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MARAQUA |  |
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MARAQUA | |
Review of the marine fish farming development in Greece
John A. Theodorou
Federation of Greek Maricultures, 1 Skra Street, Gr 176 73 Athens, Greece. e-mail:fgm@ath.forthnet.gr
Summary
The marine fish farming industry in Greece is based mainly on the production of seabass and seabream. Greek production represents 48% of the total Mediterranean production of these species and about 44% of the fry production. The recent expansion of the industry was followed by a severe reduction in prices. The ex-farm prices of both species decreased from 15.57 Euro /kg in 1989 to 4.97 Euro /kg in 1999. European market demand has gradually increased and it would be possible to balance the supply with the demand if closer cooperation were to be established between the producers and the distribution channels.
1. Introduction
Marine fish cultivation started in Greece in 1981, when the country joined the European Union. It was encouraged by the financial support of the EU Agricultural Fund (FEOGA) and the Greek State. Today the sector is a dynamic reality in Greece, and is also in the lead in the race for increased production and penetration of western European markets, in competition with other countries of the Mediterranean basin - both EU and non-EU members (FGM, 1991). The production is dominated by two main species: sea bass and sea bream representing 45% and 50% of total production, and by about ten other species which, taken together, amount to only roughly 5% of the total production.
2. Materials & Methods
The data presented in this short report have been collated from the Database of the Federation of Greek Maricultures (FGM), a producers’ network established in collaboration with the Federation of European Aquaculture Producers (FEAP) in order to provide a continuous flow of data that should give the decision-makers of the sector (Producers, National Associations and authoritative bodies) information reflecting the present status of the industry’s development and the actual state of the market for the farmed products (Theodorou,1996; Hough, et al., 2000). It also presents data from other sources (i.e., Agri-Bank of Greece, National Statistical Service), which are further processed and cross-checked by the FGM Database.
3. Results
The Mediterranean finfish mariculture industry presently comprises just over 600 production units, of which 40 % are Greek.
Greek production has increased dramatically over the past decade (Figure 1). From 6,000 tonnes in the early ‘90s, it rose to 40,000 tonnes in 1999. It is forecast that the production of seabass-seabream will exceed 46,000 tonnes in the year 2000.
Fig. 1: Seabass-seabream production in Mediterranean.
The industry’s development was almost exclusively dependent on imported fry until the early 90’s, with all the negative implications and the loss of foreign exchange. Today 35 hatcheries are in operation, contributing to the self-sufficiency of the domestic fry supply. The development of fry production has been equally impressive, increasing from just 14 million in 1990 to 200 million fry currently (Figure 2).
Fig. 2: Seabass-seabream fry production in Mediterranean.
The importance of marine fish culture to the gross fisheries product is increasing every year, and it is anticipated that in 1998 it will make a 33.71 % contribution (Figure 3). The increase by 17.85 times in just eight years shows the contribution of the industry to a positive balance of trade in fisheries through the emphasis on production for export and replacement of imports.
Fig. 3: Percentage contribution (mil. drs) of fishing sub-groups in the Greek Gross Fisheries Products.
Marine fish farming in Greece, having passed through a transition period of adjustment and consolidation is now the first among the Mediterranean countries. It comprises 250 dynamic companies which have:
Additionally, a number of complementary activities have been created, employing 5.000 people. Three mariculture companies are now quoted on the Athens Stock Market.
3.1 Markets & Prices
During the last couple of years, approximately 70% of the total Greek production of seabass and seabream is exported and the remaining 30% is taken up by the domestic market. The export activity of the Greek mariculture industry in the early 90’s was almost exclusively oriented towards the Italian market. Recently, Greek exporters have penetrated new markets such as Germany, United Kingdom, Spain, Austria, Belgium, and the USA. The recent sharp increase of the production has exerted a severe downward pressure on prices, directly affecting company profitability (Theodorou,1999). The ex-farm prices of both species decreased from 15.57 Euro /kg in 1989 to 4.97 Euro /kg in 1999.
3.2 Research & Development
While in the 80’s the know-how was introduced from research institutes in France, Spain, Italy and the U.K , Greek companies today are not only self-sufficient in technology but have developed, and are continuing to develop their own know-how which is exported to the rest of the world. Today there are a range of joint ventures and cooperation agreements throughout the world. Pioneer Greek enterprises transfer the "Greek success" to the rest of Mediterranean (Italy), Middle East (Kuwait, United Emirates), S.East Asia (Singapore, China), Africa and America.
4. Discussion
Despite the periodic oversupply and pressure on prices, demand for seabass and seabream has seen a strong upward trend. After excluding the effects of price, income and population effects this demand has increased by 13% annually for bass and even slightly more for bream. All the signs are that the recent rapid growth will continue. The bass and bream industry has the considerable advantage of having been able to follow the technological developments of salmon farming. However, marketing of bass and bream remains relatively undeveloped, unlike the more mature salmon farming sector. In addition, in Greece, existing hatcheries perform below production capacity. This sector has therefore good prospects for further expansion in Mediterranean with a potential production growth of up to 20% per year. Production costs seem likely follow the trend of recent years and are estimated to be slightly better than for salmon and average 5% per year (MacAlister Elliot & Partners, 1999).
The strong upward trend in demand means that prices and profitability can improve in spite of relatively high growth rates. In addition, results from market research carried out by Market & Investment Consultants Ltd. et al. (1998) predict that the demands of the European market will gradually increase from 2000 – 2002, and suggests that a balance between supply and demand can develop if closer cooperation were to be established between the producers and the distribution channels.
References
FGM,1991. The Greek Mariculture Industry. Facts & Figures. Federation of Greek Maricultures publication.
Theodorou J.A., 1996. Pan-European aquaculture database project by FEAP. "The Greek Contribution". In: Marketing of Aquaculture Products, Cahiers Options Mediterraneennes, Vol. 17: 231-236 .
Theodorou J.A., 1999. "Greece focuses on marketing seabass and seabream." SeaFood International, Dec.1999: 35-36.
Hough C., Theodorou J. and Charalambakis G., 2000. Pan-European aquaculture FEAP Database Project. The European Producers Networking.
MacAlister Elliot & Partners, 1999. "Forward Study of Community Aquaculture". In :3rd Thematic Conference PESCA: "The future of Aquaculture in Europe". Santiago De Compostella Spain: 49-50.
Market & Investment Consultants Ltd, Ergoplan SA and IMBC, 1998. Market Research for Sea Bass and Sea Bream.