Documented since the XVI Century Codfish represents 40% of the national per capita fish consumption (which is close to

1. ADETTI / ISCTE - Lisboa Avenida das Forças Armadas 1649-026 LISBOA PORTUGAL Apparent consumption of salted dry codfish is stabilized K.Ton K.Ton Price US$/Ton (lwe) Quantities Ton (lwe) SALMAR - Margins Along the European Seafood Value Chain (European Project QLK5-CT1999-01346) The Portuguese Codfish Industry - A Survey João Ferreira Dias, Rui Menezes, Fernanda Guia, José Cruz Filipe, Vivelinda Guerreiro The Importance of the Portuguese Codfish Industry • Documented since the XVI Century • Codfish represents 40% of the national per capita fish consumption (which is close to 60 Kg (lwe)/yr/person) • Total annual apparent consumption stabilized around 70 K.ton • Second world’s largest importer of frozen codfish and the third exporter • World’s largest importer of green salted codfish • Second world’s largest importer of dried and salted codfish Catches by the Portuguese fleet collapsed Imports supply the processing industry and the market The Survey • Sample: • 36% of the cod processors and 40% of the production • All firms dry and salt codfish; 2 of them produce frozen soaked salted codfish as well • 9 companies act also as wholesalers; 2 owns fishing boats • Identification of Sector Competitive Advantages: • Economies of scale • Special relationship with their customers; • Production efficiency (domestic competitors) • Manpower costs (international competitors) • Marketing, brands and quality are also referred as important • Issues: • Problems with quality assurance of supplies • Concern about direct imports by the hyper-market chains • Lack of EU standard legislation, defining the main state parameters • Cost structure (dried salted processing) • Rawmaterials: 88,9 % • Manpower: 4,6 % • Energy: 1,6 % • Other costs: 4,9 % • SurveyFindings • The vertical integration is now limited (until 1974 the fleet owners where also the processors) • Several firms express the interest in a cooperative purchasing • The relationship with customers is the main source of competitive advantages • Traditional wholesalers are yet the main sales channel • The larger producers sell an increasing share to hyper-markets • Exports are made on a point basis, by agents and other • Inventories increased a lot from 1998 to 1999 Conclusions • Domestic catches were reduced by 70% in ton (lwe) and 40% in current PTE between 1988 and 1999 • Apparent consumption has stabilized at approx. 70,000 ton (in salted dry weight) • Industrial production has decreased by a small amount • Hyper-markets represent an important sales channel • Exports oscillate without a clear pattern • Imports (lwe) increased by 10% during the period from 1988 to 1999 with a steady seasonality profile • Imports average price increased during the period 1997-1999, with almost identical average prices (in $US / Kg lwe) for the different states, giving the indication of an integrate and transparent world market • Frozen codfish has increase its share in supplies XIII EAFE CONFERENCE Salerno 18-20 April 2001