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iFAB 2013 SEAFOOD REVIEW January 2014 v1.00b
iFAB 2013
The Food and Beverage Information Project The Food & Beverage Information Project is the first comprehensive overview of the state of New Zealand’s Food & Beverage (F&B) industry. Part of the Government’s Business Growth Agenda (BGA), it is an integrated programme of work focusing on the six key inputs businesses need to succeed, grow and add jobs; export markets, capital markets, innovation, skilled and safe workplaces, natural resources and infrastructure. Essentially, the BGA Export Markets goal will require lifting the ratio of exports from today’s rate of 30% of GDP to 40% by 2025. This equates to doubling exports in real terms (or tripling exports in nominal non-inflation adjusted terms). This in turn equates to achieving a 7% per annum growth rate over the next twelve years. This five-year project analyses the main sectors in F&B, including dairy, meat, seafood, produce, processed foods, and beverages, as well as providing an overview of how the industry is fairing in our major markets. It also conducts in-depth sector reviews on a rotating basis. The information is updated annually and feedback from users shows the project is acting as a vital tool for companies looking to expand and grow exports. Why Food & Beverage? The Food & Beverage industry is vitally important to the New Zealand economy. Food & Beverage accounts for 56% of our merchandise trade exports and one in five jobs across the wider value chain. In addition, F&B acts as a vital ambassador for the country, being in most cases the first exposure global consumers get to “Brand New Zealand.” New Zealand’s F&B exports are growing strongly and the country’s export performance is strong and improving relative to peers. In the 15 years leading up to 2010, New Zealand's food and beverage exports grew at a compound annual rate of 7% per annum. So one way to look at the challenge is to ask – can we continue to grow our food & beverage exports at the same rate? To understand if this is possible we need to know what has been driving our success.
What is the purpose of the food and beverage information project? The project pulls together the available information on the food and beverage industry into one place, in a form which is familiar and useful to business. The reports contain analysis and interpretation of trends and opportunities to materially assist with business strategy and government policy. The information will be of vital use to businesses, investors, government, and research institutions as the industry expands and diversifies. This industry view will be very useful to government, enabling better dialogue and the opportunity to address issues collectively. What benefit will this bring to businesses? The Project will have many uses for businesses. These include:
– As a base of market intelligence to enable business to be much more targeted in their own market research
– Reviewing and informing offshore market development (including export and investment) strategies
– Assisting in identifying areas of innovation and R&D for the future
– Identifying strategic partners and collaborators – Enabling a company to benchmark performance with that
of its competitors – Monitoring industry activity – Gaining a better understanding of their own industry
sector – Identifying internal capability needs or external inputs
How will government use the reports? This information will provide much greater insight into the industry, which is useful for a range of policy development, from regulatory frameworks to investment in science and skills and facilitating access to international markets. In particular, a single source of factual information will enable government agencies to better coordinate their efforts across the system and be more responsive to addressing industry issues.
iFAB 2013
IFAB 2013 OTHER RELATED iFAB REPORTS
3
This analysis of the New Zealand seafood sector forms a part of the wider Food & Beverage Information Project
Other reports, including those from previous years, are available on the MBIE or Coriolis website…
http://www.med.govt.nz/sectors-industries/food-beverage/information-project/ http://www.coriolisresearch.com/reports/
iFAB 2013
IFAB 2013
ANNUAL CHANGE IN EXPORT VALUE BY TYPE US$m; 2012 vs. 2011
BENCHMARK – EXPORT GROWTH BY SECTOR In 2012 seafood was the third fastest growing core food & beverage super-category in absolute dollars and fourth in percent growth terms
5 Source: UN Comtrade database; Coriolis classification and analysis
PERCENT CHANGE IN EXPORT VALUE BY TYPE %; US$m; 2012 vs. 2011
$117
$66
$51
$35
$35
-$23
-$36
-$180
$30
$27
$16
$3
$3
-$2
-$7
Beverage
Processed Food
Seafood
Pet & Animal Foods
Other Foods
Dairy
Produce
Meat
Seed for sowing
Live Animals
Tobacco
Supplements
Fertilisers
HBC/Household
Pharmaceuticals
Net Core F&B +$67m
F&B RELATED CATEGORIES
CORE F&B CATEGORIES
23%
14%
10%
4%
4%
0%
-2%
-4%
57%
48%
33%
28%
15%
-1%
-3%
Other Foods
Pet & Animal Foods
Beverage
Seafood
Processed Food
Dairy
Produce
Meat
Fertilisers
Tobacco
Supplements
Seed for sowing
Live Animals
HBC/Household
PharmaceuticalsNet Related F&B +$70m
IFAB 2013 SEAFOOD – SITUATION – WILD CATCH
New Zealand
New Zealand has access to a strong set of natural resources for wild catch fishing. The country is an isolated island nation in the middle of the South Pacific, 2,100 kilometres from Australia. It has the sixth largest exclusive fishing area (EEZ1) and the tenth longest coastline of any country in the world.
Multiple sources suggest New Zealand’s fisheries are among the most sustainable fisheries in the world (on a par with Alaska and Iceland). New Zealand uses effectively the same catch management system as Iceland. However sustainable management has led to a decline in total wild catch over the past 15 years and there is low potential for substantial future growth.
New Zealand has an efficient, modern seafood industry with large modern boats, in particular the deep sea freezer trawlers. NZ achieves a 7% share of the temperate Southern Hemisphere (S.H.) wild catch.2 130 species are commercially fished in New Zealand’s EEZ1 , a similar species mix to Australia, Chile, Argentina, etc. The main catch by volume is hoki, followed by orange roughy.
Wild catch fishing is reasonably consolidated, with a handful of major firms and a range of secondary firms. Consolidation is more pronounced in deep water fishing, less so in closer waters.
The industry has mixed ownership, with New Zealand Maori tribal interests predominating, but with one listed firm (Sanford) and strong private ownership and foreign investment (primarily Japanese).
Competitors
New Zealand competes in the first instance with other colder water Southern Hemisphere countries, primarily Australia, Chile, Argentina, and South Africa. Secondarily, this group compete with Northern Hemisphere colder water fisheries, including Norway, Canada, Iceland, USA/Alaska, UK/Scotland.
Globally the wild catch seafood industry is fragmented with a huge number of medium to small sized firms competing. In-shore fishing is highly fragmented and primarily local around the world. Deepwater fishing is more consolidated due to capital requirements for large boats, but still fragmented globally.
Consumers/Markets
Consumption per capita of wild capture seafood has been flat-to-declining globally, due to overfishing and/or population growing faster than capture quantity.
Increased consumer demand for seafood across most developed countries is being driven by (1) scientific research showing health benefits and (2) changing diets. At the same time, key seafood consuming countries (e.g. South East Asia (SEA), China) are experiencing growing incomes leading to increased ability to pay for (or demand) more seafood. This situation has supported prices.
Fresh seafood is a highly perishable product and the highest value products are often those sold fresh (unlike some other foods).
NZ exported seafood to 112 countries in 2012; broadly speaking Western markets accounted for about half of value and the growing Asian market the other half.
- Bulk fish for further processing a key channel for NZ
- Majority of fish consumption globally occurs in restaurants and other foodservice outlets
- Supermarkets underperform in seafood (relative to other proteins); significant sales occur in more traditional channels (e.g. fishmongers and wet markets)
Demand for sustainable varies by market. There is increasing demand for sustainable in Western markets (Europe/North America), often driven by retailers (and vocal activists). However, there is currently low/no demand in Asian and developing markets for sustainability.
6 1. EEZ = Exclusive Economic Zone; 2. defined as Chile, Argentina, Brazil, South Africa, NZ & AU; Source: Coriolis
While New Zealand has a large and sustainably managed wild catch fishery, there is little likelihood of volume or throughput increases going forward
IFAB 2013 SEAFOOD: WILD CAPTURE – SWOT ANALYSIS While there are some opportunities for New Zealand wild capture going forward, there are also challenges
7 Source: various company annual reports; various company websites; Interviews; Coriolis
STRENGTHS WEAKNESSES
- Clean water and generally healthy aquatic environment - Unsubsidised industry - Quota management system preventing collapse of stocks through overfishing - Stocks generally at sustainable levels or rebuilding - Regularly ranked highly sustainable relative to other producers - Efficient, modern industry with large modern boats, in particular the deep sea
freezer trawlers - Stable, long-term ownership in place across most major firms
- Most industry growth metrics negative - Wild catch volume has fallen -34% since 1998 leading to reduced throughput - Relatively small producer on a global scale - Supply fluctuates year-to-year with availability of fish - Most EEZ space low productivity deep water - Bulk supply driven rather than specialised/consumer focused - Firms primarily small/sub-scale with limited access to capital - Highly regulated - Lack of market integration, not capturing in-market value - Limited in-market knowledge - Lack of capital
OPPORTUNITIES ISSUES/THREATS/RISKS
- Consumer perceptions of health benefits of seafood - Over half the fish body currently going to meal and waste - Use of byproducts for nutraceuticals /cosmetics sector - Growing interest by some more wealthy consumers in Western markets for
ecolabelling and environmental certification (driven by retailers) - Growing middle class in China and SE Asia - Gradual removal of global fishing subsidies - Ongoing removal of trade barriers and negotiation of new free trade agreements - Streamline regulations - New/improved supply chain technology
- New Zealand wild catch continues to decline going forward (for whatever reason) - Other countries “catching up” on sustainability (e.g. Argentina) - Low cost competitors in low wage/low regulation/higher productivity warm waters - Single variable special interest groups driving domestic regulatory agenda - Rising costs of airfreight reducing feasibility of fresh exports
IFAB 2013 SEAFOOD – SITUATION – AQUACULTURE
New Zealand
New Zealand has huge theoretical potential in aquaculture production. New Zealand has the 10th longest coastline of any country in the world, more than China and 180 other countries on the world. Currently only a tiny fraction of this is farmed; the total area in New Zealand in aquaculture is about 6,250ha, similar to the area in onions or a single high country sheep farm.
Aquaculture is a global growth story, supplying growing seafood consumption in the place of flat wild capture. Globally aquaculture has increased its share to almost 50% of total seafood volume. In New Zealand this is just 21%.
However, this strong theoretical potential for continued growth is unlikely to be fully realised. The rule book has been regularly changed over the past 50 years and it is too early to tell whether the latest rules, not modelled on best practice (e.g. Norway), will in fact make things easier. However, it is illustrative that the fourth largest identified investment in the New Zealand seafood industry in the past two years has been the $10m NZKS spent on paperwork and applications (!).
The fundamental issue is that NZ as a society has yet to come to a consensus on aquaculture, particularly salmon, with the proponents arguing for it to become a billion dollar industry, while a wide ranging opposition of recreational fisherman, inshore fishing companies, holiday home owners and environmental advocates oppose its growth. There is also historic uncertainty around foreshore and seabed ownership.
New Zealand farms three species in any quantity (mussels, salmon and oysters); these make up ~99% of the total exports.
Aquaculture is more consolidated than wild catch; the top 5 companies account for approximately 75% of the industry
Competitors – Shellfish
On a global basis, most shellfish are produced and consumed locally and very little crosses borders.
12% of global mussel production crosses borders; New Zealand competes with a wide range of regional players by market; Chile is an emerging multi-regional threat.
1% of global oyster production crosses borders; global production is flat except for China which is increasing production massively.
Competitors – Salmon
Salmon aquaculture is highly consolidated globally. The top 3 firms account for 38% of global production (the top 10 63%). None of the top 25 global salmon producers currently operate in NZ.
Consolidation is driven by clear economies of scale in production systems, marketing, processing, skills, genetics and capital. Effectively all1 other salmon aquaculture in the world farm Atlantic salmon due to its faster growth rates.
New Zealand biosecurity prevents imports of fresh salmon.
Consumers/Markets
As per wild capture plus
A handful of markets account for the majority of NZ aquaculture exports: Australia, Japan and the USA (plus S. Korea, Hong Kong & Spain).
High levels of biosecurity in Australia (Salmon, Mussels & Oysters) and Japan (Mussels) benefit NZ firms (e.g. NZ the only supplier of imported whole salmon to Australia).
8 1. 93% Atlantic/ 6% Coho/Chinook 1%; Source: Coriolis
Aquaculture has huge theoretical growth potential for New Zealand, however this is unlikely to be realised in practice
IFAB 2013 SEAFOOD: AQUACULTURE – SWOT ANALYSIS Aquaculture faces both opportunities and threats
9 Source: various company annual reports; various company websites; Interviews; Coriolis
STRENGTHS WEAKNESSES
- Clean water and generally healthy aquatic environment - Unsubsidised industry - Strong food safety regulations - Predictable supply - Concentrated resources in three key species - Only country farming green lipped mussels (Perna canaliculus); other farm other
green shelled (perna viridis, etc.) or blue mussels (mytilus sp.) - Limited presence of disease - Unique access to some biosecure markets (particularly Australia & Japan) - Parts of domestic industry protected from imports by biosecurity measures
- Small producer of mussels on a global scale; very small producer of other two species (salmon and oysters)
- Mussels and oysters have low value per hectare; salmon development limited by regulatory challenges (change in use and landuse consent difficult)
- Reliance on biosecure markets and a handful of flat to declining others (e.g. USA) - Constrained regulatory environment which is semi-constantly changing - Relatively low government support for fledgling industry (e.g. vs. Norway loan
guarantees in early days of salmon industry development) - Competing users of coastal space - No competitive advantage around feed production due to low scale - Disconnect between scientific research into new species and needs of industry;
research appears to primarily research native species - Illegal to farm high potential/high return trout
OPPORTUNITIES ISSUES/THREATS/RISKS
- Consumer perceptions of health benefits of seafood - Growing middle class in China and SE Asia - On-going removal of trade barriers and free trade agreements - Preferential access to Australia due to access through phyto-sanitary barriers - New species - Development of land based plants for use in aquaculture (e.g. soy) - Industry co-operation
- Low cost competitors in low wage/low regulation higher productivity warm waters - Chile - China (future)
- Beach, bach and boat (the 3 b’s), NIMBY (not in my back yard) attitudes limiting industry activity
- Disease outbreaks (e.g. oysters recently) - Reliance on a small number (3) of species (risk if disease outbreak); no significant
new species has emerged since 1976 - Single variable special interest groups driving domestic regulatory agenda
IFAB 2013 SEAFOOD – POTENTIAL AREAS FOR INVESTMENT
Wildcatch There are limited entry vehicles into wild catch, with ownership locked up by:
- Maori interests (unlikely to sell), - Cornerstone shareholdings by large international companies
(Nissui and RH Group) - Cornerstone shareholding of publicly listed Sanford, - Many family businesses: Talleys, United, Independent, Solander,
Vela, Amalgamated unlikely to sell without generational change. The industry has limited growth potential, particularly no significant volume growth is likely in wild catch. The strong and effective sustainability management system means catch will be flat-to-down in the foreseeable future. However this system also implies that New Zealand will have relatively more fish in the future compared with overfished countries and regions. Also, unlike the situation 20-30 years ago, there are now no new species to discover and market. Main source of value creation in wild capture is in cost reductions via consolidation. This consolidation is on-going, but progress is slow due to the ownership issues discussed above. There are opportunities in value creation through delivering a greater percent of the catch to the market in a more fresh/less damaged form (see PGP*).
Aquaculture Pacific oysters have low/no growth potential, due to the viral breakout and global market structure/situation.
Mussel industry is mature and consolidating rapidly. Mussels are relatively low value use of space. Returns over the past few years have been mixed-to-poor, particularly for smaller operators (driving industry consolidation). The Government/Industry mussel breeding program will likely deliver constant incremental gains for the foreseeable future. However these are likely to maintain New Zealand’s relative competitiveness (e.g. vs. Chile) rather than translate into dramatically increased profitability. Theoretically New Zealand has huge potential in salmon aquaculture; in practice regulations and competing interests will likely constrain success. New Species The species with the strongest potential (trout) is unfortunately illegal to farm. While New Zealand scientists are working on a wide range of new species these are all highly speculative and unproven commercially. Only investors with transferable capabilities or strong appetite for risk should participate. Further Processing There are opportunities for investment in further processing of New Zealand bulk ingredients (e.g. “white fish”) into consumer ready products, however this is primarily a greenfields opportunity for firms with transferrable skills. There are clear opportunities for investment in seafood derived nutraceuticals (discussed in the related nutraceuticals document).
10 * PGP = Primary Growth Partnership seafood investment;
Limited opportunities for new external investment in wild capture; however regulatory change and fundamental drivers may result in opportunities in aquaculture
IFAB 2013
SIMPLIFIED MODEL OF NEW ZEALAND SEAFOOD SUPPLY CHAIN (model; ANZSIC codes as available))
SEAFOOD – SUPPLY CHAIN New Zealand seafood has a relatively straight forward supply chain, driven in part by the perishable nature of the product in many cases
11 1. There may be one or more layers of wholesaling, depending on product or market; some wholesale functions maybe captive inside retailers or foodservice operators; 2. Includes product for housebrands, canners, fish meal manufacturers, Source: Coriolis
Aquaculture (A02)
New Zealand waters (A041)
Seafoodprocessing (wild+aquaculture) (C112)
Seafood wholesale (F360-400)
Seafreight Airfreight
Supermarkets
Fishmongers
Foodservice
Seafood wholesale1 (in-market)
Supermarkets/Fishmongers
Industrial2
Foodservice
International markets
Domestic market
Non-NZ waters (not tracked)
Wild capture
Distributor wholesaler
Secondary Processing (in-market)
iFAB 2013
IFAB 2013
-
20
40
60
80
100
120
140
160
180
196
019
62
196
419
66
196
819
7019
7219
7419
7619
7819
80
198
219
84
198
619
88
199
019
92
199
419
96
199
820
00
200
220
04
200
620
08
2010
-
2
4
6
8
10
12
14
16
18
2019
61
196
3
196
5
196
7
196
9
1971
1973
1975
1977
1979
198
1
198
3
198
5
198
7
198
9
199
1
199
3
199
5
199
7
199
9
200
1
200
3
200
5
200
7
200
9GLOBAL SEAFOOD BY TYPE Global seafood production roughly half wild capture, half aquaculture; aquaculture driving production growth leading to increasing global per capita consumption; marine fish dominate capture; aquaculture more varied
GLOBAL FISH/SEAFOOD PRODUCTION BY TYPE & METHOD Tonnes; million; 2011
51 YEAR GLOBAL SEAFOOD PRODUCTION BY METHOD Tonnes; million; 1960-2011
13 Note: 2011 is latest data available for all countries globally in FAO Agstat as of October 2013; Source: UN FAO AgStat database; Coriolis analysis
Total = 739m tons
Wild capture
Aquaculture
2%
8%
50y CAGR
51y CAGR
3%
48 YEAR GLOBAL FISH/SEAFOOD CONSUMPTION PER CAPITA Kilograms/person; 1961-2009
48y CAGR
2%
10%
72%
Aquaculture
84
2%
Aquatic plants
Other misc.
Crustaceans
Molluscs
25%
Diadromous fishes
Freshwater fishes
Marine fishes
Capture
95
1% 1%
7%
7%
1%
7%
17%
5%
43%
2%
IFAB 2013
Europe 10%
North America 4%
C/S America 11%
NA/ME/CA 2%
S Asia 7%
SE Asia 19%
East Asia 43%
Norway 4 2%
Spain 1 1%
Iceland 1 1%
Other Europe 11 6%
USA 6 3%
Canada 1 1% New Zealand 1 0.3%
Australia 0 0.1%
Peru 8 5%
Chile 4 2%
Brazil 1 1%
C/S America 5 3%
SS Africa 7 4%
Iran 1 0%
Other NA/ME/CA 3 2%
India 9 5%
Bangladesh 3 2% Other S Asia1 1%
Indonesia 14 8%
Viet Nam 6 3%
Philippines 5 3%
Myanmar 4 2%
Thailand 3 2%
Malaysia 2 1%
SE Asia 1 0%
China 66 37%
Japan 5 3%
South Korea 3 2%
Taiwan 1 1% Other East Asia 1 0%
12 20 23 21 19 17
4
4 5 7
7 7 0
0 1 1
1 1 7
14 11
17 18 19
2
3 3
4 6 7
1
1 1
2 3 4
2
3 4
6 9
13
3
6 8
12
18
34
11
17
23
32
55
76
41
68
78
103
136
178
1961 1971 1981 1991 2001 2011
GLOBAL SEAFOOD PRODUCTION BY KEY COUNTRIES & REGION Tonnes; million; 2011
GLOBAL FISH/SEAFOOD PRODUCTION BY REGION New Zealand produces 0.3% of global seafood production; global production growth being driven by Asian region
14 Note: 2011 is latest data available for all countries globally in FAO FishStat as of October 2013; Source: UN FAO FishStat database; Coriolis analysis
Total = 178m tons
Europe
N America Australasia
C/S America
E Asia
SE Asia
S Asia
NA/ME/CA SS Africa
Other
50 YEAR SEAFOOD PRODUCTION BY REGION Tonnes; million; 1961-2011
1%
1% 5%
2%
4%
5%
4%
4% 2%
50y CAGR
50y CAGR
3%
IFAB 2013 TOP 37 SEAFOOD PRODUCING COUNTRIES New Zealand is the 37th largest seafood producing country in the world
TOP 37 PRODUCERS OF SEAFOOD FROM ALL SPECIES Tonnes; million; 2011
10 YEAR PRODUCTION GROWTH RATE CAGR %; tonnes; 2001-2011
15 Note: 2011 is latest data available for all countries globally in FAO FishStat as of October 2013; Source: UN FAO FishStat database; Coriolis analysis
66 14
9 8
6 6 5 5 4 4 4 4 3 3 3
2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
ChinaIndonesia
IndiaPeruUSA
Viet NamPhilippines
JapanChile
RussiaMyanmar
NorwaySouth KoreaBangladesh
ThailandMalaysia
MexicoBrazilEgyptSpain
TaiwanIcelandCanada
MoroccoNigeria
EcuadorArgentina
UKDenmark
IranNorth Korea
TurkeyFrance
PakistanCambodia
South AfricaNew Zealand
4% 10%
4% 0%
0% 9%
5% -3%
0% 2%
12% 1%
2% 6%
-2% 3%
1% 4%
6% -1% -1%
-5% -2%
-1% 6%
2% -2%
-2% -7%
6% 0%
2% -3%
0% 2%
-4% -2%
ChinaIndonesia
IndiaPeruUSA
Viet NamPhilippines
JapanChile
RussiaMyanmar
NorwaySouth KoreaBangladesh
ThailandMalaysia
MexicoBrazilEgyptSpain
TaiwanIcelandCanada
MoroccoNigeria
EcuadorArgentina
UKDenmark
IranNorth Korea
TurkeyFrance
PakistanCambodia
South AfricaNew Zealand
iFAB 2013
IFAB 2013
Defined as 200 nautical miles from coastline
KEY PRODUCTION METRICS New Zealand has the 10th largest coastline of any country and 6.7m km2 of controlled ocean space - the sixth largest claimed ocean space of any country – however most of this is deep water with low productivity
LIMIT OF EXCLUSIVE ECONOMIC ZONE (EEZ) Area, depth, 2012
AREA OF EEZ BY WATER DEPTH km2; % of area; 2012
17 Note: a nautical mile is 1,852 metres; Source: Wikipedia (http://en.wikipedia.org/wiki/Exclusive_Economic_Zone); Sealord; Coriolis analysis
Less than 200m
0.4 6%
200 to 1,000m
1.5 22%
1km+ 4.8 72%
TOP 20 EXCLUSIVE ZONES (EEZ) BY CLAIMED AREA km2; million; 2012 or most recent available
11.4 11.0
8.5 7.6
6.8 6.7
6.2 5.6
4.5 3.7 3.7
3.4 3.2
3.0 2.6
2.4 2.4 2.3
2.0 1.7
United States France
Australia Russia
United Kingdom New Zealand
Indonesia Canada
Japan Chile Brazil
Kiribati Mexico
Micronesia Denmark
Papua New Guinea Norway
India Marshall Islands
Portugal
Total 6.7m
LENGTH OF COAST BY TOP 20 COUNTRIES km
202,080 54,716
44,087 37,653 36,289
29,751 25,760 25,148
19,924 15,134 14,500 13,676 12,429
9,330 7,600 7,491 7,314 7,200 7,000 6,435
CanadaIndonesia
GreenlandRussia
PhilippinesJapan
AustraliaNorway
United StatesNew Zealand
ChinaGreece
United KingdomMexico
ItalyBrazil
DenmarkTurkey
IndiaChile
IFAB 2013
-
100
200
300
400
500
600
700
1950
1952
1954
1956
1958
196
019
62
196
419
66
196
819
7019
7219
7419
7619
7819
80
198
219
84
198
619
88
199
019
92
199
419
96
199
820
00
200
220
04
200
620
08
2010
KEY PRODUCTION METRICS New Zealand wild capture has been trending downward since the late 90’s, while aquaculture has been growing since the early 80’s
TOTAL WILD CAPTURE SEAFOOD PRODUCTION Tonnes; 000; 1950-2011
TOTAL AQUACULTURE PRODUCTION BY KEY SPECIES Tonnes; 000; 1950-2011
18 Note: 2011 data latest available as of October 2013; Source: UN FAO FishStat database; MFish/MAF/MPI; Coriolis analysis
50-76 CAGR
3%
SHARE OF TOTAL SEAFOOD PRODUCTION VOLUME BY TYPE
% of tonnes; 1950-2011 TOTAL WILD CAPTURE BY SPECIES GROUP Tonnes; 1950-2011
97-11 CAGR -3%
76-97 CAGR
11%
-
50
100
150
200
250
300
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
200
0
200
2
200
4
200
6
200
8
2010
Other marine fish
Hoki
Squid/scampi
Orange Roughy Crustaceans Other molluscs Other
UNCLOS 1982 EEZ 200nm
-
20
40
60
80
100
120
1950
1953
1956
1959
196
2
196
5
196
8
1971
1974
1977
198
0
198
3
198
6
198
9
199
2
199
5
199
8
200
1
200
4
200
7
2010
Mussels
Salmon
Oysters
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950
1953
1956
1959
196
2
196
5
196
8
1971
1974
1977
198
0
198
3
198
6
198
9
199
2
199
5
199
8
200
1
200
4
200
7
2010
Wild capture
Aquaculture
IFAB 2013 YIELD New Zealand achieves low production yields in wild capture and aquaculture relative to peers
WILD CAPTURE VOLUME PER KM2 OF EEZ Kg/km2; 1981-2011
AQUACULTURE PRODUCTION VOLUME PER KM OF COASTLINE T/km; 1981-2011
19 Source: UN FAO FishStats; CIA World Fact Book; Coriolis analysis
-
500
1,000
1,500
2,000
2,500
198
119
82
198
319
84
198
519
86
198
719
88
198
919
90
199
119
92
199
319
94
199
519
96
199
719
98
199
920
00
200
120
02
200
320
04
200
520
06
200
720
08
200
920
1020
11
Chile
Norway
Faeroe Is.
Argentina
South Africa
New Zealand United Kingdom Australia
-
20
40
60
80
100
120
140
160
198
1
198
3
198
5
198
7
198
9
199
1
199
3
199
5
199
7
199
9
200
1
200
3
200
5
200
7
200
9
2011
Chile
Norway
Faeroe Is.
Argentina South Africa
New Zealand
United Kingdom
Australia
Japan
Ireland
Japan
Ireland
iFAB 2013
IFAB 2013 NUMBER OF FIRMS The number of seafood processing firms continues to decline as the industry consolidates
NUMBER OF SEAFOOD PROCESSING ENTERPRISES1
Enterprises; 2002-2012
21 Note: SNZ classified firms by their predominant activity; a firm that is 51% seafood processing and 49% aquaculture would be classified as seafood processing; Note: 2012 data latest available as of October 2013; 1. Defined as A020 Aquaculture, A041 Fishing and C112 Seafood processing; Source: Statistics NZ business demographics database; Coriolis analysis
CHANGE IN NUMBER OF SEAFOOD PROCESSING ENTERPRISES CAGR; absolute change; periods as given
354 350 354 335 328 315 313 306 289 279 286
1,806 1,771 1,730 1,653
1,574 1,444
1,374 1,340 1,306 1,291 1,264
135 134
131
128 120
112 114
103 96 97 99
2,295 2,255
2,215
2,116
2,022
1,871 1,801
1,749 1,691 1,667 1,649
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Aquaculture
Seafood processing
Fishing
-68
-542
-36
Aquaculture
Fishing
SeafoodProcessing
-29
-180
-13
7
-27
2
10 YEAR 5 YEAR 1 YEAR
IFAB 2013
$487
$460
$220
$154
$104
$80
$75
$70
$70
$47
Sealord
Sanford
Talley's
Aotearoa Fisheries
NZ King
Independent
Fiordland Lobster
United
Ngai Tahu Seafood
Kono
ANNUAL TURNOVER BY TOP 10 SEAFOOD FIRMS NZ$m; FY2012
iFAB TOP TEN SEAFOOD FIRM TURNOVER FY12 Sealord continues as the largest seafood firm in New Zealand by turnover in FY12
22 * Estimate; Source: various company annual reports; NZCO; Coriolis estimates and analysis
3
4
5
6
7
8
9
*
*
*
*
10
1
2
IFAB 2013
-1%
-4%
-9%
-15%
Sanford
Aotearoa Fisheries
NZ King
Sealord
Fiordland Lobster
Ngai Tahu Seafood
United
Talley's
Independent
Kono
-$4
-$7
-$11
-$86
Sanford
Aotearoa Fisheries
NZ King
Sealord
Fiordland Lobster
Ngai Tahu Seafood
Kono
United
Independent
Talley's
CHANGE IN ANNUAL TURNOVER BY TOP 10 SEAFOOD FIRMS NZ$m; FY2012 vs. FY2011
iFAB TOP TEN SEAFOOD TURNOVER GROWTH FY12 According to available actuals, FY12 was a difficult year
23 * Sealord is not a comparable 12 month period, FY11 is a 15 month period vs FY12 a 12 month period, Source: various company annual reports; NZCO; Coriolis estimates and analysis
ANNUAL TURNOVER % GROWTH BY TOP 10 SEAFOOD FIRMS NZ$m; FY2012 vs. FY 2011
1
2
3
4
FY11 was 15mo year FY11 was 15mo year
1
2
3
4
No data No data
* *
IFAB 2013 KEY PRODUCTION METRICS Industry employment was up in 2012 and historic decline appears to have stabilised over the past five years
TOTAL EMPLOYMENT BY SEAFOOD ENTERPRISES Headcount; as of Feb; 2002-2012
24 Note: 2012 data latest available as of October 2013; 1. Defined as C113-100 Milk & Cream processing and c113-300 Other seafood processing; Source: Statistics NZ business demographics database; Coriolis analysis
CHANGE IN SEAFOOD EMPLOYMENT CAGR; Absolute change; periods as given
580 580 580 520 500 490 480 490 490 430 400
1,400 1,290 1,260 1,090 1,150 770 780 850 810 710 740
8,560 8,100
7,540 7,580 7,310
7,310 6,770
7,020 6,920 6,910 7,150
10,540
9,970
9,380 9,190
8,960 8,570
8,030 8,360 8,220 8,050
8,290
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Aquaculture
Seafood processing
Fishing
-180
-660
-1,410
Aquaculture
Fishing
SeafoodProcessing
-90
-30
-160
-30
30
240
10 YEAR 5 YEAR 1 YEAR
IFAB 2013
30
-5
-20
-470
-50
-11
31
-30
-55
29
251
Otago/Southland
Canterbury
WC
N/T/M
Wel/Mana
HB/Gisb
Waikato/BOP
Auckland
Northland
Area Outside Region
Classified elsewhere
EMPLOYMENT BY REGION Employment down across most regions over the past five years
SEAFOOD INDUSTRY EMPLOYMENT BY REGION Headcount; as of Feb; 2007-2012
5 YEAR CHANGE IN EMPLOYMENT BY REGION CAGR; Absolute change; 2007-2012
25 1. Data is geographic level; classified elsewhere would include non-seafood catch & processing activities (e.g. wholesaling; other food processing; retail; foodservice); 2. for example on a boat at sea; Source: Statistics NZ business demographics database; Coriolis analysis
Otago/Southland
Canterbury
West Coast
Nelson/Tasman/Marlborough
Hawkes Bay/Gisborne
Waikato/Bay of Plenty
Northland Areas outside regions2
Classified elsewhere1
Wellington/Manawatu/Taranaki
5y ABS -280
430 438 443 415 389 460
1,605 1,430 1,715 1,730 1,790 1,600
150 145
125 160 90 130
2,870
2,650 2,365 2,230 2,320 2,400
235
180 191 176 175 185
126
118 123 138 124 115
1,010
980 960 1,040 1,089 1,041
660
630 650 610 505 630
225
235 265 180 140 170
81
85 80 95 85
110
1,178
1,139 1,443
1,446 1,343
1,449
8,570
8,030
8,360 8,220
8,050 8,290
2007 2008 2009 2010 2011 2012
Auckland
IFAB 2013
SEAFOOD INDUSTRY EMPLOYMENT BY KEY FIRM
Headcount; 2012, 2013
EMPLOYMENT BY FIRM The seafood industry is relatively consolidated with the top four firms accounting for over half of employment and the top ten for almost three quarters
26 Source: SNZ business demographics; Kompass; various firm websites; published articles; Coriolis interviews & analysis
Total = 8,290
Top 4 51% Top 10 68%
Sanford, 2,000 , 24%
Sealord, 1,100 , 13%
Talley's, 600 , 7% Aotearoa
Fisheries, 500 , 6%
NZ King, 425 , 5%
Independent, 350 , 4%
NIMP, 220 , 3%
Kono, 200 , 3%
United, 164 , 2%
HB Seafood, 100 , 1%
Other, 2,631 , 32%
IFAB 2013
Rank Announced Investment Firm Facility Location Opened/planned
1 n/a $52m Sanford Government Others
Mussel hatchery and breeding programme investment part industry part government
Multiple locations n/a
2 n/a $52m Aotearoa, Sealord, Sanford, Government
6 year joint project for Precision Seafood Harvest (with P&F Research)
- Oct 2013
3 n/a ~$23m NIMPL Automated mussel opening machinery installed at NIMPL Mussel and Sanford Marlborough processing facility
Tauranga/Marlborough June 2010
4 2007 $10m (consent process)
NZ King Salmon Application for 8 new farms, 4 approved; enable additional 15,000 tonnes over 6ha and increase revenue by $185m, adding 200 jobs
Marlborough Sounds n/a
5 2012 $7-8m Fiordland Lobster Co.
Recent expansion into Australia Australia 2013
6 August 2013 $6m MIT Seadragon Fish Oil plant expansion n/a n/a
7 2012 $6m Mt Cook Alpine Salmon
New salmon processing plant plus smokehouse (existing operation in Indon.) Part of $20m expansion plans – canal salmon
Washdyke, Timaru, South Canterbury
Nov 2013
8 $5.4m NIMP New production line at the $23m plant Tauranga BOP 2013
9 2013 - Aotearoa Fisheries
New Prepared Foods facility in Palmerston North
Palmerston North
2014
10 2011 $1.6m United Fisheries Developed new fertiliser and silage product from fish byproduct (BioMarinus)
Christchurch 2013
IDENTIFIED MAJOR INVESTMENTS IN NEW PLANT/EQUIPMENT As of October 2013
iFAB TOP TEN NEW SEAFOOD INVESTMENT Only three investments over $10m were identified in the New Zealand seafood industry; two were partially government funded; the fourth largest investment was in a resource consent process
27 Source: Coriolis from various published articles, annual reports & interviews
IFAB 2013
Announced Investment Firm Facility Location Opened/planned
2013 $1.5m Sealord New fresh/chilled fish line - aim to increase fresh from negligible to 10%
Vickerman Street facility Nelson
June 2013
2009 ~$1.3m Prime Foods New plant in Philippines with co-investors Alliance Tuna International
Philippines Nov 2009
2010 $2.1m loan Big Glory Bay Salmon & Seafood Company
New salmon plant in Philippines; JV between Prime Foods and Alliance Select Foods (www.bigglorybay.com)
Philippines August 2011
2013 $750k Sealord new acoustic optical system to understand fisheries
May 2013
June 2013 - Talleys Extension of 3 mussel farms Pelorus Sounds n/a
2013 - Cloudy Bay Clams Investment in plant and equipment Marlborough n/a
IDENTIFIED MAJOR INVESTMENTS IN NEW PLANT/EQUIPMENT As of October 2013
OTHER NEW SEAFOOD INVESTMENT A handful of other smaller investments were identified
28 Source: Coriolis from various published articles, annual reports & interviews
IFAB 2013
Rank Acquirer Target Price Date Details
1 Sanford Pacifica Seafood (mussel and oyster aquaculture operations) from Skeggs Group
$85m Nov 2010 - Acquisition of #2 mussel producer by #1 mussel producer (industry consolidation)
- Ownership of 70+ marine farms, 400 ha of water space and 800 mussel longlines + lease, share and contract farming including a further 130 hectares of space and 300 mussel longlines
2 Est
Sanford/Sealord North Island Mussel Processors (Greenshell NZ/Sanford/Sealord)
n/a 2012 - Bought from receivers- bad debt from Greenshell NZ - Includes Coromandel mussel farming operation and Tauranga plant - Tolling factory
3 Est
Aotearoa Fisheries Sealord Te Ohu Kaimoana
Anton’s Seafoods n/a Sept 2013 - Aotearoa Fisheries to purchase Anton’s factory in Auckland and Aotearoa, Sealord, and Te Ohu Kaimoana to share the quota
4 Est
Anton’s Seafoods 50% of Seafood Proprieties and Seafood Processors
n/a 2012 - Aotearoa Fisheries 50% holdings
5 Est
Aotearoa Fisheries Sanford oyster farms n/a July 2012 - Purchase all Sanford’s Pacific oyster farms in Northland - 16 farms over 128ha - Makes Aoteraoa #1 oyster operator in NZ
6 Est
Sealord Partners with Tainui Group Holdings
n/a - Sealord to co-manage its deep-sea fishing quota & Aotearoa Fisheries Limited in respect of our in-shore quota
7 Alliance Select Foods Intl. (Phil.)
Akaroa Salmon NZ$2.8m Oct 2012 - Purchased 80% of Akaroa Salmon
8 NZKS Skeggs Groups – Pacifica Salmon Ltd
$950k Jan 2012 - Sold salmon interest to NZKS to focus on tourism - Hatchery and 2 salmon farms
9 PauaCo Pacific Canneries asets + KABCO, ABCO
n/a 2012 - Formed new entity PauaCo, acquired assets of Pacific Canneries ltd and absorbed activity and shares of KABCO and ABCO, resulting in ~30% of commercial paua catch
IDENTIFIED MAJOR ACQUISITIONS INVOLVING NEW ZEALAND SEAFOOD FIRMS As of October 2013
iFAB TOP NINE SEAFOOD ACQUISITIONS A number of seafood businesses were acquired recently, most driving industry consolidation
29 Source: Coriolis from various published articles, annual reports & interviews
IFAB 2013
Date Investor Origin Investment Investor description
2001 Nissui Japan 50% of Sealord Nippon Suisan Kaisha Ltd founded in 1911 has 10,000 employees and capital value of $23,729m yen
1996 /2009
Evergreen Holdings / Rimbunan Hijau
Malaysia 51% of NZ King Salmon Oregon Group (Singapore) sold share of NZ King Salmon to Evergreen Holdings also part of the same Tiong Group (one of the wealthiest families in Malaysia’s)
2003 Kingfisher Holdings (Thailand) owned by Maruah Corp (Jp)
Japan Kingfisher Products Ltd
Worlds largest fishing company with sales of NZ$15b
2009 Alliance Select Foods Intl. (Phil.)
Philippines 50% of Prime Foods NZ Publicly listed Philippines-based tuna canner with 2 factories (General Santos City, Philippines and Bitung, North Sulawesi, Indonesia); produces fishmeal; smoked salmon JV with Studholm
2012 Alliance Select Foods Intl. (Phil.)
Philippines 80% of Akaroa Salmon
FOREIGN INVESTMENT IN NEW ZEALAND SEAFOOD FIRMS As of October 2013
FOREIGN INVESTORS New Zealand seafood companies have attracted limited foreign investment
30 Source: Coriolis from various published articles, annual reports & interviews
IFAB 2013
Action Company Date Details
Liquidation
Chatham Island Seafoods 2009 Ltd
Oct 2013 A factory, two vessels and quota Currently in Liquidation
Plant closure
Independent Fisheries Oct 2013 Statement considering proposal for closing plant in CHCH due to sharp decrease in sales; 200 employees
Market exit
Sealord sells Yuken and exits Argentina
Aug 2013 Sealord sells Yuken (its Argentinian firm) after constant losses
Business activity exit
Sealord - aquaculture July 2013 Announces plans to exit all aquaculture business in next three years
Receivership North Island Mussel Processors; Greenshell NZ
2012 Sanford and Sealord by out Greenshell NZ after put in receivership 7-800T , 3 vessels
Plant closure Sanford -factory December 2011 Closes Kaeo oyster processing plant Badly affected by mortalities caused by OSHV-1
Business activity exit Skeggs Group
2010 Exits all aquaculture to focus on tourism
IDENTIFIED MAJOR CLOSURES/SALES INVOLVING NEW ZEALAND SEAFOOD FIRMS As of October 2013
CLOSURES/SALES A number of major closures/sales were identified
31 Source: Coriolis from various published articles, annual reports & interviews
iFAB 2013
IFAB 2013
SEALORD Graham Stuart Chief Executive Officer
SANFORD Volker Kuntzsch Chief Executive Officer
TALLEY’S GROUP Michael & Peter Talley Joint Managing Directors
AOTEAROA FISHERIES Carl Carrington Chief Executive Officer
DESCRIPTION: Vertically integrated seafood fishing and marketing company exporting to over 60 countries, significant global investments
DESCRIPTION: Wild capture and aquaculture harvesting, farming, processing and marketing; 9 plants and 11 vessels that freeze and pack
DESCRIPTION: Deepsea and inland fishing and shellfish company, processing out of 4 processing factories and a fleet of fishing vessels
DESCRIPTION: Pan iwi organisation with 50% ownership in Sealord, and full ownership of Moana Fisheries, OPC Fish, Prepared Foods, Pacific Marine Farms & Kia Ora Seafood.
KEY PRODUCTS: Frozen and chilled fish, oysters, mussels and other prepared seafood products
KEY PRODUCTS: Chilled and frozen fish, squid, mussels, salmon
KEY PRODUCTS: Frozen and chilled fish, shellfish (cockles, oysters and scallops), byproducts
KEY PRODUCTS: Fresh and frozen Fish, oysters, mussels, + prepared seafood products
OWNERSHIP: Kura Limited 100% NZ: Aotearoa Fisheries 50%, Japan: Nippon Suisan Kaisha 50%
OWNERSHIP: NZ; public (NZX: SAN) (37% Amalgamated Marketing/Goodfellow Family)
OWNERSHIP: NZ; private (Talley family) JV with Amaltal Fishing Co
OWNERSHIP: NZ; tribal (various iwi/tribal holdings); ownership of Moana Pacific, Pacific Marine Farms, Kia ora Seafoods, OPC
COMPANY NUMBER: 168963 / 1097137 COMPANY NUMBER: 40963 COMPANY NUMBER: 168346 COMPANY NUMBER: 1581332
ADDRESS: Level 3, Building 8 666 Central Park, Ellerslie, Auckland
ADDRESS: 22 Jellicoe Street, Freemans Bay Auckland
ADDRESS: Port Motueka, Motueka, South Island
ADDRESS: Level 3, Moana Pacific House 138 Halsey Street, Auckland
PHONE: +64 9 579 1659 PHONE: +64 9 379 4720 PHONE: +64 3 3 528 2800 PHONE: +64 9 302 1520
WEBSITE: www.sealord.com/nz WEBSITE: www.sanford.co.nz/ WEBSITE: www.talleys.co.nz WEBSITE: www.afl.maori.nz
YEAR FORMED: 1974 YEAR FORMED: 1881/ 1904 YEAR FORMED: 1936/ 1973 YEAR FORMED: 2004
STAFF EMPLOYED: 1,100 (+400 offshore) STAFF EMPLOYED: 2,000 STAFF EMPLOYED: 600* (seafood) STAFF EMPLOYED: 500 (incl 250 Prepared Foods)
REVENUE: $487.1 (‘12) $573.5 (FY11, 15mths) ~$509
REVENUE: $460m (FY12) REVENUE: $220m* (seafood only; ex-meat/dairy); Total group = $1,640*
REVENUE: $154.1 (FY12)
COMPANY HIGHLIGHTS: New brand campaign; exits all of Argentinian fishing business Yuken; part of Precision Harvesting project to target fish
COMPANY HIGHLIGHTS: Eric Barratt retiring as CEO after 15 years; NZ business both deepwater and inshore shown improved performance; Australian business underperforming; reduced debt significantly; Fined US$1.9m in 2012; part of Precision Harvesting project to target fish
COMPANY HIGHLIGHTS: Marlborough District Council approved +16ha expansion of three mussel farms in Pelorus Sounds (Sep 2013)
COMPANY HIGHLIGHTS: New Prepared Foods facility near completion; Agreement with Cawthron Institute to take over Pacific oyster nursery; Restructuring business; sold share in Seafood Processors; ; part of Precision Harvesting project to target fish ; overall profit of $17m
33 * Estimates; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Coriolis estimates
TOP 10 SEAFOOD FIRM PROFILES 1 2 3 4
IFAB 2013
NEW ZEALAND KING SALMON CO Grant Rosewarne Chief Executive Officer
INDEPENDENT FISHERIES Charles Shadbolt Managing Director
FIORDLAND LOBSTER CO David Hogg Chairman
UNITED FISHERIES Andre Kotzikas Chief Executive/Owner
DESCRIPTION: Vertically integrated King salmon farming, processing and marketing company; 70% of NZ salmon production
DESCRIPTION: Deep see fishing company (3 vessels), supplier of whole & dressed fish and squid
DESCRIPTION: #1 Lobster company in NZ operating out of Fiordland
DESCRIPTION: Seafood fishing, processing and marketing company based in Christchurch
KEY PRODUCTS: Fresh, frozen, smoked King salmon KEY PRODUCTS: Whole & dressed fish (hoki, southern blue whiting, mackerel, barracouta) and arrow squid
KEY PRODUCTS: Live Lobster
KEY PRODUCTS: Frozen and fresh fish, mussels, oysters, fish fertilisers
OWNERSHIP: Foreign 51% Evergreen Holdings (Malaysia), 42% Direct Capital
OWNERSHIP: NZ; private (Shadbolt; others) OWNERSHIP: NZ; mixed (Hutchins/Wilson 25%; iwi; other)
OWNERSHIP: NZ; private (Keys, Jones & Kotzikas family)
COMPANY NUMBER: 287485 COMPANY NUMBER: 125989 COMPANY NUMBER: 407182 COMPANY NUMBER: 126455
ADDRESS: 93 Beatty Street, Annesbrook, Nelson
ADDRESS: Shadbolt Boulevard, Woolston Christchurch
ADDRESS: 17 Caswell Rd, Te Anau 9600
ADDRESS: 50-58 Parkhouse Road, Christchurch
PHONE: +64 3 3 548 5714 PHONE: +64 3 384 2344 PHONE: +64 3 249 9760 PHONE: +64 3 343 0587
WEBSITE: www.kingsalmon.co.nz WEBSITE: www.indfish.co.nz WEBSITE: www.lobster.co.nz
WEBSITE: www.unitedfisheries.co.nz
YEAR FORMED: 1985 YEAR FORMED: 1959 YEAR FORMED: 1989 YEAR FORMED: 1974
STAFF EMPLOYED: 425 STAFF EMPLOYED: 350 FT STAFF EMPLOYED: 30 STAFF EMPLOYED: 164
REVENUE: $104.0m (FY12) REVENUE: $80m (FY12) REVENUE: $75m* (FY12) 101.5m (FY13)
REVENUE: $70m*
COMPANY HIGHLIGHTS: Recent application for 8 new farms in Marlborough Sounds, 4 approved
COMPANY HIGHLIGHTS: Two fishing vessels now under NZ flag, including new vessel MV Irvinga which started fishing in 2013; Christchurch further processing factory under pressure
COMPANY HIGHLIGHTS: Invested $7-8m in Australia
COMPANY HIGHLIGHTS: Developed a fish silage for feeding livestock and a fertiliser
34 * Estimates; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Coriolis estimates
TOP 10 SEAFOOD FIRM PROFILES 5 6 7 8
IFAB 2013
NGAI TAHU SEAFOOD Brian Moriarty Chief Executive Officer
KONO NZ Don Everitt Chief Executive Officer
DESCRIPTION: Vertically integrated seafood company over 3 locations throughout NZ; factories in Kaikoura and Bluff
DESCRIPTION: Kono Seafood (was Aotearoa Seafood)
KEY PRODUCTS: Tahu brand, lobster, paua, cod, oysters, mussels
KEY PRODUCTS: Mussels (150ha), oysters, lobster; factory in Blenheim
OWNERSHIP: NZ; tribal (Ngai Tahu Charitable Trust)
OWNERSHIP: Private/Iwi (Wakatu Incorporation)
COMPANY NUMBER: 386544 COMPANY NUMBER: 3438072
ADDRESS: 6 Bolt Place, Christchurch
ADDRESS: Level 2, Wakatū House Montgomery Square, Nelson
PHONE: +64 3 358 2761 PHONE: +64 3 578 2069
WEBSITE: www.ngaitahuseafood.com WEBSITE: wakatu.org.nz
YEAR FORMED: 1989 YEAR FORMED: 1977
STAFF EMPLOYED: 35 STAFF EMPLOYED: 250 (~400 Wakatu total)
REVENUE: $70-75m* Group $209m (FY12)
REVENUE: $47m (Wakatu total $250m incl property)
COMPANY HIGHLIGHTS: $17.5m EBIT in 2013 from Seafood division; strength of lobster to China, recent acquisitions of a number of Sealord and other marine farms
COMPANY HIGHLIGHTS:
35 * Estimates; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Coriolis estimates
TOP 10 SEAFOOD FIRM PROFILES 9 10
IFAB 2013
Company
MD/CEO
Business description
Ownership Company #
Formed
Revenue
Staff
Address
Website
Greenshell NZ Ltd Peter Vitasovich General Manager
Greenlipped mussels “Ikana”
1969751 NZ; Private: (Vitasovich)
1990/ 2007
$20-30m*
240 725 Rosebank Rd Avondale Auckland 64 9 828 1650
www.greenshellnewzealand.com www.ikana.com Currently in receivership
North Island Mussels Steve Wells Chief Executive
Mussel production and sales 6,000 pottles /day
3995838 NZ; Private JV Sanford & Sealord
2012 $20-30m*
FT 20 PT 200
25 Glenlyon Ave, Greerton 3112, Tauranga
www.nimpl.co.nz Original NIMPL into receivership 2012
Hawkes Bay Seafoods Marcus D’esposito General Manager
Vertically integrated seafood company in Hawkes Bay
861866 NZ; Private (D’Esposito)
1997 $40-50m*
100 Cnr Pandora Road & Ahuriri Quay, Napier 64 6 835 5533
www.hawkesbayseafoods.co.nz
Prime Foods NZ Henry Studholme Managing Director
Prime Smoked salmon (purchased from Sanford)
625998 50% Philip.. Alliance Select Foods Intl. 50% NZ Studholme
1993 $7.0m 50 Hororata, RD2 Darfield, Canterbury 64 3 318 0895
www.primefoodsnz.co.nz www.bigglorybay.com Prime Smoke brand Manufactures in Philippines
Star Fish Supply Ltd Andy Claudatos Director
Inland and deepsea fish processors, wholesalers and exporters
926592 / 162271 NZ; Private (Claudatos)
1964 $30-40m*
50 27 Dunlop Road, Onekawa, Napier 64 6 843 0664
www.starfoods.co.nz/
Mt Cook Alpine Salmon Geoff Matthews Chief Executive
Salmon farmers and processors, + smokehouse 600T
2225082 NZ; Private (Various)
1992 $2-10m*
40 1 Tekapo Dve Twizel 64 3 435 0085
www.mtcookalpinesalmon.com
Nelson Ranger Fishing Simon Acton-Adams Managing Director
Mussel farming & processing; wild capture
874380 NZ; Private
1948 $30-40m*
40 43 Dublin Street Picton, Blenheim 7220 64 3 573 7921
www.nrfc.co.nz
Westfleet Seafoods Craig Boote Managing Director
Wild capture 6 vessels; 1 factory
50% Sealord; 50% Endurance (Craig Boote)
1981 $30-40m*
40 6-8 Gilbert Street Greymouth 64 3 768 5370
www.westfleet.co.nz
Pakihi Marine Farm Callum McCallum Director
Oysters 113952 NZ; Private (McCallum)
1982 $2-5m* 40 914 Clevedon-Kawakawa Bay Road, RD 5 Papakura 2110
www.clevedonoysters.co.nz
Vela Fishing Philip Vela Director
Seafood business, exporting frozen fish and mussels
923611 NZ; Private (Vela; others)
1929 $30-40m*
35 12 Sir Tristram Avenue Te Rapa Hamilton 64 7 849 2376
www.velafishing.co.nz
OTHER SEAFOOD FIRM PROFILES
36 * Estimate based on number of employees and type of business activity; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Kompass, Coriolis estimates
IFAB 2013
Company
MD/CEO
Business description
Ownership Company #
Formed
Revenue
Staff
Address
Website
Southern Clams Roger Belton Managing Director
Clams 209636 NZ; Private (Belton; others)
1984 $5-10m*
30 16 Bombay Street Dunedin 9016 64 3 477 1505
www.nzclams.com
Ngati Porou Seafoods Group
Mark Ngata General Manager
Vertically integrated seafood business, contract fishing, selling crayfish, mussels and fish
1778412 Tribal: Te Runanga O Ngati Porou
2002 $4.6m 25 47-53 The Esplanade, Gisborne 64 6 868 1644
www.npsl.co.nz
Leigh Fisheries / Lee Fish Group
Gregory Spencer Bishop General Manager
Vertically integrated seafood company (NZ and SEA) ; fish and lobster; contract fishers
56407 NZ; Private (Dermot Cunningham)
1958 $25-35m*
25 10 Pakari Rd, Leigh, Warkworth, Auckland 64 9 422 6424
www.leefish.com 1 factory
Wellington Trawling Co 2008
Tony Basile Managing Director
Seafood processor, retailer, exporter
2184242 NZ; Private (Basile)
1959 $25-35m*
24 220 Cuba Street Wellington 6011 64 4 384 4056
www.wellingtontrawlingcompany.com
Pelco New Zealand Andy Rolleston Director
Wild capture pelagic fish (Mackerels, Kahawai, Pilchards, Garfish and Tuna)
499562 NZ; Private (Rolleston)
1995 $25-35m*
20 32 Portside Drive Mount Maunganui Tauranga 3116 64 7 574 9335
www.pelco-nz.com
Solander Group
Charles Hufflett Managing Director
Seafood company with NZ and Fiji operations; exporting and wholesaling primarily from Fiji; own vessels
412898 NZ; Private (Hufflett family, others)
1929 /1981
n/a NZ 15 Fiji 400
Cross Quay, Port Nelson, Nelson 64 3 545 9650
www.solander.com
Sea Products 1998 Ltd Jason Bull Managing Director
Farmers and exporters of live shellfish (oysters and mussels)
936652 NZ; Private (Bull family)
1998 $2-5m* 10 57 Firth Street, Drury, Auckland 64 9 294 8024
www.seaproducts.co.nz Paddy Bull Ltd (Coromandel)
Aoraki Smokehouse Salmon 2012
Matt Evans Managing Director
Salmon farming, processing & hatchery
3940442 NZ; Private (Evans)
1994 $2-5m* 65 Unit 8, 3 Benmore Place Twizel 7901 64 3 435 3144
www.smokedsalmon.co.nz www.clearwatersalmon.co.nz
Akaroa Salmon David Bates General Manager
Salmon farm 135675 Foreign; 80% Philip. (Alliance Select Foods); 20% NZ
1984 $2-5m* 22 6 Pope Street Riccarton Christchurch 8011 64 3 348 2191
www.akaroasalmon.co.nz www.allianceselectfoods.com
OTHER SEAFOOD FIRM PROFILES
37 * Estimate based on number of employees and type of business activity; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Kompass, Coriolis estimates
IFAB 2013
Company
MD/CEO
Business description
Ownership Company #
Formed
Revenue
Staff
Address
Website
Okains Bay Seafood Greg Summerton Director
Seafood processing 1794020 NZ; Private (Summerton)
2006 $2-5m* 25 10, 23 Humphreys Dr Woolston, Christchurch 64 3 339 8173
www.okainsbayseafood.co.nz
Mossburn Enterprises Victor Thompson Director
Seafood processing; eel & fish 156050 NZ; Private (Thompson)
1964 $2-5m* 23 37 Kennington Road Kennington Southland 64 3 230 4608
www.waituna.co.nz
Urwin and Company John Urwin Managing Director
Seafood processing 154323 NZ; Private (Urwin)
1940 $2-5m* 20 169 Foreshore Road Bluff, Invercargill 9814 64 3 212 8033
www.urwin.co.nz
Egmont Seafoods Ltd
Keith Mawson Managing Director
Inshore, fishing, wholesalers and exporters
293660 NZ; Private (Mawson, Gould)
1986 $2-5m*
14 41 Centennial Drive New Plymouth 64 6 751 5700
www.egmontseafoods.co.nz
P.H.R. Processing Chris Redwood Director
Seafood processing; mussels & clams
1410620 NZ; Private (Redwood, O’Connell)
2003 $1-2m* 12 4 Seafair Close, Rd 4, Cloudy Bay Industrial Park, Blenheim, 7274 64 3 579 1421
www.omegaseafood.com
PauaCo Ltd David Hogg Chairman
Paua processing and marketing to China
3962059 NZ; Prvate (Pacific Canneries, Chung, others Te Anau Fishing Co.)
2012 $12m* 10 172 Ruru Road, Bromley, CHCH 64 3 982 3008
Recently raised $10m to form entity and acquire assets of Pacific Canneries, and absorb shares and activity of KABCO and ABCO
OTHER SEAFOOD FIRM PROFILES
38 * Estimate based on number of employees and type of business activity; Source: annual reports, company websites, company data, NZ Companies Office, interviews, Kompass, Coriolis estimates
iFAB 2013
IFAB 2013
$129 $135 $178 $206 $186 $186 $174 $148 $155
$197 $167
$154 $131 $147
$148 $145 $126 $140
$111 $136 $138
$145
$103 $130
$141 $143 $153 $188 $194
$185 $217
$233 $247 $6 $11
$14 $23 $25
$43 $39
$34
$49
$70 $83
$32 $35
$32 $34 $28
$37 $38
$41
$49
$70 $70
$269 $247
$311 $320 $315
$327 $364
$355
$427
$479 $526
$693 $688
$823 $873 $853
$907 $949
$875
$1,033
$1,187 $1,238
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
10 YEAR NEW ZEALAND SEAFOOD EXPORT VALUE BY SUPER-REGION US$m; 2002-2012
SEAFOOD – EXPORTS BY REGION Over the past decade New Zealand seafood exports have achieved growth driven by Australia, the Pacific Islands and China/East Asia
40 Source: UN Comtrade database; Coriolis analysis
Europe 3% +$38m
N. America -1% -$9m
Australia/ Pacific Is. 9% +$144m
Other 29% +$77m
SE Asia 8% +$38m
E Asia 7% +$257m
TOTAL 6% +$545m
CAGR Absolute
10 Year
10y CAGR
6%
IFAB 2013
TOP 25 SEAFOOD MARKETS BY EXPORT VALUE US$m; 2012
EXPORT DOLLARS China continues to be the number one seafood export market by value, followed by Australia, the US, Japan and Hong Kong
41 Source: UN Comtrade database; Coriolis analysis
$272 $230
$123 $109
$95 $42
$26 $25
$23 $21
$19 $19 $18 $17
$14 $14 $14 $13
$10 $9 $9 $8 $8 $7
$5
ChinaAustralia
USAJapan
Hong Kong SARSouth Korea
SpainFrance
SingaporeCanada
ThailandIran
GermanyRussia
Viet NamUkraine
South AfricaMauritius
United KingdomTaiwan
PortugalNetherlands
GreeceMalaysia
Papua New Guinea
IFAB 2013
TOP 25 SEAFOOD MARKETS BY CHANGE IN EXPORT VALUE US$m
EXPORT DOLLAR GROWTH China, Japan, Australia and Canada leading dollar value growth; data suggest continued growth in Asia and growth into Africa
42 Source: UN Comtrade database; Coriolis analysis
5 YEAR CHANGE; 07-12 1 YEAR CHANGE; 11-12
$203 $53
$20 $13 $12 $12 $12 $11
$7 $6 $6 $6 $5 $5 $5 $4 $4 $3 $3 $3 $3 $3 $3 $3 $2
ChinaAustralia
JapanCanada
Viet NamThailand
MauritiusIran
FranceUkraine
South KoreaUSA
PortugalRussiaPoland
NetherlandsGhana
AngolaPapua New Guinea
CameroonIndonesia
NigeriaUnited Arab Emirates
PeruTaiwan
$49 $13 $12
$11 $8
$5 $5
$3 $3 $2 $2 $2 $2 $2 $2 $1 $1 $1 $1 $1 $1 $1 $0.5 $0.4 $0.3
ChinaJapan
AustraliaCanada
Viet NamMauritius
South KoreaAngola
PortugalGhana
NigeriaNetherlands
CameroonEquatorial Guinea
IndonesiaPapua New Guinea
United Arab EmiratesUkraine
BeninBrazil
Côte d'IvoirePolandTunisiaOman
Croatia
IFAB 2013
BOTTOM 25 SEAFOOD MARKETS BY CHANGE IN EXPORT VALUE US$m
EXPORT DOLLAR DECLINE Hong Kong and Spain lead declining markets by value; some amount of Hong Kong decline likely now product going to China direct
43 Source: UN Comtrade database; Coriolis analysis
5 YEAR CHANGE; 07-12 1 YEAR CHANGE; 11-12
-$33 -$31
-$5 -$4 -$4 -$3 -$3 -$3
-$2 -$2 -$2 -$1 -$1 -$1 -$1
-$0.4 -$0.4 -$0.4 -$0.4 -$0.4
Hong Kong SARSpainItalyBelgiumGermanyJordanSouth AfricaUnited KingdomSwedenGeorgiaTunisiaSyriaMexicoDenmarkIrelandTurkeyCyprusAmerican SamoaSeychellesBelarus
-$20 -$17
-$6 -$5 -$5
-$4 -$4
-$3 -$2 -$2 -$2
-$1 -$1 -$1 -$1 -$1
-$0.5 -$0.5 -$0.5 -$0.5
Hong Kong SARSpainIranSingaporeGermanyGreeceUSAItalyPhilippinesUnited KingdomFrancePeruThailandNorwaySaudi ArabiaMalaysiaMozambiqueIrelandChileBelgium
IFAB 2013
TOP 20 SEAFOOD MARKETS BY CAGR PERCENT CHANGE IN EXPORT VALUE US$m; %
PERCENT GROWTH Strong growth rates coming out of Kuwait, parts of Africa and Latin America
44 Source: UN Comtrade database; Coriolis analysis
5 YEAR CAGR; 07-12 1 YEAR CHANGE; 11-12
144%
132%
129%
117%
109%
108%
104%
89%
73%
70%
56%
55%
49%
47%
46%
37%
36%
32%
31%
27%
Cameroon
Peru
Brazil
Jamaica
Ghana
N. Mariana Isds
Poland
Hungary
Oman
Mauritius
Angola
Indonesia
Côte d'Ivoire
Viet Nam
Kenya
Solomon Isds
Slovenia
China
Cambodia
Kuwait
4507%
1358%
652%
462%
389%
184%
177%
177%
144%
123%
109%
108%
94%
94%
72%
56%
48%
48%
43%
41%
Kuwait
Benin
Angola
Equatorial Guinea
Nigeria
Kenya
American Samoa
Cameroon
N. Mariana Isds
Ghana
Canada
Viet Nam
Côte d'Ivoire
Indonesia
Mauritius
Sri Lanka
Vanuatu
Colombia
Portugal
United Arab Emirates
IFAB 2013
BOTTOM 20 SEAFOOD MARKETS BY CAGR PERCENT CHANGE IN EXPORT VALUE US$m
PERCENT DECLINE Markets by rate of decline hints at reorientation away from secondary Middle East and European markets
45 Source: UN Comtrade database; Coriolis analysis
5 YEAR CAGR; 07-12 1 YEAR CHANGE; 11-12
-68%
-54%
-34%
-33%
-26%
-23%
-20%
-19%
-19%
-15%
-14%
-14%
-13%
-10%
-9%
-9%
-8%
-7%
-6%
-5%
Turkey
Syria
Jordan
Tuvalu
Tunisia
Ireland
India
Belarus
Congo
American Samoa
Spain
Italy
Belgium
Mexico
Malta
Bulgaria
Sweden
Georgia
Hong Kong SAR
United Kingdom
-100%
-100%
-100%
-100%
-100%
-99%
-73%
-71%
-71%
-65%
-56%
-55%
-52%
-50%
-50%
-46%
-43%
-43%
-40%
-38%
Mongolia
Czech Rep.
Bahrain
Tajikistan
Tanzania
Turkey
Ireland
Chile
India
Norway
Romania
Congo
Philippines
Jordan
Argentina
Bulgaria
DR Congo
Italy
Spain
Saudi Arabia
IFAB 2013
TOTAL SEAFOOD EXPORT VALUE IN 2012: NZ VS. COMPETITORS US$m; 2012; 2012 vs. 2011
BENCHMARK – EXPORT GROWTH VS. COMPETITORS New Zealand’s had a positive performance in a difficult year globally; the contrast with Australia and Argentina is stark
46 Source: UN Comtrade database; Coriolis analysis
EXPORT VALUE 2012 1 YEAR $ CHANGE IN VALUE 1 YEAR % CHANGE IN VALUE
$8,868
$4,222
$3,896
$3,151
$2,017
$1,320
$1,238
$999
$494
Norway
Canada
Chile
Denmark
Iceland
Argentina
New Zealand
Australia
South Africa
$51
$35
-$47
-$48
-$105
-$130
-$137
-$140
-$544
New Zealand
Canada
Iceland
South Africa
Australia
Chile
Argentina
Denmark
Norway
4%
1%
-2%
-3%
-4%
-6%
-9%
-9%
-10%
New Zealand
Canada
Iceland
Chile
Denmark
Norway
South Africa
Argentina
Australia
iFAB 2013
IFAB 2013
$116 $111 $130 $156 $157 $177 $176 $157 $167 $219 $192
$6 $8 $9
$11 $12 $12 $12
$10 $12
$15 $12
$20 $22 $23
$19 $27 $25 $29
$36 $51
$41 $36
$59 $66 $67
$80 $82 $89
$128 $116
$163
$174 $180
$45 $45
$122 $126 $84
$70 $64
$58
$75
$97 $82
$12 $12
$8
$15 $16 $17
$14 $12
$12
$18
$20 $435 $424
$464
$466 $475
$516 $526
$486
$553
$622 $715
$693 $688
$823
$873 $853
$907
$949
$875
$1,033
$1,187
$1,238
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
10 YEAR NEW ZEALAND SEAFOOD EXPORT BY CATEGORY/SUPER-CATEGORY (HS4/6 LEVEL) US$m; 2002-2012
SEAFOOD – EXPORTS BY TYPE New Zealand seafood export dollars have grown over the past decade at mid single digit rates, other than crayfish/rock lobster which has been the growth standout
48 Source: UN Comtrade database; Coriolis analysis
Mussels 5% +$76m
Oysters 8% +$7m
Salmon 6% +$17m
Lobster 12% +$121m
Other molluscs 6% +$37m
Other crustaceans 5% +$8m
Wild capture fish 5% +$280m
TOTAL 6% +$545m
CAGR Absolute
10 Year
10 year CAGR
6%
IFAB 2013
EXPORT VALUE OF TOP 30 SEAFOOD PRODUCTS (HS6 LEVEL) EXPORTS IN 2012 US$m; 2012
EXPORT DOLLARS Frozen fish nes (not elsewhere specified), rock lobster, frozen fish fillets and mussels were New Zealand’s leading seafood exports in 2012
49 Source: UN Comtrade database; Coriolis analysis
$261 $177
$171 $148
$69 $61
$43 $35 $34
$20 $19
$15 $14
$12 $11 $11 $10 $10
$8 $8 $7 $6 $6 $6 $5 $5 $5 $5 $5 $5
Frozen fish, nesRock Lobster, fresh
Frozen fish filletsMussels (not-live)
Squid (non-chilled)Chilled fish, nes.
Mussels, preparedOther prep fish
Fish extractsSalmon, chilled whole
Skipjack tuna, frozen wholeMackerel, frozen
Prawns, frozenOysters
Longfin tuna, frozen wholeChilled fish filletsFrozen fish meat
Hake, frozenSalmon, frozen whole
Invertebrates nesBluefin tuna, chilled wholeBluefin tuna, frozen wholeFrozen fish livers and roes
Sharks, whole frozenFlat fish, frozen whole
Fish-liver oilsSalmon, smoked
Crustaceans nes, frozenSharks, whole chilled
Invertebrates nes., fresh
IFAB 2013
$48 $23
$20 $8
$7 $5
$3 $3
$2 $2 $1 $1 $1 $1 $0 $0
-$0 -$0 -$1 -$1
-$1 -$1
-$3 -$3
-$4 -$4
-$9 -$14
-$18 -$25
Frozen fish, nesFrozen fish fillets
Fish extractsChilled fish, nes.
Rock Lobster, freshCrustaceans nes, frozen
Fish-liver oilsBluefin tuna, chilled whole
Mackerel, frozenBluefin tuna, frozen wholeLongfin tuna, frozen whole
Salmon, smokedFlat fish, frozen wholeSharks, whole chilledSharks, whole frozen
Hake, frozenFrozen fish livers and roes
Invertebrates nes., freshOther prep fish
Skipjack tuna, frozen wholeChilled fish filletsInvertebrates nes
OystersPrawns, frozen
Salmon, chilled wholeSalmon, frozen whole
Mussels, preparedSquid (non-chilled)Mussels (not-live)
Frozen fish meat
ANNUAL CHANGE IN EXPORT VALUE OF TOP 30 SEAFOOD EXPORTS US$m; 2012 vs. 2011
EXPORT DOLLAR GROWTH In 2012, frozen fish nes, frozen fillets and fish extracts led total value growth; frozen fish meat, mussels and squid led declines
50 Source: UN Comtrade database; Coriolis analysis
Net +$51m
IFAB 2013
163% 145%
69% 36%
26% 22% 21%
17% 15% 14% 14% 14%
7% 4% 2%
0% -2%
-4% -4%
-10% -11%
-15% -17% -17% -17% -18% -19%
-34% -71%
Crustaceans nes, frozenFish-liver oilsFish extracts
Bluefin tuna, chilled wholeBluefin tuna, frozen whole
Salmon, smokedFrozen fish, nes
Flat fish, frozen wholeMackerel, frozenFrozen fish fillets
Sharks, whole chilledChilled fish, nes.
Longfin tuna, frozen wholeSharks, whole frozen
Rock Lobster, freshHake, frozen
Frozen fish livers and roesOther prep fish
Skipjack tuna, frozen wholeInvertebrates nes., fresh
Chilled fish filletsMussels (not-live)
Invertebrates nesSquid (non-chilled)
Salmon, chilled wholeMussels, prepared
Prawns, frozenOysters
Salmon, frozen wholeFrozen fish meat
ANNUAL PERCENT GROWTH IN TOP 22 SEAFOOD EXPORTS US$m; 2012 vs. 2011
PERCENT GROWTH In 2012, crustaceans not elsewhere specified, fish liver oils and fish extracts grew at the fastest rate
51 Source: UN Comtrade database; Coriolis analysis
8,522%
IFAB 2013
$59.88 $30.42
$27.06 $24.72
$23.24 $22.11
$18.12 $15.09
$11.98 $11.68
$11.40 $8.37
$7.08 $6.45
$5.37 $5.02 $4.99 $4.91 $4.88
$4.09 $3.80
$3.45 $3.10 $3.00 $2.88
$2.38 $2.31 $2.11
$1.84 $1.25
Rock Lobster, freshBluefin tuna, frozen whole
Invertebrates nesFish extracts
Bluefin tuna, chilled wholeSalmon, smoked
Prawns, frozenMussels, prepared
Crustaceans nes, frozenOysters
Fish-liver oilsSalmon, chilled whole
Chilled fish, nes.Sharks, whole chilled
Salmon, frozen wholeOther prep fish
Chilled fish filletsFrozen fish fillets
Flat fish, frozen wholeSharks, whole frozen
Mussels (not-live)Longfin tuna, frozen whole
Hake, frozenInvertebrates nes., fresh
Frozen fish livers and roesFrozen fish meat
Squid (non-chilled)Frozen fish, nes
Skipjack tuna, frozen wholeMackerel, frozen
VALUE PER KILOGRAM OF TOP 30 SEAFOOD EXPORTS US$m; 2012
$/KG In 2012 rock lobster, bluefin tuna, fish extracts, invertebrates nes and smoked salmon led in terms of export dollars per kilo
52 Source: UN Comtrade database; Coriolis analysis
Wt. Average $3.99
IFAB 2013
ANNUAL CHANGE IN VALUE PER KILOGRAM OF TOP 30 SEAFOOD EXPORTS US$m; 2012 vs. 2011
$/KG CHANGE In 2012 fish extracts, invertebrates nes, bluefin tuna and rock lobster achieved good price increases
53 Source: UN Comtrade database; Coriolis analysis
$11.33 $8.07
$5.86 $3.88
$3.50 $2.54
$2.27 $1.55
$1.22 $0.80
$0.69 $0.48
$0.40 $0.34 $0.32 $0.26
$(0.03) $(0.08) $(0.11)
$(0.19) $(0.25)
$(0.50) $(0.52)
$(0.90) $(1.45)
$(1.63) $(3.29)
$(3.90) $(4.00)
$(5.90)
Fish extractsInvertebrates nes
Bluefin tuna, chilled wholeRock Lobster, fresh
Bluefin tuna, frozen wholeOysters
Mussels, preparedSalmon, smoked
Sharks, whole frozenSharks, whole chilled
Flat fish, frozen wholeSkipjack tuna, frozen whole
Chilled fish, nes.Longfin tuna, frozen whole
Other prep fishFrozen fish, nes
Mackerel, frozenMussels (not-live)
Salmon, chilled wholeSquid (non-chilled)
Frozen fish livers and roesHake, frozen
Frozen fish filletsFrozen fish meat
Invertebrates nes., freshSalmon, frozen whole
Prawns, frozenFish-liver oils
Chilled fish filletsCrustaceans nes, frozen
iFAB 2013
IFAB 2013
Category Key species ANZSIC classification
Wild capture (A041)
Pelagics Blue mackerel Squid Tuna Barracouta Jack mackerel
- Line fishing (A041-300) - Fish trawling, seining and netting (A041-400) - Other fishing (A041-900)1
Deepwater Hoki Orange roughy Ling Southern blue whiting Hake Oreo dory Scampi
Inshore finfish Snapper Bluenose Small sharks Flatfish Red cod Groper John dory
Other Other2
Inshore shellfish Rock lobster Abalone (Paua) Scallops
- Rock lobster & crab potting (A41-100) - Other fishing (A041-900)1
Aquaculture (A02)
Green lipped mussels Salmon Oysters
- Longline & rack (offshore) (A020-100) - Caged (offshore) (A020-200) - Onshore aquaculture (A020-300)
OVERVIEW OF STRUCTURAL CLASSIFICATIONS OF NEW ZEALAND SEAFOOD PRODUCTION AND EXPORTS 2013
SEAFOOD – CLASSIFICATION Seafood can be split into wild capture (four types) and aquaculture (mussels, salmon and oysters)
55 1. Other fishing will capture both other inshore shellfish and all other finfish; 2. Other unclear at source (see note 6 page 5); appears to be minor species (without HS code?); Source: Mfish Fisheries and Aquaculture production and trade period ending Sept 2010; ANZSIC classifications; Coriolis analysis
IFAB 2013
Funding
- Commodity Levies Act http://www.seafoodindustry.co.nz
- Commodity Levies Act - NZ Mussel Industry Council (levy) - NZ Salmon Farmers Assn. (levy) - NZ Oyster Industry Assn. (levy)
http://www.aquaculture.org.nz
- Voluntary, subscription based - active freshwater and seawater salmon farmers, salmon processors
and service product suppliers to the industry
http://www.salmon.org.nz
- National body supporting the Abalone farmers in NZ - Formed in 1986 , “13 farms”
http://www.nzafa.org.nz
Fisheries Inshore NZ - Annual contributions by quota owners + ACE holders http://www.inshore.co.nz
- Representing the interests of NZ oyster growers -
NZ Mussel Industry Council - Representing the interests of NZ mussel growers
- Formed in 2005; Deepwater fishing quota holders are shareholders and pay a fee based on their quota
http://www.deepwater.co.nz
- a national body that represents the interests of owner-operator commercial fishermen in New Zealand
http://www.nzfishfed.co.nz
- Subscription based organisation representing South Island marine farmers
http://www.nzmfa.co.nz
- The NZ Rock Lobster Industry Council is an umbrella agency representing the interests of New Zealand's nine regional rock lobster fisheries commercial stakeholder organisations
http://www.nzrocklobster.co.nz
KEY SEAFOOD INDUSTRY ORGANISATIONS1 2013
SEAFOOD – INDUSTRY ORGANISATIONS The Seafood Industry Council is the primary industry body, supported by a number of other specialised associations
56 1. Additional organisations at http://www.seafoodindustry.co.nz/n392,67.html Source: Coriolis analysis
IFAB 2013
Focus & activities
- Conducts wide range of activities (e.g. weather forecasting); focuses on atmospheric, marine, and freshwater research – extending from the deep ocean to the upper atmosphere – in New Zealand, the Pacific, Southern Ocean, and Antarctica
- Formed in 1992 restructuring of NZ science sector (combined DSIR & Met Service scientific activities); fisheries research of MAF joined in 1995
- Two aquaculture facilities: Bream Bay Aquaculture Park & Mahanga Bay Aquaculture Research Facility - Supporting commercialisation of three new (to NZ) aquaculture species: Kingfish, hapuka and abalone (paua) - $50m aquaculture research facility at Bream Bay with 24 staff - $4.6 million selective breeding research programme aims to develop broodstock for three new key high value
species: yellowtail kingfish (Seriola lalandi), groper (hapuka, Polyprion oxygeneios) and paua (abalone, Haliotis iris). It’s supported by industry and MBIE.
- Breeding programs around pacific oysters and greenshell mussels around Nelson; developing geoduck - Provides research, consulting and analytical services in aquaculture, coastal and freshwater resource use,
biosecurity & biotechnology - MBIE funding is 40% of total income
- “Work with the seafood industry to deliver high quality seafood to consumers using sustainable fish production and processing systems”
- “Working with nutraceutical companies to identify natural marine compounds with potential health promoting properties and develop safe and economical technologies for industrial production”
- Established in 2007 – research into breeding of NZ short finned eels
KEY SCIENTIFIC RESEARCH ORGANISATIONS INVOLVED IN SEAFOOD INDUSTRY RESEARCH IN NEW ZEALAND 2013
SEAFOOD – INDUSTRY SCIENTIFIC RESEARCH Three organisations have strong involvement in seafood industry research, there are also key specialist organisations
57 Source: Cawthron annual report and website; Coriolis analysis
IFAB 2013 METHODOLOGY & DATA SOURCES
This report uses a range of information sources, both qualitative and quantitative.
The numbers in this report come from multiple sources. While we believe the data are directionally correct, we recognise the limitations in what information is available. In many cases different data sources disagree (e.g. Statistics New Zealand vs. FAO vs. UN Comtrade). Many data sources themselves incorporate estimates of industry experts (e.g. FAO AgStat). As one example, in many cases, the value and/or volume recorded as exported by one country does not match the amount recorded as being received as imports by the counterparty [for understood reasons]. In addition, in some places, we have made our own clearly noted estimates.
All trade data analysed in all sections of the F&B Information project are calculated and displayed in US$. This is done for a range of reasons:
1. It is the currency most used in international trade
2. It allows for cross country comparisons (e.g. vs. Denmark)
3. It removes the impact of NZD exchange rate variability
4. It is more comprehensible to non-NZ audiences (e.g. foreign investors)
5. It is the currency in which the United Nations collects and tabulates global trade data
The opinions expressed in this report represent those of the industry participants interviewed and the authors. These do not necessarily represent those of Coriolis Limited or the New Zealand Government.
Coriolis has not been asked to independently verify or audit the information or material provided to it by or on behalf of the Client or any of the data sources used in the project. The information contained in the report and any commentary has been compiled from information and material supplied by third party sources and publicly available information which may (in part) be inaccurate or incomplete. Coriolis makes no representation, warranty or guarantee, whether express or implied, as to the quality, accuracy, reliability, currency or completeness of the information provided in the report.
If you have any questions about the methodology, sources or accuracy of any part of this report, please contact project lead Tim Morris at Coriolis, on +64 9 623 1848
58
Data was from a variety of sources, and has a number of identified limitations
IFAB 2013
GLOBAL HARMONISED SYSTEM (HS) TRADE CODES DEFINED AS SEAFOOD HS2002
TRADE CODES Project defines the following trade codes as seafood
59 Source: United Nations codes; Coriolis definitions in conjunction with project steering group
HS Code Short Description Longer official description 030192 Live eels Live eels 030212 Salmon, chilled whole Fresh or chilled Pacific, Atlantic and Danube salmon 030229 Chilled flat fish Fresh or chilled flat fish (excl. halibut, plai 030234 Bigeye tuna, chilled Bigeye tunas (Thunnus obesus), fresh/chilled (excl. fillets/oth. fish meat of 03.04/livers & roes) 030235 Bluefin tuna, chilled Bluefin tunas (Thunnus thynnus), fresh/chilled (excl. fillets/oth. fish meat of 03.04/livers & roes) 030236 Bluefin tuna, chilled whole Southern bluefin tunas (Thunnus maccoyii), fresh/chilled (excl. fillets/oth. fish meat of 03.04/livers & roes) 030265 Sharks, whole chilled Fresh or chilled dogfish and other sharks 030269 Chilled fish, nes. Fresh or chilled fish, nes 030311 Sockeye salmon, frozen Sockeye salmon (red salmon) (Oncorhynchus nerka), frozen (excl. fillets/oth. fish meat of 03.04/livers & roes) 030319 Salmon, frozen whole Pacific salmon (Oncorhynchus gorbuscha/keta/tschawytscha/kisutch/masou/rhodurus), frozen (excl. of 0303.11; excl. fillets/oth. fish meat of 03.04/livers & roes) 030339 Flat fish, frozen whole Frozen flat fish (excl. halibut, plaice and sol 030341 Longfin tuna, frozen whole Frozen albacore or longfinned tunas 030343 Skipjack tuna, frozen whole Frozen skipjack or stripe-bellied bonito 030346 Bluefin tuna, frozen whole Southern bluefin tunas (Thunnus maccoyii), frozen (excl. fillets/oth. fish meat of 03.04/livers & roes) 030349 Tuna nes, frozen Frozen tunas, nes 030374 Mackerel, frozen Frozen mackerel 030375 Sharks, whole frozen Frozen dogfish and sharks 030376 Eels, frozen Frozen eels 030378 Hake, frozen Frozen hake 030379 Frozen fish, nes Frozen fish, nes 030380 Frozen fish livers and roes Frozen fish livers and roes 030410 Chilled fish fillets Fresh or chilled fish fillets 030420 Frozen fish fillets Frozen fish fillets 030490 Frozen fish meat Frozen fish meat (excl. fillets) 030541 Salmon, smoked Smoked Pacific, Atlantic and Danube salmon (inc 030559 Dried fish Dried fish, not smoked (excl. cod) 030611 Frozen rock lobster Frozen rock lobster and other sea crawfish 030613 Prawns, frozen Frozen shrimps and prawns 030619 Crustaceans nes, frozen Frozen crustaceans,nes,including flours,meals & 030621 Rock Lobster, fresh Rock lobster and other sea crawfish (excl. froz 030710 Oysters Oysters 030739 Mussels (not-live) Mussels (excl. live, fresh or chilled) 030749 Squid (non-chilled) Cuttle fish and squid (excl. live, fresh or chi 030791 Invertebrates nes., fresh Aquatic invertebrates, nes, live, fresh or chil 030799 Invertebrates nes Aquatic invertebrates,nes,includ.flours,meals,p 150410 Fish-liver oils Fish-liver oils and their fractions 150420 Fish oils Fish fats, oils and fractions (excl. fish liver 160300 Fish extracts Extracts and juices of meat, fish and aquatic i 160419 Prep/pres fish nes Prepared or preserved fish (excl. minced), nes 160420 Other prep fish Other prepared or preserved fish, nes 160590 Mussels, prepared Molluscs and other aquatic invertebrates, prepa
IFAB 2013 GLOSSARY OF TERMS
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This report uses the following acronyms and abbreviations
A$/AUD Australian dollar N/C Not calculable
ABS Absolute change N.H Northern Hemisphere
ANZSIC AU/NZ Standard Industry Classification NZ New Zealand
AU Australia NZ$/NZD New Zealand dollar
Australasia Australia and New Zealand R&D Research and Development
b Billion S Asia South Asia (Indian Subcontinent)
CAGR Compound Annual Growth Rate SE Asia South East Asia
C/S America Central & South America (Latin America) S.H Southern Hemisphere
CRI Crown Research Institute SS Africa Sub-Saharan Africa
CY Calendar year (ending Dec 21) T/O Turnover
E Asia East Asia US/USA United States of America
EBITDA Earnings before interest, tax, depreciation and amortization
US$/USD United States dollar
FAO Food and Agriculture Organisation of the UN UK United Kingdom
FY Financial year (of firm in question) US United States of America
£/GBP British pounds YE Year ending
JV Joint venture YTD Year to date
m Million Sources
n/a Not available/not applicable AR Annual report
NA/ME/CA North Africa / Middle East / Central Asia Ce Coriolis estimate
Nec/nes Not elsewhere classified/not elsewhere specified Ci Coriolis interview
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ABOUT CORIOLIS’ SERVICES
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