The presentation that follows was made to the Hearing on European Aquaculture that was held by the Fisheries Committee of the European Parliament (October 2002) and was written by the FEAP Secretariat using input from the Member Associations of the FEAP. The final report of this hearing was published in December 2002 (Rapporteur: Mr. Hugues Martin).

The diagrams and figures can be seen as individual graphic files (low resolution) or by downloading the 'EUR-AQUA' powerpoint file (~600 KB) in the right side of the window.

The development of European fish farming over the last 20 years has demonstrated that this activity has become an extremely important contributor to the EU fisheries sector.

The current estimate for EU fish farming is 520,000 tons of products that are produced throughout the entire European Union – fish farming exists in every Member State.

The successful development of fish farming has always depended on

1. Having access to the technology that allows the fish to be reared to market size.
2. Being able to use a site that possesses the appropriate climatic conditions for the fish to be reared.
3. Employing skilled operators and technicians to achieve the multi-professional tasks required of this activity.

When aquaculture started to expand (in the 1970s and 1980s), most species were reared in relatively small quantities and were of high market value; market issues were generally less important than the technical aspects of production.

2 key elements were resolved around this time – scientists were able to close the cycle for some of the more ‘difficult’ marine species and formulated feeds of improved digestibility allowed a dramatic increase in the efficiency of food conversion. These solutions provided significant improvements in productivity and diversification opportunities.

As production increased, fish farming was seen to provide a significant opportunity for economic development, providing nutritious food of high quality, and reducing the import burden for fisheries products. It is fair to say that it has answered this opportunity, not only in Europe but throughout the world.

Nonetheless, European aquaculture’s development coincided with other significant societal changes. First and foremost was the virtual elimination of the fishmonger who was replaced by the multiple retail stores, a change that revolutionised the position for food suppliers and the consumer alike.

The overall situation put enormous pressure on prices, accompanied by the necessity to raise quality standards while being restricted on site or license allocation; this situation remains today.

In the last decade, further significant changes have affected European fish farming.

Perhaps the most notable of these has been the effects of B.S.E. and the dioxin crisis on:

• the legislative approach to food and feed safety
• the feeds used,
• public confidence in the food supply sectors

Additionally, the global appreciation that human activities must be sustainable has been incorporated into most scenarios for development.

A variety of situations have given rise to positions of conflict, most of which can or could have been avoided if there was a better understanding of what European fish farming is able to contribute.

So, in 2002, while one can report an impressive rise in production, prices have stagnated or dropped significantly over the last decade. These reflect differing circumstances and conditions depending on the species, the location and the scale of the farm.

European fish farming is a dispersed and varied sector and it is essential that its distinctions and differences be understood clearly in order to have a better, defined framework that will allow this important sector to consolidate its position and develop correctly in the next decade – a framework that can be described as an ‘enabling environment’.

Role of FEAP within European Aquaculture

• 31 National Aquaculture Associations from 22 European States – a unique forum for European fish farming
• Member of the EU Advisory Committee on Fisheries and Aquaculture (ACFA)
• Liaison status with the FAO – EIFAC, GFCM and Global sub-Committee on Aquaculture of the COFI
• Participant in important EU RTD projects and actions
• First International Association to develop a Code of Conduct for aquaculture
• Active in public communication – ‘Aquamedia’

European aquaculture must be conducted in a sustainable and responsible manner; the Member Associations of the FEAP underlined this position in its European Code of Conduct, which was prepared in 1998-1999. This declaration was one of the first to be made at the European level by a food production sector where the FEAPasserts its right to be able to provide the consumer with the nutritious, healthy fish desired, produced with respect for the environment, the welfare of the fish and for the people who work in the profession.

Global Fish Farming Development

Fish Farming production in the EU is 2% (volume) of Global Production and has grown at an APR of 7.9% since 1970 vs. 10.4% for the rest of the world (see globalffdev.jpg).

European research and technology has contributed significantly to global growth and European companies are active in aquaculture development throughout the world.

European Fish Farming Development

While EU fish farming has reached over 500,000 tons, European fish farming passed 1 million tons of production in 1998/9 (see eurfishfarming.jpg)., reflecting expansion of the activity in many neighbouring countries (Norway, Iceland, Turkey, Poland, Faeroe Islands...)

EU Fish Farming Development

• 57,000 tons in 1970
• 125,000 tons in 1980
• 300,000 tons in 1990
• 520,000 tons in 2000

Currently, EU fish farming is responsible for:

~10% of all EU fisheries landings (fisheries + aquaculture)

~23% of value of EU fisheries (fisheries + aquaculture)

(from Facts and Figures on the CFP: European Commission - see EUproddev.jpg)

Major Producer States in EU (2000)

United Kingdom – 30% - 161,000 tons

Greece – 12% - 67,000 tons

Italy – 12% - 65,000 tons

France – 11% - 60,000 tons

Spain – 9% - 48,000 tons

Denmark – 7% - 40,000 tons

Germany – 7% - 36,000 tons

but fish farming exists in all EU Member States

(Figures provided by FEAP Member Associations - see EUMSprod.jpg)

Major Fish Species reared in EU

• Principal species in EU is Trout – portion-size (250-350g) and large Trout (>1 kg)
• Largest growth seen in mariculture
• Salmon, Seabream, Seabass, Turbot
• Recent diversification has been of low for both production and economic importance 
• ‘New’ species can be difficult to introduce

While the annual EU production of carps is around 20,000 tons, one should note that introduction of the Accession Countries would bring in some 65,000 hectares of fish ponds (see EUfishspecies.jpg and EUdevtrends.jpg).

Most farmed species in the EU are much closer to their wild genetic origins than other livestock farmed in the EU and genetic selection remains the most likely tool to provide and improve diversification opportunities for the sector; there is a clear need for the establishment of genetic bankS (of different species ‘strains’) for this purpose and also to be able to answer certain questions concerning the restocking of rivers and water bodies. The FEAP does not endorse use of GMO fish in European fish farming at present.

• EU fish farming is an important contributor to the fisheries sector, supplying processors and the consumer with a variety of high quality, safe food products at a reasonable price
• EU fish farming has become an important pan-European economic sector, providing jobs in rural and coastal areas and supporting important upstream and downstream activities and services
• Overall production growth 6.3% APR, 5.5% less than the global trend over the same period
• Overall price trend is negative (-0.5% APR) vs. positive global development

Structure of European Fish Farming

European fish farming (for food fish) is structured within 3 main categories:

1. The large producing companies that are active on a national and international basis – suppliers of Multiple Retail Stores, strong link to processed products.
2. The medium-size company – often family-owned – could be grouped under a cooperative structure or supplies processors/stores directly.
3. The small family company that has limited production capacity and only sells locally.

Additional to this basic structure are hatcheries and farms that supply fry or juvenile fish to the above and may also supply fish for restocking.

This structural diversity contributes partially the problems faced in the marketplace. While the price erosion seen on an annual basis appears to be steady, many fish farming products remain seasonally influenced, a situation that is further complicated by the geographic locations of both production and markets for different products.

Obtaining improved market stability is the key current issue for most producers – identifying and realising the actions and structures for marrying production with market demand is an urgent requirement.

The FEAP believes that the FIFG (Financial Instrument for Fisheries Guidance of the Common Fisheries Policy) needs to be reviewed within the context of the current characteristics of European fish farming, notably for the encouragement of the creation of Producer Organisations adapted to the structure of European aquaculture and facilitating marketing actions on a trans-national basis.

The production increases observed are not generally due to an increase in the number of fish farms – they reflect the increased productivity that has been needed in order for the sector to face declining revenues; this has meant that fewer new jobs have been created in recent years. In the smaller farms, particularly where production increases are difficult to obtain, jobs have actually been sacrificed. As in European farming, one core sustainability problem that has to be addressed rapidly is that of intergenerational change:

1. Is the profession attractive enough for a family member to continue the business?
2. Can a young European enter the profession (build a new farm or buy an older one?)

Addressing the conditions within which one can enter the profession and obtain the technical and financial support to succeed requires urgent address.

Image of European Fish Farming

The image of aquaculture has suffered in recent years and the production sector has been angered by what it sees as unfair treatment that has rarely been based on knowledge of the sector or peer-reviewed science.

This has led the production sector to declare its willingness for transparency, cooperation and dialogue. Evidently, improved communication with the administration and the consumer is expensive and the weakened financial condition of the sector means that it is difficult to mount the traditional type of communicative efforts. Nonetheless, at the European level, the FEAPhas initiated ‘Aquamedia’ with important players in the supply sectors – this has a primary goal of providing factual, truthful and interesting information about European aquaculture to the public audience.

Main Conclusions for EU Markets for Fish Farming Products

• Market competition is very high – supermarkets increasingly control the major market share and concentrate demand while the dispersion of the sector has increased the offer.
• Ex-EU ‘High quality’ and processed products exports are targeting the ‘developed’ markets of EU, sometime under ‘dumping’ conditions.
• Marine sectors developing quickest but hardest hit on prices.
• Freshwater sector prices more stable but very slow growth or stagnation.
• Improved sectoral organisation is required to improve the marketing approach.

Additional Observations on EU Fish Farming

• European fish farming technology and management are world leaders.
• European Universities lead global aquaculture research and training requirements.
• European companies lead supply and consultancy sectors.

But

• LITTLE RECOGNITION OF THE SECTOR'S CONTRIBUTION IN PREVIOUS COMMON FISHERIES POLICY
• NO SPECIFIC BUDGET FOR IMPROVEMENT IN 6th FRAMEWORK PROGRAMME

Overall, the aquaculture sector is concerned by the 6^th Framework RTD programme, where there is no specific budget for aquaculture. Indeed, within the proposals for the reform of the CFP, it has been declared that aquaculture needs more research in order to reach its potential yet concern remains as to whether adequate funding will be available. European resources for research in aquaculture are probably the best in the world and have provided the base for the development of European aquaculture. Wasting this advantage at a time when many challenges need to be resolved (e.g. species diversification, off-shore farming technology, vaccine development…) is hardly advisable.

The EU Legislative Framework

While there is no specific legislative Framework for European Fish Farming, the major legislation that directly affects the sector are the following:

• Food safety
  • Feed components (post-BSE, dioxin/PCB…)
  • Processing conditions (hygiene, materials…)
  • Contaminants (diseases, residues…)
• Fish Health
  • Treatment (therapeutic agents…)
  • Movement of live fish (zoning, categories…)
  • Welfare (live transport, slaughter…)
• Land & Water use – affected mainly by environmental legislation
  • Integrated (Coastal) Zone Management issues
  • ‘Habitat’ & ‘Birds’ Directives, Natura 2000…

Key Issues raised by the Profession

• Sustainable and responsible development of aquaculture must be encouraged.
  • Market stability of prime concern to ALL European aquaculture sectors.
  • Need to operate within a clear, enabling legislative structure (National) or Policy (European – CFP).
  • Development must also be based on good science as opposed to reaction to hearsay and scare-mongering.
  • Move towards self-governance and sectoral responsibility should be encouraged.
• A level playing field is required within the Member States for equitable development.

Key Issues for a Coherent Development Strategy

• Economic viability
  • Obtaining long-term market stability and profit margins that will allow investment and reinvestment.
  • Improve access to consolidated marketing and promotion efforts, particularly for the smaller producers.
  • Be able to compete on an even playing field within EU and with imported products.
• Food Safety
  • A guarantee for the consumer.
  • Input quality – provided by feed manufacturers.
  • Traceability (vs. ‘labelling’) – practical application.
• Sustainability
  • Input/Resource issues (e.g. water, feeds…)
  • Other environmental issues (e.g. biodiversity…)
  • Human Resources (e.g. entry into the profession, training, technology…)
  • Governance – Responsibility within the profession.
  • Sectoral acceptability of the activity by the public.

Conclusions

• The market will determine the success of any strategy but there is an urgent requirement to provide market stability for nearly all the products of European fish farming.
• The consumer needs and wants to know
  • what is on the plate
  • how it is produced
  • whether the process/activity is acceptable
• The fish farming sector (suppliers, producers, processors) assumes its responsibilities as
  • a major food supplier
  • a developing sector in a competitive market
  • a guardian of the environment
  • an important employer
• The European aquaculture sector is committed to transparency and the responsibilities anticipated by both the consumer and the legislator.
• Long term viability will be obtained by the satisfaction of multiple criteria vs. short term solutions.
• The sector believes that the development of sustainable and responsible aquaculture needs coherent and viable European actions that include:
  • improved marketing structures and promotional efforts
  • simplified legislation
  • simplified licensing procedures
  • support for the entry of young people into the business and intergenerational change