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Denmark Annual
Seafood Report From: AMERICAN EMBASSY,
COPENHAGEN, DENMARK
Report Code: DA9554A All landings (including landing in Denmark of other EU and third countries) of edible fish in 1994 amounted to 670,000 MT; 60,000 MT above 1993. 123,000 MT was made inedible in 1994 (compared to 100 MT in 1993) as they did not obtain the minimum prices. The total of 547,000 MT was sold at a value of DKK 2.7 million, up from DKK 2.3 million in 1993. Prices were maintained at a relative high level, which attract fishers from other nations to land their catch in Denmark. The price level is predominantly determined by obtainable export prices. In general, catches are determined by the quotas, while landings for consumption is determined by what can be sold above the minimum prices. Denmark imports most of its raw material from countries outside the EU (Norway, Greenland, Faeroe Islands and Russia) and sells the manufactured products with the EU (Germany, France and the U.K.). During the first 6 months of 1995, the value of total landings increased by 6 percent compared to the same period in 1994 and by 18 percent compared to 1993. Landing of cod increased by 31 percent at an increased value of DKK 67 million, while landings of other groundfish were reduced by 31 percent at reduced value of DKK 16 million. Cod prices declined by 7 percent. Further decline in prices are anticipated as a result of increased quotas. Exchange rate: 1994: DKK 6.35 = US$1 Report Code: DA9554A
Global Economic Data Exchange System Commodity: Total Edible Fishery Prods.
(0300000) (METRIC TONS)
Production General Official Danish statistics on landings published by the Ministry of Agriculture and Fisheries include total landings in Denmark. This figure is further broken into landings of Danish fishermen, other EU fishers and third countries fishers. Landing figures in the P,S & D tables represent landings by Danish fishers, while the rest is included in imports. (The inclusion of other countries landings in the Danish statistics is for quota computations only). The tables are corrected from previous to reflect this. Total Danish landings in 1994 increased further to 575,000 MT of which, however, 123,000 MT or 21 percent of the total catch for human consumption was bought up by the PO (Producer Organization). The price mechanism has a minimum price system securing
members of an approved producer organization a minimum price for all landings, provided
the marketing standards are satisfied. The producer organization can, within the limits
given by EC, fix a withdrawal price below which the members are not to sell. If a lot of
fish cannot be sold at a price above the fixed withdrawal price, the producer organization
will withdraw that quantity from the market, and pay the fisherman a compensation for the
lot. Production
The numbers used in the "Total Edible Fishery Prods." table do not include fish which has been bought by the PO, but only fish which is on the commercial market. Landings are anticipated to remain at the 1994 level in 1995. The Danish 1995 quotas are shown below. It is, however, anticipated that the PO will buy up less fish in 1995 as fish prices are moving upwards. The numbers used in the "Total Edible Fishery Prods." table do not include fish which has been bought by the PO, but only fish which is on the commercial market. Herrings, which are the largest single species caught in Denmark, amounted to 296,000 MT in 1994 or 44 percent of the total catch. It is noteworthy that of the 296,000 MT, 105,000 MT was bought up by the PO and made inedible for human consumption. In ranking, herrings are followed by mussels, cod and mackerel which represent 17, 14 and 9 percent, respectively of the total landings. The Danish fishing fleet. The Danish fishing fleet consists of vessels registered in Denmark as fishing vessels. In order to have a vessel registered as a fishing vessel, it is necessary to get a license, issued from the Danish Ministry of Fisheries, permitting use of the vessel in commercial fisheries. The Danish Ministry of fisheries administers a register of the Danish fishing fleet, The register was established in 1982, and it contains information on all Danish fishing vessels with an over-all length of 6 meters or more used for commercial fishing. The number of vessels amounted in 1994 to 3,148. Vessel size is measured in Gross 105,156 tonnage (GT) or Gross registered tonnage (GRT), and amounted to 95,713 GT/GRT in 1994. The fishery and the resources. TAC's and quotas The Common Fisheries Policy (CFP) of the European Community
forms the basic framework for Danish fisheries. An important component of the CFP is
the system for conservation and exploitation of the living resources in the sea by
limiting the catch through fixing of quotas.
Production
Every year the Council of Ministers adopt a regulation fixing total allowable catches (TAC) of each stock and the allocation of quotas to the member states. Since the resolution of the principles of the CFP in January 1983, the distribution of the TAC among the member states has aimed at ensuring relative stability of fishing activities. The allocation from January 1983 function as a fixed set of keys for distributing each TAC between Member States. The proposal for the TAC/quota regulation forwarded by the Commission takes account of the biological assessment of the fish stocks, and the advise given by the scientists. An important objective is the long term conservation of the fish stocks and the possibility of maintaining an adequate sustainable yield in the long run. The scientific advice results from assessment coordinated and evaluated by the advisory Committee of the International Council for the Exploration of the Sea (ICES). Important elements in the procedures leading to the elaboration of the TAC/quota regulation are the consultations between the EU and third countries, that is countries outside the Community. The purpose of these consultations is firstly to decide the TAC for the fish stock shared by both the EU and the third country, known as joint stock, and to allocate the TAC's between the partners. Secondly, the aim of consultations is to agree on the conditions for the fishery by EU fishermen in the third country fishing zone, and by third country fishermen in the EU fishing zone. The Member States can wholly or partly exchange their quotas, provided the Commission is notified in advance. In accordance with the CFP each national quota is managed by the authorities in the Member State. The quota could be thus be divided into subareas, which, for instance, is used in managing of the Danish quotas in the Baltic. Denmark's fish quotas (Metric Tons)
Production
Consumption General Total consumption in 1994 is estimated at 207,000 MT. A
campaign to increase consumption of fresh fish is at the planning stage. The campaign is
financed by the Danish fishing industry and is budgeted at DKK 90 million over the next 5
years. Although the industry includes the exporting industry, some reluctance to this
campaign do exist as it limits the exports accordingly. A few supermarkets have started
sales of fresh fish and seem successful. This development probably Shellfish products are relatively ignored by the Danish consumers, as shellfish is generally regarded as a banquet item, and most Danes consider the price of shellfish high. In terms of quantity, 6 percent of the import for consumption is manufactured products sold in cans or glasses or frozen. Approximately 1 percent of these are dinner products; the rest are products traditionally used for lunch, but to some degree also used as entrees at dinner. Four
Consumption
In cities, there is always a minor group of "gourmet consumers", i.e. people who often eat fish, even exotic fish species, preferring to purchase whole, fresh fish for own home personal preparation, and who have no objection against the generally high price of seafood. Prices Minimum prices. As mentioned in the production section, a PO (Producer Organization) possibility exists. The PO is a minimum price system introduced by the EU in an attempt to control the market prices. It is not compulsory for the fisherman to enter the PO, but if he does, he is obliged not to sell his fish below the minimum price, and if he cannot, the PO buys the fish at the minimum price. The PO is funded 90 percent by the EU. It is only possible to obtain PO for 14 percent of the total catch of each specie. Reference prices. The reference or the minimum import
price is introduced to secure that fish cannot be imported if its value is General estimates. Denmark is a net exporter of fish and fish products for human consumption. On the other hand, Denmark is a net importer of fish for industrial use, but again a net exporter of industrial fish products (meal and oil). Denmark receives 90 percent of its imports from countries outside the EU, mainly from other Scandinavian countries, while the EU receives 80 percent of Denmark's fish exports. The main outlets are Germany and the U.K. Denmark's 1994 imports and exports of fish (metric tons).
Report Code: DA9554A Trade
Total Edible Fishery Prods.
Overall Trade Trends No changes are expected in the overall trade pattern. Denmark will continue to source the main part of its needed raw material from countries
Trade outside the EU such as the other Nordic countries and Russia. Denmark also imports a considerable amount of frozen fillets for further manufacturing and re-exporting. Denmark s exports are forecast to remain stable as the reduction in the commercial catch will be offset by larger imports. Denmark will continue to market most of its products within the EU, mainly to Germany and the U.K. The large items in the Danish fish exports are the processed or preserved exports which in value accounts for 25 percent of all edible exports. This category is expected to continue to increase as the Danes are focusing on value adding to their products. Factors Affecting U.S. Trade Denmark exports only small amount of fish and fish products to the U.S. In 1993, edible exports amounted to 5,404 MT of which 3,106 MT was frozen cod fillets. The U.S. is not considered an important market for Danish fish products. Denmark imported from the U.S., during the same period, 4,835 MT of which 1,795 MT was whole cod and 1,755 MT was salmon. Fishing areas and fish stocks. FAO has provided a division of all oceans and seas into main statistical regions. Region 27 comprises the North East Atlantic and region 21 the North West Atlantic. Region 27 is divided into divisions and subdivisions by ICES (International Council for the Exploration of the Sea), and correspondingly region 21 is divided by NAFO (Northwest Atlantic Fisheries Organization). National Fishing zones extended out to 200 nautical miles from the coastline or follow internationally approved boundaries, often based on calculated mid-lines. The EU-Sea is combined areas of the exclusive fishing zone of all Member States. The national fishing zones and the statistical divisions intersect in a way that makes the catch statistics incomparable with those quotas which are restricted to national fishing zones. The TAC/quota (Total Allowable Catch) regulation
administers the fishery on the fish stock which are autonomous to the Community, and on
the joint stocks managed by EU together with certain third countries. For the Danish
fishery this is notable Norway, Sweden, Greenland and the Faeroe Islands. A
supplementary set of regulations, based on the agreed records of the consultations with
third countries, allocates to the Member States the catch possibilities in the third
country fishing zones.
Policy
Market Development Opportunities All countries are eligible to export seafood to Denmark. There are ample opportunities for exporters, who can comply with EU health provisions. The Danish market is, however, no easy market, due to the fact that, the Danes have a conservative taste in fish and shellfish. Danes are price conscious in this product area, and distribution channels are limited. Most Danes consume seafood less than once a week on average (lunch herring products and canned mackerel not included). The main part of this consumption is fillets of fish (cod species, salmon and flatfish), purchased chilled or frozen. 4.5 percent of the total import of seafood for consumption is fillets. However, an increasing number of Danes will buy fish products (mainly frozen) for preparation in ovens, micro-waves oven or deep frying, but in 1992 the import of such products was less than 1 percent of the total import for consumption. The Danes have a very traditional view on the private preparation of fish and shellfish, and too many individuals have a perception that preparation is difficult, and time consuming. There is a tendency that fish is mainly consumed when dining out either privately or at restaurants etc. Shellfish products are relatively ignored by the Danish consumers, as shellfish is generally regarded as a banquet item, and most Danes consider the prices of shellfish as being high. In terms of quantity, 6 percent of the import for consumption is manufactured products sold in cans or glasses or frozen. Approximately 1 percent of which are dinner products; the rest are products traditionally used for lunch, but to some degree also used as entrees at dinner. 4 percent is herring and mackerel products, sardines and shrimps. In cities, there is always a minor group of "gourmet consumers", i.e. people who often eat fish, even exotic fish species, preferring to purchase whole, fresh fish for own preparation, and who have no objection
Marketing against the generally high price of seafood. Marketing Channels Many towns have no specialist fish retailer. Often greengrocers and butchers have an assortment of smoked products for sale, while other manufactured products are sold by grocers and supermarkets. Very few of these traders sell fresh products, and the assortment of frozen products is limited. Products in glasses and cans are always part of the stock, but the main products will be traditional lunch products and tuna fish. Sanitary and hygiene provisions apply, not only in connection to the import of seafood but for all handling and storage of fish and shellfish. Denmark applies the restrictive EU regulations in this field, but additional national provisions also apply. These can be more restrictive than the EU provisions, sometimes complementing the EU regulations. The provisions cover all parts of the trade handling from the fishing fleets to the retail premises. Fish, shellfish, and manufactured products can only be imported into Denmark, if the exporter is approved by his national authorities and the EU Commission, and if the goods are covered by a health certificate. The health certificate must provide information of the imported product, the origin of the goods (fisher, wholesaler or manufacturer) and their destination. An authorized sanitary inspector in the US must provide a statement that the products fulfill the sanitary requirements of the EU. If specific fresh fish and shellfish, whether farmed or caught, accepted by the EU sanitary inspection shall be transported within the EU territories, a special transport document shall follow the goods to the place of destination. In this document similar information included in the sanitary certificate, is required.
Global Economic Data Exchange System
Production General Salmon landings amounted to about 100,000 MT in 1994
(production figures in tables are eviscerated weight), a little lower than in 1993.
The only sea where salmon is caught by Danish fishermen is the Baltic sea in competition
with Swedish, Polish and Finish fishermen. The catch is estimated to decrease in
1995 and 1996 according to the Quality The quality of the Baltic salmon is considered excellent and it especially good for smoking and curing. Production Mix There is no salmon farming in Denmark. There is, however, farm production of trout. Consumption General Domestic consumption, which also include salmon for further processing, is expected to reach 53,000 MT in 1995. The amount for direct consumption of
Salmon, Whl/Evisceratd Consumption
Prices Table
Source & Contract Terms: Danish Ministry of Fisheries
Exchange Rate (Local Currency/US $): 5.77
General Imports of whl/eviscerated salmon in 1994 are estimated at 35,500 MT, all from non-EU countries. Norway and Faeroe Islands are the main suppliers followed by the U.S. and Canada. Most of the salmon imported from Norway and the Faeroe Islands are farm raised while salmon imported from Northern America is wild salmon. Overall Trade Trends Salmon trade is expected to increase slightly in both 1995 and 1996. Lower prices are expected to generate more interest for salmon and the Danish fish industry and trade believe that they can process and re-export a larger amount of smoked salmon in coming years. Norway and the Faeroe Islands are expected to continue to be the main suppliers. Increased imports from the U.S. and Canada depends on the price differences between the farmed Norwegian salmon and the wild caught North American salmon.
Trade Trade Matrix
Production Policy Denmark has a small marine aquaculture production which produces sea trout and no salmon. The Danish government is very concerned about nitrate pollution of the Danish waters and have taken stringent measurements to reduced nitrate pollution from agriculture. A large number of fish farms can be a pollution factor in the Danish fjords, and the government is not interested in approving too many fish farms. Tariff Policy EU tariffs on salmon is as low as two percent. Marketing Market Development Opportunities Increased availability of salmon at affordable prices has opened up the market for additional increases in consumption. The versatility of the salmon particular has made it a popular fish among the consumers. The market share for processed/ready-to-eat salmon is increasing and there
Marketing
Production General The groundfish category consists of the following species: cod; haddock; whiting; light and dark coalfish, and hake. Cod is by far the biggest contributor to this category (69 percent in 1994). The actual landings depends on the TAC (Total allowable catch). Next to cod, coalfish is the most important species of the groundfish with a 9 percent share. Consumption General Most of the whl/eviscerated groundfish is used for further processing into fillet and other processed products. It is estimated that around 5 percent of the domestic consumption is consumed directly as fresh fish. Of the landed whole groundfish approximately 50 percent is guts, fins, heads and other waste products. Prices The industry tried in vain September, 1995 to have PO acceptance of lowering the minimum prices for cod with about 10 percent. According to the industry this will bring Danish prices more in accordance with import prices. The increase in the cod quota of almost 20,000 MT should justify such a reduction.
Prices Prices Table
Source & Contract Terms: Danish Ministry of
Fisheries
Trade Trade Matrix
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