Seafood Expo Global

Brussels - May, 2019

www.eumofa.eu

Price structure in the supply chain

Case study:

packed fresh organic Atlantic salmon fillets

in Germany, Ireland, France and the UK

Analysis of the price structure in different supply chains

• Description of the product

• Description of the markets

• Prices along the supply chain

• Analysis of the price structure

Methodology 1

The product

Atlantic salmon organically farmed

2

Certified by EU organic standards

REG(EC) No 710/2009of 5 August 2009

• Strict maximum stocking densities : 10 kg/m3 max / 25 kg/m3 in conventional system

• Feed: organic feeds should be used, supplemented by fish feeds derived from sustainably managed fisheries

• Juveniles : non organic juveniles allowed if no alternative providedthat 2/3 of the production cycle has to be organic.

• Biodiversity preservation. ban of hormones (incl for inducing spawing) and chemicals

• water quality requirements

• handling minimised to avoid stress and physical damage

The product

Cuts (individual portions) of fresh organic

Atlantic salmon fillet in Modified Atmosphere Packaging (MAP)

FR DE

UK IE

2

The supply chain

Primary processing

Slaughtering, gutting

Secondary processing

Filleting, cutting, packagingRetailing

Organic farming

Logistic

export/import

3

Supply of Atlantic salmon

EU market : 920.000 tonnes EU production : 190.000 tonnes

Organic salmon production: EU (IE + UK) 22.000 tonnes

Norway 17.000 tonnes

4( 2017)

Focus on EU markets

• Germany, France and the UK are the biggest markets for Atlantic salmon;

• Germany, France and the UK are the main markets for organic fish;

• Ireland is the main producing country for organic salmon.

Focus on Germany, Ireland France and the UK

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7

Ex-farm price

No specific statistic data on ex- farm price for organic salmon

and data available from a pan European survey (OrAqua – EU funded)

but average price can be estimated from BIM annual statistics

Estimates for 2017 ex-farm prices. Sources: BIM, OrAqua Survey, Marine Harvest

Average price: value / volume of Irish salmon production. Source BIM

6

Import-export price

Export and import apparent price from COMEXT

Average export price (EUR/kg) for Irish salmon (Fresh, gutted)

Average price calculated : value / volume of exports from Ireland to different destinations

Average import price (EUR/kg) in Germany for Irish salmon (Fresh, gutted)

Average price calculated : value / volume of importation in Germany from Ireland

Note: Data not always allow to assess CIF and FOB price

7

Logistic – processing

Logistic, processing and retailing data from OrAqua survey

OrAqua Survey (2015): costs and margin along the

supply chain for fresh salmon fillet – origin IrelandEstimates from updated ex-farm and consumer prices

Estimates of 2017 costs and margins in the supply chain using OrAqua survey

2014 results on price structure.

2014 2017

8

Retail price

Organic salmon products are not distinguished in retail price statistics

but online shops provide interesting information

Price of organic salmon fillets cuts in MAP in different retailers in Germany (2017-2018)

Price of different organic salmon products in online shops in Ireland

9

Price structure: Ireland

Supply chain: Origin Ireland, sold in LSR in Ireland

Farming

Processing & packaging

Slaughtering

Retailing

Ex-farm price

7,31 €/kg

Retail price

30,00 €/kg

Price structure - 2017

Source: Elaborated from BIM, Or-Aqua survey, DCF, online stores

10

Price structure: Ireland

Price structure: Origin Ireland – sold in LSR in Ireland

7,318,64

14,40

21,00

30,00 30,00

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

ex-farm

price

Price of

gutted fish

Price of

fillet

Retailer

purchase price

Retail

priceprice

(exc VAT)

Retail

priceprice

(incl VAT)

4,1

5,76

Cost of gutting

6,5

Retailercosts

and margin

0,6

6,60

Filleting loss

0,66

€ / kg

Processing costs

and margin

0,73

Guttingloss

9,0

VAT0 %

Processing and logistic Retailing

Value sharing

Farming : 24,4 %

Losses: 21,6 %

Processing: 24,0 %

VAT: 0 %

Retailing : 30,0%

11

Price structure: France

Farming

Processing & packaging

Slaughtering

Retailing

Ex-farm price

7,31 €/kg

Retail price

39,80 €/kg

Price structure - 2017

Import-export

Supply chain: Origin Ireland sold in LSR in France

Import price

9,30 €/kg

Sources: BIM, COMEXT, OrAqua Survey, Observatoire des marges FAM.

12

Price structure: France

Price structure: Origin Ireland – sold in LSR in France

Value sharing

Farming : 18,4 %

Losses: 17,4 %

Processing: 24,5 %

VAT: 4,8 %

Retailing : 35,00%7,31

8,64 9,30

15,50

23,95

37,88

39,80

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

45,00

ex-farmprice

Price of gutted fish

Price exportto France

Price of fillet

Retailerpurchase

price

Retail priceprice (exc VAT)

Retail priceincl VAT

4,1

6,20

Cost of gutting

6,5

Retailercosts

and margin

0,6

8,45

Filleting loss

0,66

€ / kg

Processing costs

and margin

0,73

Guttingloss

0,66

Exportcost

13,931,89

VAT5,5%

Processing and logistic Retailing

13

Price structure: Germany

Price structure: Import from Ireland sold in LSR in Germany

Farming

Processing & packaging

Slaughtering

Retailing : LSR

Ex-farm price

7,31 €/kg

Retail price

44,00 €/kg

Price structure - 2017

Import-exportImport price

10,00 €/kg

Sources: BIM, COMEXT, OrAqua Survey, Online stores, EUROSTAT,

14

Price structure: Germany

Price structure: Origin Ireland – sold in LSR in Germany

Value sharing

Farming : 16,6 %

Losses: 16,8 %

Processing: 29,3 %

VAT: 6,5%

Retailing : 30,7% 7,318,64

10,00

16,67

27,67

41,17

44,00

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

45,00

50,00

ex-farmprice

Price of gutted fish

Price exportto Germany

Price of fillet

Retailerpurchase

price

Retail priceprice (exc VAT)

Retail priceincl VAT

4,1

6,67

Cost of gutting

6,5

Retailercosts

and margin

0,6

11,0

Filleting loss

0,66

€ / kg

Processing costs

and margin

0,73

Guttingloss 1,36

Exportcost

13,50

2,88

VAT7 %

Processing and logistic Retailing

15

Price structure: Germany

Price structure: Import from Norway sold in German discount stores

Farming

Processing & packaging

Slaughtering

Retailing: Discount

Ex-farm price

4,20 €/kg

Retail price

22,00 €/kg

Price structure - 2017

Import-exportImport price

6,00 €/kg

Sources: BIM, COMEXT, OrAqua Survey, Online stores, EUROSTAT,

16

Price structure: Germany

Value sharing:

Farming : 19,1 %

Losses: 20,2%

Processing: 2913 %

VAT: 6,5%

Retailing : 25 %

Price structure: Import from Norway sold in German discount stores

4,20

5,226,02

10,03

15,03

20,53

21,97

0,00

5,00

10,00

15,00

20,00

25,00

ex-farmprice

Price of gutted fish

Price exportto Germany

Price of fillet

Retailerpurchase

price

Retail priceprice (exc VAT)

Retail priceincl VAT

4,1

4,01

Cost of gutting

6,5

Retailercosts

and margin

0,6

5,0

Filleting loss

0,66

€ / kg

Processing costs

and margin

0,42

Guttingloss

0,80

Exportcost

5,50

1,44

VAT7 %

Processing and logistic Retailing

17

Price structure: UK

Farming

Processing & packaging

Slaughtering

Retailing

Ex-farm price

5,63 €/kg

Retail price

34,00 €/kg

Price structure - 2017

Supply chain: Origin UK (Scotland) sold in LSR in the UK

Sources: COMEXT, OrAqua Survey, Online stores, EUROSTAT,

18

Price structure: UK

Value sharing

Farming : 16,6 %

Losses: 14,9 %

Processing: 27,6 %

VAT: 0 %

Retailing : 40,9%

Price structure: Origin UK (Scotland) sold in LSR in the UK

5,636,79

11,30

20,10

34,00 34,00

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

ex-farm

price

Price of

gutted fish

Price of

fillet

Retailer

purchase price

Retail

priceprice

(exc VAT)

Retail

priceprice

(incl VAT)

4,1

4,51

Cost of gutting

6,5

Retailercosts

and margin

0,6

8,80

Filleting loss

0,66

€ / kg

Processing costs

and margin

0,56

Guttingloss

13,90

VAT0 %

Processing and logistic Retailing

19

Price structure: UK

Farming

Processing & packaging

Slaughtering

Retailing

Ex-farm price

7,31 €/kg

Retail price

34,00 €/kg

Price structure - 2017

Import-export

Supply chain: Origin Ireland sold in LSR the UK

Import price

9,00 €/kg

Sources: BIM, COMEXT, OrAqua Survey, Online stores,

EUROSTAT.

20

Price structure: UK

Value sharing

Farming : 21,5 %

Losses: 19,8 %

Processing: 28,7 %

VAT: 0 %

Retailing : 30 %

Price structure: Origin Ireland sold in LSR in the UK

7,318,54 9,00

15,00

23,80

34,00 34,00

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

ex-farmprice

Price of gutted fish

Price exportto UK

Price of fillet

Retailerpurchase

price

Retail priceprice (exc VAT)

Retail priceincl VAT

4,1

6,0

Cost of gutting

6,5

Retailercosts

and margin

0,5

8,80

Filleting loss

0,66

€ / kg

Processing costs

and margin

0,73

Guttingloss

0,50

Exportcost

10,20

VAT0 %

Processing and logistic Retailing

21

Synthesis

Value sharing in the supply chains

Farming : 17% – 24% Process losses : 25% -29%

Processing & logistic: 15% - 22% Retailing : 30% - 41%

VAT: 0% - 6,5%

22

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