Business is good at ESE in Brussels

News 10:58 13/09/2014
(seafood.com) Brussels - At mid-point on the opening day of the 20th European Seafood Expo, things are looking positive. Attendance seems good, there is the deafening roar in the show hall, and I think it is likely the show will exceed last years. Our accompanying stories have some of the press announcements made at the show. This article is more of an overview.

First - the business climate. Europe is not monolithic, and although you may see headlines about European economic problems, they are impacting different countries very differently.

The biggest problems for seafood are Spain and Greece, with the Spanish market being especially vulnerable. Spains weakness may spill over into the cod market, and into some types of shrimp, as sales that would have gone to Spain seek homes elsewhere.

But business is strong in Germany, the UK and other parts of Europe, including Russia, and so there is no indication that somehow the European market is suffering a crisis at this time.

One of the major themes is value added seafood. At the Dutch seafood breakfast, major importer and European distributor Culimar introduced new branding, for its responsible artisanal seafood.

Marketing manager Martin Van Geest also said they were competing with a plague of adulterated products - particularly shrimp, where a 20% glaze product often does not produce 800 grams of net weight - but 750 or less. In southern Europe, price is supreme and it is very hard to sell 100% net weight. Their business is targeting high end foodservice and customers who want guaranteed quality.

Culimar also introduced a new snow crab item, a merus pack of snow crab meat harvested in Korea and processed in their plant in Vietnam. There is an opportunity for snow crab in Europe, both as sections and meat, and it is being driven by chefs who want an alternative to high priced king crab.

Over time, snow crab should become a more important item in Europe.

There is a huge ongoing debate here about marketing sustainability. There is a lot of spin from different organizations about how important their label is, and there is a sense that the fight over sustainability certifications is hurting the industry.

Alaskan companies have both reported some customers who wish to retain an MSC label - for marketing reasons such as having packaging created, and having invested in educating customers, while others say their buyers in some of the most sophisticated markets, like Germany, are fine with the Global Trust Certification.

In fact, Mark Tupper, president of Triad Fisheries which markets troll caught kings and coho under the Bruce Gore label, said his customers in Germany were fine with their switch to Global Trust Certification.

In fact, Triad is just completing the chain of custody inspection, and plans to be the first Alaskan company certified with the Global Trust chain of custody certification.

We will have much more about the sustainability issues, but long term, it is clear that there is a different environment emerging about how to market sustainability, and the discussion has moved from whether a fishery is sustainable or not, to how to best convey that to consumers.

Finally - cold water shrimp prices are still not settled, and may not be settled at the show this year. Some major Canadian companies want to get some feedback from customers and then look at their costs to determine final pricing - but no one thinks the market can sustain an increase. The issue is how to maintain stability.

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