The "Mussel case-study": Overview of the European mussel farming and main issues at stake - "This project has received funding from the European ...
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The “Mussel case-study”: Overview of the European mussel farming and main issues at stake “This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 635188”.
Summary Overview of the European mussel farming industry and its competitive environment • Trends in production and evolution of the EU market share in world supply • Main striking evolutions in terms of external trade (EU28 imports and exports) • Structure of the EU mussel farming sector and indicators of profitability Main issues at stake for the Mussel farming sector • Bottlenecks identified by the participants • Challenges as regards the development of sustainable European aquaculture • Examples of room for improvement to be analysed within the SUCCESS project 2
Evolution of the world supply of mussels (FAO Fishstat) Evolution of mussel production worldwide Top 10 Ranking thousand 2000 countries (volume) tonnes 1800 1600 China 1 806 thousand tonnes 1400 Chili 2 245 1200 Spain 3 221 1000 Thailand 4 127 800 600 New Zealand 5 98 400 France 6 81 200 Italy 7 79 0 Corean Rep. 8 58 1993 1994 1995 2013 2014 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Netherlands 9 54 Aquaculture Fisheries Danemark 10 43 Evolution of the aquaculture production of mussels from China, EU28 and Chile 3
Main players of the European aquaculture supply of mussels (FAO Fishstat) 100% 100% 90% Other 90% 80% 80% IRL 70% 70% 60% UK 60% 50% GRE 50% 40% 40% NDL 30% FRA 30% 20% 20% 10% ITA 10% 0% SPA 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • In volume, Spain exceeded 40% of the EU28 production during the 2000-2014 period (in average) • Top 4 producers (SPA, ITA, FRA, NDL) reached 82% • In value, the share of the Top 4 is nearly the same, but the ranking is modified (FRA, SPA, NDL, ITA) due to the higher valorisation of blue mussels 4
Intra & Extra EU28 trade of mussels (Eurostat COMEXT) • Supply deficit of the mussel EU28 market trade • Very few Extra-EU28 exports but conversely increasing Extra-EU28 imports in volume and value (line above) • Exchange flows (imports) of mussels mainly at intra-EU level 5
Intra & Extra EU28 imports of mussels by type of product (Eurostat COMEXT) IMPORT EXTRA EU28 (% in value) IMPORT INTRA EU28 (% in value) 100% 100% 90% 90% Prepared or 80% 80% preserved mussels 70% 70% 60% 60% 50% Mussels, frozen, 50% 40% dried, salted or in 40% 30% brine 30% 20% Live, fresh or chilled 20% 10% mussels 10% 0% 0% 2000 2012 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 2015 • Extra-EU imports are exclusively made of processed mussel products (increase of preserved mussels at the expense of other products) • Intra UE trade is still dominated by live, fresh or chilled mussels 6
Evolution of EU28 imports of prepared or preserved mussels (Eurostat COMEXT) EU28 Imports of prepared or preserved mussels EU28 imports of prepared or 140 preserved mussels in 2015 120 value (Million €) 100 80 23% Chile 60 40 1% other Extra EU28 20 Intra EU28 0 76% 2012 2013 2014 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2015 Intra EU28 Extra EU29 • As concerns the supplying in preserved mussels, extra-EU imports have been progressively expanding and competing with intra-EU imports • Chile became the leader with 76% of the market share of EU28 imports of preserved mussels in 2015 7
Main importing countries of live, fresh or chilled mussels (Eurostat COMEXT) Main importing countries (volume) Main importing countries (value) 100% 100% 80% Others 80% 60% NDL 60% ITA 40% 40% GER 20% FRA 20% BEL 0% 0% 2004 2012 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2013 2014 2015 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 • For the bulk of the intra-EU market (live, fresh or chilled mussels), the main importing countries in volume are France, Italy and Belgium while in value Belgium represents the main outlet, followed by France 8
Main exporting countries of live, fresh or chilled mussels (Eurostat COMEXT) Main exporting countries (volume) Main exporting countries (value) 100% 100% Others 80% 80% UK 60% 60% GRE 40% IRL 40% DNK 20% 20% SPA 0% NDL 0% 2009 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010 2011 2012 2013 2014 2015 2005 2012 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011 2013 2014 2015 3,50 3,00 SPA Export price (€/kg) 2,50 NDL 2,00 DNK 1,50 IRL 1,00 GRE 0,50 UK 0,00 Others 9
Structure and employment of the main Mussel farming segments (STECF aquaculture data – average 2013/2014) ITA Long-line NDL Bottom FRA Bottom SPA Raft (2013) Number of enterprises 56 285 2 034 159 Number of employees na 1 819 8 600 996 Number of FTE 154 1 077 2 312 829 Total mussel sales (tonnes) 41 812 59 155 190 062 67 385 Mussel price indicator 1,40 1,87 0,50 0,73 Number of FTE/enterprises 2,8 3,8 1,1 5,2 ratio Employees/FTE na 1,7 3,7 1,2 Total mussel sales/FTE (tonnes) 272 55 82 81 Total value of assets/FTE (1000 €) 545 181 95 68 • Mussel farming in the Top4 EU producer countries relies on different species & production system • Higher valorization for blue mussels than for Mediterranean mussels • More capital intensive PS, more concentrated production in the Netherlands • High level of employment, pluriactivity and part-time jobs in Spain (labour intensive PS) 10
Cost structure of the main Mussel farming segments (STECF aquaculture data – average 2013/2014 except for Italy) Spanish Raft segment Netherlands - Bottom segment (culture on bottom in deep water) Energy costs -1%5% 3% 7% Raw material costs: 19% 5% Livestock costs 8% 11% 5% Repair and maintenance 6% Labour (Wages and 12% salaries + imputed value) Other operational costs 35% 62% Depreciation of capital 24% Financial costs, net Italy - Long line Segment (2013) France - Bottom segment (bouchot culture) Energy costs 8% 2% 6% Raw material costs: Livestock costs 4% 3% 6% 8% Repair and maintenance 5% 31% Labour (Wages and salaries 32% + imputed value) Other operational costs 39% 5% 33% Depreciation of capital Financial costs, net 17% 11
Labour productivity and remuneration of work (STECF Aquaculture data 2013/2014) 300 300 250 250 200 200 150 150 100 100 50 50 0 0 NDL bottom FRA bouchot SPA raft ITA LL 2013 GVA/FTE (1000 €) Mean wages/FTE (1000 €) sales volume/FTE (T) 12
Mussel farming case-study Context /Background • On the supply side: slightly downward trend in the European production (trend even more marked in recent years) • Increasing deficit of the EU mussel market, but on processed products only • On the demand side, outlooks of growth remain significant (consumer demand for affordable fresh/processed seafood produced by low-input aquaculture) • Increasing demand for organic products • Increasing demand for new valued-added products 13
Mussel farming case study • Bottlenecks identified by Mussel CS participants – Environmental: water quality degradation, epizootic events, climatic factors, blooms of toxic phytoplankton, red tides, natural competitors… – Regulation and governance: difficult access to new farming sites or to the renewal of existing sites, insecure production rights, increasing use conflicts … – Structural/Economics: lack of professionalization of the activity, insufficient organisation of producers, lack of integration of dispatch/purification centres, lack of outlets on the domestic market… – Marketing: Insufficient valorisation of mussels at the production stage could also be considered as a bottleneck in some countries. 14
Mussel farming case study General challenges – Reducing the factor of profitability decrease due to environmental concerns or/and to unsustainable cultural practices, in particular via co-management systems – Improving valorisation and consolidating the market power of producers along the value chain, for instance through the setting up of producer organisation or/and the involvement in labelling approaches – General objectives have been defined in national strategic plans for aquaculture (simplification of administrative procedure, conditions of access to new sites and spatial planning tools…) but depend on priorities attributed to the shellfish farming sector in different countries 15
SUCCESS Mussel CS: Focus on « room for improvement » The RFI which have been identified for further analysis are: • Greece, ATEITH: Development of new products (unvalved mussels with extended lifespan) for targeting both traditional markets in consuming areas (i.e. Thessaloniki) and other areas with high potential due to tourism (i.e. Crete). • Greece, ATEITH: Assessing consumer preferences in terms of certification- labelling through choice experiments. Preferences of producer certification (Organic) versus Retail certification (own retailer standards) versus No certification will be tested along with domestic origin, EU origin and Non EU origin. • Italy, NISEA : Influence of labelling (PDO Scardovari) on the primary sector and on the coordination of the value chain (opportunities for the producers to sell their mussels in different ways, with or without label) • France, IFREMER: Valorisation of quality and environmental attributes of mussel farming in the Norman-Breton Gulf through voluntary labelling approach (PDO, organic label) and through regulatory tools (co-management). 16
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