CEE countries share of trade

1. International Trends in Product Development and Cooperation Between the Private and Scientific Sector Conference “Present difficulties and future prospects for Estonian fisheries and the possibilities of the European Fisheries Fund” Pärnu, 28 March 2006 Victor Hjort Eurofish International Organisation

2. Top CEE Importers (in value terms) Russia - 28.2% Poland – 19.5% Ukraine – 5.8% Lithuania –5.8% Belarus – 5.7% Top CEE Exporters (in value terms) Russia – 57.3% Poland – 12.1% Estonia – 5.5% Latvia – 5.0% Lithuania – 4.4% CEE countries share of trade 2003 Figures

3. 1 Product development Value Addition Innovation

4. Product development and value addition • Product development is linked to all elements in the value chain • The value of a product is a combination of quality, service, and price • Value addition is driven by a number of factors in the market, and by management and environmental requirements

5. The Value Chain Alda Möller, Studies on Value Addition, FAO 2003

6. Drivers for Innovation • Society and lifestyle trends • Consumer sophistication, health, knowledge • Technological advances, industry specialisation • Market trends, prices, wholesale, retail • Hygiene, food safety, quality assurance • Sustainability, environmental and ethical concerns • Traceability • Marketing, public relations and communications

7. Drivers for Innovation- Retail sector development Planet Retail

10. Trends for Innovation • Diversification of flavours • Simple preparation • Street foods • Fresh, healthy and functional

11. Value addition and product development - Packaging Sardines MAP Salmon - Skinpack

12. Value addition and product development

13. Product development and Value Addition Case study Alda Möller, Studies on Value Addition, FAO 2003

14. Product development and Value Addition Traditional and low value species

15. Rahbekfisk case Product development and Value Addition High end freshness and convenience products

16. Rahbekfisk case Drivers and conditions for product development • Private label and integrated cooperation with retail • Professional cooks to develop new products • Specialisation in species and sophistication of processing • Short product life due to dynamic innovation in the market • Quality higher than cost efficiency Other important drivers • Increasing pressure on price • Environment and sustainability • Health and lifestyle

17. Constraints for Innovation • Finance • Investment capital • Public policies • Market cultures and distances • Marketing • Knowledge

18. 2 Innovation Programmes and Financing • EU • National solutions

19. The European Fisheries Fund (EFF) Ettepanek: Nõukogu määrus - Euroopa Kalandusfond {SEK(2004) 965} /* KOM/2004/0497 lõplik - CNS 2004/0169 */ Proposal for a Council Regulation - European Fisheries Fund {SEC(2004) 965} /* COM/2004/0497 final - CNS 2004/0169 */

20. The European Fisheries Fund (EFF) Aquaculture, processing and marketing: The EFF will promote the acquisition and use of gear and methods that reduce the impact of fishing on the environment. The aid will be concentrated on small and micro enterprises; Collective action: The following projects will be eligible for the aid: those which contribute to the sustainable development or conservation of resources, the strengthening of markets in fishery products or the promotion of partnerships between scientists and operators in the fisheries sector;

21. National schemes (Denmark) The Innovation Law • Substitutes the Product Development Law since 2001 • Especially aimed at Small and Medium Enterprises • Promotes innovation in farming, development and research in fishery and innovation of new products and processes in the food manufacturing sector • Subsidy rate for Product Development projects: 50% • 1 million Euro earmarked for fish processing in 2006 • Project examples: • Value addition through freezing of fish for human consumptions • New types of “fast food” products

22. Future strategy for Processing and marketing of fishery and aquaculture products (Denmark) • Increase value addition – processing and marketing • Increase value addition – better utilisation of raw materials on vessels and in the processing plant • More reliable supplies • Overall technological upgrading • Marketing cooperation in the industry • Optimising the value chain

23. 3 Projects with the private and the scientific sector

24. Research, Innovation and Industry Innovation Knowledge which creates innovation in food industry Research results translated to applicable results in the enterprises Research Product development/investments/marketing Enterprises which identify the need for knowledge

25. EU projects 5th-6th-7th Framework programme, • Specific Support Actions (SSA) • Collective research projects • SEAFOODplus • CSN-INTRAN • PROFET Policy

26. SEAFOODplus Objectives of SEAFOODplus • Increase fish consumption in European diet • Demonstrate positive role of fish in critical health problems and in increasing well-being • Make seafood safer for the consumer • Address consumer demands for functional seafood products • Develop a fork-to-fish approach through analysis of the total chain

27. SEAFOODplus Industry, Training, and Dissemination (ITD) • Communication to Industry, Consumer and Public • Pilot platforms for training • Demonstration and SME involvement • Creation of new business activities • Dissemination • Intellectual Property Protection

28. CSN-INTRAN Aquainnovation Creating supporting network for international transfer of innovative technologies in European aquaculture • Promoting an innovation culture in European Aquaculture • Adapting methods found successful in other sectors for supporting innovation in aquaculture • Prioritising the needs of the New Member States and SMEs • Focusing on 3 main technical issues • Developing a framework for future actions

29. PROFET POLICY • “Specific Support Action” • Dissemination of the results of EU-funded research projects, in fisheries and aquaculture, of the 5th and 6th Framework Research Programmes • Publication of “Technical Leaflets” on the Web. • Thematic workshops will be held on a regional basis (including Baltic States)

30. 4 Conclusion

31. Where does innovation come from then? • Product development is driven by industry and big companies rather than SMEs • The role of the Public Sector and Research is limited when it comes to product development • Specialists in the industry are educated in public institutions and interact with the scientific environment

32. Where does innovation come from then?- the (indirect) role of the public sector • The legal framework • Health, sustainability, traceability • Food problems and scandals (dioxin etc.) • Special measures, research, projects • Public programmes • Publicly financed food and diet campaigns • School and institution food • Food production with other drivers than commercial/market

33. THANK YOU!