Poor rich-country industries: Fishprocessing industries out-competed by low-labour-cost countries?

Similar documents
A. Espersen A/S. We say what we do and do what we say.

Modern onboard production with new tecnology

A giant step in whitefish. Brussels April 2017 Knut Hallvard Lerøy Lerøy Seafood AS

How does the fish industry see logistic to improve the sustainability of the value chain? Sigurjón n Arason Matis ohf, Reykjavik, Iceland

Traceability - a tool to increase value of Matís seafood products? Jónas R. Viðarsson Valur N. Gunnlaugsson

What Business are we in? Dr. Ögmundur Knútsson, University of Akureyri

Northern Cod Building the Fishery of the Future What We Have Heard Workshop Summary

Multiple benefits of Food Technology collaboration in Fish Processing

WhiteFish R4A project

Employment in the EU based on Farmed Norwegian Salmon Short version

Environmental, social and economic impacts of coastal longline fisheries using Selectfish - new automated equipment.

BORN TO BE WILD? Dr. Ögmundur Knútsson University of Akureyri, Dr. Daði Már Kristófersson University of Iceland

Whole salmon grading and distribution system

Operating an International Seafood Business from Atlantic Canada: Challenges & Opportunities

Redskapspolitikk og beslutnings problemer for fiskeindustrien i Island Dr. Sveinn Margeirsson Value chain and processing Matis ohf, Iceland

A.I.P.C.E. White Fish Study 2005

Humber Seafood Summit: Net Positive Fishing: Alex Olsen

Analysis of traceability on board a freezer trawler

Sustainability Report The Craft of Sustainability

Brexit : How should the seafood industry prepare? A UK Seafood Industry Perspective

About us Business overview

Tegen Mor Fisheries Consultants

Farming the Sea. by Frank Asche

Food and Beverage Export Strategy Development to 2021

Reducing NTBs Benefiting from MRAs of goods in ASEAN Fishery exports in Vietnam

4.22 SWEDEN General overview of the Swedish fish processing sector

Challenges and Opportunities of Fisheries Globalization: Perspectives from Canada s Pacific Coast

FOUR CASES ON MARKET ORIENTATION OF VALUE CHAINS IN AGRIBUSINESS AND FISHERIES

SITUATION, TRENDS AND PROSPECTS OF THE SUPPLY OF FISHERIES AND AQUACULTURE PRODUCTS TO THE EU MARKET

Diversity in the Nordic Seafood Industry

We inspire to choose quality. Every time.

ICELAND IS ALL ABOUT FISH AND SHIPS

Turnkey Flowline Systems Streamlined farmed whitefish processing

Wild and farmed fish in the USA seafood market

Current status of Ultra-Low Oxygen/High-CO 2 (<1,000 ppm O 2 /60-95% CO 2 ) Controlled Atmosphere Systems

The UK Seafood Network recent developments and the role of Norwegian exporters

The Cold Chain in New Zealand

THE BC OPPORTUNITY for LAND-BASED AQUACULTURE

FINFISH STUDY 2013 A.I.P.C.E.-C.E.P EU Fish Processors and Traders Association Brussels, December 2013

FINFISH STUDY 2015 A.I.P.C.E.-C.E.P. EU Fish Processors and Traders Association

Bioeconomy An Icelandic approach

OUR SEAS, OUR FISH, OUR FOOD

Market Advisory Council

INNOVATION IN SALMON FARMING

Seafood Expo Global Brussels - April, 2017

Creating Value in Wild Seafood

Norway Seafood Industry Report

Cost impact analysis to inform the process development plan, clinical trial program and business planning

The Impact of Vertical Integration on Performance

Advice June 2012

Volume and Value of Fish Landings. '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10r '11p

Alaska Bering Sea Fisheries in the Global Economy

Address to World Seafood Congress Martin Sullivan, CEO. October 1, 2013

Nuclear energy in Europe

Challenges in the Seafood Industry NoroCORE Conference November 7-8, 2012 Otto (Chip) Simmons, Ph.D. North Carolina State University Barbara

Simon Smith Managing Director

Demand Analysis of the Chinese Whitefish Market

HAV LINE METODEN ET NYTT KONSEPT INNEN HAVBRUK INAQ FROKOSTSEMINAR TRONDHEIM, 15. AUGUST, 2017 JON HINDAR, STYRELEDER I HAV LINE GRUPPEN AS

Available online at Procedia Food Science 1 (2011)

Procurement policy for SUSTAINABLE FISH PURCHASING

Fish markets and marketing Value Chain course for Senior Fisheries Officers in the CRFM States

Regional adaptation and national policy implications

Contents. Foreword and Report s Main Findings Seafood Player Comparison Some Key Figures ISB Basic Information...

Norway-Japan Marine Seminar, June 4th 2014 Future food production from the ocean role of R&D

The Arctic as a food producing region

defense manufacturers

Shippingklubben Ålesund

Overview of the Atlantic Canada seafood industry: structure, markets, marketing. Moncton February 23, 2007

Creating Value in Wild Seafood. Dedicated to Sustainable Seafood Excellence

Norway Pelagic Q2 2009: Improving demand and margins for pelagic fish

ALASKA SEAFOOD MARKET CHANGES AND CHALLENGES

Towards Quality Improvement Thoughts from a buyer s perspective

Sector Trend Analysis Salmon Trends In the European Union

Competitive Study - Cluster Approach Study Highlights: Competitiveness of Thailand s Black Tiger Shrimp Industry

The sector of blackcurrant in the EU

Impacts of ongoing legislative changes on seafood labelling

Background. Fish are a vital source of food for millions of people around the world

Issues in the U.S. Market For Aquaculture Products. John Sackton

Economic Performance of the Capture Fishery in NL

FISH TRADE AND CONSUMER TRENDS IN EUROPE

Aquaculture Think globally, act locally. Our vision

Our four regions and their priorities

delivering more You ll get more than just a delivery company with us, i.e. interlink express

Report of the Board for 2005

SERVICE LOGISTICS CENTRALISED PARTS SOLUTIONS

Economic impact of eel trade ban general trends. Study in support to the STECF

Welfare of farmed fish: Common practices during transport and at slaughter. Executive Summary

Common Vision Common Future Be sustainable. Be economically viable. FISHERIES RENEWAL FRAMEWORK Action Plan

Value Chain Analysis of Farmed Shrimp in Navsari District of Gujarat

Press Release: Adaptation Actions for a Changing Arctic Barents Report, 2017

Understand the role of logistics in supply chain management. Understand the importance of Quality Standards throughout the supply chain

Salmon Slicing Equipment, systems, and software for the salmon industry

WHITE PAPER 5 TIPS FOR MANAGING FOOD AND BEVERAGE SUPPLY CHAIN

Retail. The way to excellence between retailers and consumers

Innovative recruitment systems in the fisheries sector - A study by Eurofound -

Exporting octopus to Europe

WhiteFish standarden: Egenevaluering av bærekraftighet og miljøregnskap

Quality Management in Fish Processing

Supply chain expectations for tool to calculate sustainability of white fish products at a batch level

SEAFOOD PROCESSING INDUSTRY REPORT

Transcription:

Poor rich-country industries: Fishprocessing industries out-competed by low-labour-cost countries? Audun Iversen Bjørn-Inge Bendiksen Nofima, Norway 16.11.2012 test 1 Background Rich-country industries loose competiveness compared to producers in low-cost countries Most visible in labour-intensive production We have studied producers of fresh or frozen fillets of whitefish (cod, haddock, saithe), with production in the Nordic countries, The Baltic and the Far East In Norway this industry has been reduced from about 100 firms 20 years ago, to seven today Processing has to a large degree been moved to the Baltic countries or the Far East 16.11.2012 test 2 1

Research questions Is it possible for the remaining fish-processing industry in Norway to survive in the future? What are the locational advantages of the Norwegian fishprocessing industry? How can locational advantages be exploited? What strategies might the firms pursue? How can the government strenghten the possibilities of succesful strategies? To answer this, we discuss the relative advantages of doing processing in these countries 16.11.2012 test 3 Methodology Desk-top studies for some issues, field studies for others Case studies Interviews Levels of analysis Country/region level Firm level 16.11.2012 test 4 2

Empirical setting Fish-processing industry in Norway, Iceland, Poland, Lithuania, China and Vietnam Case study of five firms with different and/or multiple locations 16.11.2012 test 5 Hradfrystihusid Gunvor Domstein China Vietnam Espersen 16.11.2012 test 6 3

Competitive advantage through location? Norway Iceland Poland/Lithuania China/Vietnam Advantages Proximity to raw material Time to market Price of raw material Price for bi-products Able to supply genuinely fresh fish Proximity to raw material Control of raw material Seasonal profile of landings Price of raw material Quality Price for bi-products Able to supply genuinely fresh fish Time to market Cost level Yield (in % of raw material) Scale Cost level Yield (in % of raw material) Scale Varieties, abilities to produce tailored products 16.11.2012 test 7 Disadvantages High level of costs Seasonal profile of landings Scale/structure Quality challenges Trade barriers Transportation costs Limited supply of raw material Price of raw material Price of technology Capital costs - Price risk - Time to market Duoble-frozen products Price of raw material Capital costs -- Price risk -- Traceability difficult Case firms Espersen, Denmark HG (Hradfrystihusid Gunnvor), Iceland Tobø-fisk, Norway Domstein, Norway Aker Seafoods/Norway Seafoods, Norway 16.11.2012 test 8 4

Espersen, Denmark Exploits the possibilities of globalisation Production in Polen, Lithuania, China and Vietnam Frozen blocks, lightly salted fillet Value Added-products still produced in Denmark Take over production of refreshed fillet from Domstein 16.11.2012 test 9 HG (Hradfrystihusid Gunnvor), Iceland Owns trawlers and quotas Value-chain coordination give Predictable supply Control of fish quality export of fresh fillets with longer shelf-life (on-board gutting, iceslurry cooling and pre-rigor filleting) 16.11.2012 test 10 5

Strong focus on quality, no landings from trawl, net or large snurrevad Close cooperation with boats give good predictability Good quality Simple/few products with minimum labour keep costs low 16.11.2012 test 11 Domstein No 1 i the Nordic market for Private Label Also sell under the Domstein brand Strong focus on sustainability Produced refreshed fillet ( fresh fish based on frozen raw material) 16.11.2012 test 12 6

Aker Seafood/Norway Seafoods Norway s largest producer of fresh whitefish fillet Integration into important markets (Denmark, France) Has their own fleet of trawlers Still rely on coastal fleet for supply of fresh fish 16.11.2012 test 13 Norwegian firms: Competitive advantage through strategy? Norway Advantages Proximity to raw material Time to market Price of raw material Price for bi-products Able to supply genuinely fresh fish Disadvantages High level of costs Seasonal profile of landings Scale/structure Quality challenges Trade barriers The search for competitive advantage: Technology development, rationalisation, automation From block-freezing to IQFs Production of fresh filet Boat cooperation/ownership Production of refreshed fish 16.11.2012 test 14 7

Norske bedrifters strategivalg Domstein: Tobø-fisk Aker/Norway S. Refreshed Domstein miljøgaranti, linefanget, MSC Fersk filet, samarbeid med kystflåte, Fersk filet, egen flåte Integrasjon mot markedet 16.11.2012 test 15 Generic Strategies and Cost/Value position Low Value position Normal High Low Even Competitive Competitive Focused Cost Leadership Strategy Cost advantage advantage Leadership Cost position Normal High Disadvantage Even Differentiation Strategy Competitive advantage Disadvantage Disadvantage Even 16.11.2012 test 16 (Hunt & Morgan, 1995) 8

Strategic developments for our cases Low Value position Normal High Low Even Competitive advantage Espersen Competitive advantage HG Cost position Normal Disadvantage Even Tobø-fisk Competitive advantage Domstein High Disadvantage Disadvantage Even 16.11.2012 test 17 Findings There are still some locational advantages for the Norwegian fishprocessing industry But they are hard to exploit Differentiation/premium necessary Logistics are difficult Raw material supply must be optimised Competitive advantage a result of both location and strategy Institutional arrangements limit strategic options and value propositions for customers Fresh-fish opportunities Fresh fish available at prices below world market prices Gains premium prices in the market if you can supply high/predictable volumes of even quality 16.11.2012 test 18 9

Findings, cont. Technological innovations work when they support other advantages Technology in itself does not lead to competitive advantage Easily transferred to other locations Technology the same in the Baltic as in Norway and Iceland (Marel) Simple technological innovations that are not easily transferred: Chilling with ice-slurry and direct gutting Filleting based on thawed fish requires optimised thawing facilities 16.11.2012 test 19 Implications Policy implications If government wants more value creation based on Norwegian stocks, the input issue for the processing industry most be solved (through for instance industry qoutas, boat-land cooperation models et.c) Implications for theory The search for competitiveness must be understood from a Country/region level Firm level Institutional level 16.11.2012 test 20 10

Thank you for your attention! For mitt visittkort på SMS: Send Nofima 26 til 2077 16.11.2012 test 21 11