reLAKSation 2.
Producer Organisations: - In an interview with IntraFish, Tarald Sivertsen has suggested that when the EU salmon agreement expires, the salmon industry should instigate a new debate as to whether they should adopt a system of Producer Organisations. Mr Sivertsen says that he is not scared of the ensuing discussion, but before he enters into any such debate, he should cast his mind back to 1996 when ECON were commissioned by the Norwegian industry to investigate the possible role of Producer Organisations. Although their argument was rather convoluted, their conclusion was extremely clear. This was that: 'It will not be in the Norwegian fish farming industry's interests, neither in the short nor the long run, to establish such a system of Producer Organisations on the basis of the requirement and function that the EU's market regulations for fisheries and aquaculture defines.'
Professor Christopher Ritson of Newcastle University first proposed the concept of Producer Organisations in response to the 1989 price collapse. He wrongly believed that salmon farming exhibited the cyclical pattern of a mature agricultural industry and therefore he felt it was essential to impose controls to stabilise the resulting price fluctuations. Unfortunately, Professor Ritson failed to recognise that the salmon industry was actually showing the early growth pains associated with an industry still in its infancy rather than one which had reached maturity. The reality was that the type of Producer Organisation system operated by the fishing sector had, and still has, little relevance to the salmon farming industry.
According to Mr Sivertsen, the debate will be about whom is to regulate salmon production after the EU salmon agreement ends, however this is not the question, which needs answering. Instead, the industry needs to ask is such regulation is necessary at all?
It has been said many times that market stability can only be achieved if production is restricted to the size of the market. Yet, advocates of Producer Organisations have all been unable to answer the one fundamental question on which production control would depend; 'What is the size of the market for salmon?' This is because there is no hard and fast answer because the salmon market continues to expand. This growth is fuelled by the salmon's new low cost 'value for money' image and the reduced availability of other fish species. In addition, today's salmon consumers represent a minority of the population, giving huge scope for further market expansion. Clearly, without such detailed knowledge of this growing market for salmon, how can any future POs dictate and allocate production quotas?
The concept of Producer Organisations was never relevant to salmon farming as ECON has confirmed. Back in 1996, they claimed that: 'A PO system is not a suitable organisational form for an internationally oriented industry whose technological, economical and organisational conditions change rapidly.'. Producer Organisations are an issue, which can be debated ad-infinitum. Yet, rather than focus on the need for such production controls, the salmon industry might be better served by looking at how to capitalise on the growing demand for its' products. The debate will undoubtedly continue.
BBC TV - Warnings from the Wild:- There has been a great deal said already, and there will probably be still a lot more to say about this BBC TV documentary. However, the only real issue is whether it has caused any damage to the market for salmon? Only time will tell, but initial observations from the market place suggest that little has changed. Certainly, supermarket shelves seem to be stocked at a similar level to that apparent prior to the screening of the programme. There has also been minimal evidence of price cuts or other initiatives to induce consumers to continue buying salmon, although one supermarket appears to be displaying recipe cards first issued for a 1998 promotional campaign.
Alternatives to Cod: - British supermarket chain Somerfield is launching a campaign to encourage their customers to try other fish species than cod, in light of increased prices and falling stocks. 'In cod we trust, but change we must' is aimed at showing shoppers that less popular species like coley and pollack are just as tasty as cod and haddock. Whilst such campaigns must be welcomed, supermarkets should remember that not all popular species are threatened by over-fishing. Farming has meant that salmon has now become one of the most popular fish consumed in the UK. Supermarkets could use this elevated market position as a springboard to encourage wider consumption since consumers could well be more reception to eating more familiar salmon than some of the less well known species.