reLAKSation 44.

Rising prices, cheaper salmon:  As prices rise towards their Easter peak, UK supermarkets have begun to discount salmon at both the fresh fish counter and chiller cabinet. A survey of current offers includes:

Asda:

Fresh fish counter.

Salmon fillet portions. 130g Normally £1.49 now £1.08 save 41p.

Chilled.

Skinless & Boneless fillets  £2.99.  50% extra free 390g for the price of 260g.

Smoked.

400g pack. Normally £5.99 now £3.78 save £2.21.

Marks & Spencer:

Chilled.

4 Caledonian salmon fillets.  530g.  Normally £6.98 now £5.98 save £1.

2 Caledonian salmon fillets.  265g.  Normally £3.99 now £3.49 save 50p.

2 Scottish salmon fillets 230g Normally £2.99 now £2.49 save 50p.

2 Scottish salmon steaks 300g Normally £2.49 now £1.99 save 50p.

Smoked.

100g pack Normally £2.99 now £2.49 save 50p.

200g pack Normally £4.98 now £3.98 save £1.

500g pack Normally £10.99 now £5.99 save £5.

Morrisons.

Fresh and chilled.

Whole salmon. Normally £4.38/kg now £3.38/kg save £1/kg.

Salmon fillets. Normally £5.99/kg now £4.99/kg save £1/kg.

Salmon steaks. Normally £4.59/kg now £3.59/kg save £1/kg.

Nisa:

Chilled.

Salmon fillet  283g half price Normally £3.29 Now £1.64 save £1.65.

Safeway:

Fresh counter.

Whole salmon.  Normally £4.99/kg now £3.99/kg save £1/kg.

Salmon fillet. Normally £8.99/kg now £5.99/kg. save £3/kg.

Sainsbury:

Fresh fish counter.

Whole Orkney salmon Normally £6.99/kg now £4.99/kg save £2/kg.

Orkney salmon fillet Normally £9.99/kg now £7.99/kg save £2/kg.

Chilled.

Salmon fillet  £5.99. 50% extra free. 720g for the price of 480g.

Somerfield:

Chilled.

Salmon fillet 300g half price Normally £3.99 now £1.99 save £2.

Tesco:

Fresh fish counter.

Whole salmon Normally £4.39/kg now £3.29/kg save £1.10/kg

Chilled.

Salmon fillet 780g Normally £7.99 now £5.32 save one third.

Salmon fillet 260g Normally £2.99 now £1.99 save one third.

Smoked.

400g pack half price. Normally £9.99. Now £4.99 save £5.

Waitrose:

Smoked.

400g pack. Normally £9.99 now £6.99 save £3.

Labelled or not?   An article in the ‘Sunday Herald’ suggests that UK stores have ignored the new EU law on fish labelling. According to food writer Joanna Blythman, supermarkets are misleading the public because they fear a drop in sales of farmed fish, especially salmon.  

From January, retailers should have been labelling their fish with ‘caught at sea’, ‘caught in inland waters’ or ‘farmed’ but Ms Blythman writes that supermarkets are not labelling the fish because the public image of fish farming is so dented by controversy over its use of toxic chemicals, pigments and its effect on the environment that they are reluctant to label the fish until they can think of a more positive way to present the fish. 

Yet, this view on labelling is not surprising, especially when she has relied on interviews with Don Staniford of Friends of the Earth and Philip Lymbery of Compassion in World Farming and Patrick Holden of the Soil Association to support her case. Joanna Blythman is such a well-known critic of commercial food production that she will use any excuse to attack the industry.

In response, supermarket chain Sainsburys says that it is taking advantage of the six months of grace given until the new labelling is enforced to use up its current packaging. Safeway said it is difficult to change things overnight.

Our own observations of the market suggest that the new labelling is starting to appear in British stores and that Ms Blythman is simply using this as an excuse to yet again criticise the fish farming industry.

We, at Callander McDowell, are not convinced that the public is that bothered about the origins of the fish they buy. This is despite research conducted by Omnimas/Taylor Nelson Sofres for the Seafish Industry Authority, which found that consumers have overall negative attitudes to fish farming, but that some label descriptors influenced consumers more favourably than others. Hence, research shows that ‘Farmed on the West Coast’ would deter consumers less that just the word ‘Farmed’.

However, we believe that there is a significant difference between what consumers might say in these research panels and what they do once they are actually in the supermarket. Certainly, experience has shown that the consumer view, for example, on paying a premium price for Scottish salmon. Research carried out in 1996 indicated that 72% of consumers would be prepared to pay a premium price for Scottish salmon, but clearly when given a choice in the supermarket, the price premium becomes a deterrent. In much the same way, consumers might say that the wording of any label would prevent them buying farmed fish, but once in the store then other factors take over. 

Sadly, it is only industry critics who appear to have a problem with what is written on the labels. Increasing sales of fish in many supermarkets suggest that the public do not have a problem. Who is right will only become apparent when all the stores have adopted the new labelling?

Shush!!!!  The Scottish salmon industry has refused to comments on news that Tarald Sivertsen, chairman of FHL Havbruk has made overtures about the possibility of forming a joint European Producers Organisation.

According to IntraFish, a source close to the Scottish Salmon producers Organisation has said that the whole PO concept is not something, which should be debated in the media. We, at Callander McDowell, are not surprised.

Ever since Professor Chris Ritson of Newcastle University proposed using Producer Organisations as a way to regulate the European salmon industry there has been an overwhelming reluctance to discuss this concept. Perhaps, the reason why is that it is actually unworkable.

Producer Organisations operate in the commercial fisheries sector to share out quotas, based on estimations of fish stocks. They are designed to ensure that commercial fisheries are not so depleted that stocks are threatened. Although, the Common Fisheries Policy has been something of a disaster, it does not mean that Producer Organisations, of which they are part, does not work. The significant point about PO’s is that they are used to allocate parts of a finite resource.

By comparison, the output from farming is potentially infinite and rather than allocate part of the resource, a farming PO would distribute market share. The problem is even the most knowledgeable market expert, cannot predict the actual size of the market. However, the reality is that market size is actually unimportant

This is because market size is not the reason why the concept of Producer Organisations was promoted. Instead, it is price.

Yet, there is a direct relationship between price and production volume and if Producer Organisations placed limitations on global volume, prices will eventually rise. Whether this would benefit the industry is unclear since higher prices will cause the market to shrink, as salmon is no longer considered to be a value for money everyday meal choice?

Producer Organisations would be a bureaucratic nightmare, especially trying to distribute the allocation between farming companies. However, the real problems would arise between those companies who had taken a very proactive approach to the market and those who had not. It might be argued that those who had developed their own marketplace for the salmon they produce, together with extra margin should not be penalised because other companies have not. Resolving such issues would be just the start of many such problems for any potential PO. This is why they must be discussed.

We have previously discussed the issues relating to Producer Organisations and would direct anyone interested in learning more to the reports sections of our website and refer to the report ‘Eighty-five questions about Producer Organisations (you may not have thought to ask)’.

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