James A Young (Jimmy) Professor of Applied Marketing Department of Marketing

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 • Static / decline in wild capture fisheries • Aquaculture - emergent global food industry

3. World Fish Production aquaculture catch FISHSTAT 2007

4. FAO, 2008 Asia incl. China FAO, 2008

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

6. Supply Chain & The Fish Marketing Environment

7. A schematic Supply Chain in fish

8. UK supplychain ’06 £GBP~ in / out of homeconsumptionEU profile?

9. Chain dynamics

10. UK fish stats: 2006 (Seafish ‘08)

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

12. Key challenges of fish supply chains • Disparate locations of fish resources and markets • Complex global trading links patterns of exchange • Heterogeneous raw materials require transformation & allocation to specialised value chains satisfying varied market needs • 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 • Consumers are the ultimate determinant of values

13. How do consumers assess value ? • Consumers commonly consider ‘value’ – but often purchase quickly, routinely & sub-consciously • Different attributes appeal to different consumers • Consumers act differently at different times • 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 ~ dominance of supermarkets ~ high & growing market share ~ diverse positioning (LUV – HUV £) ~ attuned to / driving green agenda ~ niche / local specialists • Foodservice

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

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

18. Questions?