view of the Whole Oceans site.

salmon farming over the past few years. In addition, recirculation aquaculture systems offer the advantage of being independent of climatic conditions, less vulnerable to disease, and can

be located close to markets. On the other hand, such systems are enormously expensive and production costs are considerably higher than for farming salmon in net cages in the sea leaving

many in the industry sceptical about the economic viability of farming salmon on land. The new projects in Maine will surely show whether such scepticism is justified.

Ireland: Making good use of aquaculture wastewater

improve water quality, enhance fish production, and yield high quality feed, thus demonstrating a financially viable circular economy. The value of Ireland’s aquaculture industry is more than EUR200m and the sector employs around 2,000, according to BIM. Although the freshwater aquaculture industry has shown steady growth innovative solutions are required to improve the sector and to satisfy demand for high quality products.

Coastmonkey.ie

Aquasus, a project administered by BIM, Ireland's seafood development agency, on behalf of the Department of Agriculture, Food and the Marine, has just received EUR230,000 in funding under the EMFF to study the natural ability of duckweed and algae to flourish in and purify waste water, producing both clean water for fish farms and a supply of high protein animal feed. Prof Marcel Jansen from University College Cork and the leader of Aquasus, says that combinations of algae and duckweed can

Duckweed thrives in wastewater and provides a high protein food supplement for feed.

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[ INTERNATIONAL NEWS ] USA: Insect larvae meal approved as salmonid feed ingredient Enterra, a producer of feed ingredients from the larvae of black soldier flies, has had its application to include black soldier fly larvae meal in the list of authorised feed ingredients for salmonids (salmon, trout, and Arctic char) approved by the authorities. This is the first

time that insect meal has been approved for salmonids' feed in the US. Black soldier flies can be found naturally in tropical and temperate regions around the world. The larvae are reared under controlled conditions on locally sourced, pre-consumer food waste containing

valuable nutrients that would otherwise be lost in landfill, compost or waste-to-energy facilities. Enterra has also received approval from the Canadian Food Inspection Agency (CFIA) to sell whole dried larvae in Canada as a feed ingredient for tilapia and poultry. This builds on

previous approvals for the same product in salmonid feed in 2017 and broiler chicken feed in 2016. The company is planning to expand production by opening a second facility in Calgary Canada towards the end of 2018. Its existing plant in British Columbia is producing at full capacity.

Bosnia and Herzegovina joins in safeguarding Mediterranean ďŹ sheries Bosnia and Herzegovina’s Minister of Foreign Trade and Economic Relations, Mirko Ĺ arovic´ has signed the Malta MedFish4Ever Declaration, a multilateral strategy for safeguarding the future of Mediterranean

fishermen and coastal communities. Over 300,000 persons are directly employed on fishing vessels in the Mediterranean, whilst many more indirect jobs depend on the sector. This declaration represents a practical outcome

of EU’s Neighbourhood Policy, and has so far been signed by the European Commission and 15 Mediterranean coastal states. The declaration sets out common objectives for the next ten years, based on ambitious, but realistic

targets. The declaration provides for joint commitment and ownership of the process of cooperation on this major endeavour of returning fisheries to sustainable levels in order to secure jobs and growth across the Mediterranean.

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[ INTERNATIONAL NEWS ] Black Sea turbot ďŹ sheries to become more sustainable The General Fisheries Commission for the Mediterranean (GFCM) has issued a recommendation regarding a multiannual management plan for turbot in the Black Sea. A pilot project was recently launched to establish a voluntary observation and inspection

programme before the end of 2019, to ensure compliance with the recommendation. The project will foster compliance and a level playing field regarding total allowed catches and quotas regime, technical measures, closure periods, fishing effort limits, and market

related measures. “This pilot project sets the foundations for cooperation on fisheries control in the region. Indeed, a GFCM observation and control programme for the Black Sea will contribute to guaranteeing the sustainability of turbot fisheries in the region,� said

Pascal Savouret, Executive Director of the European Fisheries Control Agency at the project’s kick off meeting, which included representatives from Bulgaria, Georgia, Romania, Turkey, Ukraine, the GFCM Secretariat, and the European Commission.

Norway: Unique aquaculture ship may solve challenges of salmon farming A 430 m aquaculture ship designed by a Norwegian company in partnership with Nordlaks, a salmon producer and processor, will be built in China. The vessel is the first of two “ocean farms� to be built for Nordlaks and will be located south

west of Hadseløya in Nordland, Norway, an area that up until now has been impossible to utilise for aquaculture. The vessel will comprise a steel frame for six ‘cages’ measuring 50m by 50m on the surface, with aquaculture nets going to a depth of 60 m.

New publication on the price structure of processed anchovy in Italy Italy is the world’s fourth largest producer of anchovy with 37,511 tonnes caught in 2015 according to the latest EUMOFA case study: Processed Anchovy in Italy. Italian anchovy is consumed fresh or processed as salted anchovy, anchovy in oil, or marinated anchovy. This case study, published in February, focuses on salted anchovy and anchovy in oil. Italian anchovy production is broken into two types; Small-scale production marketed regionally and industrial scale production, based partly on imports from countries like Albania, Morocco, and Tunisia, of which circa three fourths is sold within Italy and the rest is exported. In 2015 imports of anchovy reached a little over 26,000 tonnes while about

20,000 tonnes were exported and some 44,000 tonnes were consumed in Italy. For one kilogram of processed anchovy (preserved in oil or salted) between 1,9 and 2,3 kg of fresh anchovy is needed due to losses during the different production stages. Fish accounts for 9 to 20 of the cost of the final product to consumers which ranges from EUR28/kg to EUR53/kg for small-scale production of anchovy preserved in olive oil in the Ligurian area. Labour costs account for 14-16 while distribution costs account for the largest share (between 28 and 53) of the final consumer price. More detailed information is available online at www. eumofa.eu/eumofa-publications.

The structure will be able to host over 2m fish or 10,000 t of salmon and, according to Inge Berg, the CEO of Nordlaks, will be stocked in spring 2020. The project is yet another innovative response by the Norwegian salmon industry to some of the challenges it faces

with regard to sea lice, licenses, and dwindling public support. The hope is that by farming out at sea the impact on the environment will be significantly reduced and because of the depth the problem with sea lice can largely be avoided.

Spain: Final seminar of the e-FishNet Project Co-funded by the Erasmus + Programme of the European Union, this event will take place in Madrid on 25 June 2018. The main conclusions of the project will be presented, and also other interesting lectures related to consumption trends, the Fish Retailer Sector in Europe and its

training, among other issues will take place. Additional activities have been organised both on 25 and 26 June such as visiting traditional markets in Madrid as well as the wholesale fish market in Mercamadrid. A dinner focused on fisheries products and a showcooking are also planned.

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[ INTERNATIONAL NEWS ] Spain takes the lead at preparing maritime technology for the future Digitalisation, the use of hightech equipment, and the need for a low-carbon footprint are affecting workplaces across the world. Ensuring employees have the skills to match these demands is crucial to ensure a competitive European maritime sector, according to the

European Commission. It has, therefore, launched a cooperation platform for key stakeholders, including businesses, trade unions, research, education and training institutions, along with public authorities, to identify the skills required by the maritime sector and explore ways

to match future demand and supply. The Spanish foundation CETMAR, based in Galicia, together with 17 partners will investigate future topics of interest and propose concrete actions to be rolled out at national and regional level to bridge the gap between the

current level of skills and the future needs of the industry. By helping the sector to adapt education and training to prepare the workforce of the future, this initiative seeks to empower the various strands of the maritime industry and boost its performance for years to come.

Russia plans modernisation of ďŹ shing eet Russia expects to build 50 to 60 new fishing vessels over the next five to six years, involving investments of around EUR2.8bn (RUB200bn), according to PortNews.ru. At a shipbuilding meeting in Moscow, Piotr Savchuk, Deputy Head of the Federal Fisheries Agency (Rosrybolovstvo),

presented his expectations of about 20 vessel construction applications from small and medium coastal fishing companies. In addition, distribution of the remaining investment quotas for pollock and herring will allow the construction of another 5-6 trawlers, while investment quotas

for crab catching vessels will see the construction of up to 40 new vessels. A similar round in 2017, saw 33 applications for the construction of fishing vessels, according to Rosrybolovstvo. Among them were six 108 m processing

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trawlers and three 55 m seine trawlers for the Far East region worth EUR640m while the remaining 24 vessels totalling investments of EUR1bn were from companies from the Northern Basin. Delivery of these vessels will start in 2018 and finish by 2023.

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[ INTERNATIONAL NEWS ]

Even though fishing activities have been monitored for selected fleets using electronic vessel monitoring systems, logbooks, and onboard observers, these efforts only provide very limited evidence of a region’s fishing patterns. A new study, published in the 23 February 2018 edition of the journal Science by a team of researchers led by David Kroodsma of Global Fishing Watch, has made use of global satellite-based observations along with artificial intelligence to train and analyse the 22 billion messages publicly broadcast from marine vessels’ automatic identification system (AIS) from 2012 to 2016. The particularity of movements relating to fishing have led to the identification of more than 70,000 fishing vessels ranging from 6 to 146 m in length, with a 95 accuracy. The movements of these commercial fishing vessels have been tracked hourly and reveal a global ‘heat map’ that covers more than 55 of the ocean’s surface or over four

Kroodsma et. al.

Big data reveals global ďŹ shing footprint times the area covered by agriculture. Although the data set includes only a limited proportion of the world’s estimated 2.9 million motorized fishing vessels, it encompasses most of the larger vessels exceeding 24m in length and is estimated to account for between 50 to 70 of the total high seas fishing. Over the course of 2016, the data set captured 40 million hours of fishing activity by these vessels covering a combined distance of more than 460 million km, the equivalent of traveling to the moon and back 600 times, and consuming 19 billion kWh of energy. The heat map reveals an uneven distribution of fishing with global hot spots in the northeast Atlantic (Europe) and northwest Pacific (China, Japan, and Russia) and in smaller regions off South America and West Africa. Most nations fished predominantly within their

Heat map of global fishing activity in 2016.

own EEZ, with 5 states, (China, Spain, Taiwan, Japan, and South Korea) accounting for more than 85 of observed fishing effort on the high seas. Surprisingly, where and when fishing occurred was tied more to politics and culture, like large drops in activities during weekends and holidays in the northern hemisphere, than to natural cycles such as variations in climate or fish migration. Ray Hilborn, a fisheries researcher at the University of Washington, told

Seafoood Source that the study failed to provide any new insight, but had valuable information on how fishing patterns change throughout the year, and is helpful in combating illegal, unreported, and unregulated fishing and other rogue activities on the high seas. “The real positive of this, is to make the fishing industry realize that fishing is public. Everybody is going to know where you are, all the time�. Global Fishing Watch (globalfishingwatch.org) has all the data from the study available for download.

Poland: Alarming state of ďŹ sh in the Baltic “These are not cod! They are just skin and bone,â€? was the outraged comment from Pomeranian fishermen describing their latest catches at a meeting on the deteriorating state of fish stocks in the Baltic Sea. The meeting was held at the Sea Fisheries Institute in Gdynia, where fishermen met with representatives from the Polish Ministry of Maritime Economy and Inland Navigation along with scientists involved in the study of marine flora and fauna. The fishermen showed samples of recently caught fish that hardly

resemble cod – a drastic change that has occurred over just a few years. According to the fishing community, reducing the catch limits for cod is not enough. In 2017, Polish fishermen only caught 57 of the national cod quota. Focus on the food for these fish is just as important. Scientists are aware of the problem, but do not fully know the reason behind it. “For two years we have noticed the deterioration of the cod stock in the Puck Bayâ€? says Professor Jan Marcin WeîżąsĹ‚awski from the Institute of Oceanology

of the Polish Academy of Sciences and continues “We do not know what the reason is. The list of potential causes is long. Climate change and warming of the sea results in less oxygen in the water which can influence the stocks. The researchers also mention a too restrictive policy of cleaning rivers flowing into the Baltic Sea. The water is sterilized and deprived of a large amount of nutrients affecting the development of life in the sea. Recent studies by the Institute of Environmental Protection show, for

example, that a reduced number of nitrogen compounds, affecting the development of life, reach the sea. As a result, phytoplankton, which is crucial source of food for smaller fish, disappears. One of the ideas to save the Baltic is to temporarily or completely stop fishing until the fish stocks rebuild. However, the consent of all Baltic countries would be required – an unrealistic solution. Future meetings are planned to address the problem of fish stocks in the Baltic.

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[ INTERNATIONAL NEWS ] Denmark: Fresh ďŹ sh is a hit with old-age homes and other institutions “Now when we write ‘Fresh fish landed at Hvide Sande harbour’ on our meal plan, our residents always look forward to the meal,â€? says Lone Fløe, head of the kitchen at Ă…kanden, an old people’s home in RingkjøbingSkjern municipality. She was one of 20 kitchen managers from the region that accepted the invitation by fisheries promotion cluster, Konsumfisk, to visit a

fishing vessel to see how the fish is sourced from the sea. Ms Fløe explaining the importance of meals made with locally-sourced raw materials, says, people may have caught their own fish in the fjords, or may have been used to buying eggs at the nearby farm. For many, it is more important that the ingredients are local and in season, than that they are organic. It’s silly not to take

advantage of the fresh sources of food (fish) when they are so accessible, rather than buying a frozen fish fillet. But it just as much about professionalism. We are trained in using good ingredients to provide great meals, she continues. For the organizer, Konsumfisk, the day was also a good experience. Of course, we would like to

sell more fish, but we would also like to talk with the buyers and show them the possibilities of using seasonal products instead of always asking for the same fish, says Heidi Ebey GrønkjÌr, Project Manager at Konsumfisk, adding that this will hopefully create a better eating experience with more diverse products, while also reducing expenses on food.

UK to remain a part of the Common Fisheries Policy until the end of 2020 Environment secretary, Michael Gove, is facing criticism from the fishing industry who had hoped that the UK would regain full control over the country's fishing waters on Brexit day, 29 March

2019. Instead the deal will see the UK "consulted�, yet without a direct say in its rules on quotas until 2021. Nicola Sturgeon, Scotland's First Minister and SNP leader, stated

the deal made with the EU in the transitional period was "shaping up to be a massive sell-out of the Scottish fishing industry.� The Scottish Fishermen's Association charged the EU of making

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"the bargain of a lifetime" by seeking to keep the UK under Common Fisheries Policy (CFP) rules for "as long as physically possible". According to them, the UK keeps 40 of fish caught

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[ INTERNATIONAL NEWS ] in its waters under the CFP while a nation like Iceland gets to keep 90. Mr Gove appealed to keep the "eyes on the prize" as in December 2020, the UK will regain full

control over the country's fishing waters for the first time in 40 years. "For our coastal communities it's an opportunity to revive economically, for our marine environment it is an opportunity to be managed sustainably and

it's critical that all of us - in the interests of the whole nation keep our eyes on that prize." he said. On the other side, Niels Wichmann, Managing Director of the

Danish Fishermen's Association, said the transition period was sensible giving everyone a couple of years to work out how to keep fishing stocks and the fisheries sustainable following Brexit.

Fishermen in the Baltic Sea come together to solve cormorant and seal problem Both fishermen and catches are on the decline in the Baltic Sea area reducing the supply of fresh locally caught fish. The fall in catches is closely linked to the rapidly growing seal and cormorant populations in the Baltic Sea. Fourteen Fisheries Local Action Groups (FLAGs) in the coastal regions of Estonia, Finland, Germany, and Sweden have therefore launched a joint project to find a

way for fishermen and the wildlife that influences fishing to sustainably coexist. Seals eat 5-6 kg of fish per day and have grown accustomed to preying on fish caught in fishermen’s nets. A seal population of 50,000 will eat about 100 million kg of fish annually, making the fishing profession in seal-filled areas unsustainable. Cormorants

not only eat large quantities of fish but drive away schools of fish from their traditional habitats. The problems caused by seals and cormorants in traditional coastal professional fishing have clearly been documented. The effects are so great that many fishermen’s communities feel that unless a change is made fishing as a livelihood will become completely impossible in a few

years. Hopefully the combination of views from research institutes specialising in natural resources in different countries with the experiences of professional fishermen can create ideas for coexistence between fishermen and the predators. On the drawing board are seal-resistant traps, seal repellents, and protective hunting close to fishing traps. Other ideas are more than welcome.

Luxembourg: Moroccan ďŹ shing zone does not include Western Sahara According to a European Court of Justice (ECJ) ruling Western Sahara waters are not part of Moroccan fishing zone. “If the territory of Western Sahara were to be included within the scope of the fisheries agreement, that would be contrary to certain rules of general international law,â€? it said. Western Sahara has been a disputed territory for decades since it was occupied by Morocco in 1974 when Spain relinquished

its control over the region. The Kingdom of Morocco and the Polisario Front, a group backed by Algeria aspiring for independence, have been in an armed conflict over Western Sahara until a ceasefire in 1991 backed by a UN peacekeeping force. The two sides have not held direct talks since 2012. The Court concludes that the “Moroccan fishing zone� under

the protocol does not include the waters adjacent to the territory of Western Sahara. The Court therefore holds that, since neither the Fisheries Agreement nor the protocol thereto are applicable to the waters adjacent to the territory of Western Sahara, the EU acts relating to their conclusion and implementation are valid, the ECJ statement concludes. The Moroccan government dismissed the gravity of the ruling

saying that “it does not refute Morocco’s ability to negotiate an agreement (with the EU) even in southern waters�, referring to those of Western Sahara. Mr Aziz Ajanuch, the Minister of Agriculture, later said that European vessels will be able to continue fishing “until the expiration of the current agreement,� in July. This fisheries agreement came into force in February 2007 and has been renewed twice.

Long way to go for sustainable octopus ďŹ sheries As part of the Sustainable Fisheries Partnership (SFP)’s “Target 75 Initiative,â€? a global movement launched last year that sets the goal of seeing 75 of the world’s seafood production operating sustainably or moving towards sustainability by the end of 2020, SFP released a report on the global octopus sector. According to the report, only about 0.01 of octopus products comes from

fisheries that count as sustainable or improving but several octopus fisheries have received certification and praise for proper management. The Asturia fishery certified by the Marine Stewardship Council is a good example of octopus fisheries being managed sustainably and outlines a management model that can and should be replicated, according to the report. In addition, Alaska’s

giant Pacific octopus fishery is green-listed by the Monterey Bay Aquarium’s Seafood Watch program, providing an additional model of good management. “The octopus sector clearly has a long way to go on the road to sustainability but it’s possible to make significant progress. If companies that buy and supply octopus are willing to promote

improvements among producers it should be possible to make rapid gains,� said Jim Cannon, SFP’s Founder and CEO. The report suggests the industry should target producers in Vietnam and China. Buyers on the domestic markets and in key export markets like Japan and South Korea, are ideally positioned to influence production and management practices.

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EUROPEAN SEAFOOD EXPOSITION 24-26 April 2018

BRUSSEL ASMI booth Hall 6 #1126, 1127 and 1143

ALASKA – GOING WILD FOR SUSTAINABLE SEAFOOD In Alaska, sustainability is more than just a word, it is the common belief of all fishermen. Dedicated to strict guidelines, the fishing industry in Alaska carries on the heritage of previous generations and secures the future for the ones that follow. Visit us at Seafood Expo Global and learn about our responsible fishing practices, the origin Alaska and its diversity of high quality seafood species. ASMI BOOTH HALL 6 #1126, 1127 AND 1143.

MEET OUR COMPANIES: • Alaskan Leader • Arctic Storm Management Group • Arrowac Fisheries • Blue North • Bornstein Seafoods

• • • • •

Cascadia Seafoods Clipper Seafoods Dana F. Besecker Co. Ekuk Fisheries Glacier Fish Company

• • • • •

Icy Strait Seafoods North Pacific Seafoods Ocean Beauty Seafoods O‘Hara Corporation Pacific Harvest Seafoods

• Pacific Seafood • Seafood Producers Cooperative • Silver Bay Seafoods • Trident Seafoods • Whittier Seafood

www.alaskaseafood.eu 04_News_INT.indd 15

24/03/18 4:45 PM


[ INTERNATIONAL NEWS ] Turkey to focus on sustainability and diversiďŹ cation In 2016 the total production in Turkey reached almost 590 thousand tonnes, comprising 51 marine fisheries, 6 inland fisheries, and 43 produced by aquaculture. Four fifths of Turkey’s aquaculture production is from members of the Central Union of Aquaculture Producers, the Chairman of the Board, Mr Faruk Cos¸kun, said during his opening address at the Sixth Aquaculture Workshop held on 23-24 February, in Antalya, Turkey. Aquaculture is the fastest growing food sector globally and Turkey, with the rich resources for aquaculture production, is in a favourable position to utilise these to the best of its abilities, Mr Cos¸kun stated. However per capita consumption of fish in Turkey fell to 5.4 kg in 2017, a fall, which needs to be addressed by the Ministry of Food, Agriculture and Livestock in the near future to

From the General Directorate of Fisheries and Aquaculture, Mustafa Altug˘ Atalay (centre), General Director; Turgay TĂźrkyilmaz (fifth from right), Deputy General Director; Mehmet Nuri Yilmaz (fourth from right), Aquaculture Branch Manager; and Ali Kilic (third from left), Head of Department of Administrative Affairs and Coordination. From the Central Union of Aquaculture Producers, Faruk Cos¸kun (fifth from left), Chairman of the Board; along with other officials at the Sixth Aquaculture Workshop.

increase consumption of seafood products. Mr Mustafa Altug˘ Atalay, General Director of Fisheries and Aquaculture added that it was important to

focus on sustainable aquaculture methods, such as the use of recirculation aquaculture systems. He stressed that the sector should not just concentrate on

increased production but also to give priority to produce better and more diverse products like dentex, turbot, sturgeon, and crustaceans.

Denmark: Anglers, commercial ďŹ shers discuss cod catches at BSAC meeting Recreational fishing is an important and popular activity in the Baltic. On 29 January 2018, the Baltic Sea Advisory Council (BSAC) held a workshop to focus on cod. The total allowable catches for Baltic cod have been reduced considerably over recent years, and the catches taken by recreational fisheries much discussed. At this one-day workshop, BSAC members, BALTFISH Member states, scientists and experts discussed recreational cod fishing, how to include and make use of the catch data in the scientific assessments and whether the sector should be further regulated. A short set of conclusions from the meeting was adopted. The workshop

was followed by the BSAC Executive Committee meeting on 30th January 2018, where members discussed whether to create a working group to deal with recreational fisheries. There are differing views on this, given that it’s not clear from a management point of view whether it is covered by the Common Fisheries Policy. No immediate decision was taken. Collecting and using discards was a hot topic at the meeting, with a presentation by Christian Bisgaard, Member of the Saria Group which has the means to develop a system for collecting bycatches. BSAC members are interested in a by-catch collecting system as a

The BSAC Executive Committee deferred a decision on whether to establish a working group to deal with recreational fisheries.

possible way of using unwanted catches and several questions were posed. The committee also adopted the 2018 work programme,

which suggests that the BSAC has a busy year ahead. The work and activities of the BSAC can be followed at www.bsac.dk

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[ EVENTS ] Salmon Showhow, 7 February 2018, Copenhagen

Data driven salmon processing equipment The Marel Salmon Showhow, the seventeenth edition of the event, drew some 130 companies from over 30 countries to the company’s training and demonstration facility, Progress Point, in Copenhagen. As usual, in addition to the equipment on display, the event offered a full programme of lectures from experts in different ďŹ elds both from within and outside the company.

I

n 2002, when the first Salmon Showhow was held, some 50 people attended. Since then, the number of participants has expanded significantly reaching a record 279 in 2017, and only slightly fewer this year. In 2002 the global value of farmed Atlantic salmon was some USD3bn, a figure that saw a four-fold increase to almost

USD12bn in 2015, according to the FAO. Over the same period production grew from 1m tonnes to 2.4m tonnes. The growth in the salmon farming industry has had a ripple effect on all kinds of other businesses including fish health, logistics, hatcheries, the hospitality sector, but, above all, the equipment-manufacturing

industry, of which Marel is a good example.

Increasing the quality of fillets and portions At the Salmon Showhow the company showed how it could put together a suite of machines that convert whole salmon into the

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customer-friendly packages on sale in supermarkets with next to no human intervention. While many of the machines were familiar, Marel used the occasion to launch three new pieces of equipment. The QC Scanner, which has not yet been released for sale, identifies fillet colour and can detect blood or melanin spots and

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[ EVENTS ]

The Marel Salmon Showhow is a platform for promoting the company’s software and machinery both new and old to existing and potential customers.

even trimming defects. This enables higher quality as the defective fillets can be diverted from the production to another stream. The software powering the scanner also analyses the data it gets from the fillets and can issue a warning if it spots a trend such as an increasing number of defects. The machine can be programmed to reject a fillet if the total area of the spots measures more than a certain value. The scanner is placed after the filleting machine and flawless fillets move onto the next stage of the production, while fillets with defects will be diverted to a trimming line. This reduces the manual handling of the fillets significantly, which also contributes to the hygiene and quality of the final product. The heading machine that was pre-released last year was also on display. It is now on sale and some are already in operation. Over the year the machine has seen a few improvements. The footprint has been slightly reduced and the operator’s station has been made more ergonomic so that loading the fish into the machine is now more convenient for the operator, who no longer has to bend or twist. Changes made within

the body of the machine include some that increase hygiene by making it easier to clean. The software running the machine has also been upgraded. To increase the yield the machine makes not a single cut, but several, as it severs the head. It also cuts off the tail before the fish is fed automatically into the filleting machine. The automatic in-feed to the filleting machine from the header led to the development of a standalone machine with the same function. The device is paired with and has the same capacity as the MS 2730 filleting machine, which instructs the feeder how rapidly it should feed the fish.

High pressure water for straight, angled and curved cuts The Flexicut, another machine that was launched at the show, uses x-rays to locate the pinbones which are then removed using precision water-jet cutting. A combination of water jets and regular blades are used to portion the fillet using straight, angled, and curved cuts that take into account the shape and size of each fillet and maximise the value of the raw material. This is

desirable as cutting with water jets is more expensive than cutting with regular blades and so the technology should be used in the manufacture of more expensive products such as loins. Water jets require water at high pressure (800 bars) which is created by a pump attached to the system. The fillets can be fed in with an in-feed system or manually, but it is important that they go in tail first and skin side down. Once the portions have been created they can be “flexisortedâ€? meaning that different value portions can go into different streams, loins one way, belly portions another way, and the tail in a third direction. The machine has been available for the whitefish industry for some years and has now been adapted for the salmon sector. This was necessary as salmon pinbones are longer, thinner and less dense than in whitefish, and the company uses artificial intelligence to predict the length of the bone so that the water jets can do their job accurately and economically. The jets can cut at an angle of 26 degrees as opposed to 15 degrees for the whitefish. The machine is intended to remove pinbones from pre-rigour fillets. This has the consequence that the fillets can be processed rapidly after harvest so that the final product has a longer shelf life. To avail of this advantage the machine is located close to the farm and typically in high salary areas, such as northern Norway. With a loss of roughly 6 on small fillets and 5 on big ones the company estimates that the machine can replace eight workers. An additional feature is that if the machine detects another bone in the fillet it will continue to portion the fillet, but the piece with the bone will be streamed to a place where it can be inspected.

Innova integrates the machinery in a processing facility As with other Marel equipment, the heart of the system is the Innova software that not only enables the machines to talk to each other, but also collects and stores the information about pieces and portions in real time enabling users to analyse and optimise the processes. Innova has been deployed since 1983 and over the last 35 years the company has developed significant expertise in collecting, analysing, and using data to improve performance. Jacob Arndt, a Marel engineer working with Innova, says the software enables problems to be identified in real time so that solutions can be implemented immediately. Personally, he feels that factories and the equipment in them are going to be far more integrated in the future. “Everything is going to be connected in this IOT (internet of things) age, either to the internet or to systems like Innova,� he says. Innova is becoming more interoperable so that it can also be used with systems from other suppliers. The reason, Mr Arndt explains, is that operators need data, because it forms the basis for decisions, and factories often have equipment from different suppliers. That equipment also generates data that production control software like Innova needs to be able to access. In the future it may even be possible for a factory to run Innova without otherwise using Marel equipment. This of course leads to the question of whether the company will continue to focus on machinery in the future or whether it metamorphoses into, in the words of Mr Arndt, “a data company that also supplies machinery.� These are strategic issues that stand to completely redefine the company and its activities and could result in a very different Marel from the one we know today.

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[ EVENTS ]

Germany's seafood trade show draws larger crowds The 16th edition of the ďŹ sh international seafood trade show, organised by Messe Bremen, took place in Bremen, Germany on 25-27 February. Held biennially and now entering its 4th decade, ďŹ sh international, Germany’s only seafood trade fair, took place this time jointly with the GASTRO IVENT culinary trade show in Bremen’s spacious Ă–VB-Arena. With 312 exhibitors from over 20 countries, attracting 12,203 visitors, the 2018 ďŹ sh international was 15% larger than the previous edition.

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xhibitors from all over Europe and beyond presented their wares, including new seafoods, the latest in processing machinery, equipment for both fishing and aquaculture sectors, and a variety of services of use to those in the industry.

Breaking into new markets Sabine Wedell, Project Director at Messe Bremen, the organisor of the event, said there are new products at the show, at higher price levels, that seem to be having a chance in the market. “People are willing to spend money on higher quality products, or on something special when they know where it comes from.� New products, like yellowtail, which is raised in RAS technology in the Netherlands, are entering the market and seem to be having a chance in the market. And we also see that street food segment is very big, she says, it does not have to be only meat – it can be seafood, it is not only burgers and fish burgers, it can also be a hotdog made of fish, which are getting popular. What could not yet be seen in the shops but could be already seen at the show was a change in packaging, like skin-packed fillets which have a longer shelf-life, and are more environmentally friendly. Such skin-packaging is already in

the market for meat, but soon also will appear for seafood. Many exhibitors at fish international were foreign manufacturers of products not widely consumed in Germany; these producers were seeking buyers and distributors in the lucrative German market. Examples include langoustines, Baltic farmed trout, and Scottish salmon. Piejura, a Latvian processor of canned and frozen products, was promoting canned sprats in sauces with an Asian touch, as well as “fish bites� – finger food made of breaded whitefish with different fillings. Mihails Slovs, CEO of Piejura, said the fish international show provides his firm with an opportunity to expand beyond traditional markets in Eastern Europe. They are already expanding sales outside Europe, including Asia, so breaking into new markets is nothing new for the firm.

Bremen, not far from Denmark, is a good place to start, according to Kattegat’s commercial director, Rasmus Thomsen. “We are trying to refine the traditional matured ‘gammeldags’ (old style) herring,� he says, “and to introduce it to people outside Denmark, because it is very different from the herring typically bought in Germany. This

Country pavilions – right way to get visibility Some countries, including Denmark, the Netherlands, and Estonia, organised their own

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Adapting to the differences in consumer preferences in Germany is a challenge readily taken on by firms like Kattegat Seafood, of Denmark. Its main product is herring, which is popular in Germany but as matjes herring. Kattegat, on the other hand, produces traditional marinated and vinegarmatured herring, which in Scandinavia is commonly eaten with rye bread. So the challenge is to expand demand in Germany, and

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is our chance to introduce our traditional Danish recipe. There we see our potential.�

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Fish Int. Messe Bremen/Jan Rothke

[ EVENTS ] organiser Messe Bremen, provided a Business Platform to companies from its member countries, where they could exhibit and promote their products and services, communicate with visitors and other exhibitors, and hold meetings with potential business partners. A Business Platform exhibitor from Lithuania, Baltijos Delikatesai, which is a large producer of canned fish, has been present on the German market for a decade. It brought a new product to the show, cod roe with added smoked salmon, and as a result, says Igors Gubko, the firm’s director, “we have big hopes. We already have some interest from the German market.�

Now in its 30th year fish international has retained its status as Germany’s most important seafood event.

pavilions. The Danish pavilion was organised by Food from Denmark, a private company established 13 years ago which works with the Danish Trade Council and has around 150 member companies, including 70 to 80 companies in the fisheries sector. “Denmark is only five million people and if we do the marketing jointly, we get much more visibility on export market. We present our concept to the world instead of looking at the small home market.� says Karsten Nielsen, CEO of Food from Denmark. “In general, I’m very positive about the show because it has grown, and if you want to target the German market as a Danish producer - Bremen is a very good way to get into the market.� This year was the first time Food from Denmark had a pavilion at fish international, with eight of its members, and it was so

successful that the organization hopes to double its presence at the next fish international in two years’ time. At the Estonian pavilion, Arved Soovik, Board Member of the Estonian Association of Fishery said Estonian seafood products are present in most countries in Europe but are not yet well represented in the German market because of high competition in terms of price. “Estonia is not a cheap country and labour is expensive,� he said. “Some countries are more competitive in the German market, but we are working on it and the best perspectives here are for the producers of salmon products.� He feels the show is growing each time and is very productive for Estonia, as it provides exposure to the German market on the one hand, and on the other it is international and provides plenty of

opportunities to meet people from other countries.

Eurofish Business Platform Eurofish International Organisation, together with the fair

The Eurofish Business Platform, he added, is “a very good idea.� Any communication, in his experience, always brings new contacts. New contacts – new potentials, new potentials – new possibilities. There is “no such thing as a boring trade show,� he stated. One is always getting more information and expanding one’s network. To exhibit at the joint Business Platform booth

The Eurofish Business Platform at fish international gave companies from Eurofish member countries and their products to the important German seafood market.

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[ EVENTS ] has a synergy effect – people show interest in one co-exhibitor at the platform, but then end up talking with them all. “Our company is new – established last year,â€? says Aleksandr Uluhanjants, CEO of UAFG OĂœ from Estonia. “It is good to exhibit, to show up so people know your company exists.â€? His company deals with fresh and frozen freshwater fish. They make fish fillets and also plan to start producing canned and vacuum-packed fish, from local Estonian fish from the lake Peipus: perch, pike, bream, pikeperch, burbot and roach. In the German market UAFG OĂœ was looking for customers willing to buy fish of premium quality, hoping to find long-term partners who are focusing on high quality. “We had some productive talks and we’ve seen interest to our products. We are very optimistic. Eurofish Business Platform – when you have more exhibitors at one platform – more potential customers visit,â€? said Mr Uluhanjants, “and it is also good to communicate with the neighbors. The bigger the scale – the better. For the companies participating, Eurofish Business Platform is a big advantage.â€? Another Estonian company at the Business Platform, Baltic Fish Union, processes Norwegian salmon and trout into portioned fillets and steaks and also smoked fish. The products under private label are then exported to Denmark, Sweden, Germany, and other countries. “The German market is very big,â€? says Evgenii Vasiagin, chairman of the board, “but it is already packed, so it is very difficult to enter with your product unless you can offer a better price. Eurofish Business Platform provided a good exhibition stand,

a good location, and a professional approach.� Poland-based Meotida is owned by Roman Smirnov, who came to the show to find new possibilities for the Polish market; products, which from their experience and network in Poland, will be suitable for the Polish market. “For example,� Mr. Smirnov explained, “we are looking for canned oysters, which disappeared from the Polish market, and also products which are always in short supply – freshwater fish, and pike-perch in particular.� What he liked about his experience at fish international was, one can meet people from a lot of companies from the northern part of Europe. “Germany has a lot of good products to offer and it is our neighbor – easy to work with in terms of logistics.� Eurofish Business Platform, he said, is “a super solution� for SMEs which are making their first steps toward international markets. It gives such companies an opportunity to introduce themselves.

market, so we are trying to expand by going to different shows in Germany, but fish international is special for us. We are happy to be part of it.â€? In Croatia, he said, “we do not have a lot of shops which are selling just fish, but in Germany there are a lot of opportunities for specialized shops.â€? His presence at the Eurofish Business Platform drew visitors from the Netherlands, Romania, Poland, and other countries, fulfilling his main purpose of identifying potential distributors in countries where his products are not present. “We think the show went very well,â€? says Sabine Wedell. “We have 15 more exhibitors compared to 2016. We are happy that countries like the Netherlands

Another Eurofish Business Platform exhibitor was Riba Drazin, based in Croatia. Riba Drazin processes local fish from Dalmatia, using recipes created mostly from scratch by the firm’s owner, Zivko Drazin. “We have created several products according to our original recipes and patented them.� Their best-known product is paprika stuffed with anchovies, which with their other products are sold primarily in Croatia, a country that attracts vast number of tourists, who try local products. “When they get home,� says Mr Drazin, “they order our products online.� The company supplies its products to many EU countries, including Slovenia, Austria, Germany, Poland and Romania. “Germany is a big part of our

The next edition of fish international will be held in Bremen on 9-11 February 2020. Aleksandra Petersen, Eurofish, aleksandra.petersen@eurofish.dk Eurofish will organise a Business Platform at Future Fish Eurasia, 18-20 October in Izmir, Turkey. For information on participating write Aleksandra Petersen at aleksandra.petersen@eurofish. dk or call +45 333 777 63

Seafood Processing

GLOBAL Visit us at stand #4-5831 Brussels, Belgium 24-26 April 2018

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and Denmark are showing up with pavilions, which makes their presence stronger. A lot of visitors were very positive about fish international and we will try to bring them back as exhibitors next time.�

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[ EVENTS ] AquaFarm, 15-16 February, Pordenone

AquaFarm successfully takes aquaculture off the ground AquaFarm, held in Pordenone Exhibition Centre, concluded its second edition with a 55% increase in the number of visitors compared to the ďŹ rst event held in 2017. International participation was good with a ďŹ fth of the visitors representing 32 countries. The event also increased exhibition space by 80% and doubled the number of conference rooms where the 130 speakers presented their topics in 21 conference sessions.

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opics that attracted the most interest included aquaponics, integrating fish breeding with plant cultivation in a single system, new genetic research, importance of processing, distribution, and commercialisation of products, consumer information, along with “traditional� issues like regulatory frameworks, feed, health, and technology. Highly innovative themes, like vertical farms and soil-less crops were also presented. The latter showcased the partially operational “Abbattoir� in downtown Brussels, where the roof of a former slaughterhouse, and now a market and food hall, has been turned into the largest urban aquaponics farm in Europe covering more than 1,800 square meters producing fish and vegetables. The farm uses heat recovered from the building’s air conditioning systems to keep the water temperature constant

throughout the year. Furthermore, rainwater is collected and used in the farm, contributing to a sustainable and circular production of food. The administration in Brussels plans to build a total of five complexes like this, one in each segment of the city. Simona Maldarelli from Pordenone Fiere, the organisers of the event, expressed her satisfaction with the show saying that AquaFarm had become the reference point for the aquaculture and fishing industry in south eastern Europe and in the Mediterranean. For companies working with industrial and environmental algae applications and for operators of vertical farms and offground crop sectors, the event has become a high point of the year. Since these fields are relatively young much work remains to be done. For example, standards, including certification, are Aquaponics combines fish farming with the cultivation of crops so that the waste from the fish is used by the plants. Growing the plants vertically enables them to be grown at higher density.

AquaFarm’s 2018 event showed huge growth and has become a reference point for aquaculture in southern Europe and the Mediterranean.

necessary to increase the guarantees for consumers in terms of sustainability and quality. This issue is particularly important with the growing tendency to create vertical farms in urban areas, boosting the use of vacant buildings in European cities.

The organisers and partners of AquaFarm are already planning the 2019 edition of the event which will take place on 14-15 February 2019 at the same venue. More information including presentations, pictures, and videos are available on the official website, www.aquafarm.show

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[ EVENTS ] Seafood Expo Global/Seafood Processing Global, 24-26 April, Brussels

The seafood world gets ready to meet again Seafood Expo Global 2018 promises to be another blockbuster event for the global seafood industry. Fish and seafood producing, processing, and trading companies from around the world will be exhibiting and visiting Seafood Expo Global, while in parallel Seafood Processing Global provides a platform for manufacturers of equipment used by the industry. Several EuroďŹ sh member countries will be present at the event with pavilions. A preview of some of these stands is provided below.

Food from Denmark, Patio

Innovative products on display

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he organiser of the Danish Pavilion, Food from Denmark will once again represent 14 Danish fish and seafood companies, at Seafood Expo Global in Brussels this year. Every exhibitor specializes within its own field, introducing an exciting product portfolio of delicious quality fish products. Denmark is known for its innovative cuisine, large fishing industry and unique coastlines, which include the Baltic and the North seas, as well as Greenland waters. Generally speaking, Food from Denmark can sense the growth in the fishing industry where there is great potential to track.

Danish fish and seafood companies enjoy wide recognition internationally, due to their focus on parameters such as quality, product development, traceability, innovation, food security and sustainability, which are of major importance to the world›s supermarket chains, restaurants, and other channels. Sustainability is of high priority to the Danish fishery industry – while only 12% of the worldwide fish catches are MSCcertified, for Denmark this figure reaches 88%. In addition, health and fish consumption are strongly linked and 71% of private consumers buy fish and seafood when shopping in

supermarkets. In some markets, the private consumer misses a wider assortment of fish products, which

opens even more opportunities for Danish exhibitors to create growth in fish exports.

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[ EVENTS ] Croatia, 6-1015

Salted and marinated anchovies and sardines from the Adriatic

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he Croatian pavilion at the Seafood Expo Global is as usual being organised by the Croatian Chamber of Economy. Participating companies include anchovy and sardine processors, that source raw materials from the Adriatic, as well as companies importing and processing seafood for the domestic and export markets. Sardines and anchovies from the Adriatic are a speciality quite different from the varieties that are found in the Mediterranean or the Atlantic. They are traditionally prepared by salting or marinating often using raw material that has been caught

the same day, which gives the final product all the benefits of using absolutely fresh raw material. Salted anchovies are filleted manually and then packaged in glass jars in oil or in cans. Marinating is a shorter process than salting and marinated anchovies are often consumed as a snack or starter with a piece of bread and a drizzle of olive oil. Spain and Italy are the main export markets for salted anchovies. Seabass and seabream production in Croatia is relatively small compared with Turkey or Greece, but of very high quality. Croatia has the

The Croatian pavilion will feature four companies offering between them a wide range of seafood from the Adriatic.

advantage of a big export market (Italy) on its doorstep, so that fish shipped from Croatia can be in Italy within hours. A number of products have emerged from Croatia based on seabass, seabream, and meagre including fillets, steaks and MA packaged gutted fish, fillets and steaks. Some companies are also offering

delicatessen items such as smoked or marinated fillets in small (100 g) consumer packages. The valueadded items also extend to organic products for which there is demand on export markets such as Germany, Austria, and Switzerland. For more information, contact Zoran Radan, zradan@hgk.hr

Latvia, 8-4581

Value-added products will feature heavily

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he Latvian fish processing industry is perhaps best known for its Riga sprats in oil, made traditionally of fish from the Gulf of Riga that are smoked and then attractively arranged in cans and jars, in oil. While Riga Sprats are now a trademark that can only be used if the underlying product is produced following certain criteria, the industry today makes a wide variety of fish and seafood products. These are often value-added items in cans and jars, but also fresh and frozen fish based on domestically caught fish from the Gulf of Riga and the Baltic Sea, as well as imports. The industry has been innovative about packaging its products, introducing a few years ago cans with transparent lids that combine the advantages of a metal can with

the transparency of glass. Each year Latvian companies have something new to offer attendees at the Brussels show, for example pasta sauces based on fish and seafood, or patÊs and spreads that can be consumed as starters. Companies have adapted their products to tastes prevalent on other markets, such as France, yet at the same time maintained a hint of the original. The Latvian pavilion is organised by the Union of Latvian Fish Processing Industry, which has been striking out in all directions in a bid to find new markets for its members. New markets, innovative products, and ever greater value-addition have been the industry’s priorities ever since it was banned from exporting to its biggest market, Russia, in 2014. This resulted in a concerted effort to

The Latvian pavilion will feature companies processing cod, pelagics, and surimi.

enter other EU markets, an effort that has been largely successful and has also made the industry more competitive and robust. The pavilion will feature about 10 companies says Didzis Smits, the president of the union, including a rapidly growing cod processor owned by Latvian Icelandic interests that is processing fish from Norway for export to the US. A surimi manufacturer under new ownership that

is just launching production will also be part of the stand. Among the new products to be seen will be snacks made from cod skin from a company that is also using the raw material to create a line of pet food. Two fishing companies will also be part of the stand by virtue of the products they make from Baltic herring and sprat. For more information about the Latvian pavilion contact Didzis Smits, didzis.smits @cannedfish.lv

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[ EVENTS ] Italy, 11-2221, 11-2321, 11-2421, 11-2521

Seafood consumption in Italy increases in 2017

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he Italian pavilion at the Seafood Expo Global is usually one of the more striking at the event because of its size, the number of companies exhibiting, but above all because of the tasty morsels prepared at regular live cooking demonstrations by well-known Italian chefs. The pavilion also hosts the Italian Ministry of Agricultural Policies, Food and Forestry and senior officials from the ministry are usually present to demonstrate their support for the Italian industry. As usual companies at the pavilion this year will have a wide range of seafood on display including fresh and frozen finfish, cephalopods, crustaceans, and bivalves, as well as more value-added ready to cook and ready

to eat items. Fish consumption in Italy increased by about 2% in 2017 compared to 2016, with the largest increases recorded in the consumption of fresh and thawed products, frozen products, and conserves and semi-prepared items. On the other hand consumption of smoked fish, dried fish, and salads all declined, reports ISMEA, an institute analysing the Italian agriculture and fisheries sector. Italy has to import fish and seafood as demand is far more than what domestic production can meet. In volume terms since 2010 between 900,000 and 1m tonnes of seafood have been imported each year and around 130,000 tonnes exported. In comparison, domestic production was about 190,000 tonnes in 2016.

Turkey, 11-2101, 11-2201, 11-2301

More than just seabass and seabream

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urkish participation at Seafood Expo Global will be organised for the 14th time this year by the Istanbul Exporters’ Associations under the concept “Turkey:

Discover the potential�. The Turkish aquaculture sector comprises around 2,300 aquaculture facilities producing 107 thousand tonnes of rainbow trout, 81 thousand tonnes of seabass

The Turkish pavilion will feature chefs demonstrating the versatility of the country’s fish and seafood.

Open and inviting spaces combined with Michelin-starred restaurant chefs make the Italian pavilion a popular destination.

About three-quarters of the imports are comprised of processed products with fresh products making up the remainder. Exports on the other hand are more evenly balanced between fresh and processed fish, with only about 10% more fresh products than processed products being exported. Imports thus form a very important

part of the fish trade in Italy. Countries of origin are both within the EU and without, while exports, on the other hand, go predominantly to other EU countries. Since the Italian market is so dependent on imports, the Seafood Expo Global is precisely the kind of event that is useful for the Italian industry to invest in.

and 58 thousand tonnes of seabream. Europe is the most important market for this fish absorbing 65% of Turkish exports mainly as fresh and frozen, gutted fish and fillets. At the Brussels event, sixteen of the biggest Turkish farmers, processors, and exporters of this fish will be displaying their products. Seabass and seabream are well established species but for some years companies have been producing other species commercially. Volumes of meagre are significant, while those of red porgy, common dentex, and pink dentex are small but growing.

also has a tuna fattening industry capturing tuna from the wild and feeding it to a certain size before harvesting. Tuna is typically frozen and shipped to the Japanese market, but companies producing tuna will also be present at the pavilion. In addition to the farmed fish sector, Turkey has a wild capture industry fishing in the Mediterranean, the Aegean, the Black Sea and the Sea of Marmara, as well as inland waters. Total production was some 335 thousand tonnes in 2016. The main marine species are anchovy, horse mackerel, bonito, sardine, sprat, bluefish, mullet and whiting. Much of the small pelagic production provides the raw material for the fishmeal and fish oil industry, but some is also destined for human consumption in Turkey and abroad. One of the wild-caught freshwater species with a market in Europe is smelt. Turkey also exports crustaceans and cephalopods and producers of these species will also be present at the pavilion.

Turkish processors are adding more value to their products, by producing fillets, packaging the fish in modified atmosphere to ensure a longer shelf life, and smoking the fish (in the case of rainbow trout). Ready to cook items that combine fish with different ingredients in a package that needs to be placed in the oven or microwave for a few minutes to give a nutritious meal are also on the increase. Turkey

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[ EVENTS ] Poland, 11-2551

Polish national pavilion looks forward to welcoming visitors

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n 2018 there will be a Polish pavilion at Seafood Expo Global for the second year running. It will be even larger than last year’s and, in a further development, products will appear under their brands. Poland has a significant fish processing sector with over 250 firms and more than 18,000 employees. Preliminary figures for 2017 show that fish processing companies

manufactured around 525 thousand tonnes of products worth about EUR2.6bn. Exports amounted to 490 thousand tonnes valued at EUR1.9bn. The main exports were frozen fish, smoked fish fillets and canned fish. Salmon (smoked), herring and cod dominated in terms of species. The main sales markets are EU countries in particular Germany, France, Denmark, the UK, and Italy.

The Polish pavilion is organised jointly by the Ministry of Maritime Economy and Inland Navigation together with the Polish Association of Fish Processors and one of its members, the Kolobrzeska Fish Producers’ Group. The association is made up of about 65 of the largest processing companies in Poland, many of which will be participating in the Polish pavilion. The importance of the EU market for Polish processors makes it imperative to participate at the show, where companies and countries from the EU are well represented. Although the national Polish pavilion has existed for only two years, Polish companies have almost always been represented at the show. In fact, this year, some of them intend to have a booth in the national pavilion as well as a bigger individual stand in another part

of the fair. Polish companies will not only be looking for new customers for their products, but also for suppliers. The overwhelming majority of the fish and seafood that is processed in Poland is imported. Provisional figures state that imports amounted to 560 thousand tonnes worth just over EUR2bn in 2017. Salmon, herring, cod as well as pollock, mackerel, tuna and trout were the species that dominated imports. The number of seafood companies on the Polish market have made it an extremely competitive trading place. Companies fight for market share and for many export markets offer an alternative, where the hope is that professionally manufactured, tasty, high quality products will be appreciated, more than they are at home.

Poland’s processing sector will show off its skills in creating products from a wide variety of species and from salmon in particular.

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[ EVENTS ] Danish Fish Tech Group, Hall 4

Technology solution providers will be present in force

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round 30 Danish suppliers at Seafood Processing Global 2018 will be showcasing solutions and machinery assuring efficiency, automation and a high degree of hygiene, covering to the entire value chain with processing and packaging equipment, cooling and cooking solutions, stainless steel solutions, cleaning systems, conveyer solutions, logistics services, and more. One of the Danish exhibitors meeting the fish and seafood industry’s requirements for increased automation is DSI Freezing & Handling. After recently acquiring Erlinord A/S, the company is the only manufacture of plate vertical and horizontal freezers who can offer full incorporated solutions for loading and unloading of plate freezers. With Erlinord’s strong competencies

within automation, including palletising, packaging and labelling, the company can now offer customised solutions for automatic loading and unloading of vertical and horizontal plate freezers, ensuring efficient processing with an increased output as well as increased safety. This year more suppliers are showcasing packaging solutions for fresh and frozen fish and seafood. Plus Pack A/S will be launching the new Ready2CookÂŽ Skin Packaging Solution which offers maximum food safety and flexibility for the consumer as it can easily go directly from the chilled section, to the oven, microwave or BBQ. Hermetically sealed full surface skin packaging ensures food safety and the aluminium container is fully recyclable so can be used as a cooking tray. It is much easier to transport and store

With its emphasis on food safety and hygiene Danish technology is at the forefront of the fish and seafood processing business.

for the retailer, a lot easier to handle for the consumers, and it gives food manufacturers a strong marketing advantage to meet consumers’ demand of hygienic and convenient packaging of solutions for fresh fish. Based on a long tradition and strict regulations, the Danish competencies within fish and seafood processing are at the forefront of food safety

and hygiene standards. At the same time, the Danish suppliers meet the industry demands for more efficient and automated solutions, says Martin Winkel, Head of Danish Fish Tech Group and organiser of the largest ever Danish pavilion at SPG. For more information about the companies at the Danish pavilion please contact Martin Winkel, martin.winkel@dk-export.dk

Estonia, 5-639

Supplying products to a variety of markets

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he Estonian fishing sector consists of three different segments, trawling and coastal fishing in the Baltic Sea, high seas fishing in north-western and south-western parts of the Atlantic Ocean, and inland fishing. Total fishing volumes in 2016 reached over 61 thousand tonnes, where catches from the Baltic Sea represented over 80% of the total. The aquaculture sector comprises over 50 freshwater farms breeding rainbow trout, crayfish, carp and European eel.

In 2016 the total farmed volumes were 868 tonnes of which 78% belonged to rainbow trout. There are around 100 fish processing units in the country. The major part of the production is exported frozen and spiced fish products go to East European markets, chilled and fresh fillets to Western Europe, while salmon and trout fillets, smoked, dried and salted fish are sold in many countries. Together, Estonian fish processors export their

Estonian companies with their diversity of products – wild and farmed, fresh and frozen, marinated, smoked, dried, and salted – can be visited at the Estonian pavilion in Hall 5.

production to about 60 countries worldwide. This year the Estonian pavilion at Seafood Expo Global is organised

by the Estonian Association of Fishery and will host 10 companies. For more information contact Valdur Noormagi, kalaliit@ online.ee

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[ AQUACULTURE ] Aquaculture insurance – Is it worth it?

Coverage of operational risks linked to strict conditions One of every two ďŹ sh sold on the world’s markets already comes from aquaculture and this share will continue to grow in the coming years. New farming projects are added almost every day. Not all of them succeed at the ďŹ rst attempt for aquaculture is very susceptible to disturbances and damages. So far, however, only very few companies are insured against losses. Too expensive, too complicated, or simply not interested?

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nsurance companies don’t have a very good image. They are sometimes scorned for lending out umbrellas but immediately reclaiming them when the first drops of rain fall. Nearly everyone can relate examples of how skilfully insurance companies will evade their obligations when things get really tight for the insured party. Nevertheless, interest in insuring aquaculture projects has never been greater than it is today. The gap between this increase in demand and the available offers of aquaculture insurance is getting wider and wider. More than ten years ago FAO experts estimated the number of insurance policies taken out at around 8,000, and even if this number is likely to have increased by a few thousand since then it is still negligible compared to the total number of large and small aquaculture companies which amounts to several hundred thousand! It is striking that a large share of existing insurance policies is concluded in western industrialised countries while other regions, such as large parts of Asia, which accounts for around 80 per cent of global aquaculture production, are much less represented. What are the causes of this unsatisfactory situation? Do insurance companies

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simply shy away from the effort and cost of auditing farms or, in general, from the risks of fish farming? Or is it because fish farmers fear the costs of insurance and underestimate the benefits of insurance cover? Another noticeable feature of aquaculture insurance is that many insurers only offer products for a few species and production methods: mainly for salmon and shrimps. It is much more difficult to find useful offers for new species and innovative methods. This is understandable, because insurers need a broad database and industry-specific standards in order to realistically assess the risks of aquaculture production and calculate the resulting premiums. What has long been routine in car insurance, because there are detailed time series on the type, frequency and severity of possible damage that can even be grouped regionally and for specific car types, is still very difficult in aquaculture. The diversity of species and methods can hardly be forced into uniform, universally applicable standards. Production is carried out on land, in rivers and lakes, near the coast and offshore, in ponds and tanks, raceways


[ AQUACULTURE ] XL Catlin, Sunderland Marine, Thomas Smith Insurance Brokers and Willis Towers Watson.

Aquaculture insurances are one of the most difficult fields of insurance and for that reason alone it is wise to choose a partner with experience in this area.

and net enclosures. For this reason alone, standardised insurance solutions in aquaculture are currently an exception. Almost every aquaculture enterprise has to be audited separately. Each company is unique and has its own risk profile, and the owners have different financial scope. The structures and processes involved in aquaculture operations, their risk management and the respective market strategies have to be assessed individually at great expense in order to calculate the costs of risk coverage. This is the only way to ensure that the insurance policy is tailored precisely to the requirements and needs of the aquaculture company so that it covers the operational risks of the location. But this already poses a problem: individual audits are only worthwhile for the insurer if the production volume is large enough for the resulting costs to be justified by the subsequent premiums. This makes it difficult for small or new companies and particularly start-ups to protect

their investments against material and financial loss risks.

There are no “off-the-peg� aquaculture insurances, although (or because) almost everything can be insured. In most cases, those seeking insurance are particularly concerned about protecting buildings, gear and equipment from damage, breakdowns and theft. Boats, berths and transport vehicles are also high on the list. A typical feature of aquaculture insurance, however, is the protection of biomass, be it fish stocks, shrimps, mussels or algae. Anyone willing to pay appropriate insurance premiums can insure their portfolio against almost any risk: drought, tidal waves, earthquakes and storms, lightning, diseases and water pollution, lack of oxygen, hypothermia and freezing, sudden salinity fluctuations, breakdowns of machines and electrical systems, and even explosions. The market leaders in the insurance business cooperate closely with their clients to develop tailor-made packages that ensure the best possible protection for their specific requirements. With some companies it is even possible to insure oneself against the damages resulting from recall actions, for example costs incurred for overtime, loss

Aquaculture insurances are a promising market

to have much better chances of insurance coverage of their risks than small producers. Browsing the internet it is today possible to find a growing number of insurance companies with offers for aquaculture, and some of them are even specialised exclusively in this area. This group includes well-known insurance companies such as Mitchell McConnell Insurance, Global Aquaculture Insurance, Aquaculture Insurance Exchange, Swiss Re, Oriental Insurance, True Blue Aqua,

However, insurance companies, too, are aware of the dynamic developments in aquaculture and the sector’s importance for food supply to the world’s population. The number of insurers involved in this field is growing. Some offer their products only locally or regionally, others across continents and sometimes even globally. At present, they are mainly interested in highly developed aquaculture companies. Multinational companies with locations in different countries tend

Before the insurance contract is concluded, insurance companies usually have the operation checked by a qualified inspection team.

It is not clear from which size an aquaculture company becomes interesting for insurers. As a rule, insurance premiums start in the range of several thousand euros. If the prospects for the insurance company are lower they are often not prepared to go through the process of detailed auditing.

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[ AQUACULTURE ] fulfilled all the rectification obligations demanded and accepted the insurance proposal, the contract generally comes into force upon payment of the first premium.

Examining the policy

Insurance requirements prior to contract conclusion often include improvements in monitoring, control and alarm systems.

of income or the “rehabilitation� of products. Only insurance against consequential damages or profit loss is usually excluded.

First step: the audit Anyone wishing to take out insurance should be aware that it will entail much more than simply filling in the application form. There is usually a long (and detailed) list of preliminary work that has to be carried out by the applicant. It generally includes maps, site plans and photographs of the aquaculture facility, production plans, as well as substantiated data on expected sales, profits and distribution structures. Books and balance sheets must be disclosed and the establishment opened for inspection by insurance experts. Of particular importance are detailed records and accurate documentation of fish stocks. Everything must be accurately recorded every day and made available for controls on demand, for example stocking rates and stock biomasses, mortality and feed quantities. These can be precisely verified on the basis of purchasing quantities and stocks. Detailed records are beneficial for both sides. The insured person is more reliably covered in the event of a claim

because he can prove his losses credibly and in meticulous detail. The insurance company, on the other hand, can calculate the premium more precisely and reduce the risk that policyholders obtain benefits through fraud. From this it can be seen that fish farmers at least in part give up their autonomy and entrepreneurial independence when they decide to take out an insurance. But how could it be otherwise? If the insurance company is to be held liable for risks it naturally wants – and needs – to be kept informed at all times and, where necessary, have a word to say in the matter. This begins practically at the moment when the insurance company accepts the application and finds it worth considering. In the next step a specialized risk management team from the insurance company usually visits the company of the insurance applicant. This team will inspect everything thoroughly and in the event that they agree to pursue the matter further the insurance company will usually make an initial offer that is then often subject to a number of conditions and constraints under which it would be willing to accept the applicant’s risks. As soon as the interested party has

Although the most important advice to prospective policyholders may seem trivial because everyone knows it, it is rarely followed: Read the entire policy carefully from beginning to end, including the small print! Ask until you understand everything completely! Never sign anything you have not understood, don’t want or can’t accept! This applies, of course, also – and perhaps even more so – to the requirements and conditions listed in the policy or its annex. (These are often referred to as “guarantees� by insurance companies in the contract). Their fulfilment is usually a mandatory prerequisite for insurance benefits in the event of a claim. A typical example would be the obligation of the insured person to improve his risk management or to install an alarm system within certain deadlines. Anyone who fails to comply with this condition by the specified date will be at a disadvantage in the event of damage. The insured person should always maintain close contact with his

Insurance companies usually calculate the compensation they will pay on the basis of the value they have agreed on with the policyholder and which is also listed in the policy. This value is usually based on the production costs and not on the selling price of the fish. The “fair value rule� applies: the compensation covers only those costs that would be necessary to replace the losses suffered with an equal or similar stock. For this reason alone, it is in the insured person’s fundamental interests to state the existing biomass in the company as accurately as possible. Anyone who exaggerates will end up paying more, because the insurance company will charge a higher premium than necessary.

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insurer and report any changes or incidents in the facility. Structural alterations or changes in operational routines, even if they improve the safety status of the aquaculture company, should be discussed in advance with the insurance company and added as a supplement to the policy. Otherwise there is a risk that the insurance company may refuse to pay financial compensation in the event of a claim because the original condition of the business (i.e. that which existed at the time the contract was concluded), is no longer given.

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[ AQUACULTURE ] a concept for certain risks which the insurance company agrees to bear is developed. Depending on the type and scope of a policy, “All Risks� insurances are on average 10 to 15 per cent more expensive than “Named Perils�.

Insurers require good, accurate and regularly updated inventory records to enable coverage of losses in the event of damage.

On the other hand, if too little is stated, the compensation will be correspondingly lower. As a rule, it is possible to adjust the sum insured up or down within the term of the policy with the insurer’s consent, which then results in a correction of the premium.

A deductible is agreed with the policyholder Compensation is not paid for every fish that is lost. There is a certain natural mortality in all fish farms, however well-managed they may be. And insurance companies would have a very hard life if they had to compensate for every individual deceased animal. Especially since hardly any fish farmer would be prepared to pay the exorbitant premiums that would then be necessary. As with car insurances, there is thus a “deductible� for unavoidable losses that are not insured and for which the policyholder has to pay himself. The size of the deductible is agreed between the insurance partners but tends to be considerably higher than in other insurance areas. It is not uncommon for it to amount to 10 or 20, and in some cases even 30 per cent of the agreed amount at risk. The lower the deductible rate, the higher the insurance premium.

Companies operating in the primary food industry, which include aquaculture companies, occasionally face cash flow problems. Money is often only available after the produced products have been sold. For this reason, some insurers allow payment in instalments for premiums. This has certain advantages for policyholders but can also mean that insurance coverage may be restricted or, in extreme cases, even discontinued if the instalments due are not paid on time.

Types of insurance Most aquaculture insurances can be assigned to one of two types of coverage, which are called “All Risks� or “Named Perils�. The title “All Risks� is somewhat misleading, given the fact that no insurance company in the world covers all conceivable risks. Both formulations merely describe different concepts from which the insurance products are derived. “All Risks� is based on the hypothesis that all risks are initially covered, after which individual hazards are then gradually excluded. The premium is reduced with each excluded hazard. In the “Named Perils� approach, the reverse is true, because nothing is covered at the start and then, step by step,

As a third, still relatively new and comparatively inexpensive product, some insurances now offer “index coverageâ€? to protect policy holders against precisely quantifiable forces of nature. This could be too much or too little precipitation, too high or too low water temperatures, the occurrence of plankton blooms, certain gale forces or wave heights and the like, insofar as they are possible causes of loss in animal populations. This type of insurance only requires independent and reliable weather and climate records at the location of the aquaculture facility. The insurance coverage provided is very detailed and based on historical data on the risks that are closely correlated with losses. The insured person makes a bet with the insurer as it were. For example, if on the site of the fish farm more than 20 cm of rain falls within 24 hours, the ponds overflow and fish losses occur as stated in the policy, the point would be reached where the fish farmer would have to be compensated‌ irrespective of the actual state of the fish farm. Of course, it is only possible to decide which of these three types of insurance is best for a company on a case-by-case basis.

Always act as if you were not insured In the event of damages or loss that are covered by the insurance it is usually not sufficient to simply make a claim and hope for payment. Insurance companies examine very carefully whether

the problems occurred suddenly, were really beyond the policy holder’s control, and whether the fish farmer took necessary countermeasures to avert the danger. Professional aquaculture insurers often employ qualified specialists who provide assistance and guidance to customers in the event of problems. Those who refuse this help are suspected of not having done everything humanly possible. As soon as problems become apparent in the fish stock it is safest to contact your insurance company immediately and follow their instructions. Every detail, every step taken, every event should be recorded precisely in this situation because, in case of doubt, the amount of compensation paid by the insurance company may ultimately depend on this. In the event of a crisis aquaculture insurance companies require the policyholders to act as if they were not insured. Anyone who can offer credible proof of their actions based on farm logbooks and meticulous records will have better cards, but whether this will be sufficient in the end for recognition of all demands nevertheless remains to be seen. After receipt of a claim notification, insurance companies usually appoint claims assessors to review and evaluate the claims on the basis of the insurance conditions. Claims assessors are usually professionally independent but they are paid for the assignment by the insurance company and so deliver their report there as well. This often makes it difficult for the insured person to read the report, because to do so they need the insurance company’s consent, which is not willingly given. However, one should insist in order to be able to examine the facts, arguments, figures and calculations contained therein oneself. mk

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POLAND

Fish and seafood processing in Poland

Stiff competition at home encourages search for new markets The ďŹ sh processing sector in Poland has ourished ever since the country joined the EU in 2004. Since then turnover has increased more than 4 times to reach EUR2.6bn (2017*) and other indicators, such as employment, imports and exports, also show impressive growth.

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nlike the meat processing industry, which goes back to the end of the 18th century, the Polish fish processing industry has only existed since about the end of the 19th century or so. Many of the products that were manufactured in the early stages of the industry’s development such as frozen, smoked, and canned fish, are still being produced today. The industry evolved slowly over the years with fluctuations in the late 80s and early 90s. Thereafter, and particularly from the time Poland joined the EU in 2004, the industry has developed in leaps and bounds. The rapid growth owes much to requirements laid down by the Common Fisheries Policy and support from EU funds to meet these requirements, but also to other factors, such as high levels of productivity, access to the common market, the country’s strategic location in the centre of Europe, and, at least initially, the lower cost of labour compared with western Europe.

Concentration in the industry Today the industry comprises about 260 companies employing just over 18,000 people, with over half working in companies employing 250 people and above, reports the Polish Association of Fish Processors. Dr Adam Mytlewski, Head of Fisheries Economics Department at the National Marine Fisheries Research

Institute, says that although the industry is dominated by small and medium-sized companies, 53 of production volumes and 65 of production value can be attributed to the large companies (those with more than 250 employees) suggesting a high degree of concentration in the industry. These companies are all authorised to export across the EU and about a third of them can also export to third countries. The companies are not evenly distributed across the country – a majority are located close to the coast in the north of the country. In addition to these are a further 900 firms entitled only to sell on the domestic market. Krzysztof Firlej and Sebastian Kubala, academics at the Cracow University of Economics, and joint authors of a paper in the April – June 2017 edition of Acta Scientiarum Polonorum, a scientific journal, believe that smaller companies tend to focus on simpler products such as smoked and salted fish, while the larger ones with more sophisticated production lines manufacture the more complex products.

and marketing. The occasional company is also listed on the Warsaw stock exchange, but control remains firmly in family hands. This form of ownership has the advantage that the members of the family identify closely with the company – even more so if it bears the family name. Owners would not like their names associated with shoddy products or poor service and since they typically want to pass on the company in sound financial health to the next generation, they tend to be more risk averse. Many Polish processing companies are relatively small (about half have fewer than 250

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SAVE THE DATE

18 FISHFORUM20

FORUM ON FISHERIES SCIENCE IN THE MEDITERRANEAN AND THE BLACK SEA

Several advantages to family ownership

10-14 DECEMBER 2018 FAO HEADQUARTERS, ROME – ITALY

Better science for better advice

Many of the companies in the sector are family-owned with members of the family taking an active part in managing the company as well as taking on important technical functions such as product development or sales

Healthy seas and sustainable ďŹ sheries Economic analysis and technology for societal beneďŹ ts

WITH THE FINANCIAL SUPPORT OF

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employees) and are therefore good at creating a strong sense of loyalty among employees. A charismatic founder and manager is likely to inspire his staff in ways that a professional manager may not be able to. On the other hand, family firms also face specific challenges (family members with different ideas for the company, succession), so much so, that according McKinsey, a consultancy, less than 30 percent of family firms survive into the third generation. This is not yet an issue in the Polish processing industry where firms tend not to be older than 20-30 years with the founders still playing an active role.

A ďŹ rst-of-its-kind event encompassing oceanographic, social and economic science and ďŹ sheries research. A forum to build a lasting network, discuss research trends, integrate scientiďŹ c knowledge in decision-making and identify priorities to shape the future of Mediterranean and Black Sea ďŹ sheries.

Giving voice to the wide community of scientists, managers, researchers, engineers, academics and practitioners. An opportunity for young scientists to join the community. Keynote speakers, thematic and transversal panels, scientiďŹ c sessions, workshops, side events, poster session, call for abstracts.

Information and registration: FishForum2018@gfcmonline.org www.fao.org/gfcm/FishForum2018

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From left, Waldemar Renda, Kolobrzeska Fish Producers’ Group; Lidia Kacalska-Bienkowska and Piotr Slowik, Ministry of Maritime Economy and Inland Navigation; Marcin Radkowski, Kolobrzeska Fish Producers’ Group; and a fisherman, in the Kolobrzeg harbour.

Complete use of available 2007-13 period, agreements were EU support under signed for 99.24 of the total alloEuropean Fisheries Fund cation for processing. The result Even before accession to the EU in 2004, the processing industry benefited from PHARE support, says Dr Mytlewski. Accession to the EU further boosted the industry as it opened the common market (Germany in particular) to Polish products. It also subjected Poland to the provisions of the Common Fisheries Policy and other EU legislation that had an impact on the processing sector. The necessity of meeting the requirements laid down by this legislation contributed to the upgrading of factories and machinery and further improved hygiene and food safety. Support from various EU programmes including the Financial Instrument for Fisheries Guidance, European Fisheries Fund and more recently its successor, the European Maritime and Fisheries Fund, assisted the companies to make the necessary investments. The latter however is not as focused on increases in production, according to Dr Mytlewski, and only micro, small, and medium companies involved in fish processing are entitled to support. The sector has been very efficient at using this support. In the

is a competitive and modern processing industry trading extensively with other EU countries and contributing to an increase in the domestic consumption of fish. The growth in the sector can be seen in terms of employment which increased by almost 30 from 2013 to 2017 (the latest year for which data is available), while the number of companies grew by just 2. In fact, between 2013 and 2017, the number of companies has remained broadly stable, while most other parameters – production, imports, and exports – showed an increase. This suggests that companies are expanding their facilities, hiring more staff, and increasing their production, which may be destined for export or for the domestic market. The range of items produced by the sector is a wide one: fresh or frozen fish and fillets; conserves and preserves; marinates; smoked fish; and salted fish. Individual companies tend to focus on one or two product groups. Production has increased steadily over the four years to 2017 from 448 thousand tonnes to 525 thousand tonnes an increase of 17. In comparison, production in 2004 was 292 thousand tonnes.

Processing sector highly dependent on imported raw material Domestic fish production comprises primarily catches from the Baltic Sea of sprat, herring, cod and flounder. Sprat is used both for human consumption and for fishmeal/fish oil, while herring is typically made into conserves. Cod and flounder are processed into fillets and are exported fresh or frozen. The problem with Baltic cod is that for the last few years catches have been small, and the fish has been under-sized, a phenomenon for which there are a number of explanatory theories, but little hard evidence. The issue, however, is not restricted to Polish fishermen; in countries all around the Baltic fishers have experienced the same problem. For processors, the lack of Baltic cod has meant a switch to the Atlantic variety although in some respects, such as flesh consistency, the two are different. Atlantic cod is just one of several raw materials sourced from abroad. In general, the processing industry in Poland is heavily dependent on imports, which amounted to 564 thousand tonnes in 2016. In comparison, Polish catches in the Baltic Sea were just under 140 thousand tonnes. According to the Polish

Association of Fish Processors, 90 percent of the raw material that is used by the industry is imported. In 2004 imports were valued at EUR400m, while in 2017 this figure had increased to over EUR2bn. The biggest source of imports by far is Norway, which supplies salmon and also herring and cod. Poland was in fact the largest recipient of Norwegian herring in 2017 importing EUR47m worth as well as of Norwegian salmon of which it imported 132,000 tonnes. Altogether, Poland was the largest market for Norwegian seafood in 2017 importing 196,000 tonnes of seafood worth EUR823m. Other countries supplying significant quantities of fish to Poland include Denmark, Sweden, and Germany. Frozen salmon, unspecified frozen fish fillets, small pelagics, fresh cod, and fresh salmon, as well as fresh and frozen flatfish were among the important products (by value) that Poland imported from Denmark. From Sweden, Poland imported many different seafood products, but fresh and chilled salmon accounted for 87 of the total value in 2016.

EU is the most important export market Exports from Poland have grown enormously since the country joined the EU. In 2004, exports were valued at EUR350m, a figure that increased to EUR1,948m in 2017, a growth of close to 420 percent. Cod, herring, and salmon are Poland’s most exported species and Germany is the main destination absorbing half the total export value. France, UK, Denmark, and Italy are the other most important markets. In 2016, on existing markets, year on year exports to Germany, Italy and Denmark increased the most compared to other countries. That year also saw sizeable exports to Belgium, Sweden and Vietnam. For Germany, Poland

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marketing, and control the logistics of storage and delivery. The large number of firms contributes to competitiveness and makes for a robust and resilient industry. However, for the individual company, the competition can be brutal, and to survive and prosper it needs always to stay a step ahead of its many peers. Constantly developing new products, thinking up new ideas, finding suppliers for the raw materials, reinventing the packaging, and identifying new customers is the only way to fend off the competition.

Polish processing sector production (thousand tonnes) 2004

2013

Fresh frozen ďŹ sh

35.5

83.3

Fresh frozen ďŹ llets

37.2

Salted ďŹ sh

13.3

Smoked ďŹ sh

2017+

2015

2016

65.1

51.2

51.5

53

52.2

60.2

68.5

101.3

107.5

19.6

19.1

19.9

18.6

20

23.8

89.9

82.5

91.2

97.9

92

Conserves and preserves

59.8

68.8

69.9

77.9

83.9

88

Marinates

51.8

87.1

88.5

92

86.2

86

53

49.2

53.3

63.9

65 13.5

Culinary and delicatessen products

8

2014

Other

62.1

12.3

13.3

14.9

12.5

Total

291.5

466.2

447.8

468.9

515.8

525

Source: Ministry of Maritime Economy and Inland Navigation, #of ďŹ rms employing more than 10 people, +provisional

is the most important source of fish and seafood and particularly for herring conserves, marinates and semi-finished products, deep frozen breaded fillets of cod, and salmon products, like frozen fillets.

Finding markets abroad may have been encouraged by the intense pressure on the domestic market. The sector has over the years built up its processing expertise and knowledge, and global networks

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of suppliers and customers. It has an international reputation for being able to manufacture complex products, manage global supply chains for highly perishable goods, take care of sales and

Today conserves and preserves, for example, are often packaged in transparent plastic tubs that enable the contents to be seen. The product is attractively arranged inside the container so that consumers

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Polish seafood trade (million euro) 2004

2013

2014

2015

2016

2017++

Exports

349

1391

1542

1594

1812

1948

Imports

401

1486

1539

1600

1983

2023

Source: Ministry of Maritime Economy and Inland Navigation, ++1-6 2017

can admire the product with their eyes alone. Packaging can make a huge difference not only to shelf life, but also because it enables high profile branding and marketing. Companies must also modernise and upgrade their packaging periodically to make sure it provides all the information about the product as laid down by the law. Firms also invest in research and development to create new products or new combinations of ingredients. Putting a new product on the market is a laborious process that starts with a taste or the idea of a taste, but then goes through multiple phases of development before it can finally be launched. And many products are shot down for one reason or another well before they reach the final stage. A company must therefore have a pipeline of potential products as many of them will finally never take off. Generally, these are some of the efforts companies have to make to stay in the game. Once the product is created it still needs to be sold, however, and companies have been making endeavours in this direction too.

Targeting specific consumer segments with additive-free products Over the years a couple of consumer trends have become discernible on the Polish market. The presence of export-oriented companies that also supply the domestic market has increased the range and quality of seafood products. Partly due to this exposure younger Poles are interested in healthful products that are sustainable and

easy to prepare. There is growing awareness among manufacturers that “pure� products, those which do not include additives such as preservatives, flavour enhancers, or other synthetic ingredients, carry an additional value and are becoming increasingly popular among certain consumers. The salt or vinegar used in the production is all that is used to preserve the fish. This overlaps with another trend – creating products for young people (including children) and for other segments of the market such as pregnant women. To cater to these demographic groups, products must shed their old-fashioned image and be marketed as something that is trendy, fun, and original. The products themselves reflect this with unusual or unique combinations of ingredients enclosed in smart, convenient, and visually appealing packaging to give a tasty and healthful snack or meal. Herring conserves, for example, one of the most traditional product groups in Poland, are being modernised with atypical ingredients, new packaging, and bubbly marketing to attract consumers who might otherwise not be inclined to eat them. Fish and seafood is being adapted to cater to children and young families as well. Bone-free portions that can be quickly prepared, colourful packaging, mild tastes, and an emphasis on the healthful aspects of fish are some of the ways being used to persuade very young children (and their parents) to eat fish. These efforts may have contributed to an increase in per capita seafood consumption which went from 11.48 kg in 2004 to 12.9 kg in 2016.

There are some clouds on the horizon. The sector is facing a challenge due to the lack of labour. According to Eurostat about 1.8m Poles emigrated between 2004 and 2016 and companies are employing people from neighbouring countries (such as Ukraine, and Belarus) and even from further afield. But even so, it is increasingly difficult to find people. Automation is one solution but for many operations, where the work is delicate or the volumes too small, manual labour is the only option. Despite this, says Dr Mytlewski, the industry is expected to develop further fuelled by exports and investment. According to one parameter (the future expectations of the industry indicator) investments in the sector suggest that industry is bullish about the opportunities. However,

increasing exports to the EU will be a challenge, and the sector should therefore focus on third countries and on stimulating the domestic market. The Polish processing sector is highly developed making a wide range of products from the simple to the sophisticated. The tough competition for consumers within Poland, is pushing some companies to seek markets abroad, where they hope to seduce customers with innovative products, packaging, and marketing. The industry also faces challenges with regards to labour, but if these can be solved the achievements in the next decade could match those of the last one. *Figures from 2017 are provisional

Poland at Seafood Expo Global

Industry and authorities present a joint front The search for international markets by Polish ďŹ sh processors was given a boost in 2017, when for the ďŹ rst time Poland had a pavilion at the Brussels Seafood Expo Global, the world’s biggest show exclusively dedicated to seafood. In previous years Polish companies have exhibited at the event, but they have been scattered around the different halls. A national pavilion supported by the relevant ministry makes a strong statement and also makes it easier to ďŹ nd and contact individual companies. This year the Polish national pavilion will be even larger, and companies will be promoting their brands (which was not the case last year), offering samples, launching products, as well as looking for suppliers. The stand is organised jointly by the Ministry of Maritime Economy and Inland Navigation, the Polish Association of Fish Processors, and one of its members, the Kolobrzeg Fish Producers Group.

Chefs preparing samples at the Polish pavilion last year. This year the Polish stand will be even bigger.

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With its own processing plants, laboratories, and cold stores Abramczyk caters to most demands

Frozen products expert now eyes the fresh ďŹ sh market Abramczyk, a family-owned company, started its operations almost 30 years ago as a processor and trader of frozen seafood intended for the domestic and international markets.

T

oday Abramczyk can boast well-recognised brands on the Polish market and a string of international retail chains as customers for its products. Despite these achievements the company is not standing still. New product lines are being implemented and to accommodate these developments it is expanding facilities and hiring new staff.

Last two years have seen rapid growth At its offices in Bydgoszcz, in the northern part of Poland, some employees are working in temporary arrangements as the new facilities are being built. Apologising for the cramped

conditions, Hanna JedryczkaMajchrzak, the export manager, says the new offices should be ready in spring 2018. The development at the company is hectic. In 2015 a new production plant was opened to process frozen fish. However, at about the same time, the company began to experience demand for fresh fish packaged in modified atmosphere. As a result, some of the space in the new plant was allocated for this product. According to Katarzyna Stepniewska, another export manager, demand for fresh fish was mounting and so the company decided to renovate its existing processing facility, a process that should be ready in the coming months. With this the company

Hanna Jedryczka-Majchrzak and Katarzyna Stepniewska, export managers

will be operating two production facilities, something that has never happened before, with one focused on frozen fish and seafood and the other on fresh. The move into fresh fish is expected to bring several opportunities,

including exports. As Ms Stepniewska explains if the fresh fish production concentrates, for example, on loins the remainder of the fish provides the raw material for various other items that can be frozen.

A family-run company has certain strengths

The new factory was built in 2015 and now the old one is being renovated so that the company will have two production units, a situation it has not experienced before.

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Fresh fish is a new direction for the company, which has concentrated on frozen fish for the last 20 years. So far, the main clients have been the retail chains, who dictate to a great extent the specifications of the product they need. They expect suppliers to be flexible, which, as Ms Jedryczka-Majchrzak points out, caters to the company’s strengths. As a family-run business we are more flexible than a big corporation, she says, responding quickly and taking &VSPl TI ).)A05,


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decisions rapidly. The owners are also called Abramczyk and because their name is on the company and its products, their reputation is directly at stake, and they want it to be associated with high quality, good service, and satisfied clients, she adds. The company is a leader in Poland on the market for frozen seafood. In the fresh sector, however, it is relatively new. For the moment the most important market for the fresh fish is the domestic one, but it is also making efforts to find customers outside Poland, for example, by attending trade fairs. As the fresh fish represents a new line of products the company is proceeding step by step, emphasises Ms Jedryczka-Majchrzak. Optimising the production, identifying customers, sourcing the raw materials are all on-going stages. The raw material that is used in the production is procured according to the customers’ specifications, some are interested in fresh, others in refreshed (defrosted) raw material. At the moment, the majority of the raw material used is refreshed, but this is likely to change with time. Cod from Norway (mostly fresh) and from Russia (frozen) is processed into loins and fillets/ portions, while whole gutted salmon is imported from Alaska, to be made into fillets/portions. Some of the salmon is intended for baby food and so it is treated particularly carefully with all the bones removed manually from the fillets to reduce the risk that they appear in the baby food. Because it is intended for infants the product is subject to stringent testing in the laboratory. Urszula Poliwka, the daughter of the founder, is responsible for imports and travels each summer to Alaska to sign contracts

for a whole year’s supply of pink and chum salmon.

Demand for fresh fish is growing on many markets Being a new direction fresh fish is still a relatively small proportion of the volumes the company is dealing in. The main species used are cod, salmon as well as some saithe and tuna. But expectations are high. According to Ms Poliwka, demand for fresh fish is increasing not just in Poland, but also in other countries. Some have been caught unawares by this development as they did not expect fresh fish, which suffers from a short shelf life, more waste, and more complicated logistics, to become popular. Part of the reason is that consumers want to buy something that is quick and easy to prepare and is available in small quantities. The overwhelming bulk of the production is frozen fish and seafood. Having worked for so many years with frozen seafood, importing, repacking and processing, the company has developed a wide range of products some of which cater to special market segments, for example, nursing mothers. For them, for example, the company promotes a completely boneless seafrozen “super fillet,� a healthy, high quality piece of fish that is good also for children. The company also sells some its branded products in supermarkets outside Poland, which is relatively uncommon as many processors supplying to supermarket chains in the west tend to produce under the supermarket’s own label. However, Abramczyk in 2017 developed a new export brand called Abraline, which is characterised by products of particularly high quality, a

MA-packaged fillets are among the products manufactured by the processing sector. Above, skinless fillets of Alaska pollock.

very low percent of glazing, and no additives. Abraline also has the advantage that it is easier to pronounce than Abramczyk! Abraline is to gradually become the brand for all the company’s products sold internationally. While frozen ready meals and more value-added products are currently not part of the product portfolio, they are also something that Abramczyk is considering for the future. One idea is to use the raw material left over from the fresh fish processing to produce minced fish meat or breaded products. Ultimately the company wants to reach an export level of 40 percent from the 15-20 it has at the moment.

Branch offices help secure high quality raw materials The company maintains offices in Vietnam, China, Argentina, India, and most recently in Chile, which enables them to stay close to the raw material monitoring the supply and controlling the quality. This combined with the facilities they have in Poland – processing plants, a laboratory, cold stores – enables Abramczyk to maintain a stock of raw materials, develop new products, and respond to their customers when they have ad hoc demands – abilities that promise to stand the company in good stead in the future.

Abramczyk Ul. Witebska 63 85-778 Bydgoszcz Poland Tel.: +48 52 344 5677 sekretariat@abramczyk.pl www.abramczyk.pl Import manager: Urszula Poliwka Export managers: Hanna Jedryczka-Majchrzak, Katarzyna Stepniewska

Volumes: 30,000 tonnes Products: Frozen ďŹ sh and seafood Brands: Abramczyk, Abraline, Ocean Packaging: IQF, vacuum, skin, and chain packs, MAP (for fresh products) Customers: Retail chains, wholesalers Certifications: IFS, MSC, ASC Markets: Poland, EU Employees: 350 Turnover: EUR85m

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Gdansk Coldstore can distribute ďŹ sh from the North Atlantic around the world

Successful response to national and international competition Cold storage is a vital part of the distribution chain for frozen seafood. In fact, seafood today is among the most widely-traded commodity in the world, a status that owes much to the development and spread of cold storage facilities. In Europe, the Netherlands has a long history as a major player in the cold storage and distribution industry, thanks partly to its strategic location and its openness to trade, but other countries are also seeking a piece of the action.

I

n Gdansk, Poland, Gdansk Coldstore has established a facility that Maciej Kisiel, its managing director, modestly hopes will provide an alternative to companies currently shipping to the Netherlands. The plant is located in the duty free zone of the port of Gdansk next to two terminals offering container services to Asia, Africa, and Western Europe. In addition, it is the only facility in Poland to offer unloading possibilities for reefer vessels and fishing vessels, where the product has third country origin.

Close collaboration with multiple authorities The advantages of being in a duty free zone is that frozen commodities can come in the zone from anywhere in the world and no duties or taxes need to be paid until the time the frozen seafood is customs cleared. It is beneficial for the shipper because he can bring his consignment to the cold store and then sell it to a buyer who would have to customs clear it himself. This can be done either as he takes delivery, say truck by truck, or if he prefers, the entire consignment can be cleared and then wait in the cold store. The cold storage was built with the support of EU funds and one of the provisos was that until 2020 the facility could only be used for

Gdansk Coldstore hopes to provide a competitive alternative to companies currently storing their products in the Netherlands.

the storage of sea born fish. After that it would also be possible to store farmed seafood. The main clients are from countries in the North Atlantic region like: Norway, Denmark, Iceland, Shetland Islands, Faroe Islands, but also in the US, Chile, and the Far East. Receiving the goods are primarily customers in Poland as well as in countries of Central and Eastern Europe. The coldstore is used by companies as an extension of their own operations, that is, they treat the coldstore as their own facility where they can store goods prior to distribution. The cargo continues to belong to the exporter which is possible because of the coldstore’s location in the duty free zone. The facility is thus used as a hub for further distribution in Poland, the Ukraine and other Eastern Europe

countries. Consignments are also being sent to Africa and Far East, thanks to the proximity of the two container terminals serving big container vessels with the direct calls to main ports of the Far East and Africa.

Facility certified to international standards We are in a position to provide an alternative to the big Western European ports in Antwerp, Rotterdam, and Hamburg, says Mr Kisiel, because of our competitive prices, top quality service, and because the popularity of the Dutch ports is contributing to congestion there. As evidence, he points to the trial shipment of 2,000 tonnes of frozen fish that were sent to Africa in 2017 from Iceland and Norway. He sees a

$ )+&&

great growing potential in this area. Exporters also benefit from being able to better utilise the capacity of the vessels. If they are shipping something to Poland and there is spare capacity on board the vessel, then it can be used to carry goods to another destination. The facility is certified to MSC, IFS, ISO, and BRC standards, an important factor for many clients. Moreover, the company is now on the certification path of OHSAS (Occupational Health and Safety Assessment Series) and SMETA (Sedex Members Ethical Trade Audit) standards. Ultimately, however, the economics has to work both for us and for the client if they are to use us, agrees Mr Kisiel, who spent several years working on reefer vessels and so knows how the business works. You need to have some added &VSPl TI ).)A05,


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Maciej Kisiel, the general manager of Gdansk Coldstore.

value to attract customers. They take a good facility and a high level of service for granted and are expecting something more that will induce them to push business your way, he explains. Gdansk Coldstore has therefore widened the scope of the services it offers. Today it includes coordinating the loading, checking the documentation, providing advice, being available 24/7, so that any issues can be dealt with rapidly. The business is very unpredictable, and one has to be prepared to act at very short notice. As an example, he recalls

Tomasz Grybek is responsible for administration and quality.

the time when a call came through to say that a vessel would arrive on 24 December. But service means service and instead of trying to slide out of the situation, the company discharged the vessel.

Warehousing practices are constantly evolving Over the last two decades the business has changed significantly. Back then the company was loading 1,000 tonnes for a single customer of the same kind of fish. Today a consignment of 1,000

tonnes can be split by size, by date of catch, by fat content of the fish, and by customer, so there could be 25 different lots which all have to be placed in the coldstore as specified by the customer. Detailed information is needed by the coldstore from the exporter about the product, how it should be separated and how it is to be released. To do this reliably Gdansk Coldstore has skilled team of dedicated employees equipped with a warehouse management system (WMS) which collects all the information necessary to manage the entire flow of the product through the coldstore. Often this information is retrieved by scanning the barcode on the product and then entering the information into the WMS. However, some customers have similar systems that enable the data to flow directly into the WMS when the barcode is scanned.

Since the facility was established four years ago the capacity utilisation has improved steadily, says Mr Kisiel, but there is scope to improve further. Gdansk Coldstore has ideal location for frozen fish handling as it is located closer in relation to the Polish fish processing industry, which the company also supplies. Despite these advantages Gdansk Coldstore has to combine flexibility, a high level of service, and good marketing to succeed in this extremely competitive field. Coldstores in the Netherlands compete on shipments to the Africa and the Far East, while within Poland itself there are coldstores in neighbouring cities. Mr Kisiel and his team will need to be extremely resourceful in terms of developing new services that will benefit their customers if they want to stay ahead. Summarizing, Mr Kisiel adds a rule of Clarence Francis which describes his approach to the development of the business “You can buy a man’s time, you can buy a man’s physical presence at a given place; you can even buy a measured number if skilled muscular motions per hour or day. But you cannot buy enthusiasm; you cannot buy initiative, you cannot buy loyalty; you cannot buy the devotion of hearts, mind and souls. You have to earn these things.�

Chłodnia Gdansk (Coldstore Gdansk) ul. Przemysłowa 28 Nowy Port 80-542 Gdansk

If the customer’s IT system is compatible, information about the product can be entered into the warehouse management system by simply scanning a barcode.

Tel.: +48 58 768 7500 ofďŹ ce@coldstoregda.pl www.coldstoregda.pl

General Manager: Maciej Kisiel Administration and quality: Tomasz Grybek Established: 2014 Capacity: 30,000 pallets Product: Sea born ďŹ sh (no farmed until 2020) Turnover: 120,000 tonnes

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Kolobrzeska Fish Producers’ Group restructures its processing facilities

Adding value to the catch is the only way forward Kolobrzeg, located on the Polish west coast, is a fishing port hosting the eponymous Fish Producers’ Group, a producer organisation for part of the fishing fleet based in the city. Established in 2005, the year after Poland joined the European Union, the PO has made good use of EU support to create the infrastructure for primary processing, freezing, and cold storage, of the fish caught by its members.

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he Kolobrzeg PO has close to 30 members, both active and former fishermen, and some 20 vessels amounting to roughly a third of the vessels registered in Kolobrzeg. Two of the vessels are over 25 m and equipped with refrigerated seawater systems (RSW) to maintain

the quality of the catch. Of the remainder some are 15 m vessels that target mainly cod and flounder, and some are 8-10 m boats. The objective of the PO is to use all the fish, most of which is pelagic and flounder, from its members. Some of the smaller vessels use gill nets to catch

spring spawning herring which has a very short season. This January and February the weather has been so bad that the fleet has been staying in port more than it has been at sea. Normally during the season the vessels will practically commute

between the port and the fishing grounds – going to sea, coming back to discharge the catch, and then setting out again – but for some weeks unstable weather has prevented this, to the frustration of the fishers. The main season lasts from January to the end of March/middle of April.

Belts carry the fish from the tanks to the grading machines, which sort the fish by size as well as by species, since sprat are typically smaller than herring.

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Fish is pumped directly from refrigerated seawater tanks to the grading machines.

Flounder catches are typically up to the middle of March, while sprat for human consumption stops at the end of March, beginning of April, depending on weather conditions. If it is too warm the fish cannot be used for human consumption, but only for reduction to fishmeal and fish oil, and as feed, for example, for mink.

Cod catches have disappointed for some years The main species the fleet targets are cod, sprat, flounder and herring, though of late the cod fishery has been disappointing with low volumes and poor quality. In the Eastern Baltic where Polish fishers catch most of their fish,

Marcin Radkowski, president of the producer organisation, Kolobrzeska Grupa Producentow Ryb

sizes tend to be smaller than in the Western Baltic, says Waldemar Renda, the advisor to the board. Poland has a small quota for sprat in the Western Baltic and the PO is collaborating with Lithuanian processors to supply them with this fish. Lidia Kacalska-Bienkowska, from the Ministry of Maritime Economy and Inland Navigation, feels that a lack of feed for the cod may be why cod are small and skinny. She points out that 10 years ago cod from the Eastern Baltic were in fact larger than the fish from the western part. The smallersized cod has been an issue in the Baltic for some years now and probably several factors play a role. For fishermen, however, the only way to compensate for it is to add as much value as possible to the fish. The first step in this regard initiated by Marcin Radkowski, president of the PO, was to organise the fishermen, while the second was to exploit all the

opportunities offered by EU support programmes. This led first to the building of an offloading facility, and then to a freezing plant, so that fish surplus to current market requirements could be frozen, as well as a cold store to hold the frozen fish. However, the PO is still working to produce more sophisticated products. Sprat for example may only be good for pet food in Denmark and Sweden, but in other parts of the Baltic and in the Balkans, it is mainly used for human consumption. Poland’s quota for sprat is the biggest in the Baltic and amounts to 77,000 tonnes in 2018. Some of this will always end up with the reduction industry, but the PO is looking for markets for human consumption, where the price may be better. The PO is also considering a small-scale production of fishmeal itself, but the idea is still in its infancy and many factors, not least the funding, need to be addressed before it can be realised. If it does go ahead however, fishmeal will be only part of the output, the rest will be high value fish oil and other derivatives that can be used in the pharmaceutical, cosmetics, and nutraceutical industries. While oily fish like sprat are obvious candidates for the production of these high-value items, some feel that cod too has potential and that the true value of cod lies not in its meat, but in other parts of the fish – the skin, liver, bones etc.

New discharging point at processing facility will give even better quality For the time being though the PO is concentrating on manufacturing a good quality product that has a market in Poland as well as abroad, so it can be sold wherever the price is best. The PO has two

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sites, one where the fish is landed and graded and another where it can be frozen and stored. The two sites are only a few 100 m apart, but after grading the fish has to be moved by truck to the freezing and storage facility, where the whole fish (sprat) is frozen for the smoking industry. Some smokehouses prefer sprat from later in the season when the fat content of the fish may be higher and the sizes larger, but others will also use the fish that is caught earlier. Now, part of the facility is under reconstruction because the PO wants to build an offloading point right next to it. When the reconstruction is completed the fish will be discharged and go directly to the grader and from there automatically to the freezing facility giving a higher quality product. The automation will also result in some useful labour saving, as like everywhere else finding workers is very difficult. At a third site the PO has a primary processing facility, where fish is graded and then headed and gutted by machine. Here the fish is pumped directly from the refrigerated seawater tanks in the vessel to the grading machinery. Apart from sprat processing the facility also has machines to make herring flaps, fillet cod, and

A tub of fish (mostly sprat) waiting to be graded. The grading will also largely sort the fish by species.

graders for flatfish. However, a processing facility needs to operate 11 months in the year with one month as a technical break to service the machinery. At the moment the PO has enough fish to operate at capacity, but in the future, it may have to start importing fish to keep the facility running optimally. This is partly because the volumes of fish that are being caught is decreasing, but also because of the seasonal nature of the fishery – volumes are concentrated into three or

four months out of 12, with little fish during the rest of the year.

PO contributes directly and indirectly to the community The Kolobrzeska Fish Producers’ Group has not restricted its role to one of getting the best deal for its members. Under Mr Radkowski the organisation has been involved in several initiatives that have a wider bearing on the local community. For example,

together with environmental organisations, the PO launched an initiative to remove lost fishing gear from the Baltic, and now it is involved in preparing the Polish pavilion at the SEG in Brussels. It was also instrumental in getting MSC certification for the Eastern Baltic cod stock (suspended since December 2015). Mr Radkowski is also interested in a marketing campaign that will promote Baltic fish to the food service sector in Poland building a new market for the PO’s fish.

Kolobrzeska Grupa Producentow Ryb Sp. z.o.o Ul. Wegorzowa 8 78-100 Kolobrzeg Poland Tel./Fax: +48 94 351 6490 President: Marcin Radkowski Advisor to the Board: Waldemar Renda Members: 30 Vessels: 20

One of the PO’s standard products, a block of headed and gutted sprat prior to being frozen.

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Facilities: 3 Species: Cod (10 tonnes), herring (600 tonnes), sprat (1,200 tonnes), ounder, silage for mink feed Products (frozen): Cod ďŹ llets, herring aps, headed and gutted sprat, whole sprat, whole ounder, ounder ďŹ llets Markets: Poland, other EU countries

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Losos today concentrates exclusively on canned ďŹ sh products

Investments in R & D are critical In 1954 Losos was involved in fresh ďŹ sh sales, as well as the production of canned ďŹ sh and marinades. In addition, the company ran 10 retail stores, repaired ďŹ shing vessels, produced and mended ďŹ shing nets, and manufactured ice. Today, the company is purely a cannery. Adapting to a constantly changing market is demanding

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he shift from an organisation with many different commercial interests to a highly focused company producing canned fish was based on a decision taken in 1991. This resulted in a consolidation of activities as well as a spate of investments in new machinery and equipment to modernise the production, which increased from 1,200 to 7,000 tonnes per year. In 2002 a new production facility was built in Slupsk, Poland, and today the company is one of the best-known names on the Polish market for canned fish with a daily production of over 300,000 units under its own brand as well as private labels.

The bulk of the production is based on three species, sprat, herring and mackerel, but there are also small quantities of other species. The species vary somewhat because markets are changing, and tastes are evolving and so the company is constantly experimenting with new products. When we worked exclusively on the Polish market then most products were based on sprat, herring or mackerel, says Sebastian Lau, the production manager, but now we export some of our production and we need to change the products to cater to those markets.

In addition, in Poland too tastes are changing, and we introduce new products to reflect these changes. The company therefore cans hoki, hake, salmon, and different kinds of tuna. The market is very fluid now, and a company has to adapt if it is to survive and thrive. Manufacturing a single product may have been an option at a point in time, but today it is necessary to change and accommodate the customer’s needs.

Easy open cans made of steel or aluminium Today some half of the production is sold on the Polish market and the rest exported. On the Polish

The factory churns out 300,000 cans of fish a day under its own brand as well as for private labels.

market the company sells its production under its own brands, of which there are five, but also produces under private label for a string of domestic and international supermarkets. Cans are produced in a variety of shapes and sizes, but they are all made of either steel or aluminium. Canned products have the advantages of a long shelf life and are usually an inexpensive way to a quick and healthy meal. However, much depends on the raw material; therefore, among the investments in the production facility were some dedicated to preserving the quality of the raw material. A new cold store was built to store the raw material and a freezing plant was added to freeze the raw material, if necessary. Other investments ensured that during the production too the quality of the raw material was not allowed to deteriorate. Both fresh and frozen fish is used in the production, as there are periods, such as in summer, when fresh fish is not available. Baltic herring and sprats are the two main species which the company sources from fishing vessels in Ustka with which it has agreements. The mackerel however is generally from the Atlantic. Among the products is fish which is first smoked and then canned, for example, sprats. The company used to collaborate with external smokehouses but a few years ago invested in its own smoking facility so as to be better able to monitor the quality and the taste

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of the product. Cans of farmed Atlantic salmon from Norway are produced in modest quantities, which is actually somewhat ironic, because the name of the company and its most important brand, Losos, actually means salmon! However, the Polish market is well supplied with salmon from other large manufacturers and so Losos places more emphasis on its other products. Among the novelties shown at the Seafood Expo Global in Brussels a few years ago were round cans of smoked sprats with transparent plastic lids that revealed the tastefully arranged fish underneath. Losos is aware of this packaging, but for Mr Lau this is a difficult topic as the product is expensive in relation to a traditional can.

However, he does not altogether rule out using them, but it will only be some time in the future.

Scientific approach to product development Cans are produced in different sizes, but currently 110 g dingley cans with salmon in different sauces are doing well. Customers seem to prefer small portions perhaps because it means that even relatively expensive products such as salmon are affordable for most consumers. Sardines, hoki, hake are also packaged in dingley cans, while hansa cans are used for herring, mackerel and sprat. Before launching a product the company tests it on sample groups to gauge the reaction and

Losos produces a variety of canned fish for the domestic market and for export.

decide whether to continue with the launch or drop the product. While the company has launched new products periodically, last year it expanded its technological department adding a big research and development unit, where new products are developed, and trials carried out. Here different ingredients and recipes are constantly being tested, so that the company has a pipeline of new products that are introduced more or less regularly. Successfully bringing a product to market is now a far more demanding process than it used to be. A recipe has to be devised, tested, the raw materials purchased, processed, and finally the product has to be sold. But whereas in the past the range of products was narrow, today it is many times larger. The market demands that a company has a large product portfolio, that

customer requirements are taken into account, and that all product lines are customised. Different customers cannot be offered the same product – the species, sauces, and cans will all have to be unique for each customer. When Mr Lau started at Losos it produced four to five species and the same number of sauces. Today the number of species has increased slightly, but the number of sauces has multiplied several times. Exporting adds its own complications as each market has individual preferences regarding taste. What Polish consumers consider tomato sauce is quite different from the Hungarian concept and both are completely different from southern Europeans’ version. Although the sauce in all three places is a tomato sauce, it is in fact three quite different things – and a useful illustration of some of the challenges the company has successfully overcome.

Losos Sp. z.o.o. Wlynkowko 49b 76-202 Slupsk 2 Poland Tel./Fax: +48 59 847 2705 Production manager: Sebastian Lau

Sprats and herring are the main species used in the production. Here sprats are on their way to be smoked before being put into cans.

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Production capacity: 300,000 cans per day Species: Herring, sprat, mackerel, salmon, hake, hoki, sardine Markets: Poland, EU

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Mirko has repositioned the traditional marinated herring

Modern and health-oriented combinations make herring a gourmet product Mirko, a family-owned company from Pomerania established in 1995, specialises in herring products, but also produces other ďŹ sh and seafood items. While traditional recipes lie behind many of the products, the company has also been experimenting with new and unusual ingredients.

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arinated herring with cranberries, peach, or coriander seeds are some of the new and innovative combinations that Mirko has launched in a bid to get consumers to rethink a traditional Polish favourite, marinated herring. In the process of developing new tastes none of the old virtues – top quality raw materials, hand-made products, flexibility and service, have been forgotten.

Regular investments for an ultra-modern facility The Krasnoborski family that owns Mirko plays an active role in running the company as well. Members of the family are in place as the CEO, quality control,

production and marketing. The company started in Slupsk, but shortly afterwards, when EU funding became available it established a facility in the nearby town of Globino in 2002. Around that time the company formulated a strategic plan that sought to make investments in the company every few years. As a result, says Jan Krasnoborski, the production manager, starting in 2002 investments were made in the company in 2005, 2007, 2009, 2013, and are planned again for 2018. These funds are used to modernise the company, introduce new technology and infrastructure so that the facilities are always state-of-theart. Today the plant is 12,500 sq. m, and these regular infusions of capital have helped cement the

These herring products give a complete makeover to that traditional Polish favourite, marinated herring.

Jan Krasnoborski and his father, Bogusław Krasnoborski, play leading roles in the company the Krasnoborski family established 23 years ago.

perception that Mirko is a manufacturer of premium herring products – hand-made, attractively decorated, and contained in modern packaging.

imitation is a form of flattery, and it vindicates our efforts over the last couple of years to create these innovative products and find a market for them.

The market niche that the company addresses with its products is consumers that are looking for something new and different, but not radically so. This is not easy on the Polish market, where most consumers are fairly traditional in their approach and are reluctant to experiment. But after three years the company feels it has made progress with its products, so much so that other companies in the same field are now emulating its approach. This is inevitable says Mr Krasnoborski, but

Own-brand as well as private label production The investments over the last 15 years were aimed at improving the quality, automating some of the processes, and expanding the product portfolio. Apart from benefiting the manufacture of their own branded products, it also convinced other companies to use Mirko’s facilities for contract manufacturing. Thus, Mirko diversified into packaging fresh fish in collaboration with another

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company, becoming one of the biggest processors of fresh fish on the Polish market. The company also manufactures fish and seafood products for domestic and international retail chains under their brands. The modern cold store and distribution infrastructure at the facility has also encouraged other companies to enter into cooperation with Mirko to make use of these resources. Taken together these other activities account for about half the business, while the herring production under the Mirko brand accounts for the remainder.

Additive-free products in attractive packaging In its quest for innovation the company did a lot of research.

Three years ago, it carried out an analysis of its product portfolio, its competitors’ portfolios, the market in Western Europe, and the prevailing consumer trends. This revealed that in Western Europe products without preservatives or artificial ingredients were popular. The company decided that this trend would come to Poland too sooner or later and so decided to switch to this type of production. It meant changing production operations in the factory with added focus on quality and food safety. The other change was in the product presentation. While the old packaging had to be opened before the consumer could see and appreciate the product, the new packaging, being transparent, allowed the customer to see the product. The

Herring is combined with unusual ingredients to make it appeal to different segments of consumers.

changes went well with the image the company was trying to convey of a gourmet product. Salted or marinated herring has been eaten in Poland for generations, but by combining it with exotic ingredients, like cranberries, roasted whole grains, or other uncommon spices and herbs, and presenting it attractively arranged in transparent containers, the company transformed herring into a delicatessen product.

Convergence in tastes on different markets This was also a necessary strategy to follow, says Mr Krasnoborski. Prior to these changes our products were becoming very expensive to manufacture, but were perceived as cheap because they were just herring

in jars with some onion, exactly like any other on the market. It was difficult to persuade customers to buy it because it looked and tasted quite ordinary, and a lot of effort was needed on the consumer’s side to create a dish that would appeal to the family. Now, however, the product is an attractively packaged, delicate tasting, and easy-to-enjoy fish meal. The company has paired a number of tastes that are not immediately obvious as combinations, but which are proving to be extremely popular. The interesting thing is that while 10 years ago each market had its own preferences in terms of taste and there was little or no overlap, today tastes are much more fluid thanks to the Internet, social media, and globalisation in general.

Mirko Spółka Z O.O. Głobino 73 76-200 Słupsk Poland Tel.: +48 59 847 1720 biuro@mirko.pl Production manager: Jan Krasnoborski

The processing facility has been upgraded and modernised on a regular basis every few years.

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Production: 8,000 tonnes of ďŹ sh and seafood Main species: Herring (Atlantic and Baltic), salmon, seafood Main market: Poland Certifications: ISO, IFS, MSC

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Seamor smokes seafood for upmarket customers

Exploring opportunities in food service Based in Szczecin on the Baltic coast Seamor specialises in the production of smoked products using a variety of different species imported from all over the world.

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chain of four retail stores in Szczecin including one at the gate of the Seamor processing plant enable residents of Szczecin to buy the freshly smoked products wherever they live in the city. The shops do not just attract the locals; Germany is a mere half an hour away by road and customers often come from there as well.

Quality is paramount It is not hard to understand why. The rich colours, the varieties of species and cuts, the choice between hot and cold smokes, together with the freshness of the products make them virtually irresistible for anyone interested in smoked fish. It is all about the quality, says Ania Pawliszak, sales and marketing manager, both

of the raw material and of the finished product. Since Poland joined the EU in 2004 high quality production and cheaper labour has sucked in fish processing operations from all over Europe making the country a European powerhouse in the sector. This has been good for the country creating a deep reservoir of processing skills, but has been tough for the individual company, which today is battling with pressure from the retail chains, labour shortages, and competition from the rest of the industry.

Wide range of smoked fish and seafood products Seamor has been operating for a quarter of a century and can

Anna Pawliszak, marketing and sales manager, and Rafał Pawliszak, vice-president of production.

feel that getting the balance right between high quality and competitiveness is getting more and more difficult to achieve. In 1993 when the company started its operations, they were in a different branch of the fish processing industry. The main activity at the time was trading in frozen fish, and it was 7 years later that it invested in a processing plant and started to smoke fish as well. Today the company has retained its trading operations, but its main focus is the processing side which it would like to develop further. Currently, a huge range of species is smoked, some cold smoked, others hot smoked, and some, such as salmon, smoked both ways. While the portfolio of products is large, it is also dynamic with new products being added at regular intervals as the company experiments with new species and cuts. Mackerel, salmon, and herring are traditional species to smoke. In addition, tuna, prawns, pikeperch, white fish, eel, black halibut, , mussels and wild salmon are some of the other fish and seafood that are also part of the smoked assortment. Countries in North America, South America, Asia, as well as Europe are the source of the raw materials. Apart from Norwegian salmon and Polish trout and carp the raw material is largely purchased frozen from a network of suppliers with many of whom the company

has had a long relationship. Two years ago, the company started smoking sturgeon which has proved to be a very popular product, not only in Poland, but also in Germany, and the Netherlands. The latest project is to cold smoke loins of sashimi quality tuna. This is an expensive product, but the company has already found buyers who are interested. Most recently the company has connected with a Japanese company that is looking for smoked fillets of mackerel with pinbones removed.

Traditional smoking procedures give the best results The processing operations at the company are also in many respects very traditional. Prior to smoking the fish is salted the customary way in brine, and the smoking itself is with time-honoured beechwood chips rather than liquid smoke. There are no additives, the only preserving agents are the salt and the smoke. In the case of the mackerel fillets without pinbones, in which the Japanese company has shown an interest, a similar product is in fact already being supplied to the Netherlands. In keeping with Seamor’s traditional approach, the pinbones are removed by hand giving a better yield and reducing the risk of pinbones being overseen

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and thus improving the quality of the product. Although Poland absorbs the bulk of the company’s production, exports are growing each year. This trend was boosted last year when the company exhibited its products for the first time at the Seafood Expo Global in Brussels. Previously, it had just visited the show, looking for suppliers. But the driving force behind the increase in exports is the situation on the domestic market where the stiff competition is compelling companies to look for other markets. We do not want to compromise on quality, says Ms Pawliszak, and that makes it difficult to be too flexible on price. We therefore have to find other markets where customers appreciate the quality and are willing to pay for it. Like other Polish processing companies, Seamor has also benefited from support from the EU. Over a 14-year period the company has received some EUR2m altogether which has been used to build and renovate the factory, buy machines including the smoking ovens, and to modernise the facility to make it a better workplace. The addition of machines did not however reduce the number of employees as much of the work is

still manual. During peak season around Christmas and Easter the number of staff is increased. Many of them come from the Ukraine since it is difficult to find Polish workers, but now even finding Ukrainians is getting difficult and the company has to search further and further afield to find the workers it needs. It is now expecting to hire four people from Nepal. Automation is not really an option for the company as it processes small quantities of many different species of varying shapes and sizes, cutting them into fillets, loins, or steaks, and removing pinbones. With so many different operations manual labour is really the only solution. Dariusz Andrzejewski, the commercial director adds that over 100 products are manufactured from some 30 species of fish, so each species is made into three or four different products, and therefore human hands are needed.

Individual packaging increases shelf life and allows branding The products for many years were not individually packaged but sold loose in cartons. This worked well on the domestic market as the shelf life for the smoked product is relatively short but was a

Fish can be hot or cold smoked as fillets, loins, steaks, or other cuts. Three to four products are made from each species.

hindrance for exports. Individual packaging was introduced three years ago in the form of modified atmosphere, double skin, or vacuum packaging, depending on the order. This gives the product a longer shelf life and enables it to be exported to countries within a certain radius. For destinations that are further away, like Japan, the individually-packaged product will also have to be frozen. The other advantage that the individual packaging enabled was that it became possible to brand and market the product under the company’s name.

Most of the production is under the Seamor label, with very little produced for private labels. Although up-market supermarkets are the main customers, the company is not entirely happy with the arrangement, because the retail chains have a lot of power and tend to squeeze their suppliers. In response the company only supplies some of its products rather than the full range, and is looking at other avenues, for example, the food service sector, where the high quality of the products will perhaps be better appreciated.

Seamor Sp. z.o.o. pl. Batorego 4 70-207 Szczecin Poland www.seamor.com.pl Owner: Ms Malgorzata Pawliszak Commercial director: Dariusz Andrzejewski Marketing and sales manager: Anna Pawliszak Vice president of production: Rafał Pawliszak

A selection of products that the company manufactures.

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Activities: Smoking ďŹ sh and seafood, trading frozen ďŹ sh Products: Smoked ďŹ llets, loins, steaks of various ďŹ sh species, smoked shellďŹ sh Markets: Poland, EU, third countries Employees: 120 (130 during peak season)

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Seko is expanding – again

A new line of products for younger consumers Production at Seko, a ďŹ sh processor, started in 1992 in Gdynia and then moved to Chojnice three years later. In 2007 the company listed on the Warsaw stock exchange, among the ďŹ rst seafood processors to do so. Today, Seko is an established name on the Polish market with over 200 products in 17 categories.

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ince its inception over a quarter of a century ago Seko has not stood still. Production capacity has been expanding over the years as has the number of employees and the product portfolio. Today, Seko is rolling out a fresh look for its products with attractive new labels in several colours.

Family-owned despite a stock exchange listing Despite its listing on the Warsaw stock exchange Seko is still a family-owned company, with the family holding 67 of the shares. The purpose of the listing was to get funding to build a new production plant, says Iwona Nitka, the export manager. Today the production area totals 16,000 sq. m, part of which was also built with support from EU funds. In 2018 the company is planning to further expand capacity at the factory, by adding more space to the existing plant. Demand for the company’s products has been growing and it wants to be prepared not only to meet this demand, but also to set new trends, for example, in products aimed at young people. This is a market segment that has so far been difficult to penetrate and the company wants the some of the space in the new factory to be dedicated to products that cater to this elusive group, as well as to children. While not everything

Iwona Nitka, Export Manager; Kazimierz Kustra, Seko’s founder; Magdalena Marciniak, Export Manager; and Dariusz Zmija, General Manager.

about the coming range of products can be disclosed, Ms Nitka does report that they will have no added preserving agents, sweeteners or other additives. We see that products without extraneous chemicals are becoming increasingly popular among consumers. The new plant will also be used to produce ready meals, a development that is also becoming apparent in Poland.

Herring is highly popular in Poland Seko has traditionally specialised in the production of marinated

herring in different sauces or in herring rolls wrapped around different kinds of stuffing. These, the company has noticed, tend to appeal to older consumers, while younger consumers, who form an important segment of the market, tend to have different preferences. The new factory will try and cater to the latter demographic group. The portfolio of products based on herring is staggering and forms some 80 of the total output. A fifth of this is products based on Baltic herring, for the rest it is all the Atlantic variety. The fish is combined with other ingredients in all kinds

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of ways – in oil, fried, marinated, in brine etc. In addition to a wide range of marinated products the company also produces sterilised products in cans, in jelly, and frozen products like fish fingers. The company also adapts products to its customers’ requirements, as tastes vary from region to region and from country to country. For example, for Germany, herring fillets are processed with cream and have a shelf life of 21 days. This is a private label product, but because Seko is a large company (500 employees) it can adjust the production to the satisfaction of the client. This means that what &VSPl TI ).)A05,


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Marinated herring with cranberries and peach is among the innovative new combinations that the company is producing to attract a younger generation of consumers.

is essentially a single product can be produced in a large number of varieties to suit each market. Supermarkets as a group are the company’s most important customers absorbing 60 of the production. Of the rest, 30 goes to traditional markets and 10 is exported. Among the product lines, salads are another popular group. They are usually made of herring, but the company also has a line of pure vegetable salads, comprising vegetables in

a mayonnaise dressing. However, the recipe behind a herring salad intended for sale in Poland may be quite different from the one that is to be sent to another country. Packaging too can vary depending on the requirements, and the company offers packages that go from 80 g all the way to 25 kg. Germany is the company’s biggest export market and many of the products that are sent there are those without preserving agents. This means that the shelf life is typically not more than 30

days. It is necessary therefore to strike a balance between having the goods waiting in the store room ready to ship, and producing them in response to an order. In general, Seko keeps a stock of all products so that they can be despatched at very short notice.

Rebranding exercise will give a uniform look to the product portfolio The new rebranding exercise means a change in labels, in logo, and will also mean that all the products will have labels that have the same look. The fastmoving products are the first to

be affected, but the changes will gradually extend to the entire portfolio. The factory, which has sixteen production lines, is certified to the MSC, IFS and BRC standards and, in addition, some of the products are certified kosher. The latter are exported to South Africa. The company’s products are based on recipes tested in the company’s laboratories and use select ingredients including vegetables and semiprocessed raw materials to create healthy and nutritious fare. The products are available in most retail chains and fish wholesalers in Poland and are popular for their taste and quality. Maintaining quality at a consistently high level is one of the company’s priorities, says Ms Nitka. Seko also manufactures under private label, strictly following the customer requirements. Seko is benefiting from an everincreasing awareness that fish is a healthy product. In addition, the company is responding to greater demand for products that are free of preservatives. While traditionally the time immediately around Christmas is peak season for fish consumption in Poland and in other countries, this period may gradually get longer and longer. With its expansion plans the company is well positioned to exploit this increasing interest in fish.

Seko Ul. Zakladowa 3 89-620 Chojnice Tel.: +48 52 510 8140 Fax: +48 52 396 7351 seko@sekosa.pl www.sekosa.pl The processing facility has 16 lines producing a variety of traditional and modern products.

Export Manager: Iwona Nitka

Products: Some 220 products in 17 groups Species: Mainly herring (80% Atlantic, 20% Baltic) Employees: 500 Markets: Poland, but also Germany, Czech Republic, Slovakia, Hungary, Lithuania, Austria, Serbia, USA, Canada, South Africa

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POLAND

Stanpol processes and trades in Baltic and Atlantic cod, as well as salmon

A family-owned business, run by three generations The company Stanpol has been processing and exporting ďŹ sh, mainly fresh and frozen Baltic cod, and Atlantic cod and salmon, for 28 years from its production facilities in Bialogard in north west Poland.

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nlike many of the fish processing companies in Poland Stanpol eschews the manufacture of herring products, preferring to concentrate on higher margin items such as fillets and portions of Baltic cod, Atlantic cod, and Atlantic salmon. At its retail outlet, however, at the factory gate in Bialogard marinates from other producers together with fresh, smoked, frozen, and battered products are available.

Poor catches of Baltic cod cause a switch in production to flounder Salmon, mostly from Norway, is processed into fresh, frozen,

portions, and smoked products. The smokehouse is built connected to but isolated from the main building where the processing is carried out so that there is no risk of any mix up with the fresh fish processing. The second processing unit is a short drive from the first and it is the site for the production of cod and other fish from the Baltic as well as some Atlantic cod. Baltic cod catches have been poor this year with fewer fish and smaller sizes, so the company has been processing other fish instead such as flounder. In previous years January was the high season for catches of Baltic cod, but now partly due to changing weather conditions the

catches are very much lower, says Jerzy Safader, the owner of Stanpol. About 90 of the raw material used by the Polish processing industry is imported, he adds. Mr Safader has a second role as president of the Polish Association of Fish Processors, a body which this year will celebrate its 20th anniversary. For the second time running the association together with the Polish Ministry of Maritime Economy and Inland Navigation and have organised a joint pavilion in 2018 at Seafood Expo Global, where Polish processors will exhibit. The pavilion meets a longstanding request from the association and

Three generations of the Safader family that owns Stanpol. Marzena Safader, vice president; Jerzy Safader, president; and Karolina Gach, who is responsible for sales.

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its business partners to have all the Polish companies under one roof rather than spread out over several halls. The association is funded by a set fee each year which finances all its activities and represents the overwhelming majority of the seafood processing sector. In 1998, before Poland joined the EU, the fisheries sector was facing a lot of difficulties exporting to the EU. At that time only three Polish companies were allowed to export to the EU. According to Mr Safader, the authorities were so nervous about all the rules that had to be implemented if companies wanted to export to the EU, that they were holding the whole industry back. Controls were so strict that the industry decided to seek strength in numbers and get together as a group. In a way it was the authorities themselves that instigated the establishment of the association. While the authorities were reluctant to engage with individual companies, they were more responsive to the association, which became an increasingly important voice for the industry. When Poland joined the EU in 2004 the association oversaw the huge development in the processing sector that started then. Today, the association has a good relationship with the authorities, whom it has managed to convince that it is in the best interests of the &VSPl TI ).)A05,


POLAND

company is investing in a filleting machine for cod. This can process 1 tonne of the raw material an hour with just 15 people. The company has to modernise and automate its operations, says Mr Safader, because the problem with labour is not going to go away.

Baltic cod catches have been poor lately and the fish small, so the company switched to processing flounder instead.

A tray of flounder fillets preparatory to being frozen.

companies themselves to have high quality products and to follow the strict rules of food production. Apart from organising the pavilion the association supports its members when administrative or veterinarian issues arise. It is also the only interbranch organisation, one that includes produces and processors, for the sector that is recognised according to EU rules, says Piotr Slowik from the ministry.

Labour is scarce, but automation is not always the solution The flounder processed at the factory is filleted manually.

These skills are learned on site as there is no formal training for this kind of job. The company is therefore interested in retaining the staff it has trained to recoup the investment. This means creating an environment in which the workers feel comfortable, says Karolina Gach, who handles sales, with good working conditions and salaries. But the work is tough. In the course of an eight-hour shift 30 people fillet 4-4.5 tonnes of Baltic cod. The competition for labour in this field is fierce and many companies have been forced to import workers from neighbouring countries and from further afield. This is partly why the

This species, Baltic cod, is one the company has specialised in, but as catches have become more unreliable it has started working with increasing quantities of Atlantic cod, as well as other species such as flounder. The point is to keep the production lines running and to make use of the raw material that is available. Most of the company’s products are fresh and frozen and are based on fresh raw material, which means that it is dependent on fish catches that can be unreliable, making it more difficult to plan the production. Mr Safader has considered using frozen raw material but says that the market demand is for single frozen products rather than double frozen, and besides there is a loss of yield with frozen raw material. Trawlers from Norway and Iceland also process and freeze on board and this

is hard to compete with. As a mid-sized company Stanpol can be very flexible switching from one species or product to another very quickly. Working closely with the quality team production follows the customer’s specification, and because a lot of the work is still manual it is easy to produce fresh products one day and frozen the next.

Contract processing is an important activity Some of the company’s customers, retail chains in Western Europe in fact prefer manually filleted fish to machine fillets. The production is broadly divided into two, the company’s own products such as those sold fresh to, for example, French market chains, and contract production for customers in Norway and Belgium among others. In this case the customer will typically provide the raw material which the company processes and despatches. Such arrangements often call for a degree of sensitivity since some information needs to be kept confidential, but these are longstanding customers and the relationship is a strong one, says Mr Safader.

Stanpol Sp. z.o.o. Al. 3 Maja 44 76-200 Slupsk Poland Tel.: +48 59 843 1867 Fax: +48 59 843 1868 ofďŹ ce@stanpol.net www.stanpol.net President: Jerzy Safader Vice President: Marzena Safader

Sales: Karolina Gach Main products: Cod (Baltic and Atlantic) and salmon fresh and frozen Raw material: 4,000 tonnes salmon; 2,000 tonnes cod Processing facilities: 2 Certifications: IFS, BRC, MSC, ASC, Global Gap, BIO, Kosher Employees: 150

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LITHUANIA

Compensation for losses caused by seals

Fishers and Phocids can now coexist amicably The damage caused by seals to coastal ďŹ shermen’s catches is well documented and has been a source of friction between ďŹ shers and those seeking to protect seals. Compensation for the damage is helping ďŹ shermen withstand the losses.

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ach year fishermen in Lithuania incur losses caused by marine mammals and birds. Fishermen often encounter hibernating birds entangled in their fishing nets or cormorants, which cause large losses, but the biggest problem faced by fishermen in Lithuania and other Baltic countries who engage in coastal fishing is the damage caused by seals.

Damage caused by seals can be considerable While seals stay near the coast of Lithuania for a few months only, they have a considerable impact on fishing. Foraging seals usually eat fish captured in fishing nets, destroying a fishermen’s catch, tearing fishing nets or damaging other fishing gear. By damaging fishing nets or other gear, and foraging or scaring away fish, they reduce a fishermen’s catch and cause large losses. There are 56 companies engaged in coastal fishing and the situation has given rise to a bitter conflict between fishermen and seals. For fishermen they are a menace that prey on the catch, while environmentalists defend seals and claim that they are an integral part of the biodiversity of the Baltic Sea and that they need protection. Some years ago, the environmentalist organization Lithuanian Fund for Nature set out to find a

Across the Baltic coastal fishermen such as the one pictured suffer from seal predation. The animals damage nets and other gear and eat the fish or scare them away.

compromise between fishermen and seals. It studied the scope of fishermen’s losses caused by seals and provided recommendations regarding the payment of compensation, which is supported by the European Maritime and Fisheries Fund.

Compensation helps soften the blow The call for applications for compensation for damage caused by

marine mammals and birds was launched at the beginning of 2016. For damages caused between 2014 and 2016 EUR281,000 has been paid in compensation to 78 fishermen. The goal of providing fishermen with compensation for losses caused by marine mammals and birds is to help foster traditional coastal businesses and maintain its economic viability as well as to ensure the sustainability of coastal and open-water fishing.

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Paying compensation to fishermen for seal damage has proved to be probably the only way to end this battle between fishermen and seals. After introducing this type of compensation, the number of seals washed up on the coast decreased despite the fact that their population was increasing. A few years ago, the population of grey seals was about 28,000, and now the number has increased to around 30,000. &VSPl TI ).)A05,


LITHUANIA

Ĺ iluteË™ Agricultural School is the ďŹ rst institution in Lithuania to offer a specialisation in aquaculture

Programme to create aquaculture entrepreneurs With the new specialisation in aquaculture, the Ĺ iluteË™ Agricultural School hopes that graduates from the programmed will be encouraged to take the plunge and establish their own ďŹ sh farms to supply domestic and export markets.

I

n 2014, the Šilut˙e Agricultural School launched a modulebased vocational training programme for workers in the aquaculture industry comprising 90 credits. The programme was the outcome of a EUR2.87m European Cohesion Fund project, which created a sector-specific fisheries practical training centre, unique not only to Lithuania but also to the Baltic region. The programme provided the skills necessary to work in aquaculture enterprises and to establish farms specialising in the cultivation of warm-water and cold-water fish using closed recirculating systems or ponds. It comprises introductory modules on the labour market, fish breeding, fish biology, feeds, fish feeding, feeding methods and equipment, recirculation system design, structures, energy supply, recirculating system hardware, its control and maintenance, fish harvesting equipment, its control and maintenance, artificial fish breeding, and fish egg incubation technologies. The competencies acquired enable graduates to work in hatcheries and fish farms where they can be made responsible for everything from breeding the fish to harvesting products for sale.

Skills taught qualify students for many different jobs Besides the basic mandatory competences, the programme offers

Algimantas Abromatis, director of the Šilut˙e Agriculture School

students the opportunity to acquire some additional skills. Among them is recreational fishing, primary fish processing and maritime navigation. The programme is not only an attractive option for young people, but also relevant for the entire region since Šilut˙e is situated in the lower reaches of the Nemunas River where the potential for the development of fisheries is excellent. Moreover, Lithuania has a coastline on the Baltic Sea and fishing is an important industry for the country. However, the volumes of fish caught in Lithuania satisfy only a small percentage of the country’s demand for fish. With the new programme the Šilut˙e Agricultural School intends to educate students to become aquaculture specialists, to increase the popularity of fisheries, and to enable and

encourage young people to start businesses that meet the fish and seafood needs of the country. The practical training centre at the school is equipped with two model and two production-type systems for harvesting warm-water fish and cold-water fish (their expected annual output is 10 tonnes of fish each). The centre cultivates European catfish, sturgeons, trouts, and peleds. The centre also has a vessel for training inland waters navigation and recreational fishing, a vehicle for the transport of live fish, and a fish incubator. In addition, it operates a modern primary fish processing unit where students learn processing skills such as descaling, skin removal, filleting, chilling, refrigerating, glazing, salting, smoking, vacuum-packing, storing

and realizing the fish they have caught or harvested.

Number of applications to join exceeds expectations A total of 115 students have already graduated from the programme. The majority of them have jobs related to their qualification or have started their own businesses. Currently, the centre has 78 students. The number of first-year students accepted in 2017 was double the number that the school had expected. This suggests that aquaculture has become an attractive field of study, and if everything proceeds as planned, the country’s market may soon be supplied with larger quantities of locally farmed fresh fish.

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[ FISHERIES ] IUU ďŹ shing torpedoes sustainable ďŹ sheries management

When licensed ďŹ shing and adherence to quotas is penalized Illegal, unreported and unregulated (IUU) ďŹ shing is one of the greatest threats to the sustainability of ďŹ shing, marine ecosystems, marine biodiversity, and human food security. Although international bodies and the UN regard illegal ďŹ shing as an environmental crime and the European Union has adopted a regulation to combat IUU ďŹ shing the problem has not been fully resolved because there are still gaps and loopholes.

I

llegal, undocumented and unregulated fishing, also known as pirate fishing, has many facets. In deep-sea fishing, it is understood to mean all types of commercial fishing carried out without the necessary licence, in which the fishing quota authorised under the fishing licence is exceeded, or in which the quantities caught are not, not completely or incorrectly documented. However, it is also considered to be IUU fishing if a fishing vessel fishes in territorial waters of other nations without permission, or if it violates the fishing laws of that country, for example, by ignoring fishing times and protected areas. The territorial waters of some West African countries are among the preferred fishing areas

for pirate fishing. None of these countries has a strong fisheries control authority, so that the pirate vessels are not in much danger of being caught. IUU fishing decimates fish stocks, destroys marine habitats, distorts competition, discriminates against honest fishermen, and weakens many coastal communities. The term IUU fishing also refers to fishing activities in marine areas for which there is no management at all to regulate catches, and to the fishing of migratory fish species in international waters, where sustainable catch quantities are difficult to determine by the Regional Fisheries Management Organisations (RFMOs) and hardly possible to

IUU fishing mainly affects marine fisheries. Pirate fishing is much less common in inland fisheries.

monitor. This increases the risk of over-exploitation of fully utilised stocks. In order to be able to calculate as exactly as possible the actual amount of catches taken worldwide, IUU catches would have to be added to the total registered catches. This is the only way to determine the legal catch quota for certain marine areas accurately. If the IUU share is missing in the calculations the size of the stock is overestimated and the catch quotas for the coming year will be set too high. This increases fishing pressure on stocks, overburdens their reproductive potential, and can lead to overexploitation of certain fish species. The IUU problem mainly affects

IUU fishing is often the result of unresolved social problems What makes IUU fishing so tempting for pirate fishermen is not only the prospect of unlicensed catches outside the authorised quotas but also that they do not have to pay charges or taxes on profits. It is mainly practised on a large scale in those countries that are known for weak state controls, rampant corruption, unclear or contradictory legislation, and a low degree of willingness to enforce existing laws resolutely. Financially weak states have other priorities than the committed fight against IUU

EU Regulations 1005/2008 and 1224/2009 created the conditions for customers in the fish trade to receive only products from legal fishing.

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marine fisheries, and is much less pronounced in inland fisheries.

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[ FISHERIES ] fishing. A study by the West African Sub-Regional Fisheries Commission (SRFC), which consists of seven states, points to reasons why some states score so badly in the fight against illegal fishing and shows that the control authorities lack qualified and motivated specialists who are poorly paid, which often makes them susceptible to bribes. Due to a lack of money, the member states invest too little in the infrastructure of fisheries control, fishing control vessels and surveillance aircraft, as well as in their operation, maintenance and servicing. It is difficult to estimate the full extent of pirate fishing. A lot of experts believe that, although the worst period dating back to the mid-1990s has now been overcome, the size of suspected illegal catches is still far too large. Two opposing trends make realistic estimates even more difficult. On the one hand, IUU fishing is declining noticeably in many marine areas, with more effective state controls contributing to this development. On the other hand, this makes illegal fishing even more attractive, because the

species in demand on the markets are then scarcer and achieve even better prices. Figures quoted for the extent of illegal fishing should be treated with caution. While representatives of the fishing industry prefer to talk down the issue of IUU fishing, environmental NGOs tend to set the share as high as possible, probably in order to underline the urgent need for vigorous countermeasures. Impartial experts also find it very difficult to realistically estimate illegal catches – for obvious reasons: as the name suggests, pirate or illegal fishing is a business for which there are no official data or statistics. Experts’ estimates vary between 11 and 26 million tonnes per year, which would be equivalent to a landing value of at least EUR 10 billion per year.

IUU fishing is a global problem Probably no fishing grounds are entirely free of pirate fishing but the bulk of illegal catches comes from waters where controls are rather the exception than the rule. Conservationists and environmentalists claim that

Wherever freshly caught fish is sold directly after landing on the beach or in small markets effective controls are virtually impossible.

In many regions of the world small-scale fishermen earn a meagre livelihood through fishing – without a licence, without allocated quotas, and without any kind of controls.

in West African countries one in every three fish is of illegal origin. In the Pacific, IUU fishing is thought to account for 21 to 46 of all fishing activities. The expanses of the Antarctic Ocean and the Arafura Sea between Australia and Indonesia hold an almost magical attraction for pirate fishermen. However, examples of illegal fishing can also be found in Europe, where willingness to comply with binding laws and agreements is not equally pronounced everywhere. Greenpeace estimates that about 1,200 industrial fishing vessels are involved in IUU fishing. Many of them fly flags of convenience, but it is not rare that the ship-owners are based in Europe, Japan, Korea, China or the USA. By “flagging outâ€?, i.e. switching to a foreign register of ships, operators can reduce costs and thus increase profits through making use of the fact that labour law provisions in Belize, Liberia or Panama are less restrictive and the pay and social security contributions for the ships’ crews much lower. Some species of fish and other marine animals are particularly hard hit by IUU fishing. These include demersal species that live on or near the ground and have a high market value. For example Patagonian toothfish (Dissostichus

eleginoides) or black cod (Anoplopoma fimbria). Some tuna species, cod, lobster and crayfishes are also high on the list of likes among pirate fishermen. In this criminal business any species is interesting where high demand meets low supply. Some of them are already over-fished, for others the legal catch volume is limited by small quotas. Pirate fishermen can make lucrative profits with these fishes – provided they don’t get caught and know how to channel the goods into the legal market.

Pirate fishermen use every small loophole On the high seas pirate fishermen often have little to fear because controls are few or lax. In order to reduce their risk when landing the catch they seek out small ports where they are not bothered by people wanting to take a closer look at their catch or where inspectors are willing to accept small “presents�. Often the IUU vessels don’t even have to call at ports to unload their illegal cargo because they hand over the catch at sea to refrigerated or transport vessels. During these transhipments, the IUU vessels are also supplied with food and fuel, enabling them to stay in the fishing grounds for longer periods. Individual fishing

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[ FISHERIES ]

The fight against IUU fishing requires close international cooperation and a functioning fisheries control system, but this entails high costs.

vessels are said to operate off West Africa all the year round using this method, which puts even more pressure on fish stocks. Once on board the refrigerated vessels, illegally caught fishes are mixed with legal catches to conceal their origin. These cargoes are then preferentially unloaded in ports with negligent controls, so that the pirates will ultimately succeed in effectively “laundering� their illgotten fish which they can then put on the market with falsified documents. The fight against IUU fishing requires enormous investments and close international cooperation. We need to improve fisheries control and tighten up the network of controls both at sea and on land. Satellite-based surveillance systems can be used to track the course and position of fishing vessels even far away from the coasts. Controls and sanctions must be coordinated internationally and implemented consistently. About 170 countries agreed to the Code of Conduct for Responsible Fisheries adopted by the FAO in 1995. Although the Code is voluntary and not legally binding, IUU fishing has diminished wherever these rules have actually been transposed into national law, for example in Norway, Australia, Malaysia, Namibia and South Africa.

Combating IUU fishing concerns everyone If the measures to prevent IUU fishing are to be successful, countries without their own fishing fleets must also participate, since illegally fished products can be exported worldwide and appear on many markets. That is why ensuring the complete traceability of fishery products from catch to final customer is so important because it makes it easier for retailers and consumers to buy impeccable goods. Products from sustainable and environmentally friendly fisheries can be recognised at the retailer’s by the blue MSC label which is only awarded if the fishery concerned meets certain minimum standards that are also understandable to customers. Some environmental organisations are of the opinion that the MSC standards don’t go far enough but, in spite of all justified criticism, environmental labels such as MSC or FoS have for the first time created opportunities for consumers to support efforts towards “cleanâ€? fishing by making conscious purchasing decisions. The European Union is the world’s largest market for fishery products, importing about 60 of its seafood needs from third countries. This has made the Community an attractive target market for products from illegal fishing.

With Council Regulation (EC) No. 1005/2008 of 29 September 2008 the EU Member States put in place a system to inhibit, combat and prevent illegal fishing and at the same time position the EU at the forefront of efforts to reduce IUU fishing and illegal profiteering. Since the entry into force of the IUU Regulation it has been specified exactly which vessels are allowed to land fish in the EU, which documents they must submit for this purpose (whereby the main objective is to prove the legal origin of the goods by means of a complete traceability system), and how the incoming goods must be inspected. With the aim of preventing IUU fishing throughout Europe and closing any still apparent loopholes, deterrent sanctions are threatened in the event of infringements. All companies from EU Member States, irrespective of the flag under which they operate illegal fishing anywhere in the world, face severe penalties based on the commercial value of the illegal catch. This aims at eliminating profits from the pirate fishermen’s dirty dealings.

Controls need to be coordinated across Europe Almost at the same time as the IUU Regulation, Regulation (EC) No. 1224/2009 modernised and

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harmonised the fisheries control system throughout Europe. Extensive controls are now mandatory when unloading catches in an EU port. Ships must report their cargo even before they arrive at the port. After docking, they have to present the fishing licence, the vessel’s operating licence issued by the flag State, and the fishing permit which gives information on which fish may be caught when, where and in what quantity. This information is compared with the actual catches in the hold and with the data in the electronic logbook to determine whether the fish caught is covered by appropriate permits and is therefore legal. These checks are made easier by the development of a modern data collection and management system for all fishery-related data. The system also facilitates the exchange of data collected between the Member States, the EU Commission and the European Fisheries Control Agency. In order to identify irregularities more quickly, the Commission’s powers are to be strengthened and the mandate of the Community Fisheries Control Agency adapted accordingly. The Fisheries Control Regulation is supplemented by a comprehensive implementing regulation (No 404/2011) which sets out the technical details. A system of penalties for gross infringements of current fisheries legislation was introduced. In addition, a list of IUU vessels caught by Regional Fisheries Management Organisations (RFMOs) in the process of pirate fishing or attempting to unload illegally caught fish in an RFMO port is also published at regular intervals. This listing according to the “name and shame� principle is intended to make it even more difficult for IUU fishermen to pursue their criminal activities. Ships on this blacklist are not authorised to fish, tranship &VSPlTI ).)A05,


[ FISHERIES ] or land their catches in the EU, and neither is it permitted to import the fishery products. Except for in emergencies, ships are not given any supplies, fuel or services in ports of Community countries. Customs and port authorities are obliged to prevent the entry of blacklisted ships. Fish retailers and fish processing companies are requested not to accept catches and fishery products from listed vessels.

Warning system with yellow and red cards proving effective The EU’s IUU regulation also enables measures to be taken against third countries (countries outside the EU) in which illegal fishing activities are not being pursued or not sufficiently pursued. Those who fail to comply with the strict standards

Unloading fish in EU ports involves a comprehensive control programme, the details of which are laid down in EU Regulation 1224/2009.

of fisheries management demanded by the EU will first be warned with a “yellow card� and asked to improve within certain

EU catch certificates

A vital tool in the ďŹ ght against IUU ďŹ shing As the largest market for seafood in the world the EU has considerable power when it comes to cracking down on illegal ďŹ shing. Among the provisions of the EU Regulation against IUU ďŹ shing, that entered into force in January 2010, is the catch certiďŹ cation scheme for imports and exports of ďŹ shery products to and from the EU. This document, which must accompany ďŹ shery products being imported into the EU, certiďŹ es that the products being imported are from catches that have been made in accordance with applicable laws, regulations and international conservation and management measures. The certiďŹ cate is validated by a public authority in the ag state of the vessel making the catches and follows the products throughout the supply chain. The purpose of the certiďŹ cation scheme is to: t FOTVSF QSPEVDU USBDFBCJMJUZ BU BMM TUBHFT PG QSPEVDUJPO GSPN DBUDI UP processing and marketing; and t C F B UPPM GPS DPNQMJBODF XJUI DPOTFSWBUJPO BOE NBOBHFNFOU SVMFT BOE t TVQQPSU DPPQFSBUJPO CFUXFFO nBH TUBUFT UIF DPVOUSZ PG QSPDFTTJOH and the country of marketing. Third countries which have problems complying with the requirements of the scheme may have to enter into a dialogue with the European Commission to improve the situation or ďŹ nd products from their vessels banned from entering the EU. This possibility has resulted in more than 30 countries improving their systems to ďŹ ght IUU ďŹ shing.

deadlines. Failure or insufficient effort to do so may result in a “red card� which automatically leads to an import ban on fishery products from that country into the EU market. The card procedure is one of the greatest achievements of the EU’s IUU regulation. It has proved its worth in practice for the majority of the countries warned immediately embarked on rigorous reforms so that the yellow cards could be withdrawn. All sides benefit equally: the incentive to continue supplying the lucrative EU market is great. Consumers in EU Member States can increasingly be sure that only legally caught fish will be offered for sale, and there are also major improvements in the fisheries management in the countries of origin. It is probably only the pirate fishermen who are not happy because they are now being watched even more closely. EU regulations 1005/2008 and 1224/2009 have become effective instruments in the fight against IUU fishing. They play a significant role in keeping illegal fish

out of the EU market and make a very important contribution to the process of global change in the direction of more sustainable fisheries. However, any regulation is only as good as the degree to which it is actually enforced. Recent analyses show that the regulations have not yet been fully and uniformly implemented throughout Europe and have revealed that there are still isolated loopholes which undermine the concept of strict import controls and thus the effectiveness of the IUU regulation. Often only part of the imports are actually checked because of a lack of inspection and control capacities, or inspectors only take a brief, superficial look so that sometimes fake documents are not recognized at all. The installed system is good and internationally trend-setting. But Member States must invest more to create additional resources and enforce more rigorous inspection procedures. This is the only way to prevent imports of products from IUU fishing and thus successfully combat illegal fishing. mk

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[ PROCESSING ] Seamark is expanding frozen warm-water shrimp sales in Eastern Europe

Made in Manchester for sale on the continent Seamark supplies frozen ďŹ sh and seafood sourced from different countries around the world to customers in continental Europe and the UK.

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eamark started life as a grocery store selling meat, vegetables, and fish to consumers in the UK in the mid-70s. Today it is a multinational company with operations in the UK, USA and Bangladesh, suppliers across Asia, and well-known product brands. Frozen warmwater shrimp of various kinds – freshwater, black tiger, and vannamei – are the company’s speciality, but it also distributes squid, scallops, seafood mixes, pangasius, tilapia and seabass, to wholesalers, retailers, industry, as well as the food service sector.

Among the first to introduce black tiger shrimp into the European markets In 2017 the company introduced EBI sushi (butterflied shrimp), nobashi, premium seafood mix and mussels to its portfolio of products and this year a new range of value added items will be launched at the Seafood Expo Global in Brussels in April. Since 1991, when it was established, the company has always dealt in shrimp frozen in blocks, semiIQF and the capacity to process, IQF (individually quick-frozen) in Manchester. Sister company, Ibco, deals in frozen fish (as well as vegetables and pastries) for supermarkets and Asian or AfroCaribbean markets in the UK,

tailoring its products in terms of glazes, species, and pack sizes to the different requirements set by these customers. In general, Ibco deals with ethnic customers and typically smaller quantities in the UK and Europe, while Seamark exports some 80 of its production, while the remainder goes to wholesalers and the food service sector in the UK, and the volumes tend to be much larger. The products offered by the two companies are different, and UK clients therefore sometimes buy from both Seamark and Ibco.

New innovative line of products to be launched at SEG, Brussels Continental Europe though is Seamark’s main market and their brands, Tiger, Lilly, Mr Prawn, are all better known on the continent. The Seamark sales team is diverse, knowledgeable and speaks a variety of languages. Continental European countries such as the Netherlands, France, Germany, and Italy are important markets for the company, which is now making a push into Eastern Europe, where eating habits are changing, and shrimp is getting more popular. The importance of Europe for the company also means it is closely following developments in the Brexit negotiations. Senior management is well aware

The company owns processing facilities in Manchester (pictured) and Bangladesh, as well as shrimp fishing vessels in Bangladesh. Vertical integration enables it to respond rapidly to customer demands.

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The raw material comes primarily from Asia, though Seamark also buys scallops in the United States. In Bangladesh the group has trawlers and production facilities which operate as separate entities

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of the possible implications of Brexit and has already put plans into place that should cover any eventuality. We are well aware of the possible impact on our company, but are fully committed to our customers both existing and potential, whatever the outcome, says Ms Nahid, the Seamark sales director.

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The relaunched seafood cocktail is now mixed and packed at the Seamark facility in Manchester to customers’ specifications.

from Seamark UK. This upstream integration in one group, explains Nahid, allows Seamark to customise products precisely to its clients’ requirements. Bangladesh has a delta fed by three large rivers as well as close to 600 km of marine coastline. These resources support marine and inland capture fisheries, and freshwater and coastal aquaculture. While some 24 species of shrimp are known to exist in the country's freshwater resources, catches here are negligible. In the sea, trawlers target shrimp, but catch volumes are a small fraction of the total. The real source

of shrimp in Bangladesh is the aquaculture sector which farms shrimp in coastal systems. The black tiger prawn (Penaeus monodon) and giant freshwater prawn (Macrobrachium rosenbergii) are the two most commonly farmed species. Seamark’s trawlers catch wild shrimp and block freeze them on board. Aquaculture shrimp are cultivated on coastal water, maintaining natural environments for the shrimp and using natural feed where possible. In Chittagong, Bangladesh the company has a processing plant

that supplies the UK operation in Manchester, where Seamark has two processing facilities to further process or package products. The peeling, heading, deveining etc. is done in Bangladesh and the product is then block frozen and sent to the UK, where it could be cooked or blanched and then IQ frozen and packaged. Skewers and breaded products are also prepared at the Bangladesh plant, frozen, and sent to the UK. The facility in Manchester allows the company to quickly fulfil a customer’s requirements for a certain kind of glaze or packaging. The new product line that will be launched at the SEG will use the shrimp to create a more sophisticated offering that, according to Ms Nahid, has not been seen on the European market.

Wide range of seafood to cater to all markets While shrimp, and particularly black tiger, is the most important product line for the company, a new seafood mix that was

With a fully integrated operation in Bangladesh including vessels and processing, and another two processing and packing facilities in the UK, Seamark is well placed to respond to changes in the market or to demands from individual customers quickly and efficiently.

Seamark PLC IBCO Building Hulme Hall Lane, Lord North Street Manchester M40 8AD UK Tel.: +44 161 202 5000 www.seamark.co.uk Sales director: Ms Nahid, contact@seamark.co.uk

The company’s main product is black tiger shrimp in different forms. The shrimp is imported from Bangladesh, where the company has its own processing facility.

launched last year is also doing well. The composition is new and it is being mixed as well as packed in Manchester rather than being bought in ready mixed as in the past. Squid rings and tubes, and fillets of pangasius, tilapia, and seabass complete the company’s range of core products. Being able to offer a wide range of products at different price levels is useful in more ways than one. We have an extensive range of seafood, and are continually adding more to our assortment, says Ms Nahid. We want to build a relationship with our customers and support small and medium size companies with all their seafood requirements.

Main species: Black tiger shrimp (Penaeus monodon), giant freshwater prawn (Macrobrachium rosenbergii), vannamei shrimp (Penaeus vannamei), seacaught/ wild catch speckled shrimp (Metapenaeus monoceros), jinga shrimp (M. afďŹ nis), Kiddi shrimp (Parapenaeopsis stylifera)

Product forms: HLSO, EASY PEEL, HOSO, PND, PUD, PTO (raw, blanched, cooked) Other products: Pangasius, tilapia, mussels, scallops, seabass, cod, also EBI, nobashi, squid rings and tubes, seafood mixes, skewers, breaded shrimp, samosas, and spring rolls Headquarters: Manchester, UK Plants: Two in the UK, two in Bangladesh Markets include: UK, Poland, Germany, Italy, the Netherlands, Belgium, France, more recently Latvia, Lithuania, Hungary, Ukraine, Middle East Customers: Wholesalers, supermarkets, industry, HORECA Employees: 250-280 (UK) Turnover: GBP55m (2016)

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The Mediterranean Advisory Council has managed to get its two sets of stakeholders to collaborate

Harmonising sometimes conicting opinions The Advisory Councils (ACs) are organisations representing the ďŹ shing industry and other interest groups that provide the European Commission and EU Member States with recommendations on matters related to ďŹ sheries management. The councils are broadly divided by sea basin (Baltic Sea, Black Sea etc.), by activity (long distance, market), or by area (North Western Waters). The Mediterranean Sea also has an Advisory Council comprised of representatives from the industry in the eight EU Member States that have a Mediterranean coast, as well as from various European NGOs. However, the Mediterranean is shared with 15 non-EU countries in various stages of political, social, and economic development, which can sometimes make the work of the AC challenging. Giampaolo BuonďŹ glio from Italy, the current chairman of the Mediterranean AC presents here some of the issues the organisation has to deal with. More than four fifths of Mediterranean assessed stocks are overexploited, according to the FAO. How can European countries hope to reverse this unsustainable exploitation, when they are responsible for only 35 of the production of the basin? Although several stocks fall only in areas in which fishing effort is exerted exclusively, or almost exclusively, by EU fleets, and where much can be done through the CFP, it is clear that only full harmonisation between the GFCM and the EU will make it possible to achieve concrete results at basin level, covering all the coasts and the high seas of the Mediterranean. A more complex matter for the sectors and the stakeholders involved, is a multilateral approach which could intervene on other sources of impact on the resources. There are no Mediterranean commissions for the transport or energy sectors, while the various areas that are experiencing political instability make it particularly difficult to envisage the creation of a forum capable of influencing the sectors of interest. This means that today we only study and act on the impact of fisheries activities on

Giampaolo Buonfiglio from Italy is the current chairman of the Mediterranean Advisory Council.

the state of stocks, but little is studied and nothing is done with reference to other human activities that undoubtedly have negative effects both on the stocks in question and in general on the marine environment, not to mention the consequences of climate change that should not be neglected in an ecosystem approach.

MEDAC has existed since 2009. What would you say are the organisation’s most significant achievements since then? And what are your targets for the future? I believe that the most significant result, other than the importance of the single issues dealt with and for

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GUEST PAGES

individual spirits present in the MEDAC have been rewarded over time. This has allowed the Council to evolve from a forum in which opposing components clashed, into an open table able to produce valid contributions with the joint collaboration of parties with different levels of sensitivity and awareness of the various issues at stake. I believe this was the hope of the legislators when they created the ACs, opening them up to all stakeholders in the sector. The Mediterranean is fished by several non-EU countries, who in fact are responsible for the majority of the catch. Since they are not represented in MEDAC, how are the views of organisations from these countries taken into account in MEDAC decisions? It is normal procedure that matters entailing contact or conflict with the fisheries sector in non-EU countries are brought to the attention of the MEDAC, this occurs through the organisations from the MS involved. There is also a structural “window� towards the southern and eastern shores of the basin thanks to the GFCM, with which the MEDAC actively collaborates in the framework of a Memorandum of Understanding. In this context, either structurally or episodically, input from nonEU countries reaches the MEDAC and is thus considered within its internal debate. Since January 2017, the landing obligation has been in force for certain demersal species (hake, deep-water rose shrimp, red mullet, and common sole) fished in the Mediterranean. What has been the impact of this legislation on fishermen? Have they started using more selective gear? What happens to the fish that would normally

be discarded but is now brought back to port? The landing obligations only concern some species subject to MCRS (minimum conservation reference sizes) in the Mediterranean, and so far these have been dealt with by means of waivers and de minimis exemptions both for small pelagic and demersal species. The impact of the new fisheries legislation has therefore not affected the landing of this product (it would be illegal to market it for human consumption), it has however been accounted for in the log book before being discarded at sea, with ensuing complications in terms of operative time (and costs) on board. There is no news of the maximum de minimis threshold being reached by the fishing fleet of any Member State, so the difficulties linked to mandatory landing have not yet been tested. Should this occur, there would be significant complications given the lack of storage, freezing and industrial sales points for this product, which should therefore be disposed of as “special waste� and there are concerns about the related unsustainable costs and what could that mean for the fishing enterprises. Within the MEDAC, however, there are fears concerning the potential creation of a market for products below the MCRS and the consolidation of an activity that would effectively prevent the progressive reduction and eventual elimination of the capture of undersized specimens. On the issue of the use of more selective gear, experimental programmes or pilot actions have been carried out in the Mediterranean showing the first promising results in terms of improving the selectivity for some specific gears and methods. What is your feeling about the landing obligation in the case of demersal fisheries, when

fish, that anyway cannot be sold commercially, could be discarded and thereby provide useful nutrients for fish stocks? If we remain within the framework of de minimis exemption, nothing will change. On the other hand, if there were to be actual landing of discards below the MCRS, in addition to the above mentioned economic and operational complications (to date, the construction of storage, freezing and sales stations is not feasible in any port of the Mediterranean Member States), we would also observe the negative effect of removing nutrients from the environment that are useful to the marine trophic chain. Fisheries in the Mediterranean in general is characterised by the number of small vessels with a variety of fishing gears targeting many different species. Do you feel that the level of capacity is commensurate with the resource or does it need to be reduced further? And if capacity needs to be removed, how can this be achieved? On the basis of the available data, the fishing effort exerted by the EU Mediterranean fleets is excessive and needs to be reduced. This can be implemented in different ways and with various levels of intensity, bearing in mind the socio-economic impact on the sector. Spatial/temporal suspension of fishing activities, technical and management measures, the reduction of operations and capacity. The latter, however, lost potential EU incentives at the end of 2017, even though several segments of European fleets still have excessive levels of capacity. Although there are a great number of requests for demolition by shipping companies, without incentives these will not be satisfied

and the excess capacity will remain operational. If incentives for scrapping were extended, after due changes to the EMFF National Operational Programmes, the capacity of the European fleet could easily be reduced further. There are voices of fierce dissent however: the trade unions which fear extremely negative impacts on employment and the NGOs that are openly opposed to maintaining subsidies to the fleet, even when they are intended exclusively for permanent cessation. To be effective, fisheries management needs to be based on accurate and timely data. How does MEDAC support the collection, supply and analysis of data, which can contribute to informed decisions regarding fisheries management There is some confusion on this matter which it would be opportune to clarify. The MEDAC, like all the other ACs, is not and will never be a scientific institute capable of carrying out scientific research on the sector or stock assessment. It has neither the means nor the facilities nor even the skills to do it. What the MEDAC can do is collect, order and process data on fisheries provided by the participating representative associations and collected by them in the framework of various programmes or during their institutional activities. Among its activities, the MEDAC also strives to involve scientific institutes in its work, which can provide data for the debate among stakeholders, increasing the scientific basis used in the formulation of opinions or proposals and fostering discussion between operators and scientists. The Advisory Council is one of the bodies which needs to receive inputs from scientific research for their own assessments but is not responsible for supplying data to EU national institutions.

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DIARY DATES 9-13 July 2018 FAO COFI 2018 Rome, Italy FAO-COFI@fao.org www.fao.org

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