The Fish Processing Perspective – Market segmentation, general opportunities and

eco-labelling.

Alex Olsen; A. Espersen A/S

Conclusion

Global is getting local and local is getting global

Stronger vertical integration

Eco-labels will not make the choice of consumers easier!

Facts about Espersen

Established 1937

A leader in the processing of frozen seafood products

Turnover approx. 270 million Euro

More than 1,450 employees in Europe

Strong partnerships with customers, suppliers and employees

Production in Europe and Asia

Head office in Rønne on the island of Bornholm

Director J.P.A. Espersen and wife, Mrs. Dagny Espersen’s Foundation is the owner of A. Espersen A/S.

The main purpose of the foundation is to invest in A. Espersen A/S and to support various humanitarian purposes

.

Locations and International Supply

Bornholm in the Baltic Sea

Fredericia and Hirtshals, Jutland, Denmark

Koszalin, Poland

Klaipeda, Lithuania

Qingdao, China

Ho Chi Minh City, Vietnam

Flexibility / contingency: Europe >< Asia

- deliberate not profit optimization strategy

- efficient, assured supply strategy

Increased consumption

Are you eating more or less than 2 years ago?

Fish is the winner!

I am concerned about

I am concerned about overuse of global fish stocks

Who should assume responsibility for ensuring stocks are not overused?

Which of these products do you actively try to buy?

Today, consumer price sensitivity is widespread

White fish supply

Cod

Haddock

Hake

Hok

i

HubbsiHake

AlaskaPollock

HakeHoki

EU-27 total volumes utilized by key white fish species for 2008

EU-27 import dependency by key white fish for 2008

Volume of white fish supplied to EU-27 by third countries for 2008

China’s comparative advantage

Low production cost & big labor force• Labor cost approx. 10-11

RMB (1,1€) /h

• 15-20% of the final product value

Manual filleting and processing• Increase yield (15 %)

(University of Tromsø)

Challenges?

Responsible and sustainable sourcing

Environmentally responsible behavior

Ethical issues

Cultural differences

Small Large

colle

ctiv

ist

Ind

ivid

ua

list

Cultural differences

(From Hofstede; 2005)

Culture and organizations

Hofstede (2005)

Power Distance

Un

cert

ain

ty A

void

an

ce

Strategy

Stay in frozenStay in frozen •Where we perform good

•Vertical integration

More value addingMore value adding •Further processing

•New species

•Investing

EngagementEngagement •Sustainability:

Governments

EU

NGO’s

We say what we do

and we do what we say !

Why is seafood a business where you would like to be also in the future:

Increased consumption

Long term more consumers

Long term increased disposable income for European citizens in general

Growth potential within convenient food sector

Obesity – fish is a powerful low calorie tool in the fight against obesity

Eco labelling

May 25th 2010

Eco label

Eco Labels for Fish

Peter Hajipeiris April 2009

Market demand

Product image

Assure supply of raw material

Optimize profit throughout the value chain

What to demand of an eco label

Cost Efficient

Transparent

Trustworthy

B2C or B2B?

Global is getting local and local is getting global

Stronger vertical integration

Eco-labels will not make the choice of consumers easier!

Conclusion

Thank you for your time!

Anyone who sees the future as a headwind, is going in the wrong direction

Martin Held