Shrimp and Turbot From a Marketing Perspective

Transcription

1 Sirena Group Sirena Group Canada / Iqaluit / 22 April / 2010 Shrimp and Turbot From a Marketing Perspective By Mark Quinlan, General Manager of Sirena Canada Inc.

2 SUMMARY Introduction to Sirena Shrimp Fishery Supply / Production Demand / Sales / Market Vannamei Shrimp Turbot Fishery Supply and Harvesting Importance of Quality and Price Comparisons Main users Conclusion

3 Sirena Group Founded in 1985 by Steen Riber and Peter Buhl International seafood sales and marketing company Head office based north of Copenhagen Annual turnover approx. CAD 350 mill.

4 Sirena Group Denmark Naerum Esbjerg Stoevring

5 Sirena Group Norway Denmark Naerum Esbjerg Stoevring

6 Sirena Group Iceland Norway Denmark Naerum Esbjerg Stoevring

7 Sirena Group Canada Iceland Norway Denmark Naerum Esbjerg Stoevring

8 Sirena Group Canada Iceland Norway Denmark Naerum Esbjerg Stoevring USA

9 Sirena Group Canada Iceland Norway Denmark Naerum Esbjerg Stoevring USA Portugal

10 Sirena Group Canada Iceland Norway Denmark Naerum Esbjerg Stoevring Serbia USA Portugal

11 Sirena Group Canada Iceland Norway Denmark Naerum Esbjerg Stoevring USA Serbia Russia Moscow Kaliningrad Portugal

12 Sirena Group Canada Iceland Norway Denmark Naerum Esbjerg Stoevring USA Serbia Russia Moscow Kaliningrad China Portugal

13 Sirena Group Canada Iceland Norway Denmark Naerum Esbjerg Stoevring USA Serbia Russia Moscow Kaliningrad China Portugal Vietnam

14 Sirena Group 15 offices Worldwide Main Species Greenland Halibut (Turbot) Cold Water Shrimp Snow Crab Lobster Redfish Pelagics

15 Partners in Canada Baffin Fisheries Coalition Nataaqnaq Fisheries Labrador Fishermen s Union Shrimp Co. Ltd. Funk Island Banker Limited MV Osprey Ltd.

16 Cold Water Shrimp (Shell on) World Supply of CWS Challenges to Suppliers/ Harvesters Major Markets Competition Vannamei Shrimp

17 Supply of Cold Water Shell-on Shrimp

18 Challenges for Canadian Harvesters Cost of Harvesting Increasing High Fuel Costs Inconsistent catch rates Increased crewing cost Aging fleet with expensive replacement cost Quota reductions Area 6 reduction expected to be 30% Reductions expected in other areas Strong Canadian Dollar

19 Shell-on Shrimp - Markets

20 Shrimp Markets - Taiwan Emerged as a market for CWS in 1992

21 Shrimp Markets - Taiwan Emerged as a market for CWS in m/t market

22 Shrimp Markets - Taiwan Emerged as a market for CWS in m/t market Many claims for discoloured heads

23 Shrimp Markets - Taiwan Emerged as a market for CWS in m/t market Many claims for discoloured heads 1994 Vannamei shrimp from South America enter the market

24 Shrimp Markets - Taiwan Emerged as a market for CWS in m/t market Many claims for discoloured heads 1994 Vannamei shrimp from South America enter the market Since 1996 market is almost gone

25 Shrimp Markets - France Historic consumer of CWS

26 Shrimp Markets - France Historic consumer of CWS In 1992, French Market was 6,000MT

27 Shrimp Markets - France Historic consumer of CWS In 1992, French Market was 6,000MT/Year Vannamei Shrimp introduced in 1996

28 Shrimp Markets - France Historic consumer of CWS In 1992, French Market was 6,000MT/Year Vannamei Shrimp introduced in 1996 Today, the CWS Market in France is insignificant

29 Shrimp Markets China Chinese CWS Market was 40,000MT/ Year

30 Shrimp Markets China Chinese CWS Market was 40,000MT/ Year 2003 Vannamei Shrimp production increased

31 Shrimp Markets China Chinese CWS Market was 40,000MT/ Year 2003 Vannamei Shrimp production increased 2007 CWS market dropped to 15,000MT

32 China Sales Level for 15 Years Shell on shrimp

33 China Sales Level for 15 Years Shell on shrimp Cooked Vannamei in 5 kg box

34 China Sales Level for 15 Years Shell on shrimp Cooked Vannamei in 5 kg box Vannamei Production increased; Hence a decrease in price

35 China Sales Level for 15 Years Shell on shrimp Cooked Vannamei in 5 kg box Vannamei Production increased; Hence a decrease in price 2003 we start to loose market share!

36 China Sales Level for 15 Years Shell on shrimp Cooked Vannamei in 5 kg box Vannamei Production increased; Hence a decrease in price 2003 we start to loose market share! Promotional Campaign started

37 Shrimp Markets - Japan The most stable Market Demands excellent quality Raw Shrimp Large Sizes Pays the highest price

38 Shrimp Markets - Russia The most important shrimp market today 2003 Russian CWS market was 25,000MT/Year Russia

39 Shrimp Markets - Russia The most important shrimp market today 2003 Russian CWS market was 25,000MT/Year Russian GDP increased Average Monthly Salary Increased Favorable Currency Russia

40 Shrimp Markets - Russia The most important shrimp market today 2003 Russian CWS market was 25,000MT/Year Russian GDP increased Average Monthly Salary Increased Favorable Currency Russia 2007 Market grew to 50,000MT

41 Shrimp Markets - Russia The most important shrimp market today 2003 Russian CWS market was 25,000MT/Year Russian GDP increased Average Monthly Salary Increased Favorable Currency Russia 2007 Market grew to 50,000MT 2007 First Vannamei shrimp sold in Russia

42 Shell-on Shrimp Markets

43 Vannamei shrimp

44 Vannamei Shrimp Produced in warm waters Produced in high density farms Susceptible to disease Contain additives to enhance production Not produced to the same standards as enforced in Canada Little natural flavour

45 Vannamei Shrimp Native to Central and South America Short production cycle (3-6 Months) Some farms produce three crops per year Generally Larger than CWS Size can be controlled More consistent colour than CWS

46 Threat against CWS Which one would you choose? Vannamei Coldwater shrimp

47 China Development in farmed shrimp

48 China Development in farmed shrimp 1.5 mill. m/t and still counting

49 Fighting back with information since 2003 Communicating the difference between a natural product with no chemicals and the white shrimp

50 Fighting back with information since 2003 Communicating the difference between a natural product with no chemicals and farmed shrimp New 5 kilo carton supported by exhibition, posters, brochures and a Chinese website

51 Sirena promotion

52 Sirena promotion

53 Sirena promotion

54 Sirena promotion Results show promotion works KG.

55 Shrimp Markets are Declining

56 Shrimp Markets are Declining What do we do next? How can we protect the future of CWS?

57 Shrimp Markets are Declining What do we do next? How can we protect the future of CWS? Promote in current markets and fight against Vannamei shrimp competition

58 Promotion in Russia CWS is losing market share to Vannamei Educate consumer and wholesale buyers Most people do not know the difference between Vannamei and CWS CWS shrimp is currently positioned in the low cost market segment (Price competition)

59 Developing the Russian market to its full potential Branded retail bags, posters, brochures, and a website

60 Developing the Russian market to its full potential Branded retail bags, posters, brochures, and a website Stable customer relationships and product quality

61 24 hour distribution in the Russian market

62 Shrimp Summary Canada and Greenland are the largest producers Potential Harvesting Problems All Markets are declining Promotion is required to combat the Vannamei shrimp competition

63 Greenland Halibut

64 World Supply Russia/Norway Iceland Greenland Canada EU Nations

65 Harvesting Methods Mobile Gear Trawlers Fixed Gear Hook and Line Gill net

66 Trawlers Smaller fish (Average size.5-1kg) Higher Catch rates Consistent quality Preferred in Japan

67 Fixed Gear (Gill net) Larger fish (Average size 1-2kg) Higher price/mt vs Trawlers Inconsistent quality bruising and old fish/ poor freshness Sold mostly in Taiwan

68 Fixed Gear (Hook & Line) Largest fish (Average size 2-3kg) Consistent quality Highest Overall Selling Price/mt Sold mostly in Taiwan

69 Price Comparrision Per kg Harvested (Prices are estimated in USD weighted average for normal catch distribution)

70 Price Comparision for.5-1kg fish (On average for normal quality)

71 USD Selling Price Supply Problems in Iceland

72 USD Selling Price vs. CAD Selling Price USD to CAD 1.06 Supply Problems in Iceland

73 Quality is Most Important Clean white meat Good Freshness with Natural Slime No Bruising or Blood Spots Accurate Size Grading Proper cutting Good Cleaning Natural Fish Shape

74 Example of Poor Quality

75 Example of Poor Quality

76 Example of Poor Quality

77 Example of Poor Quality

78 Example of Poor Quality

79 Example of Poor Quality

80 Example of Poor Quality

81 Factors Affecting Price Quality and Reputation Method of Catch Destination End Use Size Availability from other suppliers Customer Requirements & Urgency

82 Japanese Market Quality Conscious Consume the most Prefer smaller sizes Used for Sushi

83 Taiwanese Market Sirena was first importer of Greenland halibut into Taiwan Stable consumers Prefer larger sizes 2kg+ used in Wedding Banquets Sold mostly in the Fish Markets 1-2kg used in daily consumption (Steaking/ lunch box) Sold mostly to processors

84 Branding - Taiwan A name, phrase, symbol or combination of these to identify products and distinguish them from those of competitors

85 Branding - Taiwan A name, phrase, symbol or combination of these to identify products and distinguish them from those of competitors In the wholesale market, Sirena has a well establish brand

86 Branding - Taiwan A name, phrase, symbol or combination of these to identify products and distinguish them from those of competitors In the wholesale market, Sirena has a well establish brand Turbot is sold by the producing plant/ boat

87 Branding - Taiwan A name, phrase, symbol or combination of these to identify products and distinguish them from those of competitors In the wholesale market, Sirena has a well establish brand Turbot is sold by the producing plant/ boat Mixed Branding Strategy

88 Reasons for Past Success Well managed sales plan with year around supply Few competing species Difficult to farm oily fish in warm waters Tooth fish, Sea bass and others have limited supply Strong traditional markets; Turbot is desired by consumers

89 Conclusion - Turbot Canada is a major supplier Different catching methods yield different products for different markets Quality is most important Maintain a consistent sales plan

90 Questions?