1. Local versus Global Markets for Scottish Food Producers & Consumers Overview of fish through the supply chain James A Young (Jimmy) Professor of Applied Marketing Department of Marketing University of Stirling, Scotland j.a.young@stir.ac.uk +44 1786 467383

2. Challenges of the global market – production drivers Change in composition of global fish supplies Change in composition of global fish supplies Static / decline in wild capture fisheries Static / decline in wild capture fisheries Aquaculture - emergent global food industry Aquaculture - emergent global food industry

3. FISHSTAT 2007 World Fish Production catch aquaculture

4. Asia incl. China FAO, 2008

5. Future fish supplies growth from aquaculture fastest growing food producing sector in the world fastest growing food producing sector in the world accounts for almost 50% of global food fish accounts for almost 50% of global food fish 53 Mt of farmed fish produced: US$ 75 bn (2007) 53 Mt of farmed fish produced: US$ 75 bn (2007) Given projected population growth: Need Given projected population growth: Need additional 40 Mt of aquatic food by 2030 to maintain current per caput consumption additional 40 Mt of aquatic food by 2030 to maintain current per caput consumption Supply challenges Supply challenges

6. Supply Chain & The Fish Marketing Environment

7. A schematic Supply Chain in fish

8. UK supply chain ’06 £GBP ~ in / out of home consumption EU profile?

9. Chain dynamics

10. UK fish stats: 2006 (Seafish ‘08)

11. Future fish supplies from Scotland Capture fisheries Capture fisheries ~ EU CFP compliance ~ TACs, Quotas & other management measures Aquaculture Aquaculture ~ Existing site constraints via ECC ~ New species – cod et al ~ Offshore & Land-based cost constraints Post-harvest & Value added processing / technical gains Post-harvest & Value added processing / technical gains

12. Key challenges of fish supply chains Disparate locations of fish resources and markets Disparate locations of fish resources and markets Complex global trading links patterns of exchange Complex global trading links patterns of exchange Heterogeneous raw materials require transformation & allocation to specialised value chains satisfying varied market needs Heterogeneous raw materials require transformation & allocation to specialised value chains satisfying varied market needs Chains & activities are interdependent & influential Chains & activities are interdependent & influential ~ delivered quality levels depend upon earlier chain activities ~ value adding options depend upon earlier chain activities Vertical communications network & chain management Vertical communications network & chain management Consumers are the ultimate determinant of values Consumers are the ultimate determinant of values

13. How do consumers assess value ? Consumers commonly consider ‘value’ – but often purchase quickly, routinely & sub- consciously Consumers commonly consider ‘value’ – but often purchase quickly, routinely & sub- consciously Different attributes appeal to different consumers Different attributes appeal to different consumers Consumers act differently Consumers act differently at different times Involvement in fish? Involvement in fish?

14. Possible determinants of fish ‘quality’ value.. ~ product form: fresh, chilled, frozen, canned, smoked, dried + variants ~ texture, freshness, colour, smell ~ brands, grades, certification ~ packaging types, information, pack sizes, ease of preparation, storage ~ meal occasion, co-diners, mood, weather ~ promotion support: adverts +/-, publicity, sales promotions, media activity etc…

15. Market perspectives Retail Retail ~ dominance of supermarkets ~ high & growing market share ~ diverse positioning (LUV – HUV £) ~ attuned to / driving green agenda ~ niche / local specialists Foodservice Foodservice

16. Market perspectives Foodservice Foodservice ~ fragmented structure (profit & cost) ~ diverse positioning (LUV – HUV £) ~ sensitivity to economic climate ~ provider of fish solutions ~ driving green agenda Foodservice Foodservice

17. Conclusions on fish through the supply chain Global & local interdependence Global & local interdependence Fish is a high profile food Fish is a high profile food Many emergent & conflicting issues Many emergent & conflicting issues Increasingly complex seafood markets Increasingly complex seafood markets Importance of trust, credibility & growth of certification dependence Importance of trust, credibility & growth of certification dependence

18. Questions?