reLAKSation 17.
Product or Market-led?: An editorial comment in Intrafish suggests that there are now two schools of thought as to how to produce salmon. The industry is divided between those who are production-led and those who are market-led. Intrafish then pose the question as to which of the two will be the winner, however they appear to be unable to come to any firm conclusion.
Callander McDowell have no so hesitation. There can only be one eventual winner - the market-led approach. Perhaps, the reason for any uncertainty elsewhere, may be due to possible confusion about each of the strategies. Seemingly, the difference between the two is that those who pursue a market-led strategy have invested in processing and sales, whilst adherents of the production-led approach restrict their activities to production of the whole fish. Whilst, in essence there may be some truth in this view, it does not really provide an adequate description of the two strategies.
A better definition of a production-led strategy is one in which the producer 'produces' the product, which he believes that the market wants. In the case of salmon, the existing production strategy has been the production of whole fish. This strategy was extremely successful from the outset since the industry was unable to meet the existing consumer perception of salmon. However, as production has increased and the existing demand fulfilled, then the need for a change in strategy has become more apparent.
The need for change has been to develop a market-led strategy in which the producer 'produces' the products that the market actually wants. The immediate perception of such consumer demand is for salmon portions, such as steaks and fillets and this has certainly been proved. However, the marketplace is extremely complex and the consumer demand covers a whole range of different product options, too numerous to discuss here. The problem for the industry is that too many companies stick too rigidly to the production-led approach that they are unable to recognise the true market potential.
All products have a natural life cycle and inevitably as they reach maturity they can either become a base line commodity or stagnate. History is littered with companies who failed to adapt to the markets and this is why the market led approach is so important.
Intrafish cite the example of Ford Motors as a company who were successful in dictating production to the market with their classic production led slogan 'You can paint it any colour as long as it is black'. Ford may be perceived as still being successful, but the financial headlines this week indicate that Ford UK is now £430 million in the red!
Consumer resistance: Research by Seafish has uncovered consumer resistance to the word 'farmed' appearing on retail fish labels. Instead, they suggest that wording such as 'cultivated' or 'farmed on the Scottish coast' might have more positive appeal to buyers. This is because they seemingly introduce positive perceptions of quality and extra care.
The problem of such labelling really only applies to fish, since consumers are well aware that all of the other meats are farmed. Such clarification is therefore unnecessary for meat. The question is whether consumers are really that bothered whether the seafood they eat is farmed or not and hence does the pack need to be labelled accordingly?
If supermarkets were to label either imported tiger prawns or locally grown trout as farmed, would consumers stop buying them? Probably not, since if they want to buy prawns or trout, then they have no option. However, those consumers who want to buy salmon might find that the picture is not so clear. This is because they could be faced with a choice of either wild caught or farmed fish.
Does it matter to the consumer whether it is farmed or not? Certainly, there is a small section of foodies who still believe that the wild salmon is much superior to farmed and are prepared to pay a premium to buy it, if available. Yet, as most Atlantic salmon is now farmed, it is only the specialist fishmonger, who is likely to stock the wild fish. The only choice for most consumers will be farmed and therefore, like other meats, is there need for the fish to be identified as such?
Whether fish are wild caught or farmed is probably not a key issue for consumers. Their main concern is whether the fish they buy is a value for money meal choice. The respondents of the Seafish survey probably never even considered this question until asked and as many of this type of survey rely on fixed multiple choice questions, there is a possibility that the responses can be misleading.
If legislation forces this type of labelling, what will be much more interesting is how the consumer views the difference between wild caught Pacific salmon, which is becoming increasingly available in the UK, and farmed Atlantic salmon. Consumers may be well end up being very disappointed.
Increased calories: According to the Guardian, the British are becoming a nation of boozers and snackers. This is becoming apparent from the latest Ministry of Agriculture Fisheries and Food survey of national food habits. Consumption of wine and light beers has risen significantly, as has consumption of processed potatoes in the form of crisps and chips. It is not surprising that the average daily intake of calories has risen from 1690 to 1860.
By comparison, consumers are eating less red meat, fresh vegetables and fresh fruit. Yet most surprising is the fact that consumption of fish has risen by 16%. This may well be due to the recent food scares of BSE and foot and mouth rather than active marketing on the part of the fisheries sector, but which ever, it must be good news.
With salmon becoming increasingly popular due to its low price and widespread availability, the salmon industry must have benefited from this increased consumption. This is despite the fact that the overall consumption trend for the UK shows a movement away from healthy eating, often the main promotional benefit given for fish. In the face of such a challenge, it is clear is that as long as the salmon industry puts its produce into the forms the consumer wants, then there will continue to be enormous potential to increase the market for salmon.