Callander McDowell
Callander McDowell
reLAKSation no 416
Mark of superiority: The small town of Cumberland in south east Kentucky does not have much of a claim to fame. According to Wikipedia, it was established in 1826 and named Poor Fork and remained isolated until the mining boom of the 1900’s when the railroad connected it to surrounding towns. It was renamed Cumberland in 1926 but despite the name change, it has never really developed. In 2007, the population was estimated at just 2,300.
Whilst Cumberland today remains an anonymous town in the US Midwest, we, at Callander McDowell believe it is of interest to watchers of the US salmon market because residents of the town seem to have avoided exposure to traditional American culture. ‘Culture’ can mean different things to different people but we use the term as defined by Niel Sandfort of the US marketing firm ‘The Food Group’.
Mr Sandfort told IntraFish that it is more than likely that it is infused in the culture that when US consumers see Norwegian salmon they immediately think superior. He added that Norway has a positive ring for US consumers whilst Chile is not so positive. He also said that it is not the same with just plain ‘Atlantic salmon’. By comparison, Mr Sandfort argues that the Norwegian origin of the fish gives the product an automatic advantage in the market.
Mr Sandfort’s view of the salmon market was at the fore of our thoughts as we conducted our regular trawl of salmon promotions in US supermarkets. This weekend, we have found salmon on offer at 84 different US supermarket chains. Of these 34 store groups had wild Alaskan salmon, mainly Coho, on offer, whilst 50 were promoting farmed salmon, of which four were farmed King salmon.
Of the remaining 46 stores, nine cited the origin of the salmon whilst the other 37 simply advertised Atlantic salmon. Prices for farmed Atlantic salmon fillet ranged from $5.99/lb to a high $8.99/lb. The price of salmon in the nine stores selling fish with an identifiable origin varied not just with origin but also with presentation and the store.
One store lists Scottish salmon at £$10.49/lb although this is of organic provenance.
Three stores had Canadian salmon on offer, one of which was identified as coming from the Bay of Fundy. Prices ranged from $7.99/lb to $12.75/lb. The highest price was for skinless portions of set weight sold by a high end retailer.
Two stores were selling Chilean salmon with prices of $5.99/lb and $6.99/lb
Four of the stores offered Norwegian salmon with prices ranging from $5.98/lb to $6.99/lb although the salmon on promotion in one store was frozen and not fresh. We have included this because of its identifiable origin.
What seems to be clear about these findings is that if Norwegian salmon is perceived to be of a superior quality to other salmon, then this image is not reflected in the prices paid by US consumers. This is not really surprising. Farmed salmon consumption in the US has grown because it represents a value for money everyday meal choice. Farmed salmon is generally not seen as the luxury option, irrespective of its origin.
…and what about the residents of Cumberland, Kentucky? Clearly, their culture has not been infused with the awareness that Norwegian salmon has a perceived quality image because their local store is currently selling salmon fillets from both Norway and/or Chile at exactly the same price!!!
The full list of promotions follows:
Farmed salmon
A&P. Fresh Atlantic salmon $8.99/lb
Acme. Fresh Atlantic salmon $7.99/lb
Acme Fresh Market. Fresh salmon fillet $5.99/lb
Associated. Fresh farm raised salmon fillet/steak $6.99/lb
Biggs. Scottish organic salmon fillet $10.49/lb
Bloom. Whole salmon $3.99/lb save $5.5/lb Salmon fillet $5.99/lb save $5/lb Salmon steak $4.99/lb save $4.50/lb
Breaux Mart. Fresh North Atlantic salmon fillets $6.99/lb
Brookshire Brothers. Fresh imported farm raised Atlantic salmon fillet $6.49/lb
Copps. Farmed raised Atlantic salmon fillet $6.99/lb
D&W Markets: Fresh Chilean salmon fillets $5.99/lb
Econofoods. Atlantic salmon fillets $5.99/lb
Food City. Farm raised salmon fillet from Norway/Chile $6.99/lb save $1/lb
Food King. Farm raised Atlantic salmon $7.99/lb
Genuardi’s. Scottish salmon fillet $5.99/lb save $3/lb
Giant Eagle. Fresh farm raised Canadian (Bay of Fundy) Atlantic salmon $7.99/lb
Giant Food. Fresh farm raised salmon fillet $7.99/lb
Grand Union Family Markets. Farm raised salmon steaks $6.99/lb
Hannaford. Boneless Atlantic salmon fillet $5.99/lb save $0.30/lb
HEB. Farm raised Atlantic salmon fillets $5.99/lb
Heinens. Farm raised all natural Canadian salmon fillets $8.99/lb save $3/lb
Hillander. Atlantic salmon fillet farm raised $5.99/lb
Ingles. Fresh salmon fillets $5.98/lb save $2.50/lb
Karns. Frozen beautiful red Norwegian salmon fillets $5.98/lb
Kuhns. Fram raised salmon fillets $6.99/lb
Lucky. Farm raised King salmon fillets $6.99/lb steaks $5.99/lb
Magruders. Fresh salmon fillet $5.99/lb
Meijer. Fresh skinless Atlantic salmon fillets $6.99/lb
P&S. Fresh Atlantic salmon fillets $6.99/lb
Pavilions. Farm raised King salmon fillet $6.99/lb save $1/lb
PicknSave. Fresh farm raised salmon fillets $6.99/lb
Publix. Fresh farm raised salmon fillets $6.99/lb save $1/lb
Quality Markets. Fresh Atlantic salmon fillets $6.99/lb
Rainbow Foods. Fresh farm raised salmon fillets $6.99/lb save $2/lb
Randalls. Fresh Norwegian salmon fillet $5.99/lb save $5/lb
Robert Fresh Market. Fresh salmon fillet $6.99/lb
Save Mart. Farm raised King salmon fillet $6.99/lb steaks $5.99/lb
Sentry Foods. Salmon fillets $5.99/lb save $2.99/lb
Shoppers. Farm raised Atlantic salmon steak $7.99/lb
Shoprite. Fresh Atlantic salmon fillet $6.99/lb save $1/lb
Smiths. Fresh Atlantic salmon portions 5oz 2 for $6
Stater Bros. Fresh skinless Atlantic salmon portion 6oz $3.99/lb
Super Fresh Food. Fresh Atlantic salmon fillet $8.99/lb
Sweetbay. Atlantic salmon fillet regular price $5.99/lb offer price $5.99/lb!!!
The Food Emporium. Fulton fresh Canadian salmon portions 5oz $3.99
Thriftway Supermarket. Fresh Atlantic salmon fillet $7.99/lb
Tom Thumb. Fresh Norwegian salmon fillet $5.99/lb save $5/lb
Vons. Farm raised King salmon fillet $5.99/lb
Waldbaums. Fresh Atlantic salmon fillet $8.99/lb
Westborn Markets. Fresh Atlantic salmon steaks $6.99/lb save $2/lb
Wild salmon
Albertsons. Fresh Coho salmon fillet $8.99/lb
Bashas. Wild Alaskan salmon fillet $6.99/lb
Buehlers. Alaskan Coho salmon $9.99/lb
Carr’s. Coho salmon fillet $8.99/lb save $5/lb
City Market: Fresh Coho salmon fillet $6.99/lb save $5/lb
Dierbergs. Fresh American Coho salmon $0.99/lb
Farm Fresh. Wild Alaskan salmon fillets $8.99/lb
Foodland. Copper River Coho salmon fillet $10.99/lb
Fred Meyer. Fresh Silver salmon fillet $7.99/lb
Fry’s. Fresh Coho salmon Fillet $6.99/lb save $8/lb
HEB. Sockeye salmon fillet previously frozen $5.99/lb
Harris Teeter. Alaskan Coho salmon fillet $11.99/lb save $8/lb
Hornbachers. Coho salmon fillets $9.98/lb
Jewel-Osco. Coho salmon fillets $8.99/lb
King Kullen. Wild Alaskan Coho salmon fillet or steak $9.99/lb
Kings. Alaskan Coho salmon fillet $11.99/lb
King Sooper. Coho salmon fillet $6.99/lb save $5/lb
Lunds. King salmon fillets $11.99/lb save $10/lb
Marsh. Fresh Coho salmon fillets $8.99/lb save $5/lb
QFC. Whole Coho salmon $3.99 save $5/lb. King salmon fillet $14.99/lb
Ralphs Coho salmon fillet $6.99/lb
Reasors. Fresh Coho salmon fillets $9.98/lb
Redners Markets. Fresh farm raised salmon fillets $6.98/lb
Rosauers. Wild Alaskan Coho salmon fillets $6.99/lb
Roths. Wild King salmon fillets $9.99/lb
Schnucks. Fresh Coho salmon fillet $8.99/lb
Scolaris. Wild King salmon fillets $9.99/lb
Shaws. Coho salmon fillets $9.99/lb
ShopnSave. Alaskan Sockeye salmon fillets previously frozen $8.99/lb
The Markets. Fresh Coho salmon fillet $5.98/lb
Ukrops. Fresh Sockeye salmon fillets $11.98/lb
Wegmens. Fresh Alaskan Coho salmon fillet $14.99/lb
Yokes Foods. Whole Coho salmon $4.69/lb
Twice cod?: This year, Aqua Nor had a very varied programme of events and meetings but what stuck out most was the inclusion of not one, but two, presentations on the subject of the market for farmed cod.
The farmed cod industry continues on its rollercoaster ride with prices taking on a similar profile. The fundamental problem remains unchanged. Cod farming was built on the expectation that wild cod stocks would collapse due to over-fishing. Reduced supplies would boost prices well above the high production costs of cod farming.
Unfortunately, the market didn’t read the script. Pressure from the environmental lobby has reduced demand for cod leaving prices in the doldrums. At the same time, wild stocks have recovered. This leaves cod farmers facing unforeseen competition from wild fish and low prices.
Sadly, neither presentation offered the cod farming industry the panacea that is so urgently needed. Instead, the only hope seems to be to continue reducing costs, which will not be easy and a strong effort to develop the market.
We, at Callander McDowell, have always argued that the only real solution is in the marketing of farmed cod. The fish, especially in a marketplace that has plentiful supplies of wild fish, need to be completely separated and effectively treated as if they are a different fish to wild cod.
Whilst margins could be boosted through cost reduction, they can also be improved with higher prices. Consumers will however only pay more for farmed cod if they believe that they are getting something different. (The same argument can also be applied to the origin of farmed salmon as discussed above). This will require a strong market-led strategy but there is no reason why with the right strategy, high prices and thus improved margins cannot be achieved. In fact, it already happens.
IntraFish recently reported that Bretagne fishermen are managing to achieve a price premium for all their fish. Currently, their cod is selling for €5/kg when other cod is only achieving €3/kg elsewhere. This higher price is the result of the introduction of the Bretagne Qualite Mer (BQM) label. This marketing tool helps boost the price paid by consumers which is then passed onto local fishermen.
A similar approach to the Bretagne Fisherman is however unlikely to work for Norwegian farmed cod but it does show that with the right marketing tool, farmed cod could escape the current market problems.
The fact that there were two presentations on this subject at Aqua Nor and not just one, is simply an indication that the current strategy is not working.
Not so pure: One of the other big (?) news stories from Aqua Nor concerned Don Staniford of The Pure Salmon Campaign presenting a petition to King Harald of Norway to insist that Norwegian owned farming companies in British Columbia adopt a strict environmental policy to protect wild fish populations. A video of the event can be seen at http://www.pacificfreepress.com/news/1/4556-canadas-fisheries-and-oceans-head-in-norway-qhere-to-support-our-aquaculture-industryq.html or through the Pure Salmon Campaign website.
The video aims to link the poor returns of Sockeye salmon on the Fraser River with the rise of salmon farming. The environmental lobby blame the decline of wild fish populations on the increase of sea lice infestations which they attribute to the proximity of salmon farms.
However, in the case of Fraser River Sockeye, the lice found on the returning fish, according to ‘CanWest News Services’, are not the same as those found on salmon farms. In addition, salmon populations in Oregon and California are also in decline yet these rivers systems are no-where near any salmon farming operations.
And as IntraFish reports, whilst many Sockeye have vanished, returns of Pink salmon in the Broughton Archipeligo are at record levels. These are the same stocks that environmentalist Alexandra Morton warned were in danger of imminent collapse due to the presence of local salmon farms. Pink salmon runs on the Campbell River are also at record levels. Despite these clear indications that perhaps salmon farms may not be responsible for the collapse of wild salmon stocks, film maker Damien Gillis continues to argue otherwise.
However, there is a fundamental flaw to the environmentalists’ claims. They seem intent on pressing home the message about protecting wild salmon. Yet, the reality is that most of these stocks are not wild at all, but farmed. In 1979, the Canadian Salmon Enhancement Programme was established which now operates eighteen hatcheries to increase the survival of chum, Chinook and coho salmon in British Columbia. In addition, a further twenty one hatcheries are run by the Community Economic Development Programme to help restore depleted salmon stocks. This was established in 1977-78. These programmes began long before the BC salmon farming industry really took off. Wild stocks were in decline long before the advent of salmon farming which is why there has been a need to enhance them.
The anti-salmon farming lobby have been keen to link the decline of wild stock to salmon farming but the reality is that these wild stocks are not wild but farmed. If the anti-salmon farming lobby wants rid of salmon farming in BC then perhaps the hatcheries should be first to go to ensure that wild stocks are what they claim to be –wild.