The Netherlands: a global, innovative hub for sustainable seafood

Transcription

1 The Netherlands: a global, innovative hub for sustainable seafood A guide to regional Blueports in The Netherlands The Netherlands Blueports Advisory Board November, 2012

2 Contents 3 Regional Blueports: an introduction 4 The Dutch fisheries sector: where does it stand today? 5 The goal: a global, innovative hub for sustainable seafood 8 The road ahead: how to get there 10 What Blueports can do and offer 11 Blueports Advisory Board Members

3 I Regional Blueports: an introduction In recent years, with support from the European Fisheries Fund (EFF), the Dutch Fisheries Innovation Platform (FIP) has promoted innovation aimed at creating a more sustainable, more cost-effective fisheries and seafood sector. The Fisheries Innovation Platform launched and supported an array of innovative projects, all of which helped to make Dutch fishery companies operate more sustainably and reduce costs. Some of the projects had tangible outcomes such as more selective fishing gear, more fuelefficient fisheries techniques or new technologies to reduce discards. Other projects, supported by the EFF s Collective Actions measures, fostered new partnerships between fishermen, entrepreneurs in the fishery supply chain and scientists. In 2011, the Fisheries Innovation Platform officially handed over its mission to regional Blueports : bottom-up networks of entrepreneurs, knowledge institutions, government bodies and non-governmental organisations, all working together to help create sustainable and profitable seafood sectors at the regional level. After years of a national platform promoting innovation, sustainability and corporate social responsibility from the top down, now it is up to regional players to further those same objectives from the bottom up. Five regional Blueports have sprung into action in Within them, project leaders and managers are taking responsibility for encouraging innovation within their own regions and, at the same time, aligning and co-ordinating their activities with other seafood sector players. For example, Blueports co-ordinate with Fisheries Local Action Groups (FLAGs), which contribute to sustainable development of fisheries areas at local levels. And while the regions are now in the driver s seat, they also benefit from aligning their work with other regions and from working within a national, common strategy. The recently established Platform Fisheries Innovation and Blueports (PFB) constitutes a framework for consultation, co-ordination and joint decision making between regional Blueports. The PFB framework comprises: The project leaders consultation group; The Blueports Management Board; The Blueports Advisory Board. This guide for regional Blueports was created by the Blueports Advisory Board, which is responsible for supporting regions within the overall strategy of strengthening The Netherlands position as a global, innovative hub for sustainable seafood. The Board advises Blueport participants within the regions. It aims to inspire them to develop their own Blueports into bustling centres of innovation-driven entrepreneurship, which will lead to higher returns across the fisheries and seafood sectors. This guide was put together through the contributions of entrepreneurs who attended inspiring brainstorm sessions. It is about entrepreneurs helping other entrepreneurs. The statistics and facts they cite may at times not be 100% accurate, but the guide is quite clear in setting out a goal and describing good ways to get there. Firstly, we analyse the current state of affairs in the Dutch fisheries sector: what are its strengths, what are its weaknesses? Then the guide offers an outline of where the sector aims to go: what is our common goal, where do the opportunities lie? What steps could the sector take to move closer towards the goal? We conclude by advising regional Blueport participants on how they can help regional and national seafood players become even more successful than they have been thus far. The Netherlands: a global, innovative hub for sustainable seafood 3

4 1 The Dutch fisheries sector: where does it stand today?» Strengths Within Europe, the Dutch fisheries sector is a leader in flatfish, shrimp and pelagic fisheries and also in eel, mussel and oyster farming. Dutch seafood companies are also performing well in areas such as trade, processing, logistics and distribution. The Dutch seafood sector does much more than sell fish that is landed or farmed in The Netherlands. In fact, in terms of company size and turnover, the sector predominantly handles seafood that comes in from abroad. Dutch seafood traders, processors and distributors take advantage of their country s excellent infrastructure. They also benefit from being close to an aquaculture sector that has strongly focused on sustainability and innovation. Dutch fisheries and seafood companies have embraced innovation in recent years, with support from the Fisheries Innovation Platform, the Dutch Ministry of Economic Affairs and the European Fisheries Fund. Innovation has taken place within two broad categories: supply chain innovation, encouraging co-operation and integration within the value chains, and technical innovation, making fisheries and seafood processing more cost-effective and sustainable. Technical innovation has led to quick progress. For example, more sustainable, selective fishing methods have been introduced, and many of the fishing fleet s vessels have become more energy efficient. Dutch fishery companies are now among the most innovative and sustainable in Europe, demonstrated in part by their extensive participation in sustainability certification schemes. Virtually the entire seafood supply sector is committed to getting their fishing and processing certified for sustainability. The Dutch maritime knowledge infrastructure is distinctive and strong. Many seafood entrepreneurs participate in knowledge networks, phrasing their own research questions and getting help from researchers to find answers. Many also take part in Fisheries Innovation Platform projects or have joined research institutes in international exchanges. In all of this, Dutch scientists and seafood entrepreneurs work closely together. They have learned to understand and to speak each other s language. Knowledge gained in research is being applied actively by companies in the seafood cluster. The Dutch Top Sectors approach puts a great deal of emphasis on the golden triangle of entrepreneurs, knowledge institutions and governments working together in harmony. Within the fisheries and seafood sectors, golden triangles are clearly visible.» Weaknesses However, there is another side to the coin as well. The Dutch fisheries sector may be a market leader in Europe, its profitability is still not strong. With some exceptions, the seafood sector as a whole has not been able to push and position flagship quality products like plaice and shrimp. Instead, the sector tends to focus on supplying rather uninspiring, mass products that compete with low-cost imported farmed fish. While parts of the fish fleet operate with reduced costs thanks to technical innovation, many specialised, energy-intensive vessels still feel the pressure of very high fuel prices. Technical innovation has brought cost reduction and more sustainable methods, but for the fleet to once again become profitable, innovative business models and new ways to add value will be essential as well. 4 The Netherlands: a global, innovative hub for sustainable seafood

5 There is a lack of co-operation between individual links in the seafood value chain, limiting the sector s overall revenue and profitability. Non-Dutch market players can be seen exploiting such lack of co-operation. Even within individual links in the chain, for example among fishermen, the need for co-ordination and co-operation is not always recognised. Co-operative business models are rare. Some of that can be attributed to European anti-trust rules, but the sector is losing opportunities by failing to find co-operative methods that do comply with EU regulations. Lack of co-operation has also led to there being too many players, which creates market bottlenecks and logistical inefficiencies that needlessly drive up costs. Similarly, opportunities are also missed in providing or gaining access to established knowledge and expertise. While the seafood sector has taken many steps toward more socially responsible and more sustainable entrepreneurship, the value chain is still largely driven by supply, not demand. Consumers and markets do not yet have the sector s full attention. While a common focus and joint actions are essential to its long-term success, the seafood sector is still highly compartmentalised. The likely ending of the Dutch Fish Product Board may further add to this fragmentation and to the lack of overall focus. 2 The goal: a global, innovative hub for sustainable seafood» Supply, trade, processing and distribution Today, about 80% of the Dutch seafood sector s earnings comes from trade or the processing of raw materials and intermediate or end products. Most business comes from abroad. Roughly 20% is earned by Dutch fishermen landing catches (although the percentage varies per species). The Netherlands has essentially become a hub where fish and seafood products are imported from many countries around the world to be traded, processed and distributed, mostly for exports. The hub structure makes traders, processors, distributors, importers, fisheries and fish farmers heavily interdependent. The fisheries infrastructures provide a backbone to the overall sector, while Dutch suppliers enable Dutch traders to include fresh produce in their portfolios. Dutch processors in turn rely on a steady and guaranteed supply of raw materials, which can only come from Dutch seafood suppliers. In other words: traders, processors and distributors rely on healthy relationships with profitable fisheries and fish farming sectors, which in turn can only survive with adequate pricing. Individual sectors and companies that ignore this interdependency may damage not only the fisheries and fish farming sectors but the shared infrastructure and, ultimately, the entire hub as well.» Market The Dutch seafood sector s overall prospect lies in developing and fully exploiting opportunities to sell high-value fish products that are caught, farmed, processed or traded in the country. For example, clear opportunities exist to more often include fish landed in The Netherlands in product portfolios of international traders. Adding fresh sole to farmed fish sales channels, for example, could create one-stop shops for a wider variety of products. Having a common focus could help The Netherlands to position itself as a global fish trader and distributor and as a leader in sustainable seafood production and innovation. Cost reduction remains important but adding more value to raw materials, intermediate and end products is important as well. The domestic market would also be served by this focus. The Netherlands: a global, innovative hub for sustainable seafood 5

6 To fully exploit The Netherlands lead in sustainability and innovation, Dutch suppliers, traders, processors and distributors will need to strengthen the hub function by increasing their level of co-operation. While markets for fresh/frozen foods, flatfish, shrimp and mussels all have their differences, they have in common that their supply, processing and logistic infrastructures are often concentrated in particular regions, usually one of the regional Blueports. Regional Blueports are best positioned to find new ways of including regional fish supplies into the product portfolios of global players close by.» Regional Blueports Regional Blueports must use their own regions strengths and raise their own regions profiles. They should clearly distinguish themselves (but not separate themselves) from other regions. At the same time, Blueports should keep a close eye on opportunities, infrastructures and relevant expertise at national levels. They should take advantage of and contribute to the strength of the hub as a whole. When attention is paid to markets at every level, supply chains can become driven by global, national as well as regional demand. Within the overall goal of positioning The Netherlands as a global, innovative hub for sustainable seafood, regional Blueports have key roles to play. They must spark and encourage innovation and co-operation at the regional level and stimulate economic activity of companies across the seafood supply chain. For this, strong support from knowledge institutions, government bodies and NGOs will be essential. Figure: The Netherlands: a global, innovative hub for sustainable seafood 6 The Netherlands: a global, innovative hub for sustainable seafood

7 The Netherlands: a global, innovative hub for sustainable seafood 7

8 3 The road ahead: how to get there The Blueports Advisory Board sees many ways in which the sector s players can help position The Netherlands as a global, innovative hub for sustainable seafood.» Innovate the entire chain Too often, discussions about seafood limit themselves to the primary sector. While technical innovation in this part of the chain has indeed increased sustainability and reduced cost, it has however not yet created new ways to add value. A constantly evolving market compels us to find new ways of bringing together supply and demand. The focus should be on competitive pricing and meeting consumer s demands. The entire Dutch supply chain will need to distinguish itself by combining high quality, continuity, sustainability at affordable prices. Fish auctions will continue to play a role, but they may no longer be focused on just their auction clocks. Instead, auctions should become more commercial and more flexible organisations. They should become multifunctional trading floors, logistical centres where many of the sector s players come together. In a chain more driven by demand, more of the attention will go to trade, processing and international markets. Focus will continue to shift away from domestic fisheries sectors. By strengthening connections between regional actors and international players such as traders, pelagic fisheries, logistics providers and cold stores, the entire Dutch supply chain will add to its critical mass and to its economic potential. It will become a truly global hub for sustainable seafood. The logistics sector will have to work hard to maintain its lead internationally. A level playing field in terms of sustainability and removing bottlenecks will be key items on the agenda. The primary sector should of course not cease technological innovation to reduce cost, save energy, develop more sustainable fishing techniques and raise revenues. Here, one key question remains how best to transform a fleet that was built for the 1970s/80s into one that meets the requirements of tomorrow. The overall goal, however, should be to make The Netherlands a global, innovative hub for sustainable seafood. For the sector as a whole, becoming a global player will be the key to longterm survival and profitability. For that, innovation will need to extend far beyond the primary sector and include the working of the chain overall.» A new organisational framework Many parts of the Dutch seafood sector are highly fragmented, with little interaction between links in the chain. The fragmentation is reflected in how the sector is organised, with many associations, groups and boards crowding the field. With the Dutch national government scaling back its role, the Dutch Fish Product Board likely to end its work in the near future and regions now taking the lead, new co-ordinating structures will be needed to ensure that the sector capitalises fully on its collective opportunities. Producer Organisations and sector organisations for flatfish, shrimp, mussel and aquaculture should mandate the regional Blueports to pilot innovation and knowledge development. The Blueports should lead in finding ways to improve profitability, sustainability, added value and cost reduction. They should break old habits and look beyond the interests of individual industries, constantly keeping one eye on potential benefits for the seafood sector as a whole. Private sector players should be in the lead, constantly looking out for innovators within their own ranks. The long-term funding for regional Blueports is a risk. However, with the Dutch Fish Product Board probably ceasing in the near future and Blueports maybe taking over some of its tasks, new opportunities may well be found to secure funding from within the sector. With that, the private sector could fulfil a long-time dream: grow innovation and entrepreneurship from the bottom up, at regional levels. 8 The Netherlands: a global, innovative hub for sustainable seafood

9 » A new focus for governments Through the European Fisheries Fund, government encourages two categories of innovation: technical innovation (aimed at sustainability and cost effectiveness in the primary sector) and supply chain innovation (encouraging co-operation throughout supply chains). In coming years, more emphasis on supply chain innovation will be needed, with particular focus on new ways to add value. Technology investment alone will not provide a global hub for sustainable seafood. European, national, regional and local authorities know each other s roles, responsibilities and opportunities with respect to the seafood sector. Funding, policy-making and use of EU funding should be aligned and matched carefully at all levels. The upcoming European Maritime and Fisheries Fund ( ) should fund projects aimed not just at sustainability but also at adding value, return on investment and co-operation within value chains. Regional Blueports could play a role in the assessment of grant applications, monitoring consistency across applications and promoting collective regional interests. This way, Blueports can help governments to better target subsidy schemes and to sustain the momentum of increasing sustainability and co-operation within value chains. Government should set preconditions and limits, reward achievements but also allow breathing space for experiments and innovation. Government should support the seafood sector with policies that put emphasis on value chains, co-operation, leaders and young generations. Governments should recognise not just individual entrepreneurs but system innovations as well, a prime example being the creation of regional Blueports that can sustain themselves after a few years. Government should support innovative leaders. In setting new policies, it should provide a long-term perspective and be open to new technologies. Government should not focus on risks and prohibitions only but also leave room for new opportunities, for example by allowing experiments with aquaculture close to wind farms. Laws, regulations and policies should create level playing fields. When they fail to do so, entrepreneurs are left frustrated. Take, for example, pulse trawling, a technique designed to make flatfish come free from the seabed by releasing weak electric pulses. Pulse trawling ends the need to disturb the seabed with chains, reduces fuel use and by-catches and provides higher-quality fish. The European ban on electric fishing however, with exemptions for some, has led to a situation in which not all fishermen are able to use this innovative technique. The Netherlands: a global, innovative hub for sustainable seafood 9

10 4 What Blueports can do and offer How can regional Blueports contribute to the prospect of The Netherlands as a global, innovative hub for sustainable seafood? Presented here is some guidance from The Netherlands Blueports Advisory Board, targeted at Blueport participants. 1 A Blueport is not an end in itself but a means. Make your Blueport a network of fisheries, fish farms and related companies, creating critical mass and focusing on regional strengths. Think big, not small; what could your region contribute to The Netherlands as a global, innovative hub for sustainable seafood? 2 When shaping your Blueport, make sure you involve supply, trade, processing, logistics and buyers. Break through existing boundaries to make the chain more efficient. Maintain good relationships with Fisheries Local Action Groups (FLAGs), include at least one large, internationally operating company and do not let governments or government officials take over your Blueport. 3 Recognise and learn how various seafood markets, such as those for fresh/frozen food or those for flatfish, shrimp and mussels, may work very differently. Recognise that supply, processing and logistics in any of these markets are often concentrated within a particular region, usually one of the regional Blueports. 4 Take the opportunity to distinguish your regional Blueport from others. Choose and strengthen a profile without turning away anyone. Facilitate the clustering of market power and logistics within the region, and position yourself as a leader in your particular market. Keep an eye out for opportunities at the national level: could your region s products contribute to national competitiveness and to the broader goal of making The Netherlands a global hub for sustainable seafood? Stay practical, remain realistic! 5 Make a five-year working plan, use it to ensure financial stability for your Blueport and to raise funding for innovation among your participants. Blueports have a mission! The national government is stepping back and the Dutch Fish Product Board may soon end its work. Use this new space to position your Blueport in such a way that it can fulfil the mission: boost innovation and stimulate economic activity. 6 Bring knowledge institutes into your Blueport. Be effective by using the golden triangle of companies, knowledge institutions and government. Find opportunities for partnerships between fishermen and scientists, encourage initiatives such as the Dutch Fisheries Study Groups. 7 Facilitate and promote research into things like scale, competitiveness, alternative business models (such as co-operatives) or new roles for auctions. Include cost, no quality in the picture. Do inefficiencies exist? Which costs do not bring added value? Is value lost because things are not adequately organised? 8 Use your Blueport banner and your region s specific strengths but never fail to connect with other regions. Use the Platform Fisheries Innovation and Blueports (PFB) to support you in this. Leverage the PFB to shape co-operation between Blueports, for example by co-creating communication products or by co-organising a national activity. 10 The Netherlands: a global, innovative hub for sustainable seafood

11 The Netherlands Blueports Advisory Board Members Jacob Kramer CEO, Ekofish group Johan van Nieuwenhuijzen Managing Director, United Fish Auctions Ko Prins Director, Prins & Dingemanse Jan Ernst Veenman Former general director, Heiploeg Carolien Vrolijk Director, Cornelis Vrolijk Holding BV Bram Bierens Chair, FIP Assessment Committee Gert-Jan Kooij Entrepreneur and Member of Consultative Group Fisheries Innovation Rems Cramer Entrepreneur and Member of Consultative Group Fisheries Innovation Henri Kool Director, Animal Agro Chains and Animal Welfare, Dutch Ministry of Economic Affairs Bart Bruggeman Acting Chair, Dutch Fish Product Board Martin Scholten Director, Animal Sciences Group/IMARES, Wageningen UR Administrative support: Ronke Luns, Frans Vroegop, Ed de Heer Platform Fisheries Innovation and Blueports (PFB) Members participate in the advisory group in their personal capacity. They have been invited based on their diversity of backgrounds in terms of regional origin, industry sector, role in the supply chain and current state of innovation. Colophon This guide to regional Blueports in The Netherlands was published by the Platform Fisheries Innovation and Blueports a Dutch Fish Product Board initiative aimed at supporting, facilitating and connecting regional Blueports. Dutch Platform Fisheries Innovation and Blueports P.O. Box AB Rijswijk rluns@pvis.nl Platform Fisheries Innovation and Blueports The Hague, November, 2012 Editing Ed de Heer Frans Vroegop English translation Bird s Eye Communications, Amsterdam Graphic design Skepja, Haarlem Illustrations JAM visual thinking, Amsterdam Print Zwaan printmedia, Wormerveer Copies 500 European Fisheries Fund: Investment in sustainable fisheries The Netherlands: a global, innovative hub for sustainable seafood 11

12 Dutch fishermen have always been a source of national pride. In order to survive, however, the fisheries sector will increasingly need to co-operate with other players in the Dutch seafood sector. Together, they can position their country as a global, innovative hub for sustainable seafood. Regional Blueports are bottom-up networks of entrepreneurs, knowledge institutions, government bodies and non-governmental organisations. They have been set up to help develop sustainable and profitable sectors at the regional level. Regional Blueports benefit from and contribute to their country s collective strength. The common strategy will help all seafood players succeed, whether they work in supply, trade, distribution, processing or sales.