September 10, 2007

Norway feeling pressure from Asian aquaculture

Norway, the EU's biggest fish producer, is feeling the heat of the competition posed by Asian fish farms in its own backyard- the EU.

A report from the Norwegian Institute of Fisheries and Aquaculture (Fiskeriforskning) said Norway's aquaculture industry must focus on better market analysis and new product development in the face of this new competition.

The report from Fiskeriforskning said Vietnamese seafood products are increasingly common in supermarkets throughout the EU.

Sales of Vietnamese pangasius fillets are rising rapidly in Europe, the report noted. The fish is a potential competitor for Norwegian white fish products such as cod, haddock and other fishes.

Norwegian products have not so far felt the effect of these imports, probably because the increase in imports from Vietnam comes at a time of high demand for seafood in the EU, the report said.

Norwegian fish producers may see greater competition in the frozen consumer pack products market, where species are less of a factor in deciding purchases.

The report also lists tilapia, a tropical fish as a potential competitor. The report noted that consumption of this relatively unknown species is rising in the US and could pose more of a competition in future.

However, Fiskeriforskning's report points out that the Norwegian fisheries and aquaculture industries are well equipped to meet the challenge.

One key advantage of the Norwegian producers is the short distance to markets that they enjoy. This offers potential to develop the fresh fish market, which usually commands better prices, the agency noted.