Documente Academic
Documente Profesional
Documente Cultură
293
Author(s): D A Edwards
M A Myers
Summary:
This report provides an overview of the UK canning industry from supply of raw
material, to retail sales as a basis of information upon which the Sea Fish Industry
Authority may develop policy with regard to support of UK production in either a
technical or marketing sense. The work is sponsored by MAFF under Commission
QAA 16.
It reviews published information, such that exists, on market volumes and values,
products, market trends, imports and UK production, provides details of raw material
availability and cost, and gives short profiles of the major canners and discusses the
prospects for increased UK production.
Demand in general is strong with growth reported by the major brokers in almost all
canned fish products. The market is worth £217 million (retail 1984) of which the UK
producers share is approximately 4%. Unfortunately over 75% of the UK market is in
Pacific salmon. and tuna steak in which UK canners have little prospect of any
volume sales. There is however opportunity for export, or import substitution of
pelagic fillets, shellfish and molluscs. Further opportunities exist in seafood recipe
dishes, in supply to catering services and by use of microwaveable plastic 2-piece
ring pull flat cans. Prospects for individual companies are seen to depend on
convenient access to raw materials and the company's ability to handle a range of
can types. In these respects the short term prospects for the canning industry in the
NE of Scotland look good but the canning industry in the South West remains
vulnerable until the supply position can be improved.
Table of Contents:
Summary
1. Introduction ........................................................................................................ 1
2. Purpose and Scope.......................................................................................... 1
3. The UK Market for Canned Fish ...................................................................... 2
3.1. Retail Sales by Species 1984 .................................................................. 2
3.2. UK Producer Share of Market ................................................................. 2
3.3. Imports to the U.K.................................................................................... 2
1. Introduction
The value of the UK retail market (1984) of canned fish was £217 million
(compared, for example, to retail sales of fresh shellfish and fish, including cured,
eaten in the home in Great Britain of £283.9 million for the same year). The
market is dominated by imports, with UK producers sharing an estimated 4% by
volume of the domestic market. The market is reported to be growing and is a
sector in which the pelagic species available to the UK fleet might have some
prospects.
U.K. canned fish production was in decline from 1979 to 1983 but new ownership,
re-investment and a more vigorous management approach at BFC has recently
seen an upturn in the fortune of that company. Shippams competitiveness has
been seriously affected by closure of the SW mackerel box and development
plans for expansion in the SW have been shelved.
The purpose of this study was to provide an overview of the UK canning industry,
from supplies to retail, as a basis of information upon which the Sea Fish Industry
Authority may develop policy with regard to support of UK production in either a
technical or marketing sense.
The report details the market, UK production and discusses the prospects for UK
producers, with particular reference to their ability to compete on price in the
market. It concerns only fish intended for human consumption and not pet-food
manufacture and concentrates on pelagic species that are currently underutilised.
A short statement on the current pet food market is provided in Appendix 1.
TR293 1 ©Seafish
Canned Fish for Human Consumption – Study of the UK Industry
TABLE 1
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Canned Fish for Human Consumption – Study of the UK Industry
TABLE 2
TABLE 3
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Canned Fish for Human Consumption – Study of the UK Industry
TABLE 4
TABLE 5
TABLE 6
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Canned Fish for Human Consumption – Study of the UK Industry
Mackerel
Skinless boneless fillet in oil, brine or tomato sauce 120 or 125gm ¼ club flat can,
ring pull or can opener type. Packed in cardboard carton. The majority are
imported from Denmark.
Skin-on, bone in, steak in brine or tomato sauce 425gm and 198gm, 3 piece
round cans. The majority produced in the UK.
Pilchard
Headed and gutted whole fish in tomato sauce or brine. A variety of can sizes
from 155gm to 425gm round cans. The bulk is imported from Peru, Chile and
Japan. A very small quantity of 190gm flat ring pull cans of pilchard fillet in
tomato sauce are imported from West Germany.
Herring
Skin-on, fillets in 190gm or 200gm flat cans in various sauces form the bulk of the
UK market. Denmark, Ireland, Netherlands and West Germany dominate
supplies to this small market. A very small quantity of herring in round cans is
sold in Scotland, local to the cannery producing it in Fraserburgh, and to various
institutions.
Sprat
Sild and smoked brisling in oil and tomato sauce in 106gm and 110gm key
opened flat cans are the only sprat products on the market.
International Fish Canners in Fraserburgh supply virtually all the sild and brisling
consumed in the UK. Sild products are wrapped in cellophane and smoked
brisling (skippers) in an outer carton.
British Fish Canners new sprat canning line produces almost exclusively for the
export market.
Overall the UK canned fish market is growing at an appreciable rate but it is the
salmon and tuna imports that make up the bulk of the growth.
UK sales of canned mackerel, sprat, pilchard and herring have been fairly static
although some growth is reported by the major agents/brokers over the last year.
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Canned Fish for Human Consumption – Study of the UK Industry
It would appear that UK producers have been looking at export markets and have
been successful to an extent in expanding their export sales
Figure 1 – The UK Market for Canned Fish 5 Year Forecast (from 1984)
Figure 1 shows how the market for canned fish is expanding rapidly. The
dotted line is based on the growth of the canned fish market between 1980
and 1984. It shows what growth would be expected if expansion of the
market continued at a rate similar to that up to 1984. The continuous line
shows what rate of growth is expected by the major brokers/buyers after
1984. It should be noted that as UK production is small compared to the
overall British market for canned fish any reduction or increase in UK
production would have very little effect on the slope of the graph.
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Canned Fish for Human Consumption – Study of the UK Industry
Figure 2 – Canned Fish and all Food – 5 Year Forecast (From 1984)
(Price Index 1979 = 100)
Figure 2 shows that after 1979 when the index for canned fish and all foods has
been taken as 100, the value of the canned fish market rose steadily, whilst the
growth in all foods remained relatively stable.
Both Figure 1 and Figure 2 show that the growth in the canned fish market has
not yet reached a plateau and that if British canners can successfully achieve
import substitution, potential is great.
Mackerel
The trend in canned mackerel is away from round cans containing steaks, skin-
on and bone-in, towards ¼ club flat ring pull cans containing skinless mackerel
fillets. The ¼ club can is the most commonly used flat can, containing 120-130
grammes of product.
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Canned Fish for Human Consumption – Study of the UK Industry
The split is now 70/30 in favour of ¼ club cans and their popularity with the
British public is gaining all the time (Princes Foods Ltd). Club is a loosely used
term for flat shallow cans with rounded corners.
As healthy eating becomes more of an issue with the British public there is a
trend towards canning mackerel in its natural juices or in brine. All major canned
fish brand names are now following this trend.
Sprat
The market for sild and brisling in the UK is not growing at any appreciable rate
with the high prices of these products versus that of sardines being the greatest
stumbling block eg Armour sardines in tomato sauce 120gms-21p, John West
Smoked Brisling in tomato sauce 106gms-49p, Keynote Sild in tomato sauce
106gms-32p.
Pilchard
The market for pilchard is falling with imports dropping 20% from 1984 to 1985.
There is a close correlation between pet food prices and pilchard sales so it is
possible that lower prices of cat food in particular has driven down demand
(K. Wilson, John West Ltd). Cornish and Scottish canned pilchards are usually
more expensive than their South American and Japanese rivals and so canning
them in the UK is increasingly becoming a low return practice.
Herring
Due to the recent increased fishing activity and advertising campaigns for
herring, canners are becoming more interested in this species. At the moment
very little canning of herring is done in the UK and the market is very small.
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Canned Fish for Human Consumption – Study of the UK Industry
TABLE 7
Source: Gross tonnages obtained from canners and values estimated from tonnage.
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Canned Fish for Human Consumption – Study of the UK Industry
A cautionary note is that for any species the production and import
figures do not balance the export and domestic sales figures.
Rounding errors, variations between gross and net weight and
wastage all contribute to these differences.
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TABLE 8
TABLE 9
TABLE 10
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The sprat is canned under the above four names. In Customs and Excise
documents, exports of sprat would be included in both sardine and brisling figures.
As the re-export of sardines is common-place, it is difficult to extract a true figure for
canned sprat exports. An estimation arrived at through discussions with British
canners would be around 635 tonnes per year with a value of approximately £2.0
million at rrp (recommended retail price).
It should be noted that both import and export data relates to 'prepared or preserved
fish', of which canned fish is a large proportion.
Approximate Costs
Freezing £45 per tonne
Storage £1.50 per tonne per week
6.1.2. Mackerel
Since the closure of the south west mackerel box, nearly all mackerel supplied
to the UK canners originates from the north west of Scotland fishery, landed
mostly to Ullapool. It may be processed fresh or bulk frozen and held in cold
storage at various locations for processing through the year. Quayside prices
of mackerel suitable for canning (4-7 per kilo), over the period October to
December 1985 were between £120-£140 per tonne. Delivery costs from
Ullapool to Penzance are in the order of £70/tonne and from Ullapool to
Fraserburgh £22/tonne. Line caught fish in the south west is too expensive at
£235/tonne for canning.
6.1.3. Herring
Supplies of herring are obtained from west coast ports and from Fraserburgh
for which the quayside price for the 1985/86 season was between £155 and
£165 per tonne. Transport costs from Ullapool to an Inverness cold store are
of the order of £30 per tonne and £8 per tonne from cold store to Fraserburgh.
6.1.4. Pilchard
Supplies of pilchards for canning (7-9 per kilo) are mostly from Devon and
Cornwall. Cost of fresh fish delivered to Shippams from Newlyn, or nearby
ports, is in the order of £135 per tonne. Cost of the fish delivered to
Fraserburgh is in the order of £190/tonne.
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6.1.5. Trout
BFC obtain pink trout locally from fish farms at a cost delivered to the factory of
£0.70 per lb (£1,543/tonne for whole fish or £0.90 per lb (£1,984/tonne) for
gutted fish. Trout are not normally frozen as they are usually available year-
round.
6.1.7. Sprats
IFC obtain sprats from various sources. Various quantities are obtained from
the Clyde fishery, Southern Ireland and Plymouth. Over a year the average
cost per tonne of sprats (inclusive of handling, ice, freezing etc) will be around
£225 delivered to Fraserburgh, although the quayside price may only be
around £110/tonne.
6.2.1. Mackerel
Mackerel suitable for canning are landed in the north west in greatest
quantities between the months of September and February though the start
and length of the season changes from year to year. Due to the closure of the
south west mackerel box only a very small quantity of mackerel for canning is
available from ports in Devon and Cornwall.
6.2.2. Sprat
Quality is very important as oil content must be fairly high and guts virtually
empty. They are generally in best condition for canning during the period
October to January.
6.2.3. Pilchard
The only supplies of pilchard used for canning are from the south west with
catches landed at Looe, Newlyn, Plymouth and Brixham mostly between
December and February.
6.2.4. Herring
The small quantities of herring used by canners in the UK are obtained from
the North Sea, central North Sea, south North Sea, Celtic Sea, North Irish Sea
and Minches at various times of year.
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7. UK Producers
In 1981, after thirteen years of ownership by the Salvesen Group the interests of the
group were bought out by a management consortium. It is now the only British
owned fish canning company in the U.K.
Since the takeover, investment in new plant and a more vigorous management
approach has recently seen an upturn in the fortunes of the company.
BFC pack mackerel, herring, pilchard, sprat, herring roe and trout in four sizes of can.
They can handle both round and flat cans.
Due to the short fishing seasons and irregularity of supplies, raw materials are frozen
and held in various cold stores around Scotland. The company has very limited cold
storage facility of its own.
The quantities of species and the products produced from them are market led, and
can vary greatly each year, but during 1985 about 2,000 tonnes of mackerel
(quayside weight), 200 tonnes herring, 180 tonnes of pilchard, 200 tonnes of whole
trout and 100 tonnes of soft herring roe was processed.
80% of the mackerel is used for steaks in round cans, with the remainder used in the
production of fillets in tomato sauce or vegetable oil that are packed in the 125gm flat
¼ club. The production of 15oz steak in round cans is worth approximately £1.15M at
rrp. The production of fillets in flat cans is worth approximately £0.57M at rrp.
Herring is mostly canned in round cans, almost exclusively for export and is worth
approximately £0.19M at rrp.
Pilchard is canned in the 200gm and 425gm round cans and is worth around £40,000
and £70,000 respectively at rrp though these values vary depending on demand for
the two products which is erratic.
Production of pink trout in the 200gm round cans to the level of 200 tonnes of whole
trout was undertaken in 1985 but sales were not maintained after marketing support
was withdrawn by Berrisfords and BFC are not currently packing trout.
Imported soft herring roe is canned in 125gm flat ring-pull cans and worth about
£0.53M at rrp.
With limited Seafish support the company has been active in the development of new
products for both the home and export markets with some success and would like to
do more when circumstances allow. In 1986 they launched a new kipper product and
secured export orders for it.
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TABLE 11
IFC's main interests are in the canning of sprats for both the domestic market and
for export. Approximately 55% of sprat production (57% sild and 43% brisling) is
destined for the home market and 45% for export. U.K. sales are valued at about
£2.75M (at rrp) and exports at £2.25M (at rrp).
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Canned Fish for Human Consumption – Study of the UK Industry
Mackerel is canned in fillet form in 120gm flat cans in various sauces for export to
Belgium and Luxemburg under the Feuille D'or label and is valued at around
£875,000. The exported products are of excellent quality and are supported by
extensive advertising. The products command a premium and are market leaders.
IFC also has a roe canning line and would produce canned cod roe but cannot
obtain supplies at a price that would make it viable.
IFC are reviewing the potential for new products but declined to discuss their plans
in this area.
TABLE 12
Gross
£(rrp)
tonnage
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Canned Fish for Human Consumption – Study of the UK Industry
It produces mackerel steaks in 425gm and 198gm round cans in both tomato and
brine, and pilchards in 425gm round only in both tomato and brine. The factory is
not equiped to handle flat cans. It also processes and stores raw material for
further processing at Shippams, Chichester plant for conversion into fish paste.
Shippams have their own local cold store capable of holding 2,000 tonnes of frozen
fish. The cost of freezing and cold storage for the 1985/86 season taken over a 52
week period is equivalent to £2.54 per tonne per week.
Shippams have shelved plans for a £0.5M development of a new mackerel fillet
line at Longrock next to the cold store, following the closure of the South West
mackerel box production was maintained in the 1985/6 season by transporting
mackerel by road from Ullapool adding considerably to the cost. Although since
then satisfactory supplies of mackerel have been obtained from catches made
outside the box, the company is understandably critical of the management of the
local fishing resource.
TABLE 13
Gross
No. of cans tonnage £(r.r.p.)
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The company uses flat aluminium two-piece containers the lids of which are heat
sealed to the bases. Nearly all product is exported.
The company will shortly have the capability to pack in two-piece plastic ring-pull
containers that will be micro-waveable.
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8. Distribution
The third largest distributor is S & W Berisford Ltd., of Middlewich:- part of the
Berrisford Group of companies. In 1984 their sales of canned fish was £40M.
Their market share of fish products is increasing under a variety of brand names
including Osprey and Cucumber.
A summary of brand shares for canned fish products for 1984 is given in table 14.
The use of own labels is growing in importance with Sainsburys and
Marks & Spencer taking particular interest and buying from various canners.
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TABLE 14
Brand Shares in Canned Fish 1984
% based on value
John West 32
Princes Buitoni 25
Beresfords 15
Other brands 6
Own label 22
100
TABLE 15
Brand Shares in Mackerel Steak, 1984/5
% based on tonnage
1984 1985
TABLE 16
Brand Shares in Mackerel Fillet, 1984/5
% based on tonnage
1984 1985
John West 30.1 27.1
Princes 26.1 30.9
Other 43.8 42.0
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TABLE 17
Brand Shares of Pilchard 1984/85
% based on tonnage
1984 1985
John West 28.0 30.9
Princes 23.6 16.8
Glenryk 29.1 30.9
Other 19.3 21.4
TABLE 18
Brand Shares of Kippers/Herring 1984/5
% based on tonnage
1984 1985
TABLE 19
Brand Shares of Brisling, 1985
The outlet share of the canned fish market is given in table 20. The major
supermarkets have almost 60% of the market and are growing in importance
with an increasing involvement in own label.
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TABLE 20
Outlet Shares in Canned Fish, 1984
% based on value
More so than for wet fish sales, canned products are well suited to multiple retail
operations and the one-stop customer shopping patterns of the modern
housewife. Unlike frozen products they store and keep well without refrigeration.
Unfortunately over 75% of the UK canned fish market is in salmon and tuna,
species that present supply problems to UK producers. Atlantic salmon, even
farmed, is too expensive compared to Pacific species, and has little prospect of
any sale in volume. It might have limited sales if it were promoted strongly as a
"Scottish" product of high quality.
BFC in the past has attempted to import frozen tuna sides for processing but
experienced problems with the attitude of UK Customs and Excise officials
regarding the classification of the raw material.
There is no duty on imported whole frozen tuna, but cooked, skinned fillets were
levied with a duty that made the products uncompetitive. Pre-skinning is
essential as the machinery needed to skin fish at the factory is very expensive
and investment is not likely for the processing of an imported raw material at this
time.
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French and Danish canneries import tuna for processing for their domestic
market and for export (including to the UK) particularly tuna seafood and tuna
mayonnaise added value products incorporating vegetables and sauces (in flat 2
piece ring pull cans) that do not compete directly with tuna steak.
BFC has also canned farmed rainbow trout in the 200gm round can for
Berrisfords and initially met with some success but when marketing support was
withdrawn, sales were not maintained probably due to competition from pink
salmon which is cheaper.
Apart from a share in the general upturn of sales in canned fish over the last
twelve months the sales of round cans (excluding salmon and tuna) have in
recent years been losing ground to flat cans, particularly for mackerel and
herring. This trend looks likely to continue with obvious implication to companies
that are not equiped to handle flat cans.
The introduction of canned recipe dishes also looks likely to continue to grow.
Princes recently launched a line of four seafood dishes; plaice with mushrooms
in wine sauce, paella with cod, mussels and prawns, cod with prawns in cream
sauce, and tuna a la king. The dishes, canned in 320gm flat, ring pull cans are
imported from Denmark and have proved popular with initial sales of over twenty
times the target figure UK canners however are not equiped to handle this size
of flat can.
UK producers are more competitive in mackerel steak in round cans than they
are in fillet in flat but the price differential for fillet in the flat cans between British
and Danish products in the UK is now very close (Princes). With Princes
importing 40,000 cases per month of fillet (compared to 3,000 cases per month
of steak supplied by BFC) the prospect of import substitution is attractive in a
market that is large and growing.
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Canned Fish for Human Consumption – Study of the UK Industry
production from Denmark to Britain. It is probable that the margins for Danish
products in Britain are low with the high profits being earned in Germany. If this
is the case then it might make good sense for UK Producers to compete more in
the European markets where margins are better.
In order to set up a canning plant or even a new canning line, much capital is
needed as processing and packing equipment for canning is very expensive. To
justify investment a stable supply of raw material, ie pelagic species is essential.
The variability of supply of pelagics is discussed in Seafish Technical Report No.
311. The natural variability in supply of pelagics is compounded by quota
systems which do not account for the needs of processors, with the systems
resulting in massive fishing effort over a comparatively short period.These short
fishing seasons cause gluts and fish must be frozen and kept in cold storage so
canning can continue during the rest of the year. The freezing and storage of
fish is a major cost to canners, which changes in stock control measures could
reduce. Total closure of areas to pelagic fishing vessels (eg South West Box)
takes no account of processors needs, while a limited fishery continuing in that
area would sustain the processor until the fishery was fully opened again.
Processors are reluctant to invest in canning whilst no consideration appears to
be given to their needs during the construction of fishery management regimes.
Prospects for BFC would appear to be reasonably good. They are able to
handle both flat and round cans, they offer a fair range of products at
competitive prices, and are located conveniently with respect to raw material
supplies. Recent capital investment in new lines and a vigorous management
approach auger well for the company's future.
The company is interested and active in pursuing new product development but
has limited capacity at present to finance such on any scale. They would benefit
from having their own freezing and cold storage facilities.
BFC would appear to be close on price to substituting for Danish flat can imports
and have prospects in export markets supplied by the Danes.
IFC have good established European markets for products backed by high
marketing support.
They are known to be active in product development but would not disclose
details.
IFC are also located at Fraserburgh convenient to raw material supplies but like
BFC they have no freezing or cold storage capacity of their own.
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Prospects for IFC are largely unknown but product range, pricing and the
marketing support they are given would lead us to be optimistic for the future of
IFC.
9.4. Shippams
Shippams face strong price competition for pilchards from South America and
have had supply/cost problems with mackerel which had to be purchased from
Ullapool in 1985/86 adding in excess of 50% to the raw material price.
The lack of a line to handle flat cans does not allow the company to escape the
direct competition with South American imports of pilchards in round cans and
limits the company's ability to diversify in added-value flat can products.
Prospects for the company are linked with access to mackerel stocks in the
south west box.
Atlantic Salmon and farmed trout are currently too expensive to hope for
any volume sales.
9.5.2. Mackerel
Significant expansion of UK sales of skin-on bone-in mackerel steak in
round cans is considered unlikely as the market trend seems to be away
from round cans to the flat ¼ club. As UK producers already dominate
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the home market for mackerel steaks, import substitution would not be
great. Expansion of UK sales of ¼ club flat ring pull cans of skinless
mackerel fillets is feasible through a share in the growth of the UK Market
and by substitution of Danish product. Profit margins on mackerel fillet
products in the UK however are believed to be low and UK producers
could well find better margins in export sales.
9.5.3. Herring
The UK market for canned herring is small and largely supplied by
European imports of skin-on fillets in various sauces in 190/200gm flat
cans. Substitution might be possible but current volumes are small. Sales
of mackerel steaks in round cans in recent years have shown an
underlying downward trend so prospects for a similar herring product
would not look good. Herring fillets in various sauces have been test
marketed over the years by John West Ltd., but only fillets in tomtao
sauce and savoury sauce have survived at fairly low volumes.
9.5.4. Pilchard
Excluding salmon and tuna, the largest UK market for canned fish (1984)
is pilchard although the market is contracting with demand possibly driven
by lower prices of cat food. Given the price competition from imports, and
from South America in particular, not only is import substitution
considered unlikely but loss of market share to imports is likely to
continue.
9.5.5. Sprats
The UK market for sprats is relatively static and dominated by UK
Producers so no signficiant import substitution is possible.
In the UK sprats compete directly with sardines which are a much
cheaper product. UK exports however are significant with 45% of
production going to EEC countries, the U.S.A. and Australasia. During
1986 BFC commissioned a new sprat canning line and secured export
orders for products. Some growth is therefore considered likely in the
export market of sprats. A potential product for the UK market might be
the development of a skinned, salted and spiced sprat fillet that might
substitute for high-priced anchovy imports which in 1985 were worth £1.2
million.
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9.5.6. Roe
The only roe canned in the UK are soft herring roes which are imported
from Canada, Ireland and Norway in frozen block form. During 1985
British roe were costing 20 pence per lb more than frozen imported roe.
With an increase in the British herring catch, prices of roe could come
down but most of the herring processed in the UK is by machine which
tends to damage the roe making it unsuitable for canning. Canned hard
cod-roe has a good market in the UK though all of it imported from
Denmark. Only relatively small quantities of cod roe are landed in the UK
with most of it going to small processors for smoking or to fishmongers for
sale as fresh. In 1985 Marr Seafoods handled 180 tonnes of roe which
had been frozen at sea by their own vessels. All of it was sold to the
Greek market for a price canners could not afford. It appears that good
quality roes have a lucrative market in Japan, Korea, Greece and
Germany and that only low quality broken roes are cheap enough to be
affordable by canners.
Although IFC have a hard cod roe canning line it is not in operation due to
lack of affordable raw material supplies.
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Another possible opportunity for a larger sized can might be in its use by
secondary processors, not necessarily fish processors. There is
considerable interest at present by non-fish food processors that would
like to include fish in their product range, for example in pies, pasties,
pizzas, savoury pancakes, prepared sandwiches, etc., but are concerned
with problems of handling, smell, taint and (in the case of pelagics) with
bones. The complete removal of bones from mackerel and herring is not
technically feasible at present so the equivalent of the bone-free cod
block made from pelagics is not possible (other than minced). The can
retorting process however reduces the bones to a soft crunchy state that
might be acceptable to the palate.
The 'can' or container is not cheap compared with conventional cans but
the convenience of being suitable for micro-wave ovens could be
attractive to many consumers.
It might also find markets in catering services where kitchen facilities were
limited or in industrial catering where the scale of service required did not
warrant a full kitchen service, and could even be dispensed by vending
machine.
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10. Acknowledgements
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APPENDIX 1
Canned pet food manufacturers are largely separate from the human
consumption market. However approximate estimates from the trade give the
UK retail market value in 1986 for all canned pet foods as £840 million (894,000
tonnes) and that of fish based canned pet foods as £35 million (45,000 tonnes).
Both oily fish and white fish are used in canned pet foods, with the heads and
frames of white fish obtained from processors making up 80% of raw material
and whole oily fish 20%. A small amount of tuna is imported for speciality pet
foods. All fish except tuna is obtained from British sources.
Approximate cost to canners of raw materials are, white fish offal £60 per tonne,
oily fish (mainly mackerel) £110 per tonne (frozen, ex. store).
% based on tonnage
Pedigree Pet Foods 60
Spillers 20
Quaker 5
Carnation 1
Other 14
I ©Seafish
APPENDIX 2
Source: HM Customs
II. Other
B. Salmonids:
I. Salmon
II. Other
C. Herring
II ©Seafish
II. Other
D. Sardines = 25%
E. Tunny = 24%
G. Other:
II. Other
b) Other:
Pilchards
Brisling
Roes
III ©Seafish
Crustaceans & Molluscs
A. Crabs:
B. Other:
Other crustaceans:-
Shrimp and Prawns, canned
Other Molluscs
IV ©Seafish
APPENDIX 3
The Embassy has confirmed that canned pilchards do qualify for the Peruvian
scheme with the following subsidies:
II. Decentralisation scheme - additional 10% of FOB value for producers located
outside Lima.
Since the maximum subsidy under the Certex scheme is 35%, those producers
located outside Lima qualify only for the basic and decentralisation Certex. Most of
the canned fish producers are located outside Lima and therefore qualify for the full
35%. Those producers in Lima have access to the basic and complementary Certex
totalling 27%. Additionally, like other exporters, those involved in canned pilchards
can qualify for further assistance under the FENT (Fondo de Exportaciones no
Tradicionales) which is a fund set up to finance exports. Financing can be obtained
at a fixed rate of 7.5% per year for a maximum period of 180 days.
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Before we make any further enquiries, it may be helpful if I explain the procedures
for making an anti-dumping or anti-subsidy complaint. The enclosed anti-dumping
information pack sets this out in some detail. I have provided below a summary of
the main points for ease of reference.
Firstly, as you may know, this Department's Unfair Trade Unit has no independent
power to take action against dumped or subsidised imports; that responsibility is
exercised on our behalf by the European Commission. The Unit here exists to assist
and advise UK applicants as appropriate in their preparation of a complaint.
Secondly, it should be borne in mind that, although imports may be cheap, this is not
necessarily an indication that they are dumped or subsidised. For dumping the
essential criterion is that the item is sold for export at less than the producer charges
for similar sales on his domestic market. The comparison should be made at similar
levels, usually at ex works, both on the producer's domestic market and on the
export market. For a successful application there is the need for reasonable prima
facie evidence (it does not need to be conclusive proof) that such a price
discrepancy exists. Subsidies are usually regarded as financial benefits given
directly or indirectly to exporters through grants, loans or tax reliefs.
The more usual indicators of injury include increased import penetration, lost sales,
price under-cutting, depressed prices and profits, falling capacity utilisation and
perhaps reduced employment opportunities. The extent to which the current
economic climate may have affected the industry is excluded by the Commission
during its investigation and it will judge whether or not material injury has occurred as
a result of the allegedly dumped or subsidised imports.
I hope that this letter, together with the information pack, answers your main queries,
but if you feel you would like to discuss the position, please do contact me.
Enc
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