price structure in the supply chain case study: packed fresh organic … · 2019-05-24 · seafood...
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Seafood Expo Global
Brussels - May, 2019
www.eumofa.eu
Price structure in the supply chain
Case study:
packed fresh organic Atlantic salmon fillets
in Germany, Ireland, France and the UK
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Analysis of the price structure in different supply chains
• Description of the product
• Description of the markets
• Prices along the supply chain
• Analysis of the price structure
Methodology 1
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The product
Atlantic salmon organically farmed
2
Certified by EU organic standards
REG(EC) No 710/2009of 5 August 2009
• Strict maximum stocking densities : 10 kg/m3 max / 25 kg/m3 in conventional system
• Feed: organic feeds should be used, supplemented by fish feeds derived from sustainably managed fisheries
• Juveniles : non organic juveniles allowed if no alternative providedthat 2/3 of the production cycle has to be organic.
• Biodiversity preservation. ban of hormones (incl for inducing spawing) and chemicals
• water quality requirements
• handling minimised to avoid stress and physical damage
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The product
Cuts (individual portions) of fresh organic
Atlantic salmon fillet in Modified Atmosphere Packaging (MAP)
FR DE
UK IE
2
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The supply chain
Primary processing
Slaughtering, gutting
Secondary processing
Filleting, cutting, packagingRetailing
Organic farming
Logistic
export/import
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Supply of Atlantic salmon
EU market : 920.000 tonnes EU production : 190.000 tonnes
Organic salmon production: EU (IE + UK) 22.000 tonnes
Norway 17.000 tonnes
4( 2017)
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Focus on EU markets
• Germany, France and the UK are the biggest markets for Atlantic salmon;
• Germany, France and the UK are the main markets for organic fish;
• Ireland is the main producing country for organic salmon.
Focus on Germany, Ireland France and the UK
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Ex-farm price
No specific statistic data on ex- farm price for organic salmon
and data available from a pan European survey (OrAqua – EU funded)
but average price can be estimated from BIM annual statistics
Estimates for 2017 ex-farm prices. Sources: BIM, OrAqua Survey, Marine Harvest
Average price: value / volume of Irish salmon production. Source BIM
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Import-export price
Export and import apparent price from COMEXT
Average export price (EUR/kg) for Irish salmon (Fresh, gutted)
Average price calculated : value / volume of exports from Ireland to different destinations
Average import price (EUR/kg) in Germany for Irish salmon (Fresh, gutted)
Average price calculated : value / volume of importation in Germany from Ireland
Note: Data not always allow to assess CIF and FOB price
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Logistic – processing
Logistic, processing and retailing data from OrAqua survey
OrAqua Survey (2015): costs and margin along the
supply chain for fresh salmon fillet – origin IrelandEstimates from updated ex-farm and consumer prices
Estimates of 2017 costs and margins in the supply chain using OrAqua survey
2014 results on price structure.
2014 2017
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Retail price
Organic salmon products are not distinguished in retail price statistics
but online shops provide interesting information
Price of organic salmon fillets cuts in MAP in different retailers in Germany (2017-2018)
Price of different organic salmon products in online shops in Ireland
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Price structure: Ireland
Supply chain: Origin Ireland, sold in LSR in Ireland
Farming
Processing & packaging
Slaughtering
Retailing
Ex-farm price
7,31 €/kg
Retail price
30,00 €/kg
Price structure - 2017
Source: Elaborated from BIM, Or-Aqua survey, DCF, online stores
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Price structure: Ireland
Price structure: Origin Ireland – sold in LSR in Ireland
7,318,64
14,40
21,00
30,00 30,00
0,00
5,00
10,00
15,00
20,00
25,00
30,00
35,00
ex-farm
price
Price of
gutted fish
Price of
fillet
Retailer
purchase price
Retail
priceprice
(exc VAT)
Retail
priceprice
(incl VAT)
4,1
5,76
Cost of gutting
6,5
Retailercosts
and margin
0,6
6,60
Filleting loss
0,66
€ / kg
Processing costs
and margin
0,73
Guttingloss
9,0
VAT0 %
Processing and logistic Retailing
Value sharing
Farming : 24,4 %
Losses: 21,6 %
Processing: 24,0 %
VAT: 0 %
Retailing : 30,0%
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Price structure: France
Farming
Processing & packaging
Slaughtering
Retailing
Ex-farm price
7,31 €/kg
Retail price
39,80 €/kg
Price structure - 2017
Import-export
Supply chain: Origin Ireland sold in LSR in France
Import price
9,30 €/kg
Sources: BIM, COMEXT, OrAqua Survey, Observatoire des marges FAM.
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Price structure: France
Price structure: Origin Ireland – sold in LSR in France
Value sharing
Farming : 18,4 %
Losses: 17,4 %
Processing: 24,5 %
VAT: 4,8 %
Retailing : 35,00%7,31
8,64 9,30
15,50
23,95
37,88
39,80
0,00
5,00
10,00
15,00
20,00
25,00
30,00
35,00
40,00
45,00
ex-farmprice
Price of gutted fish
Price exportto France
Price of fillet
Retailerpurchase
price
Retail priceprice (exc VAT)
Retail priceincl VAT
4,1
6,20
Cost of gutting
6,5
Retailercosts
and margin
0,6
8,45
Filleting loss
0,66
€ / kg
Processing costs
and margin
0,73
Guttingloss
0,66
Exportcost
13,931,89
VAT5,5%
Processing and logistic Retailing
13
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Price structure: Germany
Price structure: Import from Ireland sold in LSR in Germany
Farming
Processing & packaging
Slaughtering
Retailing : LSR
Ex-farm price
7,31 €/kg
Retail price
44,00 €/kg
Price structure - 2017
Import-exportImport price
10,00 €/kg
Sources: BIM, COMEXT, OrAqua Survey, Online stores, EUROSTAT,
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Price structure: Germany
Price structure: Origin Ireland – sold in LSR in Germany
Value sharing
Farming : 16,6 %
Losses: 16,8 %
Processing: 29,3 %
VAT: 6,5%
Retailing : 30,7% 7,318,64
10,00
16,67
27,67
41,17
44,00
0,00
5,00
10,00
15,00
20,00
25,00
30,00
35,00
40,00
45,00
50,00
ex-farmprice
Price of gutted fish
Price exportto Germany
Price of fillet
Retailerpurchase
price
Retail priceprice (exc VAT)
Retail priceincl VAT
4,1
6,67
Cost of gutting
6,5
Retailercosts
and margin
0,6
11,0
Filleting loss
0,66
€ / kg
Processing costs
and margin
0,73
Guttingloss 1,36
Exportcost
13,50
2,88
VAT7 %
Processing and logistic Retailing
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Price structure: Germany
Price structure: Import from Norway sold in German discount stores
Farming
Processing & packaging
Slaughtering
Retailing: Discount
Ex-farm price
4,20 €/kg
Retail price
22,00 €/kg
Price structure - 2017
Import-exportImport price
6,00 €/kg
Sources: BIM, COMEXT, OrAqua Survey, Online stores, EUROSTAT,
16
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Price structure: Germany
Value sharing:
Farming : 19,1 %
Losses: 20,2%
Processing: 2913 %
VAT: 6,5%
Retailing : 25 %
Price structure: Import from Norway sold in German discount stores
4,20
5,226,02
10,03
15,03
20,53
21,97
0,00
5,00
10,00
15,00
20,00
25,00
ex-farmprice
Price of gutted fish
Price exportto Germany
Price of fillet
Retailerpurchase
price
Retail priceprice (exc VAT)
Retail priceincl VAT
4,1
4,01
Cost of gutting
6,5
Retailercosts
and margin
0,6
5,0
Filleting loss
0,66
€ / kg
Processing costs
and margin
0,42
Guttingloss
0,80
Exportcost
5,50
1,44
VAT7 %
Processing and logistic Retailing
17
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Price structure: UK
Farming
Processing & packaging
Slaughtering
Retailing
Ex-farm price
5,63 €/kg
Retail price
34,00 €/kg
Price structure - 2017
Supply chain: Origin UK (Scotland) sold in LSR in the UK
Sources: COMEXT, OrAqua Survey, Online stores, EUROSTAT,
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Price structure: UK
Value sharing
Farming : 16,6 %
Losses: 14,9 %
Processing: 27,6 %
VAT: 0 %
Retailing : 40,9%
Price structure: Origin UK (Scotland) sold in LSR in the UK
5,636,79
11,30
20,10
34,00 34,00
0,00
5,00
10,00
15,00
20,00
25,00
30,00
35,00
40,00
ex-farm
price
Price of
gutted fish
Price of
fillet
Retailer
purchase price
Retail
priceprice
(exc VAT)
Retail
priceprice
(incl VAT)
4,1
4,51
Cost of gutting
6,5
Retailercosts
and margin
0,6
8,80
Filleting loss
0,66
€ / kg
Processing costs
and margin
0,56
Guttingloss
13,90
VAT0 %
Processing and logistic Retailing
19
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Price structure: UK
Farming
Processing & packaging
Slaughtering
Retailing
Ex-farm price
7,31 €/kg
Retail price
34,00 €/kg
Price structure - 2017
Import-export
Supply chain: Origin Ireland sold in LSR the UK
Import price
9,00 €/kg
Sources: BIM, COMEXT, OrAqua Survey, Online stores,
EUROSTAT.
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Price structure: UK
Value sharing
Farming : 21,5 %
Losses: 19,8 %
Processing: 28,7 %
VAT: 0 %
Retailing : 30 %
Price structure: Origin Ireland sold in LSR in the UK
7,318,54 9,00
15,00
23,80
34,00 34,00
0,00
5,00
10,00
15,00
20,00
25,00
30,00
35,00
40,00
ex-farmprice
Price of gutted fish
Price exportto UK
Price of fillet
Retailerpurchase
price
Retail priceprice (exc VAT)
Retail priceincl VAT
4,1
6,0
Cost of gutting
6,5
Retailercosts
and margin
0,5
8,80
Filleting loss
0,66
€ / kg
Processing costs
and margin
0,73
Guttingloss
0,50
Exportcost
10,20
VAT0 %
Processing and logistic Retailing
21
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Synthesis
Value sharing in the supply chains
Farming : 17% – 24% Process losses : 25% -29%
Processing & logistic: 15% - 22% Retailing : 30% - 41%
VAT: 0% - 6,5%
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Find more case studies
on the EUMOFA website 23
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