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Nordic marine innovation - Jens Henrik Møller
 

Nordic marine innovation - Jens Henrik Møller

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From the Nordic Marine Innovation Conference in Oslo 25th of January 2012 by Jens Henrik Møller, Partner, GEMBA Seafood.

From the Nordic Marine Innovation Conference in Oslo 25th of January 2012 by Jens Henrik Møller, Partner, GEMBA Seafood.

Title: Market innovation - sustainabilitu as an issue?

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    Nordic marine innovation - Jens Henrik Møller Nordic marine innovation - Jens Henrik Møller Presentation Transcript

    • Nordic Marine Innovation Conference - Competition and cooperationInnovation as a driver for competitiveness in the Nordic marine sector Market innovation – sustainability as an issue? Jens Henrik Møller GEMBA Seafood Consulting A/S January 25th 2012 © GEMBA Innovation
    • Agenda Intro: GEMBA Seafood Consulting Report on ”Kartlegning av kunnskab om sjømatmarkedet og brukerdreven innovasjon i sjømatsektoren” Sustainability/Innovation some trends in the markets Cases of innovation Advices © GEMBA Innovation
    • Intro GEMBA Seafood Consulting A/SGSC is a consulting company with focus on the seafood sector, economicanalysis and innovation in business processes.Examples of works in the field of economic analysis: – Analysis on different markets (European) for seafood products. – Market analysis of the cold water shrimp markets and organizer of the ICWPF-2011 in London. – Economic Impact analysis and development/strategy processes for Danish ports. © GEMBA Innovation
    • Intro GEMBA Seafood Consulting A/SGSC is a consulting company with focus on the seafood sector, economicanalysis and innovation in business processes.Examples of works in field of innovation: – ”Kartlegning av kunnskab om sjømatmarkedet og brukerdreven innovasjon i sjømatsektoren” – Development of new packaging material for smoked salmon. – The use of ozone as a disinfectant tool in the fishing industry. – Energy optimization - trawl fishery in the Baltic Sea. © GEMBA Innovation
    • Report for Nordic Innovation Center (NICe) in 2011Kartlegging av kunnskap om sjømatmarkedet og brukerdreven innovasjon isjømatsektorenSome of the recommendations in thereport:More focus on global market innovation in theNordic seafood sector.Innovation funds and companies should focus ontrends like traceability, documentation and shelflife.It is needed to analyze the type, extend andneed for user driven innovation. Especially themarket innovation in the salmon sector havebeen successful, other sectors could benefitfrom this knowledge.A pan Nordic comparison of the innovation fundsand their impact on the sector is needed. © GEMBA Innovation
    • What is innovation? One kind of definition: Innovation is often defined as inventions and ideas that are translated into products or services that are brought into the market: Some types of innovation: Product innovation New products to existing markets. Typical views on Process innovation innovation New ways of doing things. in business Market innovation Existing products to new markets.Innovation is a complex process - normally difficult to control and theresults are often surprising! © GEMBA Innovation
    • What is sustainability? One kind of definition: For humans, sustainability is the long-term maintenance of responsibility, which has environmental, economic, and social dimensions: Some types of sustainability in the case of seafood: Ecological sustainability, management plan for stocks, by-catch of threatened species.Typicalviews on Sustainable fishing methods, reduction of seabedsustainability destruction, by-catch and discard.in seafoodsector Reduction of CO2 emissions, fuel and transport. Financial sustainability, job creation and welfare. And the normal reaction is to put some logo´s on the product!! © GEMBA Innovation
    • The ”consumer sustainability map” in terms of seafoodDo the market ask for sustainability?Not all countries in Europe have the same awareness of sustainability inseafood: High level of awareness: Germany, Sweden, and UK Medium level of awareness: Denmark, Finland, Benelux and the north part of France Lower level of awareness: Spain, Italy, Portugal, Greece and the south part of France © GEMBA Innovation
    • The ”consumer sustainability map” in terms of seafoodMarket trends Germany: 82 million inhabitants – big potential in the market. Traditionally the market in Germany has always been focused on price. Increased focus on traceability, eco-labeling and sustainability at consumer level. New trends are indicating that quality and especially certification is becoming more important and is now established in many of the biggest supermarket chains (LIDL & ALDI). The financial crisis in the EU has created insecurity in the German economy. © GEMBA Innovation
    • The ”consumer sustainability map” in terms of seafoodMarket trends Germany: 82 million inhabitants – big potential in the market. Traditionally the market in Germany has always been focused on price. Increased focus on traceability, eco-labeling and sustainability at consumer level. New trends are indicating that quality and especially certification is becoming more important and is now established in many of the biggest supermarket chains (LIDL & ALDI). The financial crisis in the EU has created insecurity in the German economy. © GEMBA Innovation
    • The ”consumer sustainability map” in terms of seafoodMarket trends Italy: 58 million inhabitants – Big markets for seafood in the north – interesting market. The financial insecurity has had a big effect on the Italian economy. A strong ”discount trend” is now coming up after several years with stable and increasing prices. The discount trend may put pressure on “the demand” for sustainability in coming years © GEMBA Innovation
    • The ”consumer sustainability map” in terms of seafoodMarket trends Italy: 58 million inhabitants – Big markets for seafood in the north – interesting market. The financial insecurity has had a big effect on the Italian economy. A strong ”discount trend” is now coming up after several years with stable and increasing prices. © GEMBA Innovation
    • Can innovation and sustainability be combined? 20 years ago Food safety The seafood market Innovation © GEMBA Innovation
    • Can innovation and sustainability be combined? 10 years ago Traceability The seafood market Innovation © GEMBA Innovation
    • Can innovation and sustainability be combined? Now! Sustainability The seafood market Innovation © GEMBA Innovation
    • Can innovation and sustainability be combined? Future? Creativity – Trustability?? The seafood market Innovation © GEMBA Innovation
    • Can innovation and sustainability be combined? Push for innovation from the sector consumption The market Sale Processing Sea Catch/ food Productionsector Push for sustainability from the market © GEMBA Innovation
    • Product innovation Most people think in terms of product innovation. But classic product innovation is not always the best answer.Product innovation? Sustainability as a product innovation leads to better prices and secure sales. © GEMBA Innovation
    • Case: Market innovation in Nigeria - HerringThe export of herring to the seafood market in Nigeria is a primeexample of market innovation!The figure below shows that it is possible to expand the marketdrastically. Norwegian export of frozen herring to Nigeria 160 000 140 000 120 000 100 000 ton 80 000 60 000 40 000 20 000 - 2006 2007 2008 2009 2010But how do the market regulate innovation? © GEMBA Innovation
    • Case: Market innovation in Nigeria - HerringAnd what did happen in 2011?? Norwegian export of frozen herring to Nigeria 160 000 140 000 120 000 100 000 ton 80 000 60 000 40 000 20 000 - 2006 2007 2008 2009 2010 2011 © GEMBA Innovation
    • Case: Market innovation in Nigeria - HerringProbably due to increase in price due to lower quota for Norwegianspring spawning herring Norwegian export of frozen herring to Nigeria 160 000 8 140 000 Price jump!: 7 2010: 4.40 Nkr. 120 000 6 2011: 7.00 Nkr. 100 000 NKR/kg Eksport/ton Ton 80 000 5 NKR/kg 60 000 4 40 000 3 20 000 - 2 2006 2007 2008 2009 2010 2011The example shows that market innovation can lead to improvedexport but change in demand, surplus and prices can change effort inmarket innovation in short time. © GEMBA Innovation
    • Case: The MC Donald case MC Donalds chose Espersen A/S due to sustainability/traceability Espersen A/S chose Hermes A/S due to sustainability/traceability  Prices for certified fish are not always higher.  But the sale is more secure.  Hermes had less problems during the ”cod crisis” © GEMBA Innovation
    • Case: Product innovation in sustainability – MSC certified plaiceMSC certified plaice from the North Sea have been sold for 2 - 4 DKKabove the price for non - certified plaice.This example shows it is possible to gain better profit margins bycertification (MSC). Average price for plaice sold at the fish auction in the Port of Hvide Sande in 2011 16 14 12 10 DKK/kg 8 MSC Conv. 6 4 2 0 jan feb mar apr may jun jul aug sep oct nov dec © GEMBA Innovation
    • Case – Process InnovationProces innovation: Prawns from Ilulissat: 199 DKR/kg. Prawns from City of Matane: +8%A new product line and newpackaging - made for TESCO tellingthe story about sustainability infishery and sustainability in theprocessing – wind energy fromlocal area! © GEMBA Innovation
    • Case: Process innovation and sustainability – Katrine Kim R 254 - NEXØExperiments from the Baltic cod trawler fleet shows it is possible to reducefuel consumption up to 38 % per kg. cod. The project utilized Dynema-wires, pelagic trawl doors and Dynema panels in the trawl. The example shows that sustainable process innovation is very important way to secure the profitability in the fishing sector. © GEMBA Innovation
    • Case: Process innovation in sustainabillityWhat is next step?A new project in North Sea to convince the fishermen at the west coast!But the results need to be communicated throughoutthe whole value chain so processors and traders areable to gain from the results! © GEMBA Innovation
    • Case: Product innovation in Europe - trendsettersThe trendsetters in product innovation are typically located close to the markets Seafood Prix dElite that is a competition in European Seafood Exhibition goes to new and innovative products in the European seafood market. I the period 2008-2010 the competition was won by 2 German enterprises 1 UK enterprise 1 Spanish enterprise 1 Dutch enterprise 1 Danish enterprise Apparently the Nordic seafood sector is not doing so much in product innovation © GEMBA Innovation
    • Summary:The “cases”:Sustainability in market innovation:It can work without sustainability - but demand/ supply and price can easychange the situation (Herring in Nigeria) – sustainability can secure the marketposition and reduce the downs (Hermes/Espersen).Sustainability in product innovation:The MSC may work and give higher prices (Plaice from Hvide Sande) –but nothing is sure!!Sustainability in process innovation:Some companies try to tell the story (Prawns from City of Matane)– but it mustbe told throughout the whole value chain (Energy consumption in the fishery)!Nordic trendsetters in product innovation: Non or few! © GEMBA Innovation
    • Some good advices!! Market innovation can expand the market, which secures the prices.  Markets like Africa, Brazil, India and China are opportunities for even more seafood. Innovation in sustainability gives better profit margins and/or secures the sale of the product. Ongoing process innovation are very important to keep the sector competitive - but the results need to be communicate in a better way throughout the value chain into the market – if the seafood sector should gain the full potential and benefit from the work with sustainability and innovation. © GEMBA Innovation
    • Nordic Marine Innovation Conference - Competition and cooperationInnovation as a driver for competitiveness in the Nordic marine sector Jens Henrik Møller GEMBA Seafood Consulting A/S JM@GEMBA.DK Thank you for your attention! WWW.GEMBA.DK © GEMBA Innovation