Business in Sea Food Potentials in India

1. Sea Food
M.SundaraRajan
www.primaryinfo.com

2. Buyer Requirements
• Buyer requirements can be divided into
• (1) musts, requirements you must meet in order
to enter the market, such as legal requirements,
• (2) common requirements, which are those most
of your competitors have already implemented, in
other words, the ones you need to comply with in
order to keep up with the market, and
• (3) niche market requirements for specific
segments.

3. Requirements fish marketed
in the EU must meet
• Approved country and establishment
• Exporting country must be able to ensure that
the fishery products exported meet the strict EU
health requirements
• The national authorities of Exporting country can
put forward your establishment for EU approval
• Approved establishments receive a unique
identification code, usually referred to as “EU
number”.

4. Catch certificate
• Catch certificate (wild fisheries): To combat illegal fishing, (wild
caught) fish imported or transshipped in the EU must be
accompanied by a catch certificate
• The exporter needs to communicate the validated catch certificate
to the importer.
• Health certificate provides official guarantee
• Food safety: Traceability, hygiene and control
• Contaminants – restricted and tested
• Microbiological contamination – prevent through hygiene
measures
• Labelling requirements
• Food safety certification as extra guarantee
• Corporate responsibility

5. Frozen Seafood Products
• The two main segments in the EU market are retail and food
service.
• While food service is mostly supplied by importing wholesalers and
traders, retail is mostly supplied by importing wholesalers and the
processing industry.
• Although in most cases your trading partner will currently still be a
buying agent or an European importer, the length of supply chains
is expected to become shorter in the future as a result of a shortage
of supplies, increasing efficiency, quality requirements and
sustainability issues.
• Owing to this development, it will become easier for you to do
business directly with retailers and the food service sector.

6. Direct sourcing by retailers and
wholesalers
• Large retailers and wholesalers (e.g. the Metro
Group in Germany or Sligro in the
Netherlands) are increasingly importing
directly
• http://www.metrogroup.de/
• http://www.metrogroup.de/
• http://www.carrefour.eu/fr/enseignes
• https://www.ahold.com/Media/The-Netherlands.htm

7. Opportunities for joint ventures
• Importers in southern Europe are more willing
to invest in processing and production
activities in developing countries
• Examples of European importers that have
their own factories outside Europe are
Pescanova, Marine Harvest and
Seafood Connection.

8. Retail Segment
The retail segment is defined as all shops selling products
directly to consumers for the use of those products at
home. The high-end segment mainly consists of
exclusive supermarkets and organic supermarket
chains. The middle-range segment consists of large
supermarkets and hypermarkets, while the low-end
segment consists of discounters.
• Hyper/supermarkets
• Specialist fishmongers
• (Street) markets
• There are over 420,000 non-specialist food retail stores
in Europe

9. Doing business with the premium retailers.
• Large retail chains use strict quality and
sustainability standards. They have strict delivery
agreements about service, packaging, health and
safety requirements. They impose significant
penalties if agreements are not met
• BRC Certificate – required
http://www.brcglobalstandards.com/
http://www.ifs-certification.com/index.php/en/

10. Discounters’ promotions
• Several European discounters, such as Aldi
and Lidl, are increasingly employing
promotional campaigns for products such as
pangasius and tilapia ; Discounters place
advance bulk orders for special promotions
Please see
• http://www.aldi.com/
• http://www.lidl.de/

11. Main categories of companies in the
food service segment
The high-end segment consists mainly of exclusive hotels
and restaurants as well as specialist fast food and
takeaway chains. These companies often focus on
sustainable or locally-sourced seafood products. The
medium-range segment consists of the institutional
market, e.g. universities, hospitals, and canteens.
Please bear in mind that these are only general
differentiations
• Full-service hotels and restaurants
• Fast food and takeaway chains
• Institutional market: universities, hospitals

12. Supermarkets/hypermarkets:
• Europe has approximately 600 different supermarket
chains
• Retailers such as Rewe in Germany operate different
brands with different consumer target groups: Billa,
BIPA, Merkur, and Penny
• Large European food retailers are Carrefour
(hypermarket/supermarket based in France, > €100
billion turnover), Metro AG (Germany, > €100 billion
turnover), Tesco (UK, ~€100 billion turnover), Schwarz
Group and Aldi GMBH (discount supermarkets,
Germany), and Koninklijke Ahold N.V. (supermarket,
the Netherlands).

13. Exporting to Overseas Retailers
• Exporting directly to small overseas retailers is a
comparatively new phenomenon, brought about
by Internet. Selling directly to small US or
European retail outlets even 10 years back was an
uphill task because of many hurdles like lack of
information on buyers, expensive communication
media, scant information on overseas consumer
interest, difficulty in accepting small payments
etc. Trade Fairs and Buying Agents were two
major avenues for small and medium exporters.

14. Direct transaction between exporters
and overseas retailers
• Retailer Buys in Small Quantity
• Orders are More Frequent
• Margins are Higher
• Be Sensitive to Issue of Trust
• Prefer Air Freight
• Exporting to small overseas retailers does not require
significant investment and shipment can easily be handled
through couriers. As a result, small Indian exporters and
those new to export field will find this opportunity very
lucrative. Margin from single shipment may not be much -
but a handful of active retailers can keep a small to medium
exporter busy throughout the year.

15. Find Retailers here
• http://www.theretaildirectory.co.uk/
• http://www.walmart.com/
• http://www.tesco.com/
• http://www.william-reed.com/markets-
products/grocery-retail/the-grocer-directory-
manufacturers-suppliers
• http://www.primaryinfo.com/retail.htm

16. Export Promotion
he Marine Products Export Development Authority (MPEDA) is a statutory
body under the Ministry of Commerce & Industry, Govt. of India. MPEDA is
the nodal agency for promotion of export of marine products from
India. MPEDA has presence in all the maritime states and is implementing
its developmental schemes for export promotion / aquaculture production
through its field offices.

17. Export
details
2012-13 2013-14 Growth
%
Quantity
Tonnes
928215
983756 5.98
Value
Rs.crore
18856.26
30213.26 60.23
Value US $
Million
3511.67
5007.70 42.60
Unit value
(US$/Kg)
3.78 5.09 34.55
Exports during 2013-14 compared to 2012-13

18. Major Exports
• Frozen shrimp continued to be the major
export value item accounting for a share of
64.12% of the total US $ earnings.
• Shrimp exports during the period increased by
31.85%, 99.54% and 78.06% in quantity, rupee
value and US $ value respectively.
• There was all time high growth in unit value
realization of frozen shrimp at 35.05%.

19. The details of major exports
• Marine products were exported through 26
sea/air/land ports. Exports improved from Vizag,
Chennai, Krishnapatnam, Tuticorin and Mangalore
compared to the corresponding period during the last
year. Pipavav is the major port in terms of quantity
(25.27%) and Vizag is the major port in terms of dollar
value (22.59%
• MPEDA envisages target of USD 6.0 Billion for the year
2014-15. Increased production of L. Vannamei shrimp,
Quality control measures and increase in infrastructure
facilities for production of value added items are
expected to help in achieving this target.

20. Useful Links
• The website of the Norwegian Seafood Council provides
extensive information about the Norwegian seafood
industry
• http://en.seafood.no/
• If you want to access the Spanish market consider
participating in the CONXEMAR or SEAFOOD BARCELONA
trade shows which offer you the opportunity of showcasing
your products and of meeting potential buyers from Spain
as well as those from other
• http://www.conxemar.com/v_portal/apartados/apartado.asp
• http://www.seafoodexpo.com/
• Newsletter : http://www.globefish.org/market-reports.html

21. THANK YOU
• More references
• http://www.primaryinfo.com/Seafood.htm
• http://www.primaryinfo.com/shrimp.htm
• http://www.primaryinfo.com/pearls-culture.htm
• http://www.primaryinfo.com/projects/mussel.htm
• http://www.primaryinfo.com/projects/coldstorage-fish.htm
• http://www.primaryinfo.com/scope/fishing-trawler.htm
• More data bases on www.primaryinfo.com