The development of greek aquaculture
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Transcript of The development of greek aquaculture
The development of Greek aquaculture
a repeated story in aquaculture history.
Dimitri DimopoulosProduction manager
Saudi Fisheries Company
The start• The Aquaculture in the sea starts in Greece in the mid 80’s
with small farms. • Those farms import fingerlings from France and technology
mainly from Scotland (kames wooden cages).• In the late 80’s the first hatcheries start production and with
the aid of E.U (subsidies for the equipment) the growth was soon ejected.• The 16,300 km shore and the thirst for innovation from a
nation with 3,000 year maritime history push the aquaculture for this growth. • In 1991 the annual production jumped from 2,500 tones to
12,500 tones from 120 farms.
The market• Both of species ( bream and European bass) was well known
in south Europe as the most expensive fishes due to the extensive culture in French, Italian and Greek lagoons for ages
• The big demand help the farmers to focus in production technology and do not care about sales.
• Italy was the main export destination and 65% of the production was exported there and only 15% to all the other countries and 20% for the local market.
The 1st, 2nd and 3rd crisis• In 1993 the production reach the level of 35.000 tones. The price dropped down in less than the production
cost of these years. The small farms with bad management absorbed from bigger companies with large sales department and hatcheries. The production get stabilized, the price goes to profitable level, the production is growing again.
• 2000. In 1998 the E.U stops the imports from Turkey (the main competitor) and the price reaches the levels of 1991. The cost is much lower now and the profits are huge. All the farmers want to produce more and the production grows more than the capitals of the companies can support. The production goes to 85.000 tones. Turkey is open again in 1999 and the second crisis is here, bigger and more severe. This time 2 of the 5 biggest companies bankrupt, one absorbed and the one closes. The companies with large sales department, large hatcheries and feed mills are getting stronger.
• 2007. In 2002 Greece comes to Eurozone. Easy lending, low interest, no money exchange cost, the profits are back again. In addition, Turkey subsidies the exports and the Greek production is reaching 110,000 tones in 2007. The price is lower than the cost and each producer is keeping the fish in cages waiting for a price increase. Everyone wants to reduce the production but the fish which is not sold is growing up in the cages and the production is getting bigger and the c0st is getting higher. In year 2008 the global crisis comes in addition with aquaculture crisis. The banks stop funding the companies with “red results” attaching them to big companies, Turkey continues funding aquaculture and the third crisis is the longest of all till now.
Similarity of Greek and Norwegian development of production and price
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
0
1
2
3
4
5
6
7
8
9
10
Greek production
Production in tones Price in US$
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Norwegian production
production in tones price in US$
A repeated story• In the beginning of the industry in 90’s, all the experts was warning
about the connection between production volume and price. • We all known what will happen but we made the same mistakes.• Always there is a competitor country (like Turkey and Chile) who has
different economy, different target and affecting the price fluctuation too.• The story starts with a lot of small scale companies and in the
procedure some of them grows faster. • The large companies absorb the ineffective small and medium farms. • The feed mill companies becoming farmers as well.• The largest companies acquire vertical structure (hatchery, feed mill,
sales department, R&D).
Conclusions• As an aquaculture industry is developing in a country, every 6 to 8
years there is a drop of the price, sometimes lower than the cost. So the yearly profits are not so considerable as the average quinquennial (5 years) profits.• The production depends on the hatchery technology and the sales
price.• The new technology (advanced feed formulas, equipment, genetic
improvement) reduce the cost.• The companies with hatchery, feed mill and effective sales
department are dominate the industry and not the companies with large production.• The very small family farms always survive because they have few
quantities, better quality, low funding and they focus to quality customers.• The medium size farms are the most vulnerable.
The solution• To avoid or to minimize the unstable sales price, the farmers
must have an organization to control the production and the export price. Cooperation between the farmers is necessary and significant. • But every year the global consumption of fish is growing
more than 8% and the fishing sector is shrinking. 5 of the 7 important fishing fields have lower production due to over fishing.• And as you know the most healthy, digestible protein is fish
protein and the only fat which is healthy with the right ratio of Omega 3 to Omega 6 is fish oil.•So the solution is sustainable Aquaculture
Thank you
I hope you enjoy it