CFP Reform: Trade aspects and market organisation

Public hearing of the EP8. April 2010

Dr. Matthias KellerManaging Director

Association of German fish processors and fish wholesalersHamburg, Germany

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CFP Reform: Trade aspects and market organisation

Some facts about the EU-seafood market

Source: Evaluation of the author

(in mill. tons live weight)

2,02,0Export

14,012,5Total consumption

16,014,5Total supply

10,59,5Imports from third countries

1,51,4EU-aquaculture

4,03,6EU-catches for consumption

2015 e2009

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CFP Reform: Trade aspects and market organisation

Conclusion: What will be on our plate in 2015!

1. 25 fishes out of 100 seafood species will come from EU-fisheries sources

2. 9 fishes out of 100 seafood species will come from EU-aquaculture

3. 66 fishes out of 100 seafood species will come from third countries with increasing volumes of aquaculture species

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CFP Reform: Trade aspects and market organisation

Why will the market expand in the future?

1. Chefs are offering more and more seafood in the restaurants

2. Consumers love functional food and mood food likeseafood

3. Medicals recommend healthy seafood

4. Traders can offer large variations of seafood

5. Processors create new meal solutions with seafood

6. Fishermen deliver authentic fresh seafood

7. Aquaculture will provide additional species

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CFP Reform: Trade aspects and market organisation

The level playing field for … will be determined by:

→ EU-fishermen:

1. MSY-concept (2015) will have negative consequences for some species regarding the development of EU-quotas

2. Whole fish will not be the preferred presentation of fish on themarket for consumers in the future!

3. Primary processing (filleting) has been transferred to third countries where labour is available

4. Further market segmentation of fresh, frozen and processed seafood

5. Limitation on species and fishing grounds (former EU-fish inside 200-mile-zones i.e. Iceland!)

6. Global climate change will modify access to resources!

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CFP Reform: Trade aspects and market organisation

The level playing field of … will be determined by:

→ EU-aquaculture:

1. Comparative cost of production will be higher than in third countries

2. Not all EU-countries have favourable geographical conditions for aqua farms in comparison to Asia!

3. Production cycles are very often unstable

4. High administration burden to set up new aquaculture units in the EU

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CFP Reform: Trade aspects and market organisation

The level playing field of … will be determined by:

→ the EU-processing industry:

1. Nearly all year round availability of raw material through imports (must be also possible in the future!)

2. Requested specification of raw material will be delivered (so far!)

3. Beside traditional species, a wide range of other species can beobtained through imports (up to now!)

4. Consumer demand forces the industry to develop “new products”(that's a fact!)

5. Price for white chicken meat products set the price level for the seafood industry!!! (Believe it or not!)

6. Emerging third countries will demand more fish and the price forseafood will increase in the future!!! (That's for sure!)

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CFP Reform: Trade aspects and market organisation

What are we expecting from the new CFP with regard to trade and market organisation?

1. Liberal trade regimes for urgent needed seafood raw material forprocessing

2. Stronger involvement of DG-Trade excellent know-how in negotiating international trade issues for the benefit of the EU-seafood market

3. Strict and consequent application of rules of origin for all imports of seafood

4. Application of the same veterinary rules and controls for landings as for imports of seafood (Where is the Rapid Alert System for EU-fish landings?)

5. Transparency of landing volumes and prices on EU-level (Where are the publications of monthly and yearly used quotas for EU-fish resources?)

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CFP Reform: Trade aspects and market organisation

What are we expecting from the new CFP with regard to trade and market organisation?

6. No intervention for fish!

7. Better quality of market and control regulations (use of clear and coherent terminology); a good example for not following these principles is article 58, 5 and 6 of the Regulation (EC) No 1224/2009

8. Less Regulations!

9. Enforcement of control of the existing rules on the market (even after 8 years of implementation, Regulation (EC) No 2065/2001 isnot fully implemented in different EU-member state markets)

10. Improved support of stakeholder initiatives of promoting fish and seafood (EFF-co-financing through the EU should depend on member state support but does not need member state co-financing if stakeholders contribute)

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CFP Reform: Trade aspects and market organisation

While you are discussing the new CFP …

Do not forget the

Theorem of Ricardo! Trade is the backbone for growth and welfare!

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Thank you for your attention!