PHASE 2 EXECUTIVE SUMMARY EUROPEAN MARKET OBSERVATORY FOR FISHERIES AND AQUACULTURE PRODUCTS

Transcription

1 EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR MARITIME AFFAIRS AND FISHERIES Directorate International Affairs and Markets Markets and Trade EUROPEAN MARKET OBSERVATORY FOR FISHERIES AND AQUACULTURE PRODUCTS PHASE 2 EXECUTIVE SUMMARY MAY 2012

2 This study was conducted by: COGEA s.r.l. via Po, 102, Rome ITALY Project Leader: Prof. Giulio Malorgio University of Bologna Project Manager: Alvise Bragadin COGEA In partnership with: AlmavivA - Via di Casal Boccone, Rome - ITALY AND International 10 bd Bonne Nouvelle Paris - FRANCE EUROFISH H.C. Andersens Boulevard Copenhagen V - DENMARK Kontali Analyse Industriveien Kristiansund - NORWAY This study is financed by the European Commission, DGMARE. The views and conclusions presented in this executive summary reflect the opinion of the author(s) and do not necessarily reflect the opinion of the Commission or of its officers. 2

3 Contents 1 Methodology adopted for Phase 2 - Observatory design Overarching objective and work plan Methodology for Phase Work plan for Phase Design of the Data Collection System Data Collection System coverage Overview of selected sources Sources for Indicators (Objective 1) Sources for Market trends (Objective 2) Sources for Structural data (Objective 3) Sources for Economic & Trade scenario and for data harmonisation Design of the Data Management Data harmonisation: Languages Data harmonisation: Nomenclature Data harmonisation: Currency Data harmonisation: Conversion factors Methodologies and tools for specific market analysis Design of Data Dissemination Dissemination policy Dissemination strategy EUMOFA management solutions European Antennas System for Fishery Legal solutions for data collection and dissemination Design of Information Technology (IT) solutions IT infrastructure adopted for the EUMOFA IT solutions for Data collection IT solutions for Data Management IT solutions for Data dissemination

4 List of tables Table 1 - Data sources selected for feeding the EUMOFA Indicators (First-sale stage) Table 2 - Data sources selected for feeding the EUMOFA Indicators (Consumption stage) Table 3 - Data sources selected for feeding the EUMOFA Market trends (First-sale stage) Table 4 - Other sources to be used for developing EUMOFA tasks Table 5 - List of seaboards used by the EUMOFA Table 6 - Proposed list of MCS and CG Table 7 - Proposed list of attributes codes for EUMOFA purposes Table 8 Apparent consumption at EU level by Commodity Groups (Tonnes; ) Table 9 - Assessment Summary for the origin of extra-eu Imports and Exports in terms of production methods Table 10 Case studies developed using the Price Transmission Analysis Tool List of figures Figure 1 Logical architecture of the EUMOFA: three-tier Enterprise Application Figure 2 Interactions between EUMOFA activities and components of the IT system

5 GLOSSARY CG CN DCS DG AGRI DG MARE EC ERS ETL EU FAO FAP FIDES IPR IT MCS MS PR PS PTAT RDBMS SB TS YTD Commodity Groups Combined Nomenclature Data collection system Directorate-General for Agriculture and Rural development Directorate-General for Maritime Affairs and Fisheries European Commission Electronic Reporting System Extract Transform - Load European Union Food and Agriculture Organisation Fishery and Aquaculture Products Fishery Data Exchange System Intellectual Property Rights Information Technology Main commercial species Member State(s) Presentation Preservation state Price Transmission Analysis Tool Relational database management system Supply Balance Tendering Specifications Year-to-date List of EU Member States acronyms AT Austria EE Estonia IE Ireland NL Netherlands ES Spain BE Belgium FI Finland IT Italy PL Poland SE Sweden BG Bulgaria FR France LV Latvia PT Portugal UK United Kingdom CY Cyprus DE Germany LT Lithuania RO Romania CZ Czech Republic EL Greece LU Luxembourg SK Slovakia IS Iceland DK Denmark HU Hungary MT Malta SI Slovenia NO Norway 5

6 1 Methodology adopted for Phase 2 - Observatory design 1.1 Overarching objective and work plan In Communication 453 of July to the European Parliament and the Council, the European Commission - Directorate General for Maritime Affairs and Fisheries (DG-MARE), proposed the establishment of a price monitoring system as one of the specific objectives of the new Common Market Organisation. The European Parliament supported this initiative. In December 2009, following an open call for tenders 2, DG-MARE commissioned COGEA - the lead partner of a specialised, international group of companies specially created for this project and composed of Almaviva (IT), AND International (FR), Eurofish (DK), Kontali Analyse (NO) - to pave the way for a European Market Observatory for fisheries and aquaculture products (EUMOFA). The project started in January 2010 and the overall duration is, at present, 30 months. The overarching objective of the Observatory is to give stakeholders, administrations and researchers a better understanding of the European fisheries markets from local to international levels. This Observatory should provide Market intelligence support on fishery and aquaculture products all along the supply chain stages (first sale, wholesale, import/export, processing, consumption) in the 27 EU Member States plus Iceland and Norway. The aim of EUMOFA is accordingly to collect, manage and disseminate data and information in outputs and formats optimised for meeting different stakeholders needs, according to the following 4 Project Objectives given by DG MARE: 1) Objective 1 Indicators: Weekly price survey for most representative products and markets for the following supply chain stages: First sale, Wholesale, Import (extra-eu imports), Consumption 3 ; 2) Objective 2 Market trends: Monthly and quarterly monitoring of volume and value for all recorded species and markets for the following supply chain stages: First sale and Import Export (extra and intra EU trade); 3) Objective 3 Structural data: Consolidated exhaustive information on a yearly basis for the following supply chain stages: First sale, Import Export (extra and intra EU trade), Processing and Consumption, also including supply balance sheets. 4) Objective 4 Price Transmission Analysis Tool (PTAT): Costs and margin analysis to understand the underlying factors of price transmission along the supply chain. The project is developed in relation to the food price monitoring exercise that is being carried out by the European Commission under the leadership of DG AGRI. The implementation of the Observatory is divided into three phases, each one organised in stages with specific and well-defined aims Ref.: Contract notice published in the Official Journal of the European Union S/146 of 01/08/2009 (ref. 2009/S ). 3 According to the availability of sources, for the Consumption stage the frequency of data disseminated could be monthly. 6

7 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7 Inception and structuring Survey on the state of play Identification of market monitoring structure option Obsevatory design Operative development of tools and IT solutions Finalisation of IT solutions and handover planning Observatory functions testig and handover Phase 1 State of play Phase 2 Observatory design Phase 3 Test and handover This Executive Summary reports on the finalisation of Phase 2 Observatory design. 1.2 Methodology for Phase 2 Three main targets have been identified at the beginning of this Phase, and kept as milestones throughout the development of all different items making up the EUMOFA architecture: The starting point of the Observatory Design Phase has been the capitalisation of Phase 1 results adopting the most suitable data sources for EUMOFA purposes. Data collected from different sources cannot be compared until they are harmonised. Therefore a second strategic step of the Observatory Design has been to identify needs and solutions for data harmonisation, and to draw up methodologies for ensuring an adequate dissemination of comparable data. Finally, the third step has dealt with the approach used to design outputs: a targeted dissemination policy. It should be pointed out that the EUMOFA is not intended as a statistical tool (data exhaustiveness entails a long time lag before dissemination), since it is aimed at facilitating an understanding of market behaviour and trends (with selected and swift information). Therefore the dissemination policy followed by the EUMOFA revolves around a user-oriented approach through which it has been possible to firstly identify user typologies and needs, and secondly to design outputs tailored accordingly. In general, the entire implementation of the Phase has followed a step-by step approach, through which all the tasks developed and results achieved have been discussed and shared with DG MARE during the Experts Group discussion sessions. This continuous decision sharing has undoubtedly aided qualitative enhancement as well as progress of the work. In addition, the results obtained during Phase 2 have also been shared with other subjects potentially interested in EUMOFA s mission or directly involved in the Fishery and Aquaculture (FAP) sector, such as (i) market operators, (ii) scientific subjects and (iii) sector experts. Therefore, the resulting design of the Observatory is not a mere description of the best possible solutions reached by the Team, but also includes the findings of a continuous sharing and fine-tuning process with a wide range of EUMOFA stakeholders, from DG MARE to commercial operators. As regards related Information Technology (IT) services, all the solutions adopted for data collection, management and dissemination have been developed through an iterative and incremental software development process. This approach has made it possible to build the architecture of the system and related tools identifying the best possible solutions in terms of efficiency and effectiveness compared with initial needs. 7

8 As a conclusion, it should be pointed out that at present the design (collection tools, outputs, management procedures, etc.) described below does not purport to be optimised in all its elements, since testing and fine-tuning activity is still needed to improve the system further (planned for Phase 3 of the Project). 1.3 Work plan for Phase 2 Given the complexity of the Phase, and because of the different services required, the activities framework has been divided into 2 macro-areas: - non-information Technology services; - Information Technology services. According to the needs identified above, both areas have been further broken down into 3 main activities, namely: 1. Data collection design, in which the entire EUMOFA feeding system is structured and defined, as regards both (i) data contents and related sources (as agreed during the meetings with MS) and (ii) collection methodologies (downloading from websites, transmission, etc.); 2. Data management design, aimed at assessing and providing all needed harmonisation methodologies for allowing the EUMOFA to deliver consistent and user-friendly data to market operators and stakeholders. As part of this activity, the methodologies to build supply balance sheets and construct a correlation table from net weight to live weight have also been provided; 3. Data dissemination design, aimed at identifying an appropriate dissemination policy and consequently structuring all needed outputs that the Observatory will be producing for each of the 4 project Objectives. As regards the legal availability and dissemination of the data which will be fed into the Observatory, and the authorisation by EU Member States (EU MS) to disseminate data have been ensured with regard to both Intellectual Property Rights for data and the full compliance of the EUMOFA with anti-trust regulations and free price formation rules. Finally, a global assessment of various options concerning the possible future location and general management of the EUMOFA has also been carried out, with special focus on the estimated work effort of EUMOFA staff for carrying out all ordinary tasks. As regards IT-related services, besides ensuring a transmission procedure from MS (or other sources) to the EUMOFA, the architectural development of the data server and dissemination facilities have also been developed. 8

9 2 Design of the Data Collection System The Data Collection System (DCS) is intended to provide all the necessary sources of data to feed in the EUMOFA database. As mentioned above, the sources selected directly derive from the Survey Phase conducted in the first part of the project. Before being involved in EUMOFA data collection, a three-level assessment has been conducted on them, according to: - Reliability of the source: this criterion has generally led us to prefer Public Administrations instead of private subjects; - Continuity of data supplies: this deals with the availability of the subject to feed in the EUMOFA on a regular basis; - Acknowledgement of data provided by a given subject at international level. A subject identified for feeding in the EUMOFA database should meet all the above requisites, allowing the EUMOFA to rely on good quality data input, at least in principle. 2.1 Data Collection System coverage The data sources identified have been grouped according to the first three project Objectives (see 1.1): Objective 1 Indicators Objective 2 Market trends Objective 3 Structural data However, it is worth mentioning, with regard to Objective 2 Market trends, that datasets will be available in the EUMOFA database at two different frequencies: (i) on a monthly and (ii) on a quarterly basis. The quarterly dataset will cover a wider number of MS, because it will include all the monthly data (aggregated on a quarterly basis), plus FIDES (Fishery Data Exchange System) quarterly data for Estonia, Spain and Finland. Furthermore, it should be highlighted that the degree of coverage of the three Objectives may vary according to the supply chain stage. Specifically: First sale: all three Objectives will be covered; Wholesale: only Objective 1 will be covered, since it has emerged that exhaustiveness of information delivered (requested for Objectives 2 and 3) cannot be guaranteed, especially because volume data are not available; Import/Export: all three Objectives will be covered; Processing: only Objective 3 will be covered, given that no data are available on a weekly/monthly basis suitable for the other two Objectives; Consumption: only Objectives 1 and 3 will be covered. Unlike the other supply chain stages, however, Objective 1 will have a monthly frequency; The Data Collection System presented in the final design is structured by Objective and by stage of the supply chain (at MS, EU and extra-eu levels). 2.2 Overview of selected sources Going into greater detail on the MS identified for involvement in the Data Collection System (DCS), national bodies have been preferred as data sources. Nonetheless, where unavailable, national bodies have been replaced with other sources, providing these are reliable. On the whole, 6 types of sources have been identified: 9

10 National public bodies; Non-EU MS (Norway and Iceland); Pan-European associations; United Kingdom ports; European Union sources; Private information providers. As for National public bodies, DG MARE opened negotiations by directly contacting national authorities, and the COGEA Work Team then visited the selected MS to define the contents of data transmission, discuss the involvement of each MS in the DCS and reach agreement on the IT transmission procedure (for IT aspects, please refer to Ch. 6 below). Having clearly defined MS participation in the DCS and their relative data sources, DG MARE finalised negotiations with national authorities via the exchange of formal Letters of Agreement, outlining the content of data transmission to the EUMOFA. With regard to Norway and Iceland, DG MARE finalised negotiations with national authorities by means of Letters of agreements, albeit with different results: - Iceland has confirmed its availability to provide the EUMOFA with data according to its needs and according to the format suitable for EUMOFA purposes; - Norway has given complete support to the EUMOFA and its purposes, but Norwegian Authorities are not available to participate in the DCS. Nonetheless, they given their authorisation for the use of all Norwegian data available on public websites, which can be downloaded by EUMOFA analysts. Pan-European Associations have been selected for filling specific data gaps, and basically 3 sources have been identified: (1) Pan European Fish Auctions (PEFA), an association of auctions from several MS, selected as the data source for the Netherlands as regards Objective 1; (2) Federation of European Aquaculture Producers (FEAP) and (3) Association Européenne des Producteurs de Mollusques (AEPM), both selected for supplying aquaculture data for Structural data 4 (Objective 3). In any case, FEAP s and AEPM s data will not be part of the database, but will be used by EUMOFA analysts to produce specific outputs (see 4.2.3). Given that for the United Kingdom it has not been possible to select a public body to cover First Sale Objective 1, three ports have been identified on the basis of their representativeness for the United Kingdom market, namely Grimsby, Peterhead, and Shetland, and will feed in the Observatory with their data on fish prices. Several European Union sources will be part of the DCS for different purposes and different frequencies. Especially as regards EUROSTAT data (Fishery, COMEXT and PRODCOM). They offer high reliability and total EU coverage, thus they will be used for consolidated yearly analysis ( Structural data ). Other EU sources will be (i) DG TAXUD Surveillance System (TSS), for Imports ( Indicators ) and (ii) FIDES MIS, for fishery quarterly data (for some specific MS). Finally, specific private information providers have been selected to fill data gaps, especially as regards structural information on fishery companies in the EU and retail prices of fishery products for some MS. Besides the above-mentioned sources which will be included in the EUMOFA database, other data types have also been identified as being indispensable for carrying out specific analyses and reports. Most of them are publicly available on the Internet; others need special agreements with their relative sources in order to make them available to EUMOFA s analysts. For further details, see FEAP and AEPM aquaculture data will be used as preliminary indicators in the Structural data section (Objective 3) until EUROSTAT aquaculture data are published. 10

11 2.3 Sources for Indicators (Objective 1) First sale Following the results of Phase 1 analysis, 13 EU MS have been selected by DG MARE to provide the EUMOFA with weekly indicators at the First-sale stage. The MS and related sources are: Table 1 - Data sources selected for feeding the EUMOFA Indicators (First-sale stage) MS Source of data MS Source of data BE Flemish Government - Agriculture and Fishery Department NL Pan European Fish Auctions (PEFA) DK Ministry of Food Agriculture and Fisheries PT Ministry of Agriculture, Sea, Environment and Spatial Planning FR FranceAgriMer ES Ministry of Agriculture, Food and Environment DE German Federal Agency for Agriculture and Food SE Swedish Board of Agriculture EL IT LV Ministry of Development Competitiveness and Shipping Ministry of Agricultural, Food, and Forestry Policies Ministry of Agriculture LT Ministry of Agriculture NO UK IS Port of Grimsby Port of Peterhead Port of Shetland Reiknistofa fiskmarkaða (RSF) Sunnmøre og Romsdal Fiskesalslag (SUROFI) Sildelaget NOS Clearing [Aquaculture] Of the remaining 14 MS excluded from the above-mentioned list: Austria, Czech Republic, Hungary, Luxembourg, and Slovakia have been excluded because they are landlocked, and Slovenia because its coastal border is limited. Therefore these MS are not particularly remarkable in terms of first-sale volumes. As for Bulgaria and Romania, the possibility of establishing data transmission relations with them within the duration of the contract has been ruled out as being unfeasible, due to technical reasons concerning their data collection systems. As regards Cyprus and Malta, it has been agreed with DG MARE not to include these two MS in the Test Phase (Phase 3). Negotiations will continue to be sought in view of possible involvement in the project; In Estonia, Finland, and Ireland it has not been possible to find any available data sources for Objective Wholesale As a result of the Survey Phase, it was decided to activate data collection for the Wholesale Stage only using public national sources for France, Italy and Spain, through: FranceAgriMer, ISMEA and the Ministry of Agriculture Food and Environment respectively. For these MS only a selection of fresh species will be monitored, for a total of species per MS. In addition, the most representative presentation categories and sizes for each species have also been agreed Import DG TAXUD s Surveillance System (TSS) is available to provide weekly data on Imports. It has been agreed that data will be collected only at EU level, for a list of 29 products to be monitored each week, identified by CN-8 codes, and broken down by country of origin. 11

12 2.3.4 Consumption For 9 MS nominal prices of fish products are available from public bodies: Belgium, Finland, France, Greece, Italy, Latvia, Lithuania, Poland and Spain. With each public national source a list of products to be monitored has been defined. For Estonia, the source of data will be TNS Emor, a private information provider supplying the EUMOFA with data at no cost. In addition, it has been decided to monitor the Netherlands, Portugal, Sweden, and the UK, given that these MS are characterised by high consumption of fresh fish. However, since no data from public sources are available (and/or suitable for EUMOFA purposes) in these MS data have been purchased from a private information provider. At present, EUROPANEL has been selected by COGEA on the basis of cost/benefit analysis. Table 2 - Data sources selected for feeding the EUMOFA Indicators (Consumption stage) MS Source of data MS Source of data BE Statistics Belgium LT Ministry of Agriculture EE TNS Emor LV Ministry of Agriculture ES Ministry of Agriculture, Food and Environment NL EUROPANEL FI Statistics Finland PL Central Statistical Office FR FranceAgriMer PT EUROPANEL EL Ministry of Development Competitiveness and Shipping SE EUROPANEL IT ISMEA UK EUROPANEL 2.4 Sources for Market trends (Objective 2) First sale Broadly speaking, the sources selected for Indicators have agreed to provide the Observatory with monthly data on volumes and values for all fish species (all sizes together, by presentations, preservation states and market places): Table 3 - Data sources selected for feeding the EUMOFA Market trends (First-sale stage) MS Data source MS Data source BE Flemish Government - Agriculture and Fishery Department DK Ministry of Food Agriculture and Fisheries NL EE FIDES-MIS PT FI FIDES-MIS ES FIDES-MIS LT Ministry of Agriculture Ministry of Economic Affairs, Agriculture, and Innovation Ministry of Agriculture, Sea, Environment, and Spatial Planning FR FranceAgriMer SE Swedish Board of Agriculture DE EL IE IT German Federal Agency for Agriculture and Food Ministry of Development Competitiveness and Shipping Irish Sea Fisheries Board Institute for Economic Research in Fishery and Aquaculture UK IS Marine Management Organisation Statistics Iceland LV Ministry of Agriculture NO Fiskeridirektoratet 12

13 Nonetheless, with regard to First sale Indicators (Objective 1), it should be noted that: A) 3 MS have been added to data collection for First Sale Market trends : Estonia, Finland, covered through FIDES-MIS, the Fisheries Data Exchange Server of the EU Commission, therefore for these MS the data will be delivered on a quarterly rather than monthly basis. In Ireland, the Irish Board of Fisheries, will be the source of monthly data; B) For 5 Countries, a different data source has been selected: Netherlands: instead of PEFA (as per Objective 1), the Dutch Ministry of Economic Affairs, Agriculture and Innovation will provide monthly figures; Spain: FIDES-MIS will cover data needed for Market trends instead of the Ministry of Agriculture (as per Objective 1). UK: a public body, the Marine Management Organisation, will cover Market trends, instead of the ports of Grimsby, Peterhead, and Shetland (as per Objective 1). Norway will be covered through data provided by the Directorate of Fisheries, while for Iceland the Official Statistical Institute will be the data source Import/Export In order to ensure high reliability and full coverage, it has been decided to use EUROSTAT COMEXT as the data source. Finally, considering the relevance of imports from Iceland and Norway, these two countries have also been included in data collection, and the national statistical institutes (respectively, Statistic Iceland and Statistic Norway) have been selected as data sources. 2.5 Sources for Structural data (Objective 3) First sale As mentioned above, it has been decided to rely on EUROSTAT FISHERY s data, because of the high reliability and total EU coverage both for yearly values and volumes of Fisheries and Aquaculture products. The same data source will also be used to collect Catches data for building supply balance sheets (see 3.5). As regards aquaculture it has been decided to use data from the Federation of European Aquaculture Producers (FEAP), and the Association Européenne des Producteurs de Mollusques (AEPM) as preliminary indicators until EUROSTAT releases its data Import/Export Supplies for this refer to monthly data originating from EUROSTAT-COMEXT, aggregated on a yearly basis. Norway and Iceland s data will not be used for this Objective Processing The source selected is EUROSTAT PRODCOM, since: (a) it reports on volumes and values of marketed production by product type, (b) it analyses industrial production by segment, ensuring total EU coverage Consumption The EUMOFA will make use of official data publicly available on websites for France (FranceAgriMer), Italy (ISMEA), and Spain (Ministry of Agriculture Food and Environment). It has not been possible to include 13

14 other MS, since the data available has proved to be highly heterogeneous. However, it should be noted that the above 3 MS account for about 60% of total EU consumption. 2.6 Sources for Economic & Trade scenario and for data harmonisation For the purposes of the EUMOFA, some specific data are needed for properly developing its tasks and all outputs envisaged in the Observatory design. These data will be used by EUMOFA analysts for: 1) Developing macro-economic analysis as requested in specific outputs produced by the EUMOFA; 2) Complementing and integrating (where possible) data collected by the EUMOFA; 3) Explaining special phenomena and gathering needed details on specific topics. Below is a list of these sources: Table 4 - Other sources to be used for developing EUMOFA tasks Data source Bureau van Dijk - AMADEUS DG ECFIN DG ENERGY European Central Bank EUROSTAT Structural Business Statistics EUROSTAT Energy EUROSTAT Exchange rates EUROSTAT HICP EUROSTAT National accounts EUROSTAT Population GLOBEFISH Intrafish Seafood.com Information contents Structural information on fish processing industry Macroeconomic data Fuel prices Exchange rate and other macroeconomic data Fish processing; value added growth. Electrical energy price EUR/USD exchange rate Harmonised Index of Consumer Prices for relative changes GDP price index changes, GDP growth, and fishery-aquaculture value added growth. Population growth Prices and comments on international fish trade and supply Prices and comments on international fish trade and supply Prices and comments on international fish trade and supply 3 Design of the Data Management As specified in the TS, the purpose of the European Observatory is to provide harmonised economic information allowing local actors to compare their market situation with other markets within the European Union and policy makers to have a global overview of the European markets 5. For this reason, the EUMOFA is demanded not only to harmonise data and information existing at national and trans-national levels but also, in light of this harmonisation process, to adopt a market perspective providing figures and tools which can help users to both understand market dynamics and have continuous updates on the main economic drivers affecting price formation all along the Fishery supply chain (i.e. MARKET INTELLIGENCE) In view of the above, data management represents a core part of the project, with the following tasks to be carried out: 1) Harmonise data already surveyed in Phase 1 (e.g. languages, nomenclatures, etc.); 5 European market observatory for fishery and aquaculture products TENDERING SPECIFICATIONS,

15 2) Develop and provide specific methodologies and tools typical of market analysis activities (e.g. supply balance). As regards the first point, in order to appropriately assess data harmonisation needs, according to Project Objectives, a desk analysis and a best practices survey have been conducted in order to identify (i) harmonisation needs and (ii) possible solutions already tried out by other relevant information providers. The following harmonisation needs have been highlighted: 1) Languages 2) Nomenclature 3) Currency 4) Conversion factors Furthermore, it has also emerged that (for First sale only) the geographic dimension of data needs to be harmonised according to a new aggregation, Seaboard, in which data from all places of sale in the coastal areas of the same sea basin will be merged, regardless of the country of origin. The proposed Seaboards are: 1. Mediterranean sea Table 5 - List of seaboards used by the EUMOFA 2. Bay of Biscay and Iberian Coast 3. Celtic Seas 4. North Sea 5. Baltic Sea 6. Black Sea 7. Outermost Regions Finally, with regard to the above-mentioned tools for market analysis, as requested in the TS a methodology has been developed and tested to build supply balance sheets and to calculate the share of aquaculture products in the supply balance by assessing the origin of imports and exports in terms of production methods (fishery vs aquaculture). 3.1 Data harmonisation: Languages Following the survey of sources carried out in Phase 1 of the Project, it emerged that, although several datasets are available at MS and trans-national level in some cases also published on the web each source tends to publish the information in its local language. Thanks to the meetings held by DG MARE and then by COGEA with National administrations, it has been possible to overcome this problem by agreeing that data would be transmitted according to a shared coding system such as ERS codes - Electronic Recording System or a customised grouping of products (see Ch. 6 below). On the other hand, all EU sources will provide the EUMOFA with data already coded according to international standards such as CN-8, ERS, PRODCOM. EUMOFA outputs will be providing information in four languages, namely EN-FR-ES-DE (see TS 2.4.4), not only as far as species names are concerned but also as regards all attributes included in the product name as well as for any other item Data harmonisation: Nomenclature Generally speaking, all data related to FAP are classified according to two types of nomenclature: the ERS 7 (available at first-sale level), and the CN-8 (available for the Import-export stage). For the purposes of the 6 The only exception is the pre-packaged report of Market Trends Objective 2, which will be available in EN only. For more details, see The ERS codes are based on FAO 3-alpha codes. For the full list of ERS codes, see the DG MARE s Master data Register: 15

16 EUMOFA dissemination policy, both nomenclatures are not useful because they do not have a market perspective nor do they seem of interest for market operators or market analysts. One of the major aims of the EUMOFA is to publish homogeneous outputs at all stages of the supply chain allowing users to make comparisons between prices, volumes, values etc. and easily select different products 8 of one species, more than one species, or Commodity Groups for comparison in the different supply stages. Therefore, having a correlation between ERS and CN-8 is the basis for allowing concrete and consistent monitoring activity by the EUMOFA, and for harmonised dissemination. Following an in-depth discussion, the Work Team Experts and DG MARE have agreed that no new classifications have to be produced by EUMOFA but rather there should be logical grouping in order to obtain an appropriate harmonisation of data for specific market intelligence purposes. Therefore it has been proposed to create a correlation between ERS and CN-8 9 and produce a common list of products at two levels as follows, and as analytically reported in the table below: 1. Commodity Groups (CG): the highest aggregated level; 2. Main Commercial species (MCS): the lowest level of aggregation, in which species are grouped into groups of species. It should be noted here that CN-8 codes might change year by year. For this reason a cross reference table of changes to CN-8 nomenclature classifications over the last 10 years ( ) has also been provided Differentiated by : presentation and preservation state 9 For the complete correlation tables from ERS and CN-8 to MCS and CG, please refer to Annex 4 of Phase 2 Final Report. 10 For the cross reference table of changes in the CN-8 nomenclature classifications in the last 10 years, please refer to ANNEX 7 of Phase 2 Intermediate Report. 16

17 Table 6 - Proposed list of MCS and CG Main commercial species Commodity groups Main commercial species Commodity groups 001 Carp 048 Dogfish 002 Eel 049 Other sharks 003 Nile perch 050 Gilthead seabream 004 Pangasius 051 Other seabream 01 Freshwater fish 005 Pike 052 Gurnard 006 Pike-perch 053 John dory 007 Tilapia 054 Monk 008 Other freshwater fish 055 Picarel 009 Salmon 056 Ray 010 Trout 02 Salmonids 057 Red mullet 011 Other salmonids 058 Scabbardfish 012 Blue whiting 059 Seabass 013 Cod 060 Smelt 014 Grenadier 061 Weever 015 Haddock 062 Other marine fish 016 Hake 063 Crab 017 Ling 064 Coldwater shrimp 018 Pollack 03 Groundfish 065 Freshwater crayfish 019 Pouting (=Bib) 066 Lobster Homarus spp 020 Redfish 067 Norway lobster 021 Saithe (=Coalfish) 068 Rock lobster and sea crawfish 022 Toothfish 069 Squillid 023 Whiting 070 Tropical shrimp 024 Other groundfish 071 Miscellaneous shrimps 025 Brill 072 Other crustaceans 026 Dab 073 Cuttlefish 027 Flounder 074 Octopus 028 Halibut 075 Squid 029 Megrim 04 Flat fish 076 Other cephalopods 030 Plaice 077 Mussel 031 Sole 078 Scallop 032 Turbot 079 Oyster 033 Other flat fish 080 Clam 034 Anchovy 081 Other molluscs and aquatic invertebrates 035 Sprat (=Brisling) 082 Caviar, livers and roes 036 Herring 083 Seaweed and other algae 037 Horse mackerel 05 Small pelagics 084 Surimi 07 Other marine fish 08 Crustaceans 09 Cephalopods 10 Bivalves and other molluscs and aquatic invertebrates 11 Miscellaneous aquatic products 038 Mackerel 085 Other products 039 Sardine 086 Non food use 12 Non food use 040 Miscellaneous small pelagics 041 Albacore tuna 042 Bigeye tuna 043 Bluefin tuna 044 Skipjack tuna 045 Swordfish 046 Yellowfin tuna 047 Miscellaneous tunas 06 Tuna and tuna-like species The problem of nomenclature regards not only species but also presentation and preservation state attributes. These attributes are present both in the Master data register and in the CN-8, albeit with considerable differences. Furthermore, the EUROSTAT Landings database significantly differs from the Master data Register classification and it does not distinguish between presentations and preservation states, grouping them all as presentations. The same goes for FIDES-MIS database, where presentations and preservation states are classified according to a completely different nomenclature. Also as far as attributes are concerned, given such a heterogeneous scenario, EUOMOFA needs to prepare an adequate market-oriented tool by adopting more user-friendly attributes. For this reason, the ERS coding system, CN-8 presentations/preservation states, EUROSTAT presentations and FIDES-MIS 17

18 attributes have been harmonised into the following presentation (PR) and preservation state (PS) lists 11 : Table 7 - Proposed list of attributes codes for EUMOFA purposes EUMOFA Presentations PR1 - Whole PR2 - Cut PR3 - By-products PR4 - Unspecified 3.3 Data harmonisation: Currency EUMOFA Preservation states PS 1 - Fresh PS 2 - Frozen PS 3 - Dried-Salted-Smoked PS 4 - Prepared-Preserved PS 5 - Unspecified Currencies do not present a significant degree of heterogeneity, since almost all the MS involved in EUMOFA data collection (BE, DE, EL, ES, EE, FI, FR, IE, IT, NL, PT) are part of the eurozone, with the exception of five MS (DK, SE, UK, LV, LT, PL) plus Norway and Iceland, which have their own currencies. Data from these countries will be collected by the EUMOFA in their local currencies and for the sake of data comparability all currencies need to be harmonised in Euro. To this end, it has been proposed that the following currency exchange rates be adopted, deriving from the European Central Bank: - For weekly data, it is proposed that the daily bilateral exchange rate referring to the Friday of the week of reference be used; - For monthly and yearly data, it is proposed that the monthly average exchange rate for the month/year of reference, as already provided by the ECB, be used. As far as the Icelandic currency is concerned, the latest exchange rate available on the European Central Bank website dates back to 3 December However, Icelandic market operators establish Fishery prices considering the internal exchange rate. Therefore, since the Observatory aims to provide information that is as accurate as possible, Icelandic Krona will be converted into Euro, using the exchange rates reported on the Icelandic Central Bank s website ( and available at three different levels: daily, monthly and yearly (average of daily rates). 3.4 Data harmonisation: Conversion factors As an essential part of the supply balance sheets (see below), conversion factors (CF) are a tool to convert net weight to the actual live weight of fishery products. Production data (Catches + Aquaculture) are already provided on a yearly basis in live weight by EUROSTAT s Fishery Statistics. Only Import/export data (from EUROSTAT COMEXT) are available in net weight, and for calculating supply balance sheets for the EUMOFA harmonisation to live weight is needed. The methodology proposed for the EUMOFA for harmonising net weight into live weight is based on the EC-funded study, Feasibility study on the creation of supply balances for fisheries products 12, with needed amendments in light of recent market developments, and based on the experience of the COGEA Work Team. As a final result each CN-8 item taken into consideration for EUMOFA purposes has been assigned a specific conversion factor, providing also the rationale for its adoption and the source of the information 13. This methodology also allows a yearly updating of these CF, since CN-8 nomenclature is subject to yearly revisions and because markets standards change over time. 11 For the complete correlation tables from ERS codes, EUROSTAT and FIDES codes, and EUMOFA PR and PS, please refer to Ch. 4 of Phase 2 Final Report. 12 Oceanic Développement, 2003, Étude de faisabilité de la construction de bilans d'approvisionnements pour les produits de la pêche, Annex 2, Concarneau, France. This study was aimed at drawing up a methodology for the compilation of supply balance sheets at MS level and for this purpose, CF were applied to trade data and specifically to each CN-8 related to fish products. 13 For the complete list of CF, please refer to ANNEX 5 of Phase 2 Final Report. 18

19 3.5 Methodologies and tools for specific market analysis Two specific tools and methodologies have been designed to meet two market analysis needs: Supply balance sheets and Assessment of the origin of imports and exports in terms of production methods (catches vs aquaculture) Supply balance sheets The methodology to build Supply balance (SB) sheets represents one of EUMOFA s key tools as there is a high demand for data derived from supply balance sheets for fishery products, and particularly for data on consumption (per-capita volumes). It should be pointed out here that the results of SB calculation must be considered in any case as proxies for actual market supply, providing useful insights on trends rather than representing absolute values. Furthermore, it is widely accepted that the SB calculation should not include variables that do not make a significant contribution to the overall information content, while increasing the level of uncertainty of results. In particular, information on stocks changes occurring between production and retail levels is very incomplete. Moreover, stock changes usually account for less than 1-2% of the total supply balance (according to FAO data), thus this is not particularly relevant for a market intelligence tool like the EUMOFA. Other relevant issues relate to the assessment of Losses 14, Distant fishing 15 and possibly "withdrawals" 16 : it was proposed that none of these variables should be included in the compilation of the EUMOFA SB, since they cannot significantly contribute to overall information content. In light of the above, the EUMOFA calculation of the supply balance sheet will be based on the following equation (in terms of volume): Supply for domestic utilisation = Catches + Aquaculture + Imports - Exports All data used for the equation will be taken from EUROSTAT s data as follows: - Production: EUROSTAT catches + aquaculture; - Import and Export: EUROSTAT COMEXT; In order to test the above-described methodology, the apparent consumption at EU level for 11 Commodity Groups has been calculated for For this test, we have used EUROSTAT data converted into live weight equivalent, where needed, by using EUMOFA s conversion factors. The concept of apparent consumption for EUMOFA must not be confused with other consumption data since it is intended as the quantitative result of the equation: Apparent consumption = (Catches NF) + Aquaculture + (Imports-NF) (Exports-NF) where NF represents non food use volumes for each element It should be stressed that the information content and consistency of SB results depend on the aggregation level of the data used for the calculations. In light of the analysis conducted, the EUMOFA will deliver supply balance at EU level for: the 11 Commodity Groups; the top 10 consumed Main Commercial Species (these MCS will be selected case by case, according to the results of the calculation). Below are the results for the 11 Commodity Groups. 14 No official data exist, but only estimations. 15 Data exist and are included in Catches but often inconsistencies are reported between catches and exports. 16 Data exist but they represent a limited volume of production (1% or less). 19

20 Commodity Groups Table 8 Apparent consumption at EU level by Commodity Groups (Tonnes; ) Catches (tonnes) Aquaculture (tonnes) Import (tonnes) Export (tonnes) Apparent consumption (tonnes) Freshwater fish , , , , , , , , , ,48 Salmonids , , , , , , , , , ,47 Groundfish , , ,00 0, , , , , , ,62 Flat fish , , , , , , , , , ,29 Small pelagics , ,00 0,00 0, , , , , , ,88 Tuna and tuna-like species , , , , , , , , , ,37 Other marine fish , , , , , , , , , ,43 Crustaceans , ,00 217,00 270, , , , , , ,64 Cephalopods , ,00 30,00 15, , , , , , ,50 Bivalves and other molluscs and aquatic invertebrates Miscellaneous aquatic products , , , , , , , , , , , ,00 67,00 129, , , , , , ,88 Total , , , , , , , , , ,86 20

21 3.5.2 Assessment of the origin of imports and exports in terms of production methods (catches vs aquaculture) The aim of this assessment is to quantify the share of aquaculture vs catches for extra-eu imports and extra-eu exports, within the supply balance sheet calculation. It should be mentioned that at present no consolidated methodology to differentiate traded products according to their origin (farmed or wild) in the supply balance sheet has appeared in literature. For this reason, and as agreed with DG MARE, this assessment: - is aimed at providing only an estimate of this market phenomenon and trend; - is carried out on the basis of the production method of a country (country of origin of import or export) for a given product; - is carried out at EU level and for selected MCS that are identifiable by CN-8 codes; - only considers extra-eu imports and extra-eu exports; - does not consider presentation and preservation state. The sources of information used are EUROSTAT - COMEXT for trade data and FAO - FISHSTAT Plus for production data. The methodology used for assessing the share of origin of imports (farmed or wild) has entailed the following steps: 1. Identification of the MCS which can originate from farming activities (even those MCS partially farmed) from FAO-FISHSTAT production data; 2. Identification of the Countries of origin of farmed MCS (using COMEXT and calculating an average for years ); 3. By using FAO FISHSTAT, for specific Countries and MCS, identification of farmed and caught volumes, calculating the ratio of national farmed volumes for that MCS over total production; 4. The result will be a percentage which is an estimate of the imported volume originating from farming activities for a specific MCS. The methodology used for assessing the origin of exports (farmed or wild) is the same the above, exception for the fact that the Countries of Origin are EU MS. However, it must be mentioned that any EU country whose exports represent less than 1% (in quantity) of total extra-eu exports has been excluded from the assessment. Furthermore, given that most EU MS exports originate from imports, the assessment of the origin of exports has been subdivided into: (i) products originating from EU MS production, and (ii) products originating from imports from third Countries. Below are the final assessment results concerning the origin of both Extra-EU imports and exports: 21

22 Table 9 - Assessment Summary for the origin of extra-eu Imports and Exports in terms of production methods Origin of extra-eu imports in terms of production methods MCS Assessed Share of Aquaculture Share of Capture MCS Assessed MCS produced in the EU Origin of extra-eu exports in terms of production methods Share of Aquaculture Share of Capture MCS not produced in the EU MCS Assessed Share of Aquaculture Eel 61.3% 38.7% Eel 64.8% 35.2% Tilapia 93.1% 6.9% Carp 87.8% 12.2% Carp 85.0% 15.0% Nile perch 2.2% 97.8% Tilapia 95.4% 4.6% Other freshwater fish 16.6% 83.4% Pangasius 87.4% 0.00% Share of Capture Nile perch 0.0% 100.0% Salmon 62.2% 37.8% Other flat fish 0.0% 10.00% Pangasius 100.0% 0.0% Other salmonids 15.4% 84.6% Tropical shrimp 47.3% 52.7% Other freshwater fish 40.1% 59.9% Trout 91.6% 8.4% Freshwater crayfish 41.8% 58.2% Salmon 93.2% 6.8% Cod 0.2% 99.8% Other salmonids 44.2% 35.8% Sole 0.4% 99.6% Trout 90.5% 9.5% Halibut 0.0% 100.0% Cod 2.4% 97.6% Flounder 0.0% 100.0% Sole 0.0% 100.0% Yellowfin tuna 0.0% 100.0% Halibut 2.5% 97.5% Bluefin tuna 8.4% 91.6% Flounder 82.9% 17.1% Gilthead seabream 94.6% 5.4% Other flat fish 0.0% 100.0% Other seabreams 5.9% 94.1% Yellowfin tuna 0.0% 100.0% Seabass 81.2% 18.8% Bluefin tuna 0.7% 99.3% Other marine fish 1.9% 98.1% Gilthead seabream 94.1% 5.9% Lobster Homarus spp. 0.0% 100.0% Other seabreams 8.0% 92.0% Crab 0.0% 100.0% Seabass 96.7% 3.3% Miscellaneous shrimps 3.1% 96.9% Other marine fish 3.3% 96.7% Other crustaceans 0.0% 100.0% Lobster Homarus spp. 0.0% 100.0% Cuttlefish 0.0% 100.0% Crab 10.5% 89.5% Oyster 96.7% 3.3% Tropical shrimp 58.1% 41.9% Mussel 84.1% 15.9% Miscellaneous shrimps 47.5% 52.5% Scallop 0.0% 100.0% Freshwater crayfish 36.4% 63.6% Clam 54.0% 46.0% Other crustaceans 0.0% 100.0% Other molluscs and aquatic invertebrates 7.9% 92.1% Cuttlefish 0.0% 100.0% Seaweed and other algae 0.0% 100.0% Oyster 84.2% 15.8% Mussel 88.2% 11.8% Scallop 18.9% 81.1% Clam 62.5% 37.5% Other molluscs and aquatic invertebrates 12.2% 87.8% Seaweed and other algae 52.4% 47.6% 22