Overview of UK markets & supply Original presentation delivered by Julie Graham, Seafish April 2005

Marketing relies on: Consumers attitudes towards the environment & seafood Use consumer research Supply of seafood available Look at present availability and: predicted future supplies

Consumers attitudes to the environment and seafood

Consumers attitudes to the choice of fish Seafood purchasing patterns Choice of seafood – chilled v frozen Consumer concerns Conclusions

Seafood purchasing patterns by typology Disinterested are more likely to purchase frozen processed white fish. 81% never buy exotic fish Swimmers are more likely to purchase a broad range of chilled unprocessed fish. 49% buy exotic fish

Choice of seafood – chilled v frozen The overall approach / mind-set varies by format: CHILLED FROZEN Chilled is a more emotionally driven and hence random decision process Frozen product selection operates in a more functional manner Decision made at the retail outlet Products are typically pre-determined before reaching the retail outlet Spontaneity, browsing and product comparison is evident Strong grab-and-go behaviour Broader product repertoire Strong tendency for repeat purchasing

Seafood purchase decision criteria Key purchase drivers High priority Low priority Overall, the purchase decision process for seafood appeared to comprise fewer variables than for other proteins. Price appeared to be allocated slightly more importance when purchasing seafood than was evident for other proteins.

Consumer concerns relating to seafood Awareness of seafood-related publicity generally restricted to Waders & Swimmers Over-fishing had greatest recognition (26%) Weak awareness of farmed fish (5% had heard of farmed salmon) 75% of Disinterested and 43% of Paddlers were unable to mention any issues

Conclusions Overall, little behavioural change in terms of seafood purchase was evident Any change in behaviour was generally confined to modification rather than rejection Publicity has had a limited impact on consumer purchase intent Seafood is still widely regarded as a natural, pure and healthy food resource I’d be inclined to try other fish rather than do without If you worried about everything, you wouldn’t eat anything I tend to switch off because I like fish and if I choose to eat it I will

UK Supply

UK supply of seafood 1.9 million tonnes Landings = 458,000 tonnes (up 4%) (£404 million – up 4%) Imports 1,460,000 tonnes (up 4%) (£1.54 billion – up 1%). Total volume = 1.9 million tonnes. Total value = £1.95 billion. Approx one quarter of supply is met through landings Source: DEFRA / HM Customs & Excise

Imports

Top 5 species imported to the UK Value 1.46 million tonnes imported in 2004, worth £1.54 billion Prawns £339m Cod £328m Tuna £193m Salmon £108m Haddock £101m 69% of total imports 1.46 million tonnes of seafood were imported into the UK, an increase of 4% on 2003. These were valued at £1.54 billion (a 1% increase). The top 5 species accounted for 69% of total imports in value terms to December 2004. Source: HM Customs & Excise

Source: HM Customs & Excise Key species imports to the UK Growth in volume and value (%) Source: HM Customs & Excise

Focus on cod and haddock

World production of cod and haddock (2002) Cod Atlantic / Pacific Haddock Total production 1.2 million tonnes 267,000 tonnes Russia (20%) USA (20%) Norway (19%) Norway (21%) Iceland (19%) Russia (15%) Key producers Cod – Russia/USA 20% each, UK 3%. Total tonnage = 1.2 million tonnes. Haddock – Norway 21 UK 20 Iceland 19 . Total production = 267,000 tonnes UK production 3% 20% Source: FAO

Total UK supply – cod & haddock Cod landings down 2% on 2003. Imports down 1% (volume). Total supply 293,000 tonnes. % of supply ????? Haddock landings up 12% on 2003. Imports up 15% (volume). Total supply 155,000 tonnes. Cod Haddock Source: DEFRA / HM Customs & Excise

UK cod and haddock imports 2004 Total imports 278,000 tonnes 110,000 tonnes Key countries Iceland (25%) Denmark (15%) Russia (15%) China (14%) Iceland (36%) Faroes (21%) Norway (18%) China (7%)

Focus on China

Source: HM Customs & Excise Imports from China 99% 211% Thousand tonnes The decrease in imports in 2002 was due to an EU import ban on Chinese seafood products (on account of contamination of shrimp with chloramphenicol). In the latest period, volume was 68,000 tonnes, up 8% on 2003. 715% 131% January – December Source: HM Customs & Excise

Summary Three quarters of UK seafood supply is met through imports Top 5 species imported - prawns, cod, tuna, salmon and haddock The UK produces 3% of world cod, and 20% of world haddock Cod imported from Iceland, Denmark, Russia, China Haddock imported from Iceland, Faroes, Norway, China China has become increasingly important in recent years for UK supply of cod and haddock

For further information please contact: Julie Graham Market Insight Executive j_graham@seafish.co.uk 0131 524 8684