The European market for bass and bream is surprisingly good at present Supplies of bream are lower than previously expected and prices are stable. This is unusual for the season because in most years, when new supplies come to market in June and July prices fall as a result. Bass prices on the other hand are somewhat weaker in July for sizes up to 600 grams. Price reductions are not large however, between 2 and 5% from last month. Large sized bass and bream are both in short supply with prices up as much as 10%.

For both species, lack of reliable production and trade statistics continue to hamper the industry’s development. Planning becomes more difficult for the companies involved with increased uncertainty and risk and with considerable swings in prices.

In particular, this is the case for Greek exports to Italy where most analysts estimate that significant quantities are exported under the non-specified species category and not as bass or bream. These quantities also include re-exports by Greek companies from Turkey.

New market growth in Italy

Although most analysts believe that the import statistics for Italy (and Greek export statistics) seriously under-represent the real quantities and values of bass and bream imported to the country, the official statistics are those that have to be relied on for trends in imports. And the official statistics show new growth in 2009 from 2008. Last year, however, was a difficult year in the Italian market with imports falling for the first time. On the other hand 2009 figures for the first quarter show volumes rising by 8% and values up 4%. Greece  has consolidated its position as the key supplier to the market followed by Turkey. In the bass segment Turkey is now gaining market share going from 17 to 28% of the market.  One reason for this is that many Greek producers preferred to grow bream over bass because of the higher growth rates.

In Italy, supply from Greece and Turkey (and a number of smaller players) is supplemented by local production. Italian produce is always preferred in the market and receives somewhat higher prices thanks to its local origin and higher degree of perceived freshness. In fact, where Italian producers have managed to cooperate and organise common marketing and sales structures with regular supplies guaranteed throughout the year, prices obtained are significantly higher than those paid for imports. The producers of bass and bream situated in the Orbetello area just north of Rome are an outstanding example of this type of cooperation.

Spain

Total Spanish imports fell drastically in the first quarter as a reflection of the country’s severe economic problems. Bream imports held up well almost unchanged from 2008 whereas bass import volumes dropped by 65%.

France: imports up in first quarter

The French market is still relatively robust with import volumes growing from 2008. In fact both volumes (+24%) and values (+7%) were up, with Greece and Spain as the largest suppliers.

UK market continues to grow

The positive development in the UK market for bass and bream over the least few years, has been one  of the best examples of market expansion for the two species.
And despite the tough times in the UK economy this year has seen a further increase in imports.

Production expected to decline

Production volumes of bream in 2009 are now expected to be much less than previously forecast for the year. There are two major reasons for this. First of all, earlier projections were based on industry estimates of biomass. These figures turned out to be overestimated.

Secondly, cash flow problems in many companies will force producers to harvest early at lower average weights. This will bring down total volumes but also significantly damage company profits.

As a result, supplies of bream in particular seem to be more in balance with demand for the rest of the year. Bass production figures are also considered stable although some companies may have increased their bass volumes given the low price of bream late last year.

Overall, tight liquidity will probably have the largest effect on production as fewer juveniles are reportedly now in the sea than in 2008. Somewhat firming prices therefore could be the result for the rest of 2009.

Trade: Value-addition next step in increasing trade

Greece and Turkey continue to be the largest exporters with Italy, Spain and France as the largest importers. Italy is by far the largest market and is supplied by domestic producers as well as by imports. New markets have developed especially in Russia and the UK, but also in the US.

Although seabass and seabream continue to find new favour with consumers also in northern Europe, the relatively high price and low yields have made it difficult for the species to penetrate non-Mediterranean consumer segments or restaurant segments. In this respect, bass has been more successful than bream as the bass is better known in northern Europe as a fish from capture fisheries, especially in the UK, and therefore already known by many consumers.

Most European trade in bass and bream so far is in whole fish and not in value-added products. Over time this will change as more and more companies are looking into production of fillets and other types of value-added products. The obstacle to more value-added products has been one of economics as the low yield has made the processed product too expensive. However, relative price compared with other farmed species is an important factor, and with the current high prices of farmed salmon, bass and bream become more competitive in the market. They cost far more of course than imported species from Asia such as tilapia or catfish, but these operate in the frozen market whereas bass and bream are sold fresh to both retail and restaurants.

Outlook: Supply and demand in balance

Demand for bass and bream is holding up in all markets except for Spain. Of course, prices and margins are under pressure with producers also suffering from tight credit and lack of liquidity. Supply looks as if it will be lower than only a few months ago as many producers have stocked less than expected and are harvesting earlier: a market in balance is therefore predicted for the rest of the year.