International business

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INTERNATIONAL BUSINESS (BMGT2002L)
NEW BUSINESS PLAN OF EXPORTING SRI
LANKAN SEAFOOD TO EU
Submitted by
K.C.Nandika Perera
N.P. Senerath Yapa
U.G.G.Sasanka Wimalasiri
R.K.S.Sanjaya
Lecturer: Dr John F. Hulpke
Submission Date: 08th July 2017

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Table of Contents
List of Figures ,Tables................................................................................................................. 3
Abbreviations ............................................................................................................................. 4
1. Introduction to the Project and Business............................................................................. 5
1.1 Entry Strategy.................................................................................................................. 5
1.3 Supply chain & production................................................................................................ 2
1.3 Company Products ............................................................................................................ 6
2. Identifying the exporting seafood as a global business opportunity .....................................8
2.1 From the Sri Lankan perspective howsea foods exporting to EU become opportunity?.. 11
3. Environmental Scanning and Market Selection................................................................. 14
3.1 Opportunity in the selected region (European Market) for Seafood and aquatic food items
demand................................................................................................................................. 14
3.1.1 Main personal factors................................................................................................ 14
3.1.2 Main external factors ................................................................................................ 15
3.2 Market selection.............................................................................................................. 17
4. Assessing the economic and geographic environment of chosen market ............................ 20
4.1 Economical Environment ................................................................................................ 20
4.2 Geographical Environment ............................................................................................. 21
5. Assessing the socio-cultural environment .......................................................................... 23
5.1 Consumer Habits ....................................................................................................... 23
5.1.1 Impact of The risk for health versus advantage view of fish utilization. .................... 23
5.2 Ethnicity and race........................................................................................................ 23
5.3 Demographics .............................................................................................................. 23
6. Assessing the political legal and technical environment..................................................... 25
6.1 Political Environment...................................................................................................... 25
6.2 Legal Environment.......................................................................................................... 27
6.3 Technological Environment............................................................................................. 29
7. Analysing international competitors: Can you compete?................................................... 32
Assessing the Business’s capability toovercome these forces....................................................... 37
8. Conclusion......................................................................................................................... 38
Bibliography............................................................................................................................. 39
Appendix ................................................................................................................................... 43

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List of Figures ,Tables
Figure 1 – SL company details........................................................................................................6
Figure 2 - Targeted market segments in European Union.................................................................6
Figure 3 – Financial partner details ................................................................................................ 2
Figure 4 –Processof blastfreeze ....................................................................................................3
Figure 5 -WORLD FISHERIES AND AQUACULTURE PRODUCTION ...................................................... 9
Figure 6 UTILIZATION OF WORLD FISHERIES PRODUCTION.............................................................. 9
Figure 7 - WORLD CAPTURE FISHERIES AND AQUACULTURE PRODUCTION..................................... 10
Figure 8 - TOP TEN EXPORTERS AND IMPORTERS OF FISH AND FISHERY PRODUCTS........................ 10
Figure 9 – EEZ of Sri Lanka........................................................................................................... 11
Figure 10 - Extra –EU Imports: Main Partners(Billion EUR) .......................................................... 18
Figure 11 Self-sufficiency rate of most consumed products(2014) ................................................ 19
Figure 12 - Processedtunaimportedfromextra-EUcountries(byvalue,2015) Source:EUMOFA
based on elaboration of EUROSTAT data...................................................................................... 19
Figure 13 - Michael Porter’s five forces ........................................................................................ 32
Figure 14 – Seafood frozen methods............................................................................................ 43
Table 1 – Needed licence and other certificates for export seafood from SL.....................................4
Table 2 – Labelling standards.........................................................................................................5
Table 3 - Main personal factors................................................................................................... 14
Appendix 1– Seafood processing methods used by the company................................................... 43
Appendix 2 – Certification procedure need toexport seafood to EU.............................................. 44
Appendix 3 – Mandatory & voluntary labelling conditions to export seafoodin to EU..................... 50

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Abbreviations
CA — Competent Authority
CCA — Central Competent Authority
EC — European Commission
EU — European Union
EU –European Union
FAO — Food and Agriculture Organization of the United Nations
FAP - Fish & Aquatic Production
FDI – Foreign Direct Investment
FP — Fish and fishery products
FVO — Food and Veterinary Office
HACCP — Hazard Analysis and Critical Control Point (System)
SL – Sri Lanka
WWF – World Wildlife Fund

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1. Introduction to the Project and Business
Within this project try to discuss factors relating to international business of exporting Sri
Lankan sea food to foreign.For this selects various categoriesof seafood catagories and in the
company product list mentioned them seperately.For than start up joint venture company
called Aqua Seafood Ceylon Pvt, Ltd. For exporting selected geographical location is
European Union, which consists of 28 countries in the region. In this project try to identify
the opportunity of exporting seafood in to European Union and what are the external and
internal opportunities and challenges for the business and how compete in the selected
geographical market as a Sri Lankan sea food manufacture and exporter. This business is
operated on at the 2019, 1st quarter.
With assessment of environment in EU the, we will consider current seafood suppliers and
competition in EU market. Atthe endof the study we tryto enter EU as existing
business.Because in SL many suppliers currently operating inthis businessand we try to
compete in local production .
1.1 Entry Strategy
FDI
Aqua Seafood Ceylon Pvt, Ltd acquires foreign direct investment by establishing join venture
of 60:40 with Netherland “Hoogendijk Import Export B.V”. company on develop new fishing
boat, equipment’s and establishing modern equipmenttaliced processing factory which will
located in Katunayake. Both companies signed agreement on profit sharing, marketing,
branding and etc. Profit sharing on the business on 45% on Hoogendijk Import Export B.V
for investment and foreign distribution network for 5 years’ time and after that get 35% profit
for them up to 10 years and then 30% profit for them.
Joint venture company details

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Office and cold stores - Haringbuisweg 21, 3133 KP Vlaardingen, The Netherlands.
Mail address - POB10, 3130 AA Vlaardingen, The Netherlands.
Contact information
Telephone: +31 (0)10 24866 66
Telefax: +31 (0)10 24866 0000
E-mail address - website@hoogendijk.com
Chamber of Commerce -24254312
VAT number -NL001145988B01
Sri Lankan company details
Figure 1 – SL company details
Targeted market segmentsinEuropean Union
Figure 2 - Targeted market segments in European Union
• Supermarkets
• Fish mongersRetail
• Hotels
• Resturants
Food service
Aqua Seafood Ceylon Pvt, Ltd
No 855, Katunayake Export
Processing Zone (EPZ)
Katunayake.
Tel -01128556985
Fax -01185569222
Email - Aquafishceylon@yahoo.com
Website- www. Aqua Fish Ceylon.lk

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Marketing and Branding
The seafood is export to Netherland on Aqua Seafood Ceylon logo and according to
agreements on retail sector and food services companies export amount become varied.
Marketing and brand promotion conducted by the Hoogendijk Import Export B.V Company.
Because they established business in 1745, having brand name & experience of more than
250 years old. So as mentioned previously 40 % profit share from total profit given to
branding, promotion and other logistic related activities in EU are divide according to
agreement among the business.
Financial Partner
The terms of payments, financial transactions of the business conducted by Commercial Bank
of Sri Lanka.
Figure 3 – Financial partner details
1.3 Supply chain & production
Vessels and Boats
Business own a fifteen deep sea long line fishing vessels and 50 European technology
obtained Toller boats which are developed with the Netherland technology and investment,
equipped with VMS,SSB and call sign which are registered with the Department of Fisheries
and Aquatic resources and the Indian Ocean Tuna Commission (IOTC).

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Seafood farming areas
Growing sea food areas-800 acres pawns growing areas in Jaffna, Negombo, Kalpitiya and
Galle. In Negombo 100 acres, 300 acres in Kalpitiya, Jaffna 350 acres and Galle.
Process using in the factory
Processing Facilities are operated in strict compliance to EU and USA food and safety
regulations. Our process is in compliance with HACCP system together with supporting
GMP and SSOP practices. Processing is done under intrinsically hygienic conditions
maintaining temperature below 4°C throughout the processing line and temperature vary on
frozen method (Apendix 1).
Figure 4 –Processof blast freeze
Logistics
The fish is transported in refrigerated trucks as per the company requirements and at
receiving goods are checked same as company goods and only acceptable goods are received
For each lot boat details are received from the
Before export place dry and wet ice in boxes, sealed with tapes, transported to the airport in
refrigerated trucks and air freighted. Finished products transport on refrigerated containers or
boxes maintaining temperature below 4°C throughout the transport to airport and doing air
freight to Nederland.

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Exporting seafood to EU
Registration as an exporter
A person exporting any article of commercial value from Sri Lanka is required to register
with following institutions.
 Sri Lanka Export Development Board - EDB Registration Number
 Inland Revenue Department – Tax Identification No. (TIN Number/VAT Number)
 Sri Lanka customs
To register as an exporter, need to produce the original Business Registration Certificate or
Certificate of Incorporation and other related documents along with duly completed
application forms (http://www.srilankabusiness.com/edb/, 2014).We export seafood to EU on
Autonomous tariff quotas (ATRQ’s).SL sea food exporting to EU at a reduced tariff rate of
0%, 4% or 6%. Exporting seafood process conducted under following certifications.
Certifications
Due to the hygiene factors on food EU export food categories need to have following
License/permits/Certificates. These verifications issuing authorities in SL mentioned below
and after that discuss about the duration we wish achieve these requirements.
Table 1 – Needed licence and other certificates for export seafood from SL
Source - http://www.srilankabusiness.com/edb/, 2017
Product Registration License/permits/Certificates Responsible Authority
for License/Certificate
Fish,
seafood and
fisheries
products
Department of
Fisheries &
Aquatic
Resources
Export License on sea Cucumber,
Lobsters, Chanks
Dept. of Fisheries and
Aquatic Resources
Health Certificate for EU Countries -do-
Catch certificate -do-
Statistical document for Big eye Tuna -do-
ICCAT certificate for Sword fish -do-
Certificate of Origin Chamber of Commerce
GSP Form A Department of
Commerce

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 Public Health Attestation will be taken on EU from year end of 2018.
 Food and Veterinary Office (FVO) certification will be taken on EU from year end of
2018.
 Seafood can be exported to the EU only from:
 Approved countries- SL is approved country since 2016 May.
 Approved vessels and establishments (e.g. processing plants, freezer or factory vessels,
cold stores) – Company vessels will be approved on 3rd quarter of 2018 and processing
factory and cold stores will be approve on 4th quarter of 2018. (apendix 2 for more
licening and approval procedure).
Labelling Requirements
Exporting seafood to EU must mentioned specific labelling requirements. These vary on
product categories.
1. Unprocessed and certain processed pre packed fresh products
2. Processed products
Example: list of major mandatory information for unprocessed and some processed products
(e.g. salted, smoked products).
Mandatory for all food items Additional mandatory for packed ones
Commercial designation and scientific name List and quantity of ingredients
Production method Net quantity
Catch Area/ country and body of water Condition for storage and use
Fishing gear Name of the business
Defrosted or not Date of first freezing
Best before, Allergens Added-water
Table 2 – Labelling standards

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1.3 Company Products
 Tuna-in fresh, chilled and frozen forms
 Tuna whole ( G & G whole, H & G whole )
 Tuna loins – fillets and steaks
 Some of the value added products
 Tuna cubes
- Specifications: Skinless, boneless, bloodline removed
- Size: 25-35 gram/ Customer specification
 Tuna steaks

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- Specifications: Skinless, Boneless
- Size: 4oz/6oz/8oz/10oz/ Customer specification
 Tuna Saku
- Specifications: Skinless, boneless
- Length: 15-18cm
- Width: 5-8, 8-12 cm,
 Shrimps & Prawns
 Crabs and Lobsters
 Shark fins
 Fish maws
 Beche-de-mer

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2. Identifying the exporting seafood as a global business opportunity
As the largest traded food commodity in the world, seafood provides sustenance to billions of
people worldwide. Approximately three billion people in the world rely on both wild-caught
and farmed seafood as their primary source of protein. Historically, the seafood industry has
significantly impacted the environment. The United Nations Food and Agricultural
Organization estimates that eighty-five present of marine fish stocks are either fully exploited
or overfished. Similarly, many fisheries throughout the world throw away more fish than they
keep (World Wildlife Fund, 2017).
Sea food considers as the healthier nutrition and cheaper protein supplier in the world. Fish is
a high-protein, low-fat food that provides a range of health benefits. White-fleshed fish, in
particular, is lower in fat than any other source of animal protein, and oily fish are high in
omega-3 fatty acids, or the "good" fats. Fish are low in the "bad" fats commonly found in red
meat, called omega-6 fatty acids. There are key reasons why seafood is good for your
consumption (Programs, 2014).
 Those who consume omega-3 fatty acids found in seafood are less likely to suffer from
age-related macular degeneration, a disease that can result in the loss of vision. Fish and
shellfish can also boost people’s night vision (Maintains eyesight).
 Eating seafood helps preserve moisture in the skin. The omega-3 fatty acids in seafood
protect the skin against UV rays from the sun.
 Seafood consumption also aid in reducing preterm delivery and is essential for central
nervous system development and Studies designate that eating more fish has positive
benefits on birth weight because it enhances fetal growth and development (Revolution,
2015).
Not only mentioned above using seafood and other products helps to improve personal
nutrition and health. Seafood and fish provided more than 3.1 billion people with almost
20% of their average per capita intake of animal protein. In addition to being a rich
source of easily digested, high quality proteins containing all essential amino acids, fish
provides essential fats (e.g. long chain omega-3 fatty acids), vitamins (D, A and B) and
minerals (including calcium, iodine, zinc, iron and selenium), particularly if eaten whole
(FAO,2016).Global total capture fishery production increases consciously.

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From 2009 to 2014 world total fisheries and aquaculture in production and utilization
of fish production mentioned below.
Figure 5 -WORLD FISHERIES AND AQUACULTURE PRODUCTION
Source: FAO, 2016
Figure 6 UTILIZATION OF WORLDFISHERIES PRODUCTION
Source: FAO, 2015
Following figures shows world production of fish and other production.This shows
continously increase of the production. As well as production increases world export and
import of sea food values become increased due to any country not fully self sufficiently of

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every sea food category. Local production consume by individual communities and rest of
the production export or shortage become import.
Figure 7 - WORLD CAPTURE FISHERIES AND AQUACULTURE PRODUCTION
Source: FAO, 2016
Figure 8 - TOP TEN EXPORTERS AND IMPORTERS OF FISH AND FISHERY PRODUCTS

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Source: FAO, 2016
2.1 From the Sri Lankan perspective how sea foods exporting to EU become
opportunity?
Sri Lanka is an Island located in the Indian Ocean. According to United Nations Convention
on Law of the Sea, Exclusive Economic Zone(EEZ) consists of the total area including the
EEZ is suspected to be 23 times larger than the total land area and can be used for exploration
and exploitation of minerals and hydrocarbon resources. Marine fisheries are of considerable
social and economic importance around the entire 1 770 km of Sri Lanka's coastline. EEZ
covers 517 000 km2, of which some 27 800 km2 form a continental shelf. Within the EEZ of
Sri Lanka 12 nautical miles from the coast is considered as the territorial waters and the next
12 nautical miles adjoining to the territorial waters is named as contiguous zone (Joseph,
2008).
Figure 9 – EEZ of Sri Lanka
Source: (PEOPLES' POLICY FOR SUSTAINABLE FISHERIES INDUSTRY OF SRI LANKA, 2010)

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Considering Sri Lankan economy, seafood product sector plays an important role in Sri
Lanka’s Social and economic life of the coastal regions and other areas. This Sector
contributes about 2.7% to country’s GDP in last year. With the opening up of the Northern
and Eastern areas of the island after 30 years civil war in 2009 , 65% of oceanic area is free
for fishing and increase the level of contribution through exploiting high seas for tuna fishing
& value addition. A fishing fleet of 1700 boats operate around the island's waters and supply
approximately to 75 medium and large scale export companies. This sector generated close to
2.4 million direct and indirect jobs. But due to the violation of EU standards and practising
illegal fishing, bottom tollaring and many factors get bang for Sri Lankan seafood products
from 2012 onwards. Due to the political changes in 2015 January in Sri Lanka start up
discussions with the EU and setting new rules and regulations to comply with the EU
standards (Srilankabusiness.com, 2017).
Before 2012 Sri Lanka has emerged as a quality tuna exporter -predominantly yellow fin and
big eye species to international markets. Some of them are sashimi quality tuna, tuna loins,
fresh tuna steaks, tuna topping and tuna saku blocks, sea food varieties as lobsters, crabs,
squid, cuttle fish, shark fin, beche de-mer and fish maws. Due to the EU bang on Sri Lankan
items on food and other and loss of GSP Tax benefits, EU exports get become 0%. During
this time value added shrimps such as nobashi, and butterfly cut are popular in the Japanese
market, while head-on, headless, shell on, peeled and cooked shrimps are popular in the
USA, Japan, and Singapore as Asian markets. The seafood sector has shown a growth rate of
5% within the last 5 years with key buyers Japan, Netherlands USA and the Singapore due to
less export (Srilankabusiness.com, 2017).
Under the government's Fisheries Sector development strategy 2020 plan, a modern and
technically improved Vessel Monitoring Systems (VMS) are established; this helpful to
prevent national fishing vessels from drifting to other countries' territorial waters, for this
introduce GPS tracking systems for every fishing boat. Cold chain facilities as well as
impressive harbour and road and highway infrastructure, development of airports ensure a
quick and safe supply chain for exporters. E-business has been deployed, taking the industry
to the next level in reducing waste and time consumption and increasing cost-effectiveness
with the help of Fisheries ministry, NARA and ICTA.
When it comes to product developments, processing and packaging techniques, Sri Lanka's
traditional skills in manpower and advanced technology ensure the makings of a perfect, high

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quality and most importantly fresh seafood export range that is well packed and ready to ship.
But need to conduct developments in catching and collecting sea food, processing facilities
and growing sea food to become ethical fishing. As a developing country Sri Lanka uses the
sustainable seafood concept which helps to protect the environment. Making sustainable
seafood choices is about supporting solutions for healthier oceans. Most of the Sri Lankan
seafood exporting companies to other regions (USA, Japan, Singapore, etc.) has obtained the
“Friend of Sea” certificate for sustainability (Srilankabusiness.com, 2017).

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3. Environmental Scanning and MarketSelection
3.1 Opportunity in the selected region (European Market) for Seafood and aquatic food
items demand
According to Survey of European Maritime and Fisheries Fund (EMFF) identified the main
factors for purchasing or consuming FAPs can be grouped as follows (Eumofa.eu, 2017):
1. Personal factors: purchasers’/consumers’ reasons
2. External factors: factors not linked to individual aspects but impacting (in a positive or
negative way) the inclination to purchase.
3.1.1 Main personal factors
These factors derive from the grouping of those items surveyed in the Euro barometer survey
that can be associated due to their connection with the same underlying motivation factors
bbased on following.
Table 3 - Main personal factors
According to above factors, conducted survey by EMFF, 2016 in EU level, Wellness and
health results to be the main factor (123%). Ttherefore, the main motivation for purchasing
FAPs is the positive link between consuming sea food, fish and health. The factor Hedonism
ranks second (68%), while Convenience and ease is the least important, as it is mentioned by
32% of consumers only. The purchase and consumption motivations for Central EU countries
Factors Items
Wellness and health
They are healthy
They contain little fat
They are easy to digest
Hedonism
They taste good
They look good on the table
They are products for special occasions
Convenience and ease of preparation They are easy to prepare
They are quick to prepare

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rely in the factor Wellness and health, while the factor Hedonism is more important for
Eastern EU countries and Northern EU countries. Among them, Sweden is the most sensitive
to this factor; Denmark and Finland give more importance to both factors (wellness and
health and hedonism) with respect to the EU average. Finland is also the Member State
giving more relevance to the third factor (Convenience and ease).
The other sub-regions report results closer to the EU average. However, some Member States
have more marked positioning.
3.1.2 Main external factors
Generally there are major external factors can be identify for the effect of fishery and sea
food usage in the EU. Most of them are arising from third parties (mainly distributors of
FAPs).They are
 Price levels
 Products assortment (=diversification of the supply) of the POS
 Promotional strategies adopted by the POS (Eumofa.eu, 2017).
1. Price levels
At EU level, 68% of consumers would increase their FAPs consumption if their price level
was lower. Therefore, price represents a factor slowing the FAPs consumption growth and, as
a consequence, promotional strategies adopted by POS could encourage FAPs purchase (and
consumption).
2. Products assortment (=diversification of the supply) of the POS
More than 50 % of the consumers would increase their FAPs consumption if they could
choose within a wider products assortment. Therefore, the diversification of the supply,
independently from the price level and in connection with promotional strategies, would
encourage FAPs purchase (and consumption). Preference to experience new products is
relevant for 60% of purchasers. This preference can be negatively affected by a low
assortment of products adopted by the POS.
3. Promotional strategies adopted by the POS.
Overall, 56% of purchasers indicate that they are willing to try new products when there are
promotional events. This openness can be exploited through promotional strategies that aim

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either at introducing new products or at making products already known by consumers more
affordable. However, beyond the diversification of products, the majority of studies make
references to the diversification of the service offered to clients.
Ex-
 Romania: consumers would like to have an additional service like gutting offered by the
sellers.
 Germany: hard discounters started to sell fresh fish.
 France: In front of a large range of products, consumers focus on species they know and
which reassure them. Secondly, the organisation of the shop may encourage the purchase
in self-service compared to loose fish (The EU Consumer Habits – Final Report 2015).
Main factors influencing consumer demand and purchasing behaviour in EU
 cost (price)
 appearance
 geographical origin
The combination cost/appearance can be considered as a representation for the concept
“price/quality ratio”.
At EU level, appearance is the factor with the highest impact on purchasing decisions (58%);
the cost and geographical origin factors follow, at 55% and 42% respectively. Considering
survey of “The EU Consumer Habits – Final Report 2015, 2016” southern Europe and 3
states (Greece, France and Finland) have mentioned values above the average
value(impotency) for above 3 factors in EU. Western Europe and 3 Member States (Ireland,
Netherlands and the United Kingdom) have representing values below the EU average for all
3 factors.
Finally, comparing these results with previously mentioned factors with production method
(wild/farmed), the marine/freshwater origin and the preservation state (fresh, frozen, etc.), it
develops that several patterns as follows.
 For those expressing a preference in terms of production method (wild/farmed) and
marine/freshwater origin, the factor geographical origin is more relevant.
 For those expressing a preference for wild and marine seafood, the factor appearance is
more relevant.

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 For those expressing a preference for fresh fish, the factor appearance is more relevant.
 Where preferences about production method (wild/farmed) and marine/freshwater
origin are less relevant, the cost factor is a key driver of purchasing choices (consumers
purchase cheaper high quality products) [Eumofa.eu, 2017].
Consumers’ attitude towards information on products’ labels
Considering product labelling Consumers’ trust in mandatory information (by law or
regulation) as well as voluntary information (provided by the brand or the seller) mentioned
in food items with clarity and simplicity of information reported on sea foods. As an
example, Name of the product and species ,wild or farmed, country of the ship that caught
the product or area of catch, fishing gear used ,whether previously frozen, “use by” or “best
before” date, date of catch or production ,ethical fishing information ,environmental
information ,information on the fisherman/fish farmer or importer can be considered as
important data(Eumofa.eu, 2017).
3.2 Marketselection
Due to attaining GSP in 2016 Sri Lanka send most Seafood items to EU. But loss of GSP in
2012 it was reduced. So getting back of benefits. According to the Fisheries and Aquatic
Resources Development Ministry, fish exports income in 2016 was reported as Rs.1200
million. Such an achievement has become possible due to the high demand in the
international market for Sri Lankan seafood. However, we are still satisfying only 1/3 of the
total requirement. The European Union has granted Generalized System of Preferences
(GSP+) status to Sri Lanka, allowing better access to the EU market for the country’s exports,
including fish and seafood products. In 2016, Sri Lankan seafood imports to the EU totalled
2.581 tonnes, valued at EUR 31.4 million. Selecting European union as target market due to
high demand and consumption in the seafood and fish demand during past years.EU consists
of 28 countries in 2017 but when the operations of the business starts it becomes 27 countries
because UK left the EU. In future Sri Lanka expects EU seafood and fish demand increases
and due to the GSP + benefit SL can export more fish and aquatic items to (EUMOFA,
2017).
Trade in fisheries is significant for the EU, as a leading import market for fisheries and
aquaculture products in the world. The EU is the top trader of fishery and aquaculture
products in the world in value. In 2015, total extra-EU trade (imports plus exports) amounted
to EUR 26, 81 billion in 2015, an increase of 6% from 2014. The EU accounts for 38% of the

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world imports value, followed by the USA and Japan (accounting together for 25% of the
total). In 2016, the overall demand for fisheries and aquaculture products has been growing,
driven by the economic recovery of the EU market. This is reflected in the EU trade, which in
2016 has reached EUR 54,3 billion, +9% over 2015(EUMOFA, 2017).
Extra –EU Imports: Main Partners (Billion EUR)
Figure 10 - Extra –EU Imports:Main Partners (Billion EUR)
EU consumers spent 54 billion euro for buying fisheries and aquaculture products in 2015,
reaching the highest amount ever recorded. With respect to 2014, the expenditure increased 3,
2%. When considering per capita fish consumption per year increased to 25.5 kg, as EU
consumers ate one kg of fish more than in 2013. The rise was more significant for farmed
products (+6%) than for fisheries products (+2.7%). However, consumption in the EU market
is dominated by products originating from fishing activities (75% of total consumption).Tuna
was the most-consumed product in the EU, with a per capita consumption of 2,6 kg in 2014,
followed by cod, whose consumption significantly increased. EU not fully self sufficiency of
sea food and fish items. So need to export them from other regions. Following mentioned the
sea food items self- sufficiency level in 2015 (EUMOFA, 2016).

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Figure 11 Self-sufficiencyrate of most consumed products (2014)
Source:EUMOFA basedon elaborationof EUROSTATdata
Figure 12 - Processed tuna imported from extra-EU countries (by value, 2015) Source: EUMOFA based on elaboration of
EUROSTAT data
Considering above mentioned fact SL is a quality tuna exporter in yellow fin and big eye
species tuna loins, fresh tuna steaks, tuna topping and tuna saku blocks, other sea food
varieties as lobsters, crabs, squid, cuttle fish, shark fin, beche de-mer and fish maws. Due to
the high demand from EU for sea food and other species SL can enter in to this market and
SL considers low cost producer in the world and specially supplying tuna and other spices.
GSP + tax benefit highly effect on positively on exporting sea food items to EU (EUMOFA,
2016).

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4. Assessing the economic and geographic environment of chosen market
4.1 Economical Environment
Europe has gained imperative ground in saddling and fortifying its strategies and institutions
to recoup from a twofold plunge subsidence and enhance emergency administration.
Exceptionally strong money related strategy has supported growth to pick up steadily during
last three years, and added to diminish pressures in sovereign obligation markets. The impact
of monetary arrangement on request has turned comprehensively nonpartisan. Essential
building squares of managing an account union, on both supervision and determination
fronts, have come into operation, enhancing the versatility of the European money related
framework. Trust in the European venture has recuperated from its lows in 2013, despite the
fact that it is still well beneath what it was before the emergency.
Nonetheless, numerous heritages of the emergency are as yet uncertain, and major new issues
have risen. Unemployment is still high in numerous nations, and there is a wide scattering
over the euro range. Not at all like in the United States, is investment still far underneath
2007 levels, particularly in those nations hit hardest by the emergency, for the most part
because of powerless request additionally to high non-performing advances and, in numerous
nations, high corporate obligation, which hamper credit (OECD, 2015a). Political pressures
have erupted as of late because of expansive inflows of displaced people, and have put a few
strains on outskirt free go inside the Schengen zone. The reintroduction of fringe controls in
some Schengen zone nations is a difficulty for European joining (European Union, 2016).
Development has accumulated pace since mid-2014, bolstered by money related extension
and swapping scale devaluation in a few nations. The sharp fall in worldwide oil costs has
raised family unit wages and the financial approach is never again weighing on local request.
All the more as of late, a more grounded euro and the log jam in developing markets has
weighed on send out development in the European Union, while sterling deterioration most
likely upheld net fares in the United Kingdom. Business venture has baffled, to a great extent
because of frail development desires and conceivably, in a few nations, credit imperatives.
Aquaculture and fishing are vital monetary exercises in the European Union. Those segments
can give more than 10 present of all employments in specific zones, such the Atlantic bank of
Spain or Scotland. With a generation of approximately 7.8 million tons of fish, the E.U. is the
world's biggest angling power after China and Peru. However being one of the biggest

21
markets, the E.U. has an exchange deficiency of nearly 2.5 million tons of fish items, worth
about USD 7.5 billion.
EU buyers expended 54 billion euro for purchasing fisheries and aquaculture items in 2015,
achieving the most astounding sum at any point recorded. As for 2014, the consumption
expanded 3.2%, because of a general positive pattern recorded in all Member States
(excepted Greece). Fish alone speaks to very nearly 20% of the general EUR 120 billion
worth of nourishment items imported by the EU. The exchange adjust shortfall (trades less
imports) of 2015 was the biggest always, affirming the EU as a net merchant of fisheries and
aquaculture items. The estimation of imported fish grew 6% from 2014 and achieved EUR
22.3 billion.
4.2 Geographical Environment
Sustainable fishing and Fish Farming Advantages for environment
We are known nowadays more than ¾ of fish stocks are fully fished.
o Entire Specie
o Sword Fish
And also other marine species, such as whales, dolphins are not killed by catch because of
unintentional by – product of fishing and also healthy Fish stocks and a health sea
environment are crucial for livelihoods of the coastal communication.
Best and worst sea Foods
According to Environmental Defence Fund (EDF) there has three level of seafood,
1. Eco – best
2. Eco – Ok
3. Eco – Worst
Eco – Best Sea Food
We are choosing Eco – Best sea Food It's safe for environment also your body. Fishermen
enough a child fishes their do not harm any other marine life that farmers are spread disease
control their farm raised.

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Eco – Ok Sea food
This is difficult to discern how to eco – ok sea food raised, these type, of level mercury or
other Environmental chemicals.
Eco – Worst Sea Food
This is should be avoided as much as possible. This comes from. Over fished population and
also poor management their farms. Usually their use high levels of mercury or other
chemicals. There is a bad for the Environment and our body.
Sampling of Eco – Best Sea Food
 Mussels
 Farmed oysters
 Pacific halibut.
There is a Part of marine conservation, than the other Issue is that can be conflict between the
fishermen and depend on fishing for their income. The world runs out of wild caught sea food
in 2048. They are get decision for that like reducing the population and fisheries.

23
5. Assessing the socio-cultural environment
5.1 Consumer Habits
5.1.1 Impact of The risk for health versus advantage view of fish utilization.
5.1.1.1 Consumer use of mandatory or other information and awareness in possible
information mentioned in labels:
Studies have discovered that there is a high utilization of on mark data and customers are
occupied with data. Customers are most acquainted with expiry date, value, name of the
species and weight and they feel ready to get clear quality desires from the data the names
pass on. Purchasers show the most grounded enthusiasm for extra data, for example,
wellbeing assurance and quality imprints for fish. Cross country contrasts in both utilize and
enthusiasm for data is observed.
5.1.1.2 Perceptions and observations identified with cultivated versus wild fish and impact on
utilization:
Concentrates found that buyers have when all is said in done an extremely positive picture of
fish items, particularly regarding medical advantages. Origin of fish is by all accounts of
restricted significance; in any case, wild fish is favoured when contrasted and cultivated fish.
5.2 Ethnicity and race
Ethnicity and race are other vital elements of the demand feature. Socio-cultural values,
spiritual concerns, and attitudes make distinction some of the marketplaces. Especially,
countries in the East area high call for on wide form of fishery products in contrast to
different parts of the arena. furthermore, international locations with large Muslim population
area excessive demand on meat merchandise than fish (Marrium-Webster, 2010) meals
conduct and non-secular worries have a brilliant effect on species selection, for instance, sea
cucumber and shark fins are luxurious fish merchandise for Hong Kong and China markets
however; in different markets they don't have any value.
5.3 Demographics
Growth rate of the population and age spreading are key factors affecting the demand for
fishery products. Many growing nations having advantageous population boom costs
generate large teen’s populace, and their meals intake habits and preferences without delay
affect the meals call for characteristic. The other facet of this coin is advanced countries with
gradual or bad population growth fees. Hence, meals consumption sample and meals

24
alternatives of big elderly populace have extra impact on worldwide food fish supply chains.
For example, world’s largest fish patron, Japan, has experienced very low population
increase. As a result, Japan has growing old population where 25% of the overall populace
are over 65 years. Japanese food plan is based totally on fish and rice, and ageing humans
demand more conventional fish cantered diets (De Silva and Yamao, 2006).
Central EU countries
Focal EU nations frame a landlocked locale with very low utilization of FAPs, but expanding.
Privately created carp is an essential species, particularly in Hungary and in the Czech
Republic and utilization is affected by convention. Accessibility of saltwater angle relies on
upon imports from different districts. Developing import builds the accessibility of FAPs and
changes customer propensities, albeit customary propensities are solid.
Western EU countries
These nations have a huge possess supply both from fisheries and from aquaculture, and
utilization of FAPs is a vital piece of their culinary conventions.
Fish utilization is generally high and utilization of items from aquaculture is slanting
upwards. Higher accessibility of new fish, comfort items and sushi changes utilization
propensities from more customary dinners, particularly among the more youthful shoppers.
Northern EU countries
Fish utilization is exceedingly subject to imports. Utilization is moderately low, well beneath
EU normal. FAPs are by and large thought to be costly items. Purchasers are progressively
mindful of supportability issues.
There is an expanding enthusiasm for FAPs because of higher accessibility; new fish
utilization particularly has expanded in parallel to FAPs' accessibility.
Southern EU countries
There is a substantial assorted qualities inside these nations with respect to angle utilization,
e.g. Croatia has a fish utilization level well beneath EU normal, while Portugal is well above.
The primary explanations behind eating fish are wellbeing and taste, while the fundamental
hindrances are value observation, notice when cooking fish and the way that fish does not
convey an indistinguishable level of satiety from meat. Noteworthy contrasts crosswise over
Member States are found regarding planning aptitudes and the utilization of value signs.

25
6. Assessing the political legal and technical environment
6.1 Political Environment
New era of a Sustainable Fishing Partnership Agreements (SFPAs) has come into constrain
from 2013-2017, and with another strategy comes another name. The key standard and
watchword for these assertions, sustainability, now shows up in the title to better mirror their
definitive goal. It is no incident that the change of the Common Fisheries Policy has acquired
critical changes how SFPAs are set up and actualized. For the EU similar standards and
benchmarks that apply to armadas in European waters ought to likewise apply abroad. SFPAs
are reciprocal concurrences with beach front countries outside the EU, which enable
European vessels to angle for surplus stocks in an accomplice nation's Exclusive Economic
Zone (EEZ). In return for money related remuneration, get to rights are given while financing
is set up to advance supportable fisheries advancement and general change of fishery
administration.
The new assertions are: science-based, reasonable and maintainable, represented by
enforceable directions, reinforced in their observing and control structure and completely
straightforward. Procedures for more powerful administration are a need with the new
assertions. Better observing of EU vessel exercises is guaranteed through the Electronic
Recording and Reporting System (ERS), a compelling information gathering device that
records what angling armadas are getting. The ERS likewise reinforces the
straightforwardness of EU angling operations in non-EU waters, and encourages the sharing
of data with accomplice nations, profiting both sides. The expenses of getting to angling
rights in accomplice nations' EEZs are being re-adjusted. Earlier, the EU financed around
66% of the expenses, yet under the new SFPAs deliver proprietors will conceal to 70% of get
to charges for fish understandings.
Catch expenses are additionally being refreshed to reflect current market esteems which,
given the heightening fish costs over late years, is an essential move. The strategies on get to
rights and catch expenses are reliable with value standards, for example, expelling shrouded
sponsorships to privately owned businesses, and paying a reasonable cost to third nations for
their normal assets. In addition, fisheries items collected under SFPAs can be followed
through the entire store network, for responsibility and straightforwardness purposes, and for
the advantage of the buyer.

26
The new SFPAs additionally isolate the EU's instalment for get to rights from its monetary
commitments to the accomplice nation's fisheries. EU support to nearby angling divisions
will assemble the logical, managerial and specialized limit of neighbourhood accomplices for
the maintainable improvement of their fisheries. There has been a reinforcing in the
administration of the understandings, specifically with regards to human rights. The human
rights statement in the new SFPAs is characteristic of the EU's sense of duty regarding secure
similar standards at home and abroad (European Commission, 2017).
Multilateral Environmental Agreements (MEAs) are probably going to assume an essential
part in worldwide exchange fish and fishery items later on. The WTO perceives that
contentions may exist between the accomplishments of natural preservation targets from one
viewpoint and exchange advancement on the other. Under the Doha Mandate arrangements
have been started on clearing up the connection between exchange measures taken under
MEAs and WTO rules. On account of fisheries, the most essential MEAs are the United
Nations Convention on the Law of the Sea (UNCLOS) and the Agreement for the
Implementation of the Provisions of the United Nations (CFFA - Coalition for Fair Fisheries
Arrangements, 2017).
In spite of the fact that the European political scene is experiencing noteworthy change, one
of the area's most feasible issues—overfishing—is demonstrating diligent. In the previous
couple of years, European fisheries priests have set about portion of the district's angling
limits over the levels exhorted by researchers. What's more, this year was no special case.
That example doesn't look good for the dedication made by European Union part states to end
overfishing of all fish stocks, which they guaranteed to do by 2020 under the 2013 change of
the EU's CFP.
The lawfully restricting duty was among the most commended of the 2013 changes to the
CFP, which until the point when at that point was broadly seen as neglecting to viably
oversee angle stocks. The change bound fisheries priests to end overfishing "by 2015 where
conceivable" and by 2020 at the most recent, utilizing "dynamic, incremental" acclimations
as far as possible (Pewtrusts.org, 2017).

27
6.2 Legal Environment
The E.U. has six unique legal establishments that capacity from numerous points of view.
These organizations are the European Commission, the Council of Ministers, the European
Parliament, and the European Court of Justice. The European Commission is the E.U. official
body. It has three principle errands: to start E.U. arrangements, to go about as the gatekeeper
of E.U. bargains and to handle execution of E.U. law. The Council of Ministers is comprised
of government agents from the Member States. Every Member State is in his turn leader of
the Council for six months. They are in charge of deciding E.U. strategies and to vote
enactment. The European Parliament picked up control after some time. From a consultative
just body, it would now be able to veto enactment in specific ranges, for example, customer
security, wellbeing, condition or the single market (Vrignaud, 2014).
The European Commission is presently made out of 25 Directorates General (DG). DG
Fisheries and Maritime Affairs handles transactions of International angling assertions, assets
administration, aquaculture, armada administration, and composes the Common Fishery
Policy (CFP). It likewise makes recommendations for duty lessening, levy suspensions and
import standards. It go about as help to DG Trade, some portion of which is the E.U.
proportional to the Office of the U.S. Exchange Representative) for WTO matters. All EU
choices with respect to fisheries include a counsel method. In this technique, the
administrative work is shared between the Commission and the Council: the Commission,
which has the energy of activity, submits recommendations and the Council settles on an
official conclusion. These propositions are at first talked about inside the Permanent
Representative Committee (COREPER).
Prior to any choice is embraced by the Council, different stages must be finished which,
contingent upon the field concerned, likewise include the European Parliament, the
Committee of the Regions and the Economic and Social Committee. For nourishment
security related issues, the co-choice method is required. This methodology for the most part
takes longer than the meeting strategy.
The Common Fisheries Policy (CFP) is an arrangement of principles for overseeing European
angling armadas and for saving fish stocks. Intended to deal with a typical asset, it gives all
European angling armadas meet access to EU waters and angling grounds and permits
anglers to contend reasonably. Stocks might be inexhaustible, however they are limited.
Some of these angling stocks, be that as it may, are being overfished. Therefore, EU nations

28
have made a move to guarantee the European angling industry is economical and does not
debilitate the fish populace size and efficiency over the long haul. The CFP was first
presented in the 1970s and experienced progressive updates, the latest of which produced
results on 1 January 2014 (Fisheries - European Commission, 2017). Avocation for the
Community's inclusion in fisheries unmistakably states there must be basic standards
embraced at Community level and actualized in all Member States, covering all parts of the
angling business from the ocean to the buyer.
It was just in 1970 that the principal regular measures were taken. Tenets were set for access
to angling grounds, for a typical market and for a basic strategy to facilitate the
modernization of angling vessels, port frameworks and handling plants. It was concurred that,
on a basic level, all fishers ought to have broken even with access to all waters under the
Community locale. In any case, a beach front band was held for nearby fishers and the
individuals who customarily angled those zones. In 1976, Member States took after the
overall development to stretch out their rights from 12 to 200 miles. The adjustment in the
worldwide access to angling grounds truly offered driving force to construct the genuine
CFP, conceived after troublesome transactions in 1983.
The EU assumes a main part in the worldwide battle against Illegal, unreported and
unregulated (IUU) angling. In mid-2013 Interpol gave out its first 'Purple Notice' to the
Snake, a vessel with a long history of nonchalance for universal law. As of now boycotted by
the European Union and restricted from pitching its illicit catch to Member States, the Snake
is a case in a long line of vessels confronting EU activity against IUU angling (European
Commission, 2017). To neutralize this lucrative illegal exchange, a Regulation gone into
compel in 2010 setting up a far reaching framework to anticipate, discourage and take out the
import of IUU fishery items into the EU advertise. The IUU Regulation has three centre
parts- Catch affirmation plot, Third-nation checking procedure and Penalties for EU
nationals. Just marine fisheries items approved as lawful by the capable banner state can be
foreign made to or sent out from the EU. Third-nation checking process empowers the EU to
go into discourse with non-EU nations that are surveyed as not combatting IUU angling
successfully. EU nationals who participate in, or bolster IUU angling anyplace on the planet,
under any emblem, confront considerable punishments proportionate to the financial
estimation of their catch, which deny them of any benefit, in this manner demoralising the
monetary driver (Oceana, 2016).

29
6.3 Technological Environment
To Sea Food industry integrating new Technology into its supply chain.
Integrating new Technology into supply chain can be challenge for the seafood Industry. Lot
of customers demand to know where the fish they rat come from to them. Therefore lot of
companies started development high technology solutions to capture the consumers. Seafood
supply chain receive and transmit all date across all components.
Egg: -Fishermen to process
Transports
Distributors
Retailers.
What is the Shell catch System?
Fishing boats are going to outfitting with a combination of GPS and cameras that record the
all things. According to shell catch system fishermen. Catch on a video equipped scale and
tag the each fishes that shell catch barcodes and QP codes.
"Technology allows you to. Know the people behind your fish."
According to traceability technology mitigate risks and limit also can Impact of public health
incidents. Because of traceability technology system, suppliers distributors also other
companied in the seafood Industry name to face a variety of challenges to Implement. An
additionally the global nature of the seafood supply chain makes it difficult to establish
uniform standard and practices. And also supply change use the different technology
solutions (Future of Fish, 2014).
 Sophisticated satellite dumping surveillance and enabled poaching.
Windward and sky truth both of companies help to illustrate the role PF satellite in vessel
tracking also help with 100 issues and enable better fishers.
 Bar codes for near Real
Bar code system helps to know sellers and buyers where their fish are at any point in the
process. It can be caught procedural inefficiencies and also keeping illegally Fish out of
chain. That field DNA Bar coding as a possible evaluation.

30
 Sea Foods match making
This technology opens up the chance to distribute and purchase sustainably and source
products, streamline and certification from the NGO.
 Stories sashi
(QR) It’s made of tice paper and edible ink. Using that technology customers can scan with
their before eating any Fish served to them. It was link with NOAA'S fish watch data base
and also we are help to suppliers send a message them they need to know and verify their
seafood sourcing. And also minimize seabed impact by as much 95% and yield a 12% reduce
in fuel consumption.
 GPS – Enabled selective Travelling.
 According to use GPS technology to make sure fishermen don't drop their nets and it set
distance from protected areas. Use of this technological application help to feed the
planet's billion people.
 Cheap pen source its helps to Decrease Illegal Fishing.
This is the low cost technology solutions and it helps to improve the ability to observe and
also collate data about illegal, unregulated Fishing and unreported. (100)
There is a suite of Technology
- Web – based data collection
- It's cheap
- Equipment of cellphone
- Open source monitoring device
Sea Food Technology targets
o Low Impact harvesting systems for sustainable Fisheries management.
o High value ingredients and biomaterials from seafood by product.
o New systems for optimized quality and safety.
Precision Fishing
 Smart catch technology
It's a company Co – located in new port and also pal Alto, CaliF, Its support to products
sustainable commercial Fishing.
"Precision Fishing" is a scheme under which non – target fish. Relived from nets. It's doing
before they are hauled ashore; it can be reducing both by catch and waste.

31
 Revamped Bottom trawling Gear
It's towing a funnel – shaped net anchored. It's open by two "dears" and also it's contact with
the ocean floor. There have been long criticized for entrapping everything their path, It was
including sponges, corals and non-target species. The doors are constructed to reduce contact
both of the floor and changed. In the sales of the net holes and materials.

32
7. Analysing international competitors: Can you compete?
Michael Porter’s Five Forces
Michael Porter’s five forces is a model used to explain the environment in which a product or
business operation facing competition in the market.
Figure 13 - Michael Porter’s five forces
1. Competitive rivalry
Competition among rival firms drives profits to zero. But competition is not perfect and
seafood processing firms are not unsophisticated passive price takers. Seafood processing
firms strive for a competitive advantage over their rivals. Industry concentration is a measure
for rivalry and high concentration ratio indicates that a high concentration of market share
(De Silva, Yamao, 2017).
White fish importation from Developing Countries represented practically €1.6 billion of
every 2015. The fundamental providing Developing Countries are China (yet this likewise
incorporates an extensive volume of twofold solidified Chinese filets promoted under the
name 'Gold country Pollock'), Vietnam and Namibia. Together these nations represent a 75%
offer of every single European import from Developing Countries. Vietnam is the second
biggest Developing Country provider, and is the main provider of pangasius to Europe. Be
that as it may, Vietnamese fares to Europe diminished by 22% more than four years. The
reason for this is weight on pangasius utilization and costs in Europe. Namibia's fares to
Europe for the most part comprise of hake. Developing white fish providers are Tanzania and
Uganda. Both nations trade Nile Perch to Europe (CBI Ministry of Foreign Affairs, 2017).

33
Contention inside the refined shrimp area is normally high as the market for refined shrimp is
an aggressive market with countless. Taking a gander at the numbers, European imports from
Developing Countries expanded in the vicinity of 2012 and 2014; however 2015 was a
generally stable year. Note that a noteworthy reason of changes in import esteems is changing
business sector costs. For instance, showcase costs were generally high in 2014 because of a
supply lack that year (caused by maladies). In the period 2011-2015, European imports from
inside Europe stayed stable, while the import from 'Rest of world' did not assume a part of
significance.
2. Threat of Substitutes
In Porter's model substitute items elude to items in different ventures. A risk of substitutes
exists when an item's request is influenced by the value change of a substitute. Hostile
monetary conditions in fundamental markets (like Japan and USA) prompt interest for less
expensive or spending size items. For an illustration, beforehand Japanese market incline
toward Jumbo prawns and the request change to littler or medium measured prawns as of late.
The danger of white fish being substituted by different items is for the most part low.
Infrequently, poultry items can substitute shoddy white fish items, for example, pangasius. Be
that as it may, the hazard for substitution by other white fish species is high. This is on the
grounds that there are a few distinct types of modest white fish that have similar item
particulars. Substitution is bringing down for white fish species in higher-end showcase
portions, e.g. ocean bass and ocean bream. Another improvement that has expanded the
danger of substitution is the expansion of nearby European creation of white fish. European
policymakers and makers have empowered this. Hitherto, the accomplishment of nearby
creation has made Europe less subject to imports, and it has smothered the costs of white fish
imports. In addition, supplies of a few types of white fish (numerous with MSC confirmation)
are recouping in North-Western Europe, and this may likewise expand rivalry with white fish
imports from abroad. A last wellspring of rivalry includes Alaska Pollock affirmed wild
white fish from outside Europe (CBI Ministry of Foreign Affairs, 2017).
There is rivalry among the diverse types of shrimp, particularly between chilly water shrimp
and the two refined shrimp species most ordinarily transported in: extraordinary tiger prawns
(P. monodon) and whiteleg shrimp (L. vannamei). Substitution of other fish or chicken items
for shrimp is little, as there are couples of items that have tantamount item attributes.

34
Item rivalry for solidified fish is low, since it is hard to discover great choices for solidified
fish filets and steaks. Notwithstanding, the danger of substitution is expanding. This is
especially valid for fish utilized as a fixing in prepared items (e.g. servings of mixed greens);
with respect to such applications there are more affordable choices for fish. These include:
bring down quality fish, fish in littler bits, canned fish, bring down esteem chicken or more
affordable types of white fish.
3. Buyer power
The bartering energy of clients is the effect that purchasers have on a fish industry.
Purchasers of industry are capable, on the grounds that they have a sound in reverse
combination risk and buy a noteworthy extent of yield. Then again purchasers are powerless,
in light of the fact that makers undermine forward mix, never again has a specific impact on
item or cost and makers supply basic parts of purchasers' contribution.
There is by and large a deficiency of high-esteem white fish species. Starting there of view,
cultivated high esteem species, for example, cobia, could have a fascinating business sector
potential.
Purchaser control in the shrimp division is typically generally high. Additionally in Europe,
purchasers of refined shrimp frequently involve an imperative position inside the production
network. These organizations know the distinctive providers of refined shrimp the world
over, and they regularly have a decent review of the patterns and advancements in the shrimp
advertise. On the purchaser side, the European purchasers need to satisfy the prerequisites of
the retail and nourishment benefit industry. For instance, numerous European general stores
buy just from providers that have Global GAP-endorsed shrimp ranches. In the long haul, the
purchaser energy of European fish merchants could be influenced by expanding request from
BRIC nations. A comparable circumstance happened in 2013, when record costs joined with
appeal from China, incidentally changed European purchasers from value pioneers to value
adherents.
There is a distinction between the power held by purchasers of high-esteem solidified fish
filets and steaks, and that of purchasers of solidified fish in mass. Purchasers of high-esteem
fish items are less intense, on account of constrained accessibility of these items. Purchasers
of fish in mass have more purchaser control as there is a great deal greater accessibility of
fish in mass. Solidified fish purchasers have a tendency to put resources into long haul
associations with providers (e.g. contracts and some of the time additionally purchases) of
good quality fish items keeping in mind the end goal to secure their supply.

35
4. Supplier power
Fish industry entails crude materials-angle, employment, bundling materials, and so on and
this prompts purchaser provider connection between the ventures. Effective providers can
apply an impact on fish industry. Particularly, offering crude fish at a high value prompts
catch a portion of the business' benefits. Providers are effective on the off chance that they
rehearse trustworthy forward reconciliation, high provider focus (Prawn and shrimp), critical
cost to switch providers (purchasing courses of action) and intense clients (Follow HACCP
design). Then again providers are powerless if numerous focused providers (Tuna providers
of Maldives), dependable in reverse reconciliation risk by buys, concentrated buy and frail
clients.
For the white fish advertise when all is said in done, the energy of providers will keep on
depending emphatically on showcase improvements in the biggest and furthermore up and
coming markets on the planet. Solid request development in some particular nations like
India and China can cause supply bottlenecks. In the long run this can give providers more
power and better costs. For whatever length of time that interest for confirmed white fish
surpasses supply, providers have a solid position against purchasers. This is probably going
to remain the case in the coming years in Europe, as an expanding number of European
general stores will be confining themselves to offering just guaranteed white fish items (CBI
Ministry of Foreign Affairs, 2017).
In spite of the fact that the energy of solidified fish purchasers is moderately solid, the
provider energy of the angling organizations that catch the fish is considerably more
prominent. Provider control in the solidified fish showcase is reinforced by:
Supply deficiency of (solidified) fish. Providers of fish are being drawn nearer by a wide
range of purchasers and hence appreciate a solid haggling position. Joined endeavors to
impact the fish cost. For instance, the World Tuna Purse Seine Organization chosen to
decrease fish angling with an end goal to prevent fish costs from debilitating in mid-2015.
Angling organizations that catch fish are progressively required in preparing and fare. Most
expansive organizations that catch fish are as of now completely coordinated and are likewise
required in preparing and fare.
5. Barriers to entry
Fish industry has qualities that secure the high benefit levels of firms in the market and
repress extra opponents from entering the market. Fish industry's available increases draw in
new participants to exploit high benefit levels over circumstances. South East Asian cash

36
emergencies made section deflecting valuing hindrance. Hindrances exist in fish industry
diminish the rate of passage of new firms, keeping up a level of benefits of the individuals
who as of now in the business. Obstructions to passage emerge from; government activities
(enactments on angle catch to quality control), exclusive information (thoughts and learning
that give upper hands), resource specificity (fish industry requires very particular innovation,
plants, hardware) hesitant to focus on getting particular resources and new contestants can
suspect forceful contention and economies of scale (De Silva, Yamao, 2017).
For new exporters of white fish species, it is hard to enter the European market, on the
grounds that:
Costs are under weight, as the majority of the white fish items are situated in the low end or
center range sections (particularly species like pangasius, tilapia and Alaska Pollock). What's
more, there is an extensive supply of various white fish items, implying that the danger of
substitution is generally high. And furthermore the quality and manageability necessities are
high among purchasers. For refined white fish these prerequisites identify with creation
conditions, while for caught white fish they concentrate on angling procedures (CBI Ministry
of Foreign Affairs, 2017).
And furthermore there are high passage boundaries for shrimp exporters who need to enter
the European shrimp showcase. Lawful necessities are mind boggling and on top of that,
purchasers may request maintainability affirmed shrimps. Accordingly, the cost of
consistence in Europe is higher than in Asian and South American markets (CBI Ministry of
Foreign Affairs, 2017).
The section boundary for solidified fish exporters who need to enter the European Union is
high. European enactment and necessities with respect to the import of caught angle species
in connection to sustenance security, traceability, and bundling are intricate. Organizations
that approach are for the most part the better sorted out organizations that offer adequate
straightforwardness. Those with their own angling vessels or those that keep up close ties
with little scale anglers or expansive modern angling vessels.

37
Assessing the Business’s capabilityto overcome these forces
EU "GSP+" plot started on 1 July, 2005 subsequently the tsunami disaster calamity and Sri
Lanka likewise was among the recipient nations under this plan. In like manner, noteworthy
expanded costs for the lessened catch, as EU concessions helped them to revamp their
employments in the repercussions of the Tsunami. The seaside fisher groups could be
considered as managing on the catch and have a place with the poorest part in the nation, with
expanding numbers as a result of their high populace development. Large portions of the
unemployed and dislodged specialists swing to the fisheries business if all else fails. Because
of the better costs paid by EU purchasers, - fishers, as well as representatives of preparing
production lines additionally profited. The business presented better wages (higher than
normal) in light of expanded offering costs. It brought about fare motivators in view of the
amount sent out, welfare strategies of free or sponsored lodging for families, completely
financed nourishment and lodgings for industrial facility representatives, full medicinal and
human services, Door to Door Accident Insurance cover, well over that stipulated by the
statutory Workman's Compensation Act. The surplus accessible empowered administrative,
non-administrative and specialized work force to be sent abroad for acclimation and
preparing (Sunday Observer, 2017). When considering these facts, it is clearly apparent that
Sri Lanka is certainly able to well- compete with all of affecting factors, especially Michael
Porter’s Five Forces.

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8. Conclusion
From this international business of exporting seafood to EU from SL is begingg on 2019 2nd
quarter onwards.Business starts as join venture of 40% of Netherlasnd company. SL Aqua
seafood Ceylon Pvt, Ltd only do production requirement on EU buyer.Whole logistics and
distribution in EU conducted by the Netherland company. SL seafood was branding under
netherlandcompany logo as SL product.Fom here discuss how the production and operations
conducted inSL and how the raw materials are find.Then discuss about worlddemand of
seafood andselested market demand aswellas how it become opportunity for srilanka.
Then analyse the extwerenal environmental factors on selected market region and finally look
at internal environment of EU for seafood market and how SL can compete in there.For
develpoment of infrasturucture faciulity and other locall techical support we get the help of
National Aquaculture Development Authority (NAQDA), Sri Lanka Export Development
Board, Ministry of Fisheries and Aquatic Resources.As a company try to conduct a
sustainable seafood business adherence to internationally recognised rules and regulations of
FAO and WWF.

39
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 Revolution, H. (2017). Top 10 Health Benefits of Eating Seafood • Health Fitness Revolution.
[online] Health Fitness Revolution. Available at: http://www.healthfitnessrevolution.com/top-10-
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42
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43
Appendix
Appendix 1– Seafood processing methods used by thecompany
Figure 14 – Seafood frozen methods

44
Appendix 2 – Certification procedure need to export seafood to EU
Approved Aquaculture establishments and Areas
Health control of fishery products for human consumption
Imports of fishery and aquaculture products intended for human consumption must comply
with general health requirements related to (EUROPA. 2017):
1. Country Health Approval
List of third countries and territories from which imports of fishery products in any form
for human consumption are permitted mentioned in "Countries and territories referred to
in Article 11 of Regulation (EC) No 854/2004" and SLbecome the 49th country of the
list.
http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32006D0766
2. Approved establishment
In addition to country approval, fishery and aquaculture products may only be imported
into the EU if they have been dispatched from, and obtained or prepared in, establishments
(cold store, processing plant, factory vessel, registered freezer vessels, production areas,
etc.) that appear on a list approved by the Directorate General for Health and Consumers
(DG SANCO).
3. Health certificates
Imports of fishery and aquaculture products into the EU must be accompanied by a health
certificate signed by the representative of the competent authority of the exporting third
country certifying that the products in question are suitable to be exported to the EU.
There are different models of certificate set forth in EU legislation which vary according to
each category of products, animal species concerned and/or special health conditions that
may be laid down for those particular products.

45
When fishery products are imported directly from a fishing or freezer vessel, a document
signed by the captain may replace the health certificate.
4.Health control
Upon arrival, the products and the accompanying certificates must be verified and checked
by the veterinarian officials in accordance with the provisions laid down in Council
Directive 97/78/EC (OJ L-24 30/01/1998) (CELEX 31997L0078). Applying the
procedures lay down by Commission Regulation (EC) No 136/2004 (OJ L-21 28/01/2004)
(CELEX 32004R0136), the result of the inspection shall be reflected in the Common
Veterinary Entry Document (CVED).
List of third countries and territories from which imports of fishery products in any form for
human consumption are permitted, SLis also approved country under "Countries and
territories referred to in Article 11 of Regulation (EC) No 854/2004) "(http://eur-
lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32006D0766 ).
The Health Certificate
Seafood products that are exported to the EU must be accompanied by a health certificate
emitted by the Competent Authority of the country of origin. This certificate is the official
document between the exporting country and the EU that provides the official guarantees
required.
"I, the undersigned, declare that I am aware of the relevant provisions of Regulations (EC)
No. 178/2002, (EC) No. 852/2004, (EC) No. 853/2004 and (EC) No. 854/2004 and certify
that the fishery products described above were produced in accordance with those
requirements, in particular that they:
 Come from (an) establishment(s) implementing a programme based on the HACCP
principles in accordance with Regulations (EC) No. 852/2004,
 have been caught and handled on board vessels, landed, handled and where appropriate
prepared, processed, frozen and thawed hygienically in compliance with the requirements
laid down in Section VIII, Chapters I to IV of Annex III to Regulation (EC) No.
853/2004,

46
 satisfy the health standards laid down in Section VIII, Chapter V of Annex III to
Regulation (EC) No. 853/2004 and the criteria laid down in Regulation (EC) No.
2073/2005 on microbiological criteria for foodstuffs,
 have been packaged, stored and transported in compliance with Section VIII, Chapters
VI to VIII of Annex III to Regulation (EC) No. 853/2004,
 have been marked in accordance with Section I of Annex II to Regulation (EC) No.
853/2004,
 the guarantees covering live animals and products thereof, if from aquaculture origin,
provided by the residue plans submitted in accordance with Directive 96/23/EC, and in
particular Article 29 thereof, are fulfilled, and
 Have satisfactorily undergone the official controls laid down in Annex III to Regulation
(EC) No. 854/2004."
Food and Veterinary Office (FVO)
As part of the market access conditions, EU experts (Food and Veterinary Office - FVO)
assess the equivalency of an exporting country's seafood safety regime and determine the
conditions required to be met for seafood from that country. The FVO determines the status
of compliance of the CA in terms of the required official guarantees. FVO inspection
missions are currently undertaken in all exporting countries and they are the basis for
establishing confidence between the EU Commission and the CA of the exporting country.
All inspection visit reports are publicly available and published on the FVO website8. They
contain findings, references and (if necessary) recommendations to facilitate compliance.
Hence
Seafood can be exported to the EU only from:
 Approved countries
 Approved vessels and establishments (e.g. processing plants, freezer or factory vessels,
cold stores)
 Approved Aquaculture establishments and Areas
Approved countries
The EU takes three criteria into account when drawing up the list of approved countries:
The recognition of the equivalence of the relevant CA of the third country to the national
authorities of the Member States.

47
The health status of the exporting country as regards animal diseases, which are
transmissible through animal products.
The submission by the country concerned of an annual residue-monitoring plan for the
products concerned.
While summarising all that the EU requires for a country evaluation would be quite difficult,
it is safe to say that the local system is to be equivalent (or equal) to what is established
majorly by Regulations (EC) No 178/2002, (EC) No 882/2004, and (EC) No 854/2004.
However, we could summarise that the CA is required to assure compliance to three types of
obligations:
 Obligations of resources: i.e. Instruments of production, Conditions of
handling/processing, HACCP and Pre-requisite programmes, Traceability.
 Obligations of results: Safety levels of the products (i.e. Histamine, Contaminants, and
Micro levels).
 Obligations of control: i.e. Regulatory verification effectively implemented by the CA,
Strict control of certification of products.
So, if a country is assessed as approved for export to the EU, it means that it has legislative
instruments, structure, knowledge and systems that are able to provide the reliable official
assurances required.
Requirements for the food business operators
As we have seen so far, the first and most important condition, required for a food business
operator (FBO) to export to the EU, does not depend on the FBO at all, but rather on the CA
that regulates it.
So, assuming that the country is on the list of approved countries, then the CA is responsible
to authorise you to export to the EU.
Approved Establishments
All establishments in the capture or aquaculture production chain (hatcheries, farms, vessels,
plants, cool-stores, etc.) must be approved by the CA in regard to EU requirements for the
product that they handle to be “eligible” for the EU. The list of approved establishments is
maintained by the CA and represents all the elements in the production chain that are allowed
to provide to companies that export directly to the EU. The establishments that export

48
directly to the EU need to be included on a list of establishments authorised to receive a
health certificate for their products. This list can include vessels, plants or cool stores on the
condition that they export directly to the EU. These establishments are given a unique
identification code, usually known as the “EU number”.
Conditions of operators along the production chain
As mentioned, the whole value chain needs to be under the control of the CA and in
compliance by the operators. These requirements are evident on the following statement. -
“have been caught and handled on board vessels, landed, handled and where appropriate
prepared, processed, frozen and thawed, hygienically in compliance with the requirements
laid down in Section VIII, Chapters I to IV of Annex III to Regulation (EC) No 853/2004,”
But most importantly, it provides the specific set of references in the legislation that are of
direct application by the operators, namely Section VIII, Chapters I to IV of Annex III to
Regulation (EC) No 853/2004
Requirements for all fishery products
The particular requirements for the products are to be found in the following statements: -
“satisfy the health standards laid down in Section VIII, Chapter V of Annex III to Regulation
(EC) No 853/2004 and the criteria laid down in Regulation (EC) No. 2073/2005 on
microbiological criteria for foodstuffs” This particular paragraph refers to the health
standards for most fishery products such as organoleptic, histamine, parasites, toxins and so
on. As well as the microbiological standards, which are quite minimal, applying so far to
ready-to-eat products. - “have been packaged, stored and transported in compliance with
Section VIII, Chapters VI to VIII of Annex III to Regulation (EC) No.853/2004,” In this case
it refers to some very simple principles in terms of packaging and storage, to avoid them
becoming a source of contamination, and temperature controls (towards melting ice for fresh,
-18°C for frozen products and -9°C for brine frozen fish to be canned), and how these same
principles need to be maintained during transport. -“ have been marked in accordance with
Section I of Annex II to Regulation (EC) No 853/2004,”
These identification-marking requirements are very basic and refer mostly to type of product
and establishment of origin identification.
Specific requirements for aquaculture products

49
n the structure of
the CA
framework
A list of approved laboratories for residues controls and the accreditation status of these
laboratories
Details on measures to be taken in the event of an infringement the residue-monitoring
programme is submitted by the CA of the country of origin to the EC for initial approval and
needs to be presented annually for evaluation and renewal.

50
Appendix 3 – Mandatory & voluntary labelling conditions to export seafood in to EU
Source –(Commission, E. , 2014)
Source - (Commission, E. ,2014)

51
Source – (Commission, E. ,2014)

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