(pangasisus-vietnam.com) With a population of approximately 80.2 million inhabitants based on a census taken in 2011, the country wide consumption of seafood in Germany is an estimated 1,194,980 metric tons. Despite a drop in population this still ranks Germany as the 5th largest consumer of fish and seafood in Europe.
German Seafood Market Analysis Seafood Consumption:
The FAO projected per capita seafood consumption in Germany will increase from 11 kg in 1989 to an estimated 18 kg in 2030. However, the German Fisch-Informationszentrum (Fish Information Center) in June 2013 disclosed the 2012 per capita consumption of fish and seafood in Germany had fallen to 14.9 kg from 15.2 kg. To put this in the perspective of other European primary Pangasius importing countries, 2010 FAO figures place per capita seafood consumption in Spain at 39 kg, the UK at 24 kg and the Netherlands at 15 kg. This is in contrast to another leading Pangasius market, the USA, where per capita consumption of seafood recently dropped from slightly over 7 kg to 6.8 kg. However, per capita consumption of seafood is only one dimension of seafood consumption.
According to the German Fisch-Informationszentrum e. V. report entitled “Daten und fakten2012”, the top ten fish species consumed in Germany are (in descending order) Alaska pollock, herring, salmon, tuna (bonito), Pangasius, trout, saithe, redfish, hake and cod. Aquaculture species such as molluscs and crustaceans were listed in a category which comprised 11.7 percent of total consumption in 2010. Let’s compare the top five species and total consumption percentages for 2010 and 2011. As the figure shows the top five species comprise 71.7% (2010) and 70.3 (2011) of all fish and seafood consumed in Germany. Trout at 4.4% of total consumption was ranked sixth just below Pangasius. This is in contrast to consumption patterns in the US where shrimp was nearly 27% of total consumption and the top five fish species in 2011 (descending) were shrimp, canned tuna, salmon, pollock and tilapia. Pangasius was # 6 at 4.2% of the total consumption in the USA.
The majority of fish and seafood purchased in Germany is from discounters (see Figure 2).Frozen fish is the category most purchased followed by canned and marinated (see Figure 3). Fresh fish comprises 9% of total sales and is predominantly purchased in supermarkets.
Pangasius Certification and Sustainability trends:
eNGOs such as WWF and Greenpeace have been very effective in promoting the environmental aspect of sustainability with respect to fish and seafood “einkaufspolitik” (purchasing policies) in Germany.
Certification schemes in Germany for aquaculture include:
· EU bio (previously German national standard Bioland) - Organic
· Naturland - Organic
· Friend of the Sea - Environmental
· Aquaculture Stewardship Council – Environmental and social
· GlobalG.A.P. – Animal health and welfare, Environmental, Food Safety, Social and Traceability
“Bio” or organic certification is perceived as the most credible standard for aquaculture products. This is based on concerns about GMO ingredients in feed. Additionally, there is a priority for animal welfare issues.
Consumers in Germany are well informed about labeling schemes. For instance, in the wild capture sector, recognition of the Marine Stewardship Council (MSC) label is the highest of all Europe. “Nearly 1 in 4 German seafood buyers without prompting, describe the de-branded MSC logo in their own words as a mark for Environmental/Sustainable Seafood - up from 17% in 2010.
Key retail and foodservice players:
In 2012 5 German food retailers were among the largest in the world, with two in the top five, four in the top ten and five in the top eleven according to Supermarket News.
Metro Group:
Headquartered in Düsseldorf, Germany; Metro Group is ranked number 4 globally by Supermarket News with a revenue of 66,739 million euros in 2011 (2012 Annual report). There are two food concept stores. Metro (and makro) Cash and Carry which is designed for commercial customers and “real,-” is a hypermarket store. Metro Cash and Carry contributed 31,636 million euros (1.7% growth) and “real,-“ 11,017 million euros (-0.1 growth) in 2011. EBIT for Metro Cash and Carry dropped 17.5% in 2011 and in real,- dropped 23.6%. In a letter from the CEO in the 2012 Annual Report, Chairman Olaf Koch stated, “To sum up: we are doing everything possible to put METRO GROUP back on track for sustainable growth in sales and earnings. For this reason, we cannot be satisfied with our earnings performance in 2012.”
Toward that end, Metro has established a “customer centric” strategy based on building value for customers.
With respect to sustainability the 2012 Annual report states, “We live up to the expectations of our customers, staff, partners and investors by systematically pursuing our efforts to transform ourselves into a sustainable company.
The 2012 Annual report also addressed fish and seafood specifically.
“Products from responsible fishing and aquaculture METRO GROUP is committed to the principles of sustainable and environmentally conscious fishing. In 2002, we became the first retail and wholesale company in Germany to offer own-brand products bearing the seal of the Marine Stewardship Council (MSC) for wild fish. It attests that a product came from a responsibly managed fishing operation. Today, our sales lines offer an array of MSC-certified brand and own-brand products. In 2012, our sustainable range of fish sold in Germany comprised 78 MSC-certified own-brand products and 658 brand products. These products generated sales of approximately €54 million. We are also continuing to support the development of the ASC seal (Aquaculture Stewardship Council) for farmed fish. Similar to the MSC seal, this label is designed to help consumers buy sustainable foods. The first ASC products are now being sold in our stores.”
Metro has also publically stated their food safety policy in the 2012 Annual Report: “In this manner, certification of compliance with a food-safety standard recognised by the GFSI becomes a mandatory component of all contractual relationships for our own-brand suppliers.”
In the Metro 2012 Sustainability Report, Metro made this statement on social issues:
“Complying with social standards is an integral part of our sustainability activities. Accordingly, METRO GROUP makes sure it complies with the key labour standards of the International Labour Organization (ILO) and with the OECD Guidelines for Multinational Enterprises. We also contractually oblige our suppliers to honour fundamental human rights and maintain fair working conditions. To prove compliance, our supply contracts stipulate an audit according to the requirements of the BSCI (Business Social Compliance Initiative) standard or an equivalent thereof.”
Metro has also incorporated the UN Global Compact into their sustainability initiatives. More details on Metro’s seafood specific goals and actions are available in the Metro 2012 Sustainability Report.
Schwarz Group:
Lidl and Kaufland are the two retail chains associated with the Schwarz group: Lidl a discount chain and Kaufland a discount hypermarket. The Schwartz group is privately owned and headquartered in Neckarsulm, Germany. As of 2013, Lidl was in 29 European countries Atlantic salmon, rainbow trout, and shrimp are the aquaculture species listed on the website fish dictionary (a previous edition included Pangasius and tilapia).
Lidl has worked with the Marine Resources Assessment Group (MRAG) to evaluate the sustainability of products. Lidl references the MSC and the Earth Island Institute “Dolphin Safe” label their website and endorses the ASC as an aquaculture certification scheme. Kaufland hypermarkets operate in Germany and six other countries: Poland; Czech Republic; Slovakia; Romania; Bulgaria and Croatia. Kaufland recognizes the following certification schemes as preferred to meet minimum corporate requirements: Bio; GlobalG.A.P.; AquaGAP and the ASC (Naturland and FOS). Additionally a page of the Kaufland website is also devoted to promoting ASC certified tilapia.
Kaufland received the best scores of any German retailer in the Greenpeace report released in December, 2011. Kaufland’s complete 6 page sourcing policy or “fisch einkaufspolitik” is available via its website in German.
ALDI (Markt and Süd):
Aldi has grown over time to be the 3rd largest retail discount chain in Germany and 8th largest globally in 2012 (see Figure 4). Aldi is actually two separate privately held companies, Aldi Markt (North) and Aldi Süd (South). Aldi Markt is located in Belgium, Denmark, France, Germany, Luxembourg, the Netherlands, Poland, Portugal and Spain. Aldi Süd is located in Australia, Austria (Hofer), Germany, Great Britain, Hungary, Ireland, Slovenia, Switzerland and the USA. Aldi Markt has an extensive webpage devoted to aquaculture sustainability and cites GlobalG.A.P., the ASC and Bio as recognized certification schemes. Aldi Markt’s definition of sustainable aquaculture includes the following:
· Siting – respectful of eco-system
· Animal welfare - stocking densities
· Feed – No IUU marine ingredients
· Certified products – GlobalG.A.P., ASC or Bio
· No growth promoters or hormones
· Sewage, Water and Waste Management
· No prophylactic use of anti-biotics or chemical
· Theraputants - anti-biotics and chemical used in prescribed manner
· Preventative measures for escapes
· No wild-caught larvae or eggs
· No transgenic animals or GM feed ingredients (responsible GM free feed ingredients)
· Biodiveristy protection
· Social standards – ILO/BSCI
· Ecological processing guidelines
· Traceability and Chain of Custody
Aldi South cites the same certification schemes and similar aquaculture product requirements on their fish sustainability webpage.
Rewe Group:
The Rewe Group is known primarily for its Rewe, Penny Market (discount concept), and toom Markt stores in Germany as well as its diverse divisions including tourism.
The Rewe Group had “total external turnover” of 48.37 billion euros in 2011 from operations in 13 countries. There was a breakdown of Rewe’s growth in “external turnover” by business segment.
EBITDA and EBITA declined 10.6% and 8.8% respectively in 2011 despite a 3.3% growth in “total external turnover”.
The 2011 Annual Report laid out Rewe’s commitment to sustainability:
“Sustainability Integrated into Corporate Culture: From the very earliest days, acting responsibly in line with the interests of the community was an integral part of the REWE Group’s corporate culture. Now, as one of Europe’s largest trade and tourism players, the group considers commitment to sustainability as an obligation. That is why, in 2008, REWE Group established a combine-wide sustainability management and integrated sustainability into its mission statement.”
A “milestone” for Rewe was the publication of their Guidelines for Sustainable Business Practices for the group in January 2011(see link 4). Developed in part by former Minister Joschka Fischer, “These values are based notably on the United Nations’ “Universal Declaration of Human Rights”, Conventions of the International Labour Organization (ILO) and the UN Global Compact.”
The latest available Rewe Sustainbility report was from 2009/2010. Rewe specifically addressed seafood as follows:
“An important module of the sustainability strategy of the REWE Group is also the protection of threatened fish species and the promotion of sustainable fishing. The foundation is provided by the “Combine Guidelines on Fish”. The sustainable offer of fish and seafood is an important contribution to maintaining ecologically and nutritionally valuable fish stocks. Sustainable fisheries are in the interests of the REWE Group, its customers, suppliers and interest groups alike. However, in practice, it will not always be easy to differentiate sustainable products from non-sustainable ones. An increasing number of institutions and NGOs issue recommendations which may differ and confuse consumers, fish purchasers and their suppliers. For this reason, the REWE Group has developed a guidance list. It considers the stocks in the respective catch zones and catch methods using existing assessments from the following organisations:
1. Greenpeace, Germany
2. Monterey Bay Aquarium with Seafood Watch, USA
3. Sustainable Fisheries Partnership (SFP) with www.fishsource.org, Indonesia and USA
4. World Wide Fund For Nature (WWF), Germany
The REWE Group gradually deletes from its range any fish species classified as critical in the guidance list and supplements its range with species that are less endangered. In addition, the share of store brand products with the Marine Stewardship Council (MSC) seal is continuously extended. The REWE Group updates its guidance list once a year to keep an eye on the fish stock situation and to respond rapidly.”
Furthermore, Rewe has established the “PRO PLANET” label to demonstrate responsible sourcing based on the “people, planet and profit” model of sustainability and focuses on mitigating “hotspots” associated with products (e.g. GM ingredients in feed). The example of an aquaculture PRO PLANET product on the www.proplanet-label.com website was farmed-raised Atlantic salmon.
Edeka:
Ranked 11th globally by Supermarket News, Edeka is the 5th largest German retailer (see Figure 4). Edeka is a privately held corporation and operates hypermarkets, traditional supermarkets, city stores and a “cash & carry” concept formats. Edeka also owns Netto Marken-Discount stores.
With the aid of WWF Germany, Edeka has implemented a sustainability program addressing wild-capture fish and seafood (see Figure 10). WWF also advises Edeka on aquaculture products. There wass a private-label line of Edeka features the ASC label on frozen Pangasius fillets.
Edeka outlines the scope of the ASC standards on the website including: siting impacts on land and water, water/waste management, biodiversity, responsible feed, theraputant/chemical use and social considerations (labor and community). In addition to supporting the ASC, Edeka endorses Bioland and Naturland on their website.
Other supply chain participants engaged in aquaculture certification:
apetito: Headquartered in Rheine, Germany, apetito has operations in Canada, France, the Netherlands and the UK with a primary focus on foodservice. In the retail sector, brands include: apetito, Costa and Minus L. In their 2012 Annual report, apetito refers to the ASC certification scheme as part of the corporate sustainability platform for aquaculture in addition to GlobalG.A.P. apetito is certified for ASC chain of custody.
Appel Feinkost: Located in Cuxhaven, Germany, Appel Feinkost produces canned fish products which include Pangasius. The Appel Feinkost website endorses BRC/IFS and GlobalG.A.P. for aquaculture. While the ASC is not referenced, Appel Feinkost is certified for ASC chain of custody.
Binca Seafoods: Located in Munich, Germany, Binca Seafoods operates 2 farms with partners in Vietnam which produce Pangasius to ASC, GlobalG.A.P. and Naturland standards. Binca presents their perspective on certification on the FAQ “What you ought to know about pangasius farming” page of the Binca Pangasius website:
“If like the WWF or Greenpeace, high standards are set, only pangasius from Vietnamese organic fish farms or aquaculture operations certified to the GlobalG.A.P. standard can truly be recommended. ”
“In Binca's opinion, Naturland's organic standard is the most extensive and thorough one around, and is particularly convincing in terms of ecological and social sustainability. However, when you consider that organic fish farming accounts for only 0.2 percent of the world fish market, it becomes that there is an urgent need for a label like ASC that raises conventional fish farming to a higher level. ”
bofrost*: Serving more than 4 million households through 5000 sales specialists bofrost* is a family-owned home delivery company with operations in 12 European countries. In its company brochure bofrost* makes a public commitment of support to the ASC. bofrost* sells ASC Pangasius and tilapia. On the bofrost* website the following certification schemes are referenced as part of a tested bofrost* standard (label) for guarantee of quality for Pangasius: ASC, BRC/IFS, GlobalG.A.P. and HACCP. bofrost* references a tracking number (perhaps GlobalG.A.P. see http://www.my-fish.info/en/myfish/ggnsearch.html#) for traceability along with the ASC scheme on an interactive webpage.
Costa: A division of “apetito” Costa uses a variety of aquaculture products including among others Pangasius, shrimp, salmon, and tilapia. Costa the first to offer ASC certified tilapia in Germany. In the Costa aquaculture einkaufspolitik (sourcing policy), Costa supports GlobalG.A.P. and/or the ASC certification scheme. While the Costa tilapia product bears the ASC logo, the Costa Pangasius product is not currently promoted in a similar fashion.
Crustimex: Crustimex imports fish and seafood from Asia and was the first to introduce Pangasius to the German market in the mid-1990s. Crustimex is certified for ASC chain-of-custody.
Deutsche See: Deutsche See supplies German retailers with both fresh and frozen seafood products. A brochure on the website shows Deutsche See carries both conventional and “Bio” organic Pangasius. DeutscheSee is also certified for ASC chain-of custody.
DKSH: With its headquarters in Switzerland and branch offices in Germany, Italy and the U.K., DKSH offers Friend of the Sea, GlobalG.A.P., and ASC certified Pangasius. Additionally, DKSH is a supporter of the ASC and is certified for ASC chain-of-custody.
Erich Geiger GmbH: Erich Geiger sells Pangasius and is certified for ASC chain-of-custody.
Femeg: With its headquarters in the Netherlands and a processing plant in Germany, Femeg offers a number of certified sustainable products based upon EU Bio, Naturland, MSC, ASC and GlobalG.A.P. Pangasius is offered as GlobalG.A.P. and ASC certified. Femeg aquaculture products from B2B certification schemes bear a unique label which translates to “certified controlled sustainable fish farming”. Femeg also includes a “Where does my fish come from?” section on its website.
Fotouri Handelshaus GmbH: Fotouri Handelshaus GmbH sells Pangasius and is certified for ASC chain-of-custody.
FRoSTA: “On the whole, 2012 was a difficult year for the food industry. Consumer spending in the most important European markets increased only slightly. Slight relief in the costs for raw materials could not make up for the negative effects of the high exchange rate for the US Dollar (the currency used to purchase most of our materials). The relentlessly fierce price competition has continued, and we expect no relief in the next few years. Wehave already reacted to this situation by adapting our organisational structures.”
As one of the largest seafood companies in Europe, FRoSTA declared revenues of 379.9 million euros in 2012 down from a high of 411.3 in 2009. Seafood comprised 174 413 million euros of this total. FRoSTA has a reputation as a company that does not compromise its values and has a label for its purity principles for unadulterated and natural ingredients or “Das Original FRoSTA reinheitsgebot”. FRoSTA mentions GlobalG.A.P. in its purchasing policy and states, “Suppliers that already have certificates for environmental sustainability will be given preference.” FRoSTA participated in the Pangasius Aquaculture Dialogues and is certified for ASC chain-of-custody.
Kagerer GmbH: Kagerer sells Pangasius and cites GAA and GlobalG.A.P. for aquaculture certification along with Thai Ministry of Agriculture and Cooperatives food safety label. Kagerer is certified for ASC chain-of-custody.
Lenk: Like Costa, Lenk states it was the first to offer ASC certified tilapia in Germany. Other aquaculture products include Pangasius and shrimp. The “Top Sea” brand website includes a page for entering a “tracking code” for improved transparency. Additionally, Lenk states their 100% promise on the sustainability page. Lenk’s 100% promise for traceability, quality and foodsafety, environmentally friendly, socially responsible and respectful of animal health and welfare.
Nestlé Schöller GmbH: Nestlé Schöller GmbH sells ASC certified Pangasius and tilapia under “Schöller Direct”. Nestlé Schöller GmbH is certified for ASC chain-of-custody.
SEWE Frost GmbH: Sewe Frost GmbH sells Pangasius and tilapia. SEWE Frost GmbH is certified for ASC chain-of-custody.
TransGourmet Seafood GmbH: TransGourmet Seafood GmbH is in the foodservice sector and a website brochure cites both GlobalG.A.P. certified Pangasius and tilapia. Additionally a sustainability brochure provides details on all certification schemes supported by TransGourmet.
Conclusions:
The population of Germany is estimated to fall to 79.470.000 by 2030. However, total consumption of fish and seafood in German will increase due to an increase in per capita consumption as forecasted by the FAO. Therefore in the long term, seafood imports in Germany should continue to increase to meet the anticipated growing demand for fish and seafood.
Sales of Pangasius declined in 2011 from 2010 levels, however sales of other value-driven species such as Alaska pollock and herring did not benefit over the same timeframe. Alaska pollock consumption remained steady at 23.3 % and herring consumption dropped 1.5 % between 2010 and 2011. Canned tuna however did increase in consumption by 1.2%.
The majority of fish consumed in Germany is frozen, which is the typical product form for Pangasius. The majority of frozen seafood is sold via a discount retail format concept.
eNGOs such as WWF are actively engaged in the German marketplace as a consequence German consumers are well informed about the MSC label and aquaculture issues.
German retailers and the German supply chain have well-articulated “fisch einkaufspolitik” or seafood purchasing policies on their websites citing multiple certification schemes.
The economic climate in German is difficult and publically traded retailers and food corporations are reporting declines in earnings.
In 2012 there was stagnating demand for frozen fish products and overcapacity in processing sector in Germany which led to unusually low pricing as demonstrated by the statement from the FRoSTA 2012 Annual Report.
“Last year the Supervisory Board was involved intensively in all meetings in the current situation of the company, especially as regards the ever fiercer competition in the field of private label business. Overall European production capacity, which already exceeded demand for more or less generic fish products such as fish fingers and ”Schlemmerfilets”, saw a further substantial increase through the expansion of an existing factory by a new investor.
In view of the stagnating demand for frozen fish throughout Europe, the new producer was consequently forced to offer his products at prices considerably lower than previous market levels in order to achieve even a minimum degree of utilisation at his facility. The management team at FRoSTA AG was thus faced with the choice of either rejecting orders completely or accepting at prices considerably lower than total cost in order to maintain necessary utilisation volumes. As it transpired, both eventualities actually occurred, which led to losses in the field of private labels and to the drops in turnover recorded in the Management Report.”
Retailers and suppliers are using labels other than the ASC and MSC to convey the quality and sustainability of products. Edeka positions the WWF Panda logo beside the MSC label. Rewe has developed the Pro Planet label. Suppliers such as bofrost* Femeg, FRoSTA, Lenk and TransGourmet use corporate quality and sustainability statements in the form of seals or labels. As of 21 June 2013, 35 companies were certified for ASC chain-of custody in Germany.
Study on market potential of sustainably produced Pangasius in Europe
Project: Establishing a Sustainable Pangasius Supply Chain in Vietnam
Author: Carson Roper, Independent Consultant
Contracted by: WWF Austria
September 2013