reLAKSation 184.
Thoughts
for Easter: The editor of IntraFish posed the
question as to who will lance the abscess that is safeguards? He suggests that
the ongoing situation has become deadlocked with both sides backing themselves
into their own corners without having an alternative exit. This is a battle of
endurance where the outcome is uncertain but where the only other option is a
dumping case.
We,
at Callander McDowell, would argue that all the parties to this stand-off,
including the EU acting as judge, jury and executioner, have actually lost sight
of the real issue in this case – the consumer. It seems to us that it is
rather pointless imposing Minimum Import Prices or dumping duties if the
consumer is unwilling to pay the resulting price.
In
the run up to Easter and with safeguard measures now firmly in place, British
supermarkets have cocked a snook at the European Commission by offering
significant discounts to their customers wishing to buy salmon for the holiday
period. One supermarket chain is currently offering whole salmon at £2.90/kg;
the lowest price for salmon to be found in a British supermarket for some years.
What is more, this salmon is not imported from Norway or Chile but is farmed in
Scotland.
When
will the Commission start to understand that prices are being driven by the
retail sector, not by imports. Even if they stem the flow of imported salmon
into the EU, prices will not rise. Consumers buy salmon because it represents
value for money. If the price rises, they will simply stop buying.
We
have argued many times previously as to what sort of salmon industry we want? Is
it one that can provide a healthy value for money meal choice for the wider
public or is it one producing a small amount of high priced salmon for a small
niche luxury market? It seems that the European Commission would rather it be
the second choice.
We
will produce a full list of the discounts offered by British supermarkets for
Easter in the next issue of reLAKSation.
Keep
it clean:
IntraFish report that US distributors CleanFish Inc. are using the Boston
show to promote Loch Duart salmon in the United States. CleanFish say that Loch
Duart are a different type of company, best characterised as a boutique salmon
farmer. They raise their fish without hormones and antibiotics; are fed
certified sustainable feed and stocked in low density ponds (!). They also use
an annual fallowing practice similar to the crop rotation system used by arable
farmers.
Dale
Sims, Vice President of CleanFish said that he looked for a salmon he would be
proud to sell after questioning his role in the supply of fish that attracted
lots of negative media attention for containing PCBs and other contaminants.
We,
at Callander McDowell, fully appreciate the strategy adopted by Loch Duart
salmon in trying to differentiate their fish from the bulk of farmed salmon
production. However, we wonder whether using a company called CleanFish Inc to
distribute their salmon may not backfire on them. The environmentalists who are
so ready to attack salmon production do not differentiate between the salmon
produced. They are against all salmon farming. Promoting salmon through a
company under the name CleanFish may imply that other fish are not so clean.
Whilst we would argue that this is clearly not the case, it provides ammunition
to those who think otherwise.
We
are not surprised that Loch Duart are seeking markets in the US, where their
salmon may be better suited to compete against wild caught fish. UK celebrity
fish chef and TV presenter Rick Stein said that Loch Duart salmon is the closest
to the wild fish he has tasted (ww.lochduart.com). In addition to their ‘clean’ approach, Loch Duart are
approved under the RSPCA Freedom Food label and also under Label Rouge in
France. With all these accolades and several celebrity chef endorsements, Loch
Duart salmon would be expected to be able to generate the highest prices for
farmed salmon. Yet, Loch Duart signed up to the application for safeguards,
claiming alongside other EUSPG members that they are unable to compete against
cheap imports. Surely, with all the benefits gained from the sustainable
production of the highest quality flesh, Loch Duart would be expected to be
gaining a premium price over their competitors from outside the European Union.
However, this is not the case. Loch Duart salmon can be bought fresh through
Loch Fyne Restaurants, which all sell seafood from a wet fish counter.
Currently, Loch Fyne restaurants sell Loch Duart salmon fillet at £8.62/kg,
which is cheaper than salmon fillet sold through some British supermarkets.
Customers willing to travel to the company’s oyster bar on Loch Fyne pay even
less with fillet costing only £7.95/kg.
Clearly,
if Loch Duart, who are often cited as the model for all salmon farms in
Scotland, are unable to sell their high quality salmon at a price above standard
supermarket salmon, then
they have been unsuccessful in persuading consumers that the quality of
their fish is any different to any other. This is the real problem behind the
safeguard issue. Scottish producers, like Loch Duart, have failed to recognise
that British consumers are unwilling to pay extra for something which they are
unable to distinguish from any other salmon. This is why British consumers have
opted to buy value for money fish irrespective of its origin. Sadly, Scottish
producers refuse to accept such realities of the marketplace and as a result,
and with the support of the European Commission, the international industry must
pay the price.
Horses
drink water:
The Joint Health Claims Initiative (JHCI) has ruled that salmon farmers
can now promote the health benefits of eating their oil rich fish. According to
seafoodintelligence.com, Scottish salmon farmers are in celebration mode after
learning that they can now officially tell consumers about the positive health
benefits of eating salmon. However, we at Callander McDowell, wonder whether
these celebrations may be a little premature. This appears to be nothing more
than a rubber stamp exercise as the salmon industry have been regularly
promoting the health benefits of fish oils without this approval.
One company has even being using a heart symbol on packs of chilled
salmon, together with messages extolling the benefits of fish oils.
These packs give a clear message to consumers who can be left in no doubt
as to the association between salmon and a healthy heart.
The question is whether this officially approved use of such messages
will change the consumer buying patterns encouraging them to buy more salmon. We
don't think so.
The
fact is that many consumers already know the benefits of eating healthily but
despite knowing this, it doesn’t encourage them to buy more salmon. Consumers
know they should be eating healthily but don't, seemingly because they prefer
what others deem to be ‘unhealthy’ foods. This disparity can be seen in the
latest survey from the Foods Standards Agency. They found that whilst 18% of
respondents said that they did eat more fish than a year ago, 39% said that they
thought they should be eating more fish. In other words, they know that they
should be eating more fish, but don’t.
The food industry is aware of this and rather than persuade consumers to eat healthy foods such as oily fish, they are starting to supplement the foods that consumers do eat with the beneficial nutrients. IntraFish reported recently that Kellogg's are to add the same essential omega 3 fatty acids that are found in salmon to their breakfast cereals. Already, omega 3's have been added to eggs and bread. We don't know how many other foods will follow. Research has already shown that many consumers are not prepared to buy fresh fish. It is unlikely that they will change this habit just to obtain the benefits of omega 3s. After all, if such consumers were interested in omega 3 fatty acids, they are readily available as nutritional supplements in the form of one capsule a day. There is an old proverb that says that you can lead a horse to water but you can't make it drink. In much the same way you can tell consumers all about the benefits of eating salmon, but you can't force them to eat it!!