The International Coldwater Prawn Forum 2004

Presentasjon (ppt-format)

It is indeed a pleasure to be here in London and to address you at the very opening of the International Coldwater Prawn Forum 2004. I will take this opportunity to share with you some of my thoughts on future challenges and developments in the coldwater prawn sector.

As keynote speaker I will, however, start by thanking the Organising Committee for preparing this conference. A conference like this is important. It creates an opportunity for normally fierce competitors to come together and exchange experiences, knowledge and to express views about the past, the present and more importantly – about the future.

State of the industry

I will not dwell too much on facts and figures – others will do just that later during these two days. But, allow me a few references to the state of the industry. In 2002 the world production of prawns amounted to about 4.3 million tonnes. This annual production volume has remained fairly stable over the past few years.

Coldwater prawns account for a modest 8% of the total world supply of prawns. Still it is important, especially on the European arena. The global supply of cold water prawns has increased from 365 000 tonnes five years ago, to 452 000 tonnes last year – an increase of 24% in total. Norwegian catches have for each of the last two years reached about 68 000 to 69 000 tonnes. Canada and Greenland are the major suppliers.

It has been estimated that 35% of the total supply now enters various shell-on markets around the world. This trade has increased in importance over the past few years. But still, the peeling industry is the most important business sector for coldwater prawn fisheries.

Challenges

I can see a number of challenges facing this industry in the years ahead.

One is definitely linked to biology – we cannot expect significant increases in catch volumes, at least not during the immediate future.

Another is linked to the market – suppliers are all struggling to gain a solid foothold on a market that seems rather static. In other words: we tend to compete on the same markets, with the same product. In addition we see a growing competition from farmed prawns – more than 30 per cent of total supply.Also consumer demands and awareness are growing stronger.

I am sure that these basic challenges are just as obvious to you as they are to me. It may well prove difficult, and it may take a while, but we could possibly turn this situation to our advantage.

New markets

Joint efforts could pave the way for sales to new markets as well as innovations in production and sales. Russia emerges as example of markets with possibilities worth exploring.

In order to succeed on new and emerging markets we have to concentrate on marketing, food safety, quality and product adjustments in order to satisfy consumer’s need and demands.

Business and politics

To me, any given species must be managed in a sustainable way. This is a basic requirement, and a responsibility that authorities must handle. In addition authorities have a number of other tasks such as providing industry with best possible and competitive framework. This includes both national topics such as interest rate and currency matters, and also international issues such as market access.

I do, however, strongly believe that business and politics must be kept separate. In the coldwater prawn business, as in any other, it is the industry itself that must be responsible for its operations and for its profit.

The consumer

The challenges I referred to should be met by innovation and development of new products. Increased profits often require new and more sophisticated products. It is important to remember that value adding takes place where consumer meets products. At the very moment when he – or she – decides that any given product has a quality that merit a higher price than more average products.

During the past couple of decades we have witnessed a steady, and even dramatic, shift of power with respect to “who” sets the demands. The power of the consumer is growing. Consumers all over the world are aware, awake and demanding. This is as it should be! A fundamental element of the Norwegian food policy is that the food must be safe. Here authorities play an important role, setting standards and monitoring compliance. But, again the main responsibility rests with suppliers. Those intending to stay in business will offer products that meet consumer preferences and international standards.

Seafood is an excellent source of some of the most health promoting nutrients we know. Prawns are excellent examples in that regard.

Biotec’s standard enzyme

I have, ladies and gentlemen, stressed the need for innovation – for development of new products and also new production processes.

Increasingly Norwegian companies turn to our marine resources looking for new products. Not just in the food sector, but also in biotechnology. We see a growing number of products based partly on marine substances – mobile phones, TV-screens, satellites, pharmaceutical products, cosmetics - the list is getting very long.

I have one example for the prawn sector: the Norwegian company Biotec Pharmacon offers a variety of products, many based on marine raw materials, such as this ultra-pure enzyme product. It is a product used by scientists in genetic research and diagnostics, and also in DNA forensics. It is among the "best sellers" in this product category in the US.

Believe it or not, this very, very expensive product is produced from the thawing water in the prawn industry! Not many years ago absolutely no-one would even dream of finding much of value in this! A lot of research has, as you can imagine, been put into this product. It is really very fascinating! 4,000 litres of thawing "prawn water" is necessary to produce 30 kilo dry substance which in the end will yield So, ladies and gentlemen, the challenges – and the possibilities - ahead are many. The fact that you have this forum where you can meet and debate such issues is in itself an asset.

In closing, I ask you to focus on future opportunities. I hope that the next couple of days will inspire you to work together. And, that you together with scientist, investors and others, can identify new possibilities and create a platform for further developments and expansion of the industry.