(Gujarat is a frontline state in the export of fisheries and marine products. The following is based on an article by the CBI of the Netherlands and published in an Export Import Bank of India Journal entitled Market for Fisheries Products in the European Union. This is being reproduced here for the benefit of FT Update readers.)

– Editor

With an estimated consumption of almost 11 million tonnes in 2005, the European Union (EU) constitutes the second largest market for fishery products in the world, after China and ahead of Japan and the USA. The EU consumed 10% of all fished supplied to the world market.

Although the consumption per person is not the highest in the EU, France has the largest market for fishery products. Spain and Portugal have high consumption of fishery products per person. Consumption per person in Italy and the United Kingdom are about the EU average.

Market Segmentation
The European fishery products market can be divided roughly into three major regions: a) Northern Europe including the UK, the Scandinavian countries and the Netherlands, b) Central Europe including among others Germany, Austria, Poland and c) the Czech Republic and the Mediterranean countries. In Northern Europe, consumers prefer cold water species such as cod, herring, mackerel, Pollack, flatfish and trout. The Mediterranean region prefers species such as hake, sardines, squid, and octopus. A large part of consumption consists of fresh, unprocessed fish, which is prepared further at home.

Market segmentation is also seen by labeling – branded and private label products are of relevance to producers of seafood products in consumer packs. Brands are especially important in the canned, prepared and frozen segments of the market.

Import and Export
The EU as a whole is the largest importer of fishery products in the world. Combined imports amounted to Euro 28 billion and in volume terms 8.5 million tones in 2006. The top five countries – Spain, France, Italy, the UK and Germany account for two thirds of total EU imports. The imports from developing countries on the whole are growing strongly, increasing 37 per cent in value terms and 38 per cent in volume terms.

Opportunities
Current developments in the fishery market of the EU can be favourable for exporters from developing countries. According to FAO, production of fishery products in the EU will continue to decrease. Neither captures nor aquaculture production will be able to satisfy domestic demand. However, production in developing countries, especially in Asia and Africa is expected to grow most. Developing countries will therefore become even more important suppliers to the EU than they are already.

Developing countries are expected to increase production and export of both fresh and processed fishery products of high quality. Asian countries such as Thailand and the Philippines are frontrunners. These countries are nowadays producing processed fishery products that can be sold in the European market directly without having to pass through any processing in the EU. The demand for value-added products in the EU is strong.

Moreover, the European fish processing industry will be increasingly dependent on other countries for its supply of raw material since production of raw materials in the EU is in long term decline. Developing countries will also benefit from the gradual elimination of trade barriers enhancing the access to European markets.

Supply and demand in the world market is very important factors in price setting of fishery products. Prices may fluctuate strongly, as is the case for most commodities. The fluctuations may show seasonal, annual and longer-term trends. In addition to the market forces, there is active government intervention in most markets. The EU market is regulated by a system of intervention prices and tariff barriers, while supply is regulated by catch Quota. However, since the EU market is so dependent on imports, many developing countries have preferential tariffs or even free access to the market under the Generalized System of Preferences.

(Neutraceuticals is the new window of opportunity that has opened up for Indian Industry. The Federation of Indian Chambers of Commerce and Industry in association with Health Foods and Dietary Supplements Association recently organized a one-day international conference on nutraceuticals, functional foods and dietary supplements at Mumbai. The objective of the event was to identify bottlenecks, as well as challenges in the production of nutraceuticals, functional foods and dietary supplements.)

- A Report

The Federation of Indian Chambers of Commerce and Industry, New Delhi organized an international conference on nutraceuticals, functional foods and dietary supplements in Mumbai. The conference brought together various stakeholders like R& D institutions, agricultural and medical institutions, naturopathy centres, herbal/nutraceutical medicine manufacturers, biotechnology companies, regulators, marketers, industry analysis and researches among others. They discussed the latest trends in quality initiatives, consumers attitude and brand awareness concerning nutraceuticals, functional foods and dietary supplements. More importantly, the export potential of these products from India was explored.

The Indian nutraceuticals market, which is estimated to be around Rs 18.75 billion, is expected to cross Rs 27 billion by 2009. The conference felt that India could become a global player if it developed clinical documentation and scientific basis to supply claims of safety and efficacy.

Shiv Basant, joint secretary, Department of Ayush, Government of India speaking the conference opined: “I see great potential for the growth of nutraceuticals, functional foods, and dietary supplements in India. Scaling up the market share for the Indian industry would not only provide greater opportunities of livelihood to the trial and poorer sections of the society, who cultivate herbal, nutritional and medicinal plants in the country but also improve their living standards.

The dominant opinion at the conference was that nutraceuticals industry in India should think global but act local. India has a long history in nutraceuticals. What was needed was a global vision. There was also the demand for suitable legislations in India for effective regulation and growth of the nutraceuticals industry.

The conference identified value addition as the key to growth. There was the need for sourcing of efficacious ingredients’ and developing products supported by high-quality manufacturing at low cost.

The conference was unanimous that there could be no compromise on quality. As the Indian industry is maturing are fast realizing that the real action lay in creating their own brand equity by having their own brands not just for the local but also for the global market

‘Entrepreneurship—Gujarat’s trump card’

The Ahmedabad Management Association has been in the forefront of efforts to upgrade human skills in various spheres in the quest to make Gujarat destination number 1 in industrial growth, investment and overall well-being. As part of this endeavour, we have embarked upon an idea to provide a comprehensive document on entrepreneurship and the spirit of enterprise in Gujarat as an aid to the growing number of knowledge-seekers who are looking to satiate their appetite for such information. This publication is published under GoG-AMA Centre for International Trade set-up in AMA in collaboration with Government of Gujarat. This report ‘Entrepreneurship—Gujarat’s trump card’ deals with this subject in all its dimensions. There is an examination of the psyche of the Gujaratis, their capacity for risk-taking, their attitude of pursuing a goal without being weighed down by initial failures, their positivity.

Available at Media Centre, AMA Complex, at Rs.70/- per copy

Mr. S.V. Modi, Export Import Consultant, conducting Programme on Export-Import at AMA