[Original title: Nederland visdistributieland - Strategische opties en onderzoeksagenda]

Executive summary

Conclusions

Market size or scale

In its current size, Dutch fisheries is limited by the natural boundaries of the production of fishing grounds in the North Sea and in other EU fishing areas. In addition, any expansion of its share in the market is bound by Total Allowable Catches (TACs). The Netherlands has little control over the market of fish farming products; as a result, it must do without a major growth market.

Dutch fisheries is dominant in catching and processing several European species. However, its present role as a European clearing-house is of limited significance. Against European standards, the sector is of relatively small scope. Although several, specifically Dutch products have a large market share in trading markets, the country's share in the total volume of fish trade (outside the domestic market) is relatively low.

Added value

Dutch enterprises have obtained a strong position in processing several specific products. The domestic market has a highly developed network of specialised wholesale and retail businesses. Secondary fish processing, however, is relatively underdeveloped in The Netherlands; as a result, Dutch businesses are as yet unable to provide modern food channels with a wide range of products.

In an increasing number of markets fish is being integrated with other food products. In the future, fish suppliers will be increasingly confronted with new market concepts such as demand-driven chains. This will create opportunities for fish-processing enterprises whose ambition it is to develop into providers of logistic services to large European clients. Chain thinking is not yet highly developed in the Dutch fishery sector.

The strategic potential of The Netherlands as a distribution centre

There are better ways of realising the strategic potential of The Netherlands as a distribution centre, for example, by making the main ports of Rotterdam and Schiphol airport stand out as the pivotal centres for fish imports from - and fish exports to - faraway markets.

Agenda of policy issues: strategic possibilities

The opportunities for developing into a major distribution centre on both a European and a global scale are to be found mainly beyond the traditional boundaries of the sector, i.e. in new species, new products, new markets and new concepts. Several strategies may be applied to achieve this:

• Improving the country's strategic position in terms of access to supply sources.
• Increasing added value by integrating Dutch fisheries into EU - and global - food industries.
• Realising the strategic potential of The Netherlands as a distribution centre.

Improved access to supply sources

The structural market share of a sector is defined more and more by its access to supply sources. At the same time, conditions have developed in such a way that buying them has become virtually the only method to be allowed catches. Sustainable expansion of commodity supply in The Netherlands may be promoted in the following ways:

• Clearing the way for initiatives to increase the Dutch share in EU allowable catches:
  • by pleading - within EU context - in favour of increased liberalisation of international quota trade between enterprises;
  • by making a strategic exchange of quota between countries also dependent on both elements of market provision and the positions taken by wholesale and processing sectors.
• Clearing the way for initiatives to increase access to European catches:
  • by co-operating (also in terms of allowable catches) with enterprises in other member states or countries;
  • by setting up international relations between individual fishing businesses - or producers' associations - which in the future may result in closer collaboration and more fish.
• Obtaining access to supply sources which might have future relevance to Dutch fisheries:
  • by laying claims to remaining and underused stocks (white fish) within the EU, for example by organising experimental fisheries;
  • by obtaining access to stocks outside the EU (particularly pelagic species);
  • through Dutch participation in international fish farming projects.
• Strengthening the role of Dutch fish auctions:
  • by having auctions apply innovations (e.g. IT) and by ensuring that such efforts are not impeded by control or supervision regulations;
  • by developing alternative methods for initial fish sales and price-building or potential alternative tasks for auctions if such is demanded by chain competitiveness.
    

As a sector, fisheries may be able to reinforce its market position and to increase its added value by improving its integration into the distribution chains for food products in Europe. In addition to existing market channels, fish distribution will be integrated increasingly into the distribution of other foodstuffs. New opportunities can be found mainly outside traditional or specialised markets for fish products. The fisheries sector may strengthen both its role and its range of services through the following actions:

• Promoting further product development and differentiation of species that are traditionally processed in The Netherlands while encouraging secondary processing of imported half-products:
  • by establishing a central office for making applications that will play an intermediary role in providing the fish processing industry with opportunities to make full use of national and EU programmes for innovation;
  • by broadening the available knowledge of product and market developments as well as knowledge of the operations and dynamics of new market channels.
• Ensuring improved realisation of opportunities in new market channels:
  • by having more detailed market information available on new market channels in Europe;
  • by taking initiatives to set up relations between fisheries-related enterprises and experts from new market channels in Europe and by engaging key persons from new market channels with regular consultations in the fish chain with greater frequency;
  • by communicating the idea underlying demand-driven chains, shortening of chains, etc. to all the relevant links in the sector and by initiating a discussion between the links in the chain;
  • by broadening the available knowledge of chain processes.
• Encouraging horizontal co-operation, both internationally and with enterprises from other sectors:
  • by setting up relations between Dutch and foreign fish processing businesses and with enterprises from other sectors which might result in future horizontal types of co-operation in sales policies and a strengthening of market positions;
  • by pointing out the advantages of collaborating with enterprises from other branches of industry;
  • by broadening the available knowledge of main actors in the production of fish products (and foodstuffs) in the EU.
• Developing the domestic market:
  • by initiating a discussion about the possibilities of new systems for distribution and logistics in the traditional channels of domestic fish distribution;
  • by ensuring that national and EU innovation programmes are accessible to SMEs in the traditional channels;
  • by realising a more collective type of public relations.

Realising the strategic potential of The Netherlands as a distribution centre

• Strategic industrial policy-making includes exploring the feasibility of a strategic industrial policy aimed at better future employment of aquatic commodities. When employing its resources, The Netherlands should focus on supporting the development of those branches of industry that are in favourable positions while being of strategic importance. The objective is to be successful in sectors where the future may bring a great deal of employment and added value. Possible means include: research, knowledge building, government grants, tax measures. Potential opportunities can be found in:
  • fish and shellfish farming: extensive farming abroad while processing in The Netherlands; intensive farming in recirculation systems will require more detailed investigation;
  • marification: with the help of basic research or through buying knowledge/patents abroad.
• Main port of Rotterdam: encouraging the importation of both half-products and end products from third countries:
  • by working towards increased harmonisation in applying EU guidelines in setting quality policies;
  • by reinforcing the knowledge of those supplying commodities and half-products in other continents by making strategic use of services available to Dutch abroad (e.g. agricultural attachés, Chambers of Commerce or the Centre for the Promotion of Imports from Developing Countries) to promote their exportation of fish to The Netherlands;
  • by establishing - similar to the example of "Rotterdam Fruit Port" - a fish cluster to provide special facilities (processing, insurance, payment, etc.) and by establishing a forward market for deep-frozen half-products.
• Main port of Schiphol airport: make Schiphol stand out as an operating base for importing fresh products from - or exporting them to - faraway countries:
  • by taking initiatives to establish trade contacts between producers, airports, shipping agents and buyers;
  • by taking initiatives to locate market niches in rich countries, e.g. by making strategic use of services available to Dutch abroad such as agricultural attachés, trade missions, etc.;
  • by examining the advantages of scale and synergy, if any, of a cluster of fish-related activities.
    

Research agenda

The agenda provides a summary of research tasks as they result from the policy-making agenda. To develop the suggested strategies it will be necessary to broaden the research agenda. The emphasis in knowledge development will shift towards issues which are presented to the fishing industry by the market and by social developments.

Fresh issues include: European food distribution outside the fishing industry, new functions in logistics and distribution (chain approach), the opportunities provided by The Netherlands as a distribution centre, and access to other fish sources apart from the North Sea.

Knowledge development

The aim is to broaden and strengthen the available knowledge of new market channels in Europe that are not part of the traditional fishing industry: the European food market, new chains and logistic systems, synergy with non-fish products. This can be achieved by:

• conducting foresight studies into the fishing industry of Europe (and beyond) with a view to its co-operative potential;
• studying the effects of a chain approach in the fishing industry;
• studying the possibilities of improving initial fish sales;
• examining the potential of The Netherlands as a distribution centre for the fishing industry, including the feasibility of fish clusters at the main ports of Rotterdam and Schiphol airport and the opportunities for The Netherlands as a distribution centre of imported fish;
• identifying market niches for specific - fresh - European fish products on the global market in the context of further globalisation;
• exploring alternative commodity sources: the potential of species that are underused both in the EU and beyond, markets of allowable catches, supply markets for commodities both within the EU and beyond;
• (basic) research into product development in relation to: pelagic species, marification, intensive fish farming.
  

Institutional adaptations

Knowledge development requires businesses, branch organisations and government to take action. Still, knowledge development is only the beginning. Applying new knowledge requires a different culture; also, it is expensive. In the fishing industry, with its relatively small SMEs, it is important that knowledge implementation, too, is embedded into the existing research infrastructure. This may be done:

• by identifying the needs for information and training in the fish-processing industry, e.g. in the fields of chain-related co-operation, information technology and innovation. As soon as an overview of those needs is available it may be possible to initiate custom-made research and training programmes;
• by encouraging that knowledge available elsewhere is employed, e.g. by playing an active part in the transfer of that knowledge;
• by establishing a central information and co-ordination station to promote knowledge development and knowledge transfer in the fish chain.
  

What next?

Whatever the ideas presented above, it is essential that businesses will do these things independently while government and branch organisations will play a facilitating role. It is suggested to sound out the amount of support for these ideas by entering into a discussion with people who are active in the industry.

If it is the ambition of the fishing industry that the role of The Netherlands as a fish distribution centre is put on the agenda, it will be necessary to arouse an interest for this issue in enterprises both within and beyond the current fishing industry. Following this, an assessment can be made of how chances of success are estimated, where the bottlenecks are, what actions will be necessary and who should develop initiatives.

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