Documented since the XVI CenturyDocumented since the XVI Century Codfish represents 40% of the national per capita fish consumption (which is close to 60 Kg (lwe)/yr/person)Codfish represents 40% of the national per capita fish consumption (which is close to 60 Kg (lwe)/yr/person) Total annual apparent consumption stabilized around 70 K.tonTotal annual apparent consumption stabilized around 70 K.ton Second world’s largest importer of frozen codfish and the third exporterSecond world’s largest importer of frozen codfish and the third exporter World’s largest importer of green salted codfishWorld’s largest importer of green salted codfish Second world’s largest importer of dried and salted codfishSecond world’s largest importer of dried and salted codfish SALMAR - Margins Along the European Seafood Value Chain (European Project QLK5-CT ) The Portuguese Codfish Industry - A Survey The Survey The Survey Conclusions Domestic catches were reduced by 70% in ton (lwe) and 40% in current PTE between 1988 and 1999 Apparent consumption has stabilized at approx. 70,000 ton (in salted dry weight) Industrial production has decreased by a small amount Hyper-markets represent an important sales channel Exports oscillate without a clear pattern João Ferreira Dias, Rui Menezes, Fernanda Guia, José Cruz Filipe, Vivelinda Guerreiro ADETTI / ISCTE - Lisboa Avenida das Forças Armadas LISBOA PORTUGAL Sample: 36% of the cod processors and 40% of the production36% of the cod processors and 40% of the production All firms dry and salt codfish; 2 of them produce frozen soaked salted codfish as wellAll firms dry and salt codfish; 2 of them produce frozen soaked salted codfish as well 9 companies act also as wholesalers; 2 owns fishing boats9 companies act also as wholesalers; 2 owns fishing boats Identification of Sector Competitive Advantages: Economies of scaleEconomies of scale Special relationship with their customers;Special relationship with their customers; Production efficiency (domestic competitors)Production efficiency (domestic competitors) Manpower costs (international competitors)Manpower costs (international competitors) Marketing, brands and quality are also referred as importantMarketing, brands and quality are also referred as importantIssues: Problems with quality assurance of suppliesProblems with quality assurance of supplies Concern about direct imports by the hyper-market chainsConcern about direct imports by the hyper-market chains Lack of EU standard legislation, defining the main state parametersLack of EU standard legislation, defining the main state parameters Cost structure Cost structure (dried salted processing) Rawmaterials: Raw materials: 88,9 % Manpower: Manpower: 4,6 % E Energy: 1,6 % c Other costs: 4,9 % Survey Findings The vertical integration is now limited (until 1974 the fleet owners where also the processors)The vertical integration is now limited (until 1974 the fleet owners where also the processors) Several firms express the interest in a cooperative purchasingSeveral firms express the interest in a cooperative purchasing The relationship with customers is the main source of competitive advantagesThe relationship with customers is the main source of competitive advantages Traditional wholesalers are yet the main sales channelTraditional wholesalers are yet the main sales channel The larger producers sell an increasing share to hyper- marketsThe larger producers sell an increasing share to hyper- markets Exports are made on a point basis, by agents and otherExports are made on a point basis, by agents and other Inventories increased a lot from 1998 to 1999Inventories increased a lot from 1998 to 1999 Imports (lwe) increased by 10% during the period from 1988 to 1999 with a steady seasonality profile Imports average price increased during the period , with almost identical average prices (in $US / Kg lwe) for the different states, giving the indication of an integrate and transparent world market Frozen codfish has increase its share in supplies Apparent consumption of salted dry codfish is stabilized K.Ton thmarket Imports supply the processing industry and the market Catches by the Portuguese fleet collapsed K.Ton Price US$/Ton (lwe) Quantities Ton (lwe) The Importance of the Portuguese Codfish Industry