reLAKSation 58. 

Guilty (of growing ‘value for money’ salmon): The US Department of Commerce have found four Chilean salmon companies guilty of dumping fish into the US market between July 2000 and June 2001. However, the level of dumping margin is reported by Intrafish to be around 1.32 %. This is hardly significant. Instead, they better reflect the fact that dumping margins are a natural artefact of their long and complex life cycle. It is inevitable that some dumping margins will be uncovered irrespective of where any investigation should occur. It is just as likely that had the US Department of Commerce investigated their home industry as well as that importing fish into their marketplace, they would equally find evidence of dumping margin. The same also would apply to when the European Commission investigates imported salmon from Norway, Chile or the Faroes. They might also be expected to uncover evidence of dumping margins from Scottish or Irish companies.

More importantly than the dumping margins found in four Chilean companies is the fact that the DOC were unable to find any dumping margins in 13 other Chilean salmon companies and of these, four other companies have been clear during three separate investigations. Evidence of dumping cannot therefore be described as being prevalent in the Chilean industry.

The European Commission should have looked hard at the DOC investigation before rushing into yet another scrutiny of the Chilean, or any other, salmon industry. With only marginal evidence of dumping, which can be explained, and the continuous scrutiny of the DOC, it is hardly likely that Chilean industry would actively aim to now dump salmon into the European market, especially as so little tonnage is involved.

The complainants would no doubt argue that salmon prices have now fallen much further than during the last DOC examination; however, salmon prices have been low in all markets and not just in Europe. This is not evidence of dumping, but rather of a lack of the much-needed marketing necessary to deal with continued expansion.

We, at Callander McDowell, have argued that the international salmon should meet to discuss what market image they want to present to the marketplace for the salmon they produce. If they want high quality product, which would warrant a premium price, then they need to control production, as previously advocated by the Scottish industry, through the introduction of Producer Organisations. Alternatively, if the salmon industry wants to produce a value for money product for a much wider market, then the industry must capitalise on the lower price and develop the market place. However, it is our view that the concept of Producer Organisations will not work. This is because PO’s are simply an excuse for not investing in marketing. Certainly, it would be interesting to hear the response of those companies who have developed their own markets and then told that they must cut back production.

Dumping actions are only another pretext for avoiding ongoing investment in marketing. These complainants clearly want the authorities to manipulate the market on their behalf, possibly because they are not up to the job themselves?     

 

Taking a leap forward: The dotcom boom has been widely criticised for its lack of success. Yet, there are companies, who are beating the downturn. One interesting example is leapingsalmon.com a home catering company. Although they have incorporated the word salmon in their name, this is not about salmon, per se, for as the company states, ‘stress is for the other fish’.

What leapingsalmon.com do is produce meal kits, which are delivered to your home. It is only necessary to follow the simple instructions to enjoy truly delicious home-made food. Leapingsalmon.com have now leaped out of the computer and established two kiosks in London. One is on Victoria Station and the other at Broadgate Circle in the heart of the City. Potential diners can now immediately select a meal kit and take it directly home with them.

Salmon does feature on the leapingsalmon.com menu, which changes every week. Last week it was Roast salmon with pesto and Parmesan crust, served with fresh spaghetti tossed in olive oil, lemon juice and pine nuts. Next week it is Salmon in lemon and watercress sauce.

Leapingsalmon.com is of interest to salmon farmers because it is yet another way in which salmon can be presented to the consumer. Whilst, many consumers may not be ready to pick up a piece of raw salmon flesh, because they do not know how to deal with it, many may be more willing to make up a dish where the recipe has already been conceived and the ingredients provided. The message that such kits bring to the salmon industry is that it is no longer enough to produce raw flesh. Instead, the industry must start to produce salmon in the form that consumers actually. The move to ready meals, whether it is salmon or any other form of protein, continues to marches on. Leapingsalmon.com have capitalised on this market development, salmon farmers must do the same.

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