reLAKSation 152.

Clear as night: According to a report in Intrafish, a new study by Leatherhead Food International suggests that 41% of British consumers want to see more and clearer information on the labels of the foods they buy.  We at Callander McDowell find this hard to believe since another study, reported by supermarket chain Tesco, indicated that only about 10% of their customers bother to look at the labels at all.

One reason for this discrepancy could be the way that this research was carried out. A lot of market research relies on information gathered from random interviews in which the questions are often loaded so that the respondent must give an answer, irrespective of whether they have a view on the matter or not. The respondent is helped by the fact that the answers are usually provided in the form of multiple choice fixed replies.  Thus if asked  the question, whether improved labelling on foods helpful in making a buying choice, the response is likely to be yes even if the respondent has never bothered to previously read a food label.

The salmon industry has previously used a similar approach to market research which is why the Scottish industry has been able to claim that up to 76% of consumers prefer to buy salmon which has been farmed in Scotland. Yet when faced with making a choice in store from fish labelled with farmed in Scotland, or farmed in Norway, the same consumers are just as likely to choose either one. In much the same way, 72% of salmon consumers have said that they are willing to pay a premium in order to buy Scottish fish. However, it is clear from the way that every supermarket prices its salmon identically, irrespective of its origin, that most consumers just buy the salmon which represents the best value for money. This shows that what most consumers say and what they do can be two very different things.

Whatever findings this research shows does not diminish the fact that food labelling can be extremely confusing. The most confusing labelling is that which suggest a food offers healthy eating, when it is clearly does not.  Examples include low fat foods which imply that the food is helpful in weight loss when the food is actually full of sugar and lots of extra calories. This is the type of labelling which does require clarification and for which urgent action is required. By comparison, labels on fresh salmon products are usually clear, even if sometimes the print size is very small. However, that is what comes from having to cram a great deal of information on what can be an extremely small label. Despite the small size, it is incumbent on the manufacturers and suppliers to make sure that the labelling is correct, even if the consumer then chooses not to read it.

Can't take no for an answer: The banner headline in Seafood News declares that a  Minister has said no to salmon safeguards.

The article states that the UK minister responsible for fisheries and aquaculture has said that the situation has changed since the EU last intervened and that the limited powers of safeguard action should now end. A representative from the Scottish industry said that this was a bitter blow to Scottish salmon farmers and the 6000 jobs dependent on the industry. He went on to say that the Norwegian industry still had not learnt its lesson as the low prices were continuing to bankrupt  the EU and Norwegian industries alike.

In the continuing battle between Scottish producers and the EU for the immediate imposition of safeguards, what makes this article of more than passing interest is that it was published in Volume 3 No 6 of Seafood News, dated June 1992.

It is somewhat hard to believe that twelve years on from publication of this article, the salmon industry cannot lift its head and look beyond the same protectionist policies it has pursued since prices first collapsed in 1989. The salmon industry will never progress unless it is prepared to move on and produce what the consumer wants.

Intrafish have just reported on a new British survey of the retail seafood market from research company Research and Markets, which forecasts continuing expansion building on growth of 4.5% over the last year. This means that there will be increased demand for fish and seafood products. Unless producers concentrate on the market instead of Brussels, they could well miss out on this opportunity for increased consumer demand.

Clearly, the Scottish industry have also still to learn the lesson that trade action will not resolve their problems. Sooner or later no will have to mean no.  

Global trade for a global market: Last week the 147 member countries of the World Trade Organisation reached agreement on a framework for liberalising global trade. This means that by 2006 seafood could be traded freely around the world. According to IntraFish this is only a couple of years later than originally scheduled, despite earlier breakdowns in negotiations in Seattle and Cancun.

Among other things, the World Trade Organisation will draw up regulations as to how trade disputes will be resolved. Hopefully, this liberalisation of trade will bring an end to the recurring trade disputes which have dogged the salmon industry over the last decade. A global marketplace should mean that claims of over-production can be consigned to the waste bin forever. Salmon growth is temperature dependent, which means that there is only a limited number of countries suited for salmon production. Each production area will have a limitation on the volume capable of being grown, which means that world salmon production has a finite limit. With most available coastlines already being used for salmon production there is unlikely to be any sudden rapid growth in output. Thus, the salmon industry should look to using the anticipated liberalisation in trade to develop the global marketplace for salmon rather than seek further disputes against those countries which by their size and available coastline will always be able to produce the largest quantities of salmon volume.

Trade liberalisation is a major step forward in world trade, let us hope that the salmon industry do not use it as an excuse to step backwards.       

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