Seafood to Italy

(Last updated: 17 Jul 2007)

Trends and opportunities

The market

Fish consumption in Italy is about 23kg per person per year. Italian consumers prefer saltwater fish (56 per cent of the consumption) and molluscs (25 per cent of the consumption), while freshwater fish and shellfish account respectively for 13 per cent and six per cent of the domestic consumption. There are significant differences in consumer preferences between household fish consumption and restaurant/catering consumption.

Sea bream consumption decreased by eight per cent, cod by four per cent, mackerel by seven per cent, and mullet by 10 per cent. Among canned products, consumption increased for clams (12 per cent), tuna (four per cent), anchovies in oil (5.5 per cent), and mullets (two per cent). Consumption of ready to eat frozen products declined by about 7.2 per cent.

Fresh products have a higher incidence than in domestic consumption, especially in southern regions. They account for about 70 per cent in volume of the supplies. Mussels met the highest demand, accounting for about 13 per cent of the volume, followed by clams (13 per cent), squids (five per cent), sea bass, sea bream and octopus (four per cent each), cuttlefish (three per cent).

Frozen seafood

The frozen products sector is a growing industry. Increasing consumer desire for convenient products requiring a minimum of preparation and cooking time has resulted in a growing market for frozen and chilled prepared foods.

The Italian frozen food industry is implementing educational programs for retailers on handling and storing frozen products and advertising campaigns targeted to stimulate growth in consumption. Frozen fish products could benefit from these programs.

The Italian frozen seafood processors produce about one-third of the total national consumption of frozen fish (excluding clams).

Coated frozen products are now gaining some market share thanks to the increasing high level of production innovation. As the market is expanding, also technology is improving, and the sector is no longer limited to plain breaded or battered products, but includes crispier and flavoured coatings.

Opportunities exist in the supply of raw materials such as frozen fish fillets of hake, cod and plaice to meet the demand for convenient, ready to prepare frozen products.

(Source: Global Agriculture Information Network)

Production

Marine fisheries

The Italian fishing fleet is showing a continuing trend for decline in terms of number of units. About 1700 vessels (10 per cent of the fleet) went out of business between 2000 and the beginning of 2003 as a result of EU-funded policies for the reduction of fishing in the Mediterranean. Most of the small vessels don't have state of the art equipment for on board processing and conservation of the product.

Fishing activities are spread along 8000 kilometres of coast, with very little concentration. They involve about 41,000 operators between owners and employees.

Anchovies and sardines (indicated in Italian as 'pesce azzurro', blue fish) are by far the most fished species, followed by clams, hake, mullets, and swordfish. These six species alone account for about 44 per cent in volume of the Italian catches in the year. Swordfish, hake and clams offer generally much higher market prices and economic margins than anchovies and sardines.

Aquaculture

According to the Italian Fish Farming Association (Associazione Piscicoltori Italiani - API), there are about 1000 fish farms in Italy. About 62 per cent of them are located in Northern regions (especially in Veneto), 22 per cent in Central regions (especially in Abruzzo) and 16 per cent in Southern regions. The sector employs about 15,000 people in the country.

Salt and brackish fish farms produce sea bass and sea bream, white sea bream, shi drum, eels, as well as other minor species such as gray mullet and molluscs. Italian domestic production of sea bass and sea bream has a superior image in the market and is traded at a significant price premium compared to the imported product.

Molluscs are the main product of Italian aquaculture. There are about 474 saltwater farms for mussel production (mainly located in the regions Liguria, Puglia, Emilia Romagna, Veneto and Sardegna) and about 36 for clam production (mainly located in the Venice and Emilia Romagna areas).

Freshwater farms produce about 72 per cent of Italian aquaculture output. Trout is by far the most popular species. Other farm species are cyprinidae (carp, tench, etc.), ictaluridae (European and American black bullhead), acipenseridae (sturgeon) as well as other minor species such as pike.

About 60 per cent of trout produced in Italy is red portion-size, the balance is mainly white portion-size, while the incidence of one kilo rainbow trout is negligible. This is creating big problems for Italian farmers as international demand for portion-sized dropped dramatically between 2003 and the first half of 2004. According to producers, trout market prices in 2004 have been so low (on average US$2.16/kg) that production costs are not covered.

Since the animal health situation is not the same throughout the territory of the EU, the movement regulations are based on the concept of approved (disease free) zones and farms for list II diseases in Annex A of Directive 91/67/EC. The Directive lays down the criteria and procedures for the granting, maintenance, suspension, restoration and withdrawal of approval of such zones and farms as well as certification requirements for movement into disease free zones/farms. About 23 Italian companies have been recognised disease-free in compliance with the EU directive. Some trout producers in Northern and Central Italy are diversifying into organic production.

Processing

Production of processed fishery products amounted to 128,400 tonnes in 2004 for a wholesale value of about $825 million, up 28 per cent from the 1998 value. Tuna alone accounts for 69 per cent of the country production. Other key processed products include anchovies (16 per cent) and clams (two per cent), while the production of sardines in olive oil, which was very important in the past decade, has almost disappeared.

The increased production of canned tuna implied increased imports of raw tuna and other semi-processed products. In the past, the main raw material utilised was in frozen whole form. In the early 90's, imports of cheaper canned tuna from third countries increased rapidly. Italy mainly relies, for its canned tuna production and market, on yellowfin loins and on high quality whole yellowfin originating mainly from Taiwanese (Province of China) and EU vessels operating in the Indian and in the Atlantic Ocean.

According to Eurostat, imports of frozen yellowfin for canning total about 80 per cent of total imports of whole tuna in Italy.

Italian industries mostly produce canned tuna in oil, but value-added products such as tuna salads and tuna fillets in glass jar are growing very quickly. Some Italian companies buy canned tuna from third countries to be marketed under their brands.

Opportunities

In Italy, seafood products with potential opportunities include:

• Any white fleshed edible fish variety
• Raw material for Italian canning and processing industry
• All frozen fillets such as hake, cod and plaice for the retail sector
• Frozen fillets for the catering sector
• Fresh and frozen turbot - highly valued and not always available in restaurants
• Frozen crustaceans for the catering sector
• Live eels
• Roe and urchin (fish eggs)
• Crabs - the market for crab is still relatively modest
• King crab legs (IQF)
• Surimi both frozen and processed
• Frozen shark (steaks or fillets)
• Fresh/frozen salmon for the catering and deli sectors

Italian high-end restaurants offer a good opportunity for Australian seafood and novelty products such as Moreton bay bugs.

Competitive environment

Spain maintains its leadership among EU suppliers (especially of tuna, cuttlefish and mussels), followed by France, Denmark, Netherlands and Greece. Chile remains the leading third country supplier. Ecuador, Colombia, the Seychelles and Taiwan increased their tuna sales to Italy. Argentine hake exports declined following production limitations in the country.

The main suppliers of raw tuna loins to Italy are Colombia and Ecuador, which host the processing facilities of Tri-Marine, the top world producer of tuna loins.

Tariffs, regulations and customs

All seafood, in common with all animal products for human consumption will require a health certificate issued by Australian Quarantine and Inspection Service (AQIS). The health certificate must accompany the shipment.

Food products of animal origin, including fish, must be produced in an European Union (EU) approved establishment. AQIS will carry out the inspection and approval process on behalf of the EU. The establishment number must be quoted on the health certificate. Most food products will also require an export certificate, which is issued by AQIS.

There is EU legislation and Italian legislation covering almost every aspect of food and beverage production, and sale. Much of this legislation is based on due diligence, putting the onus for compliance on the manufacturer or producer.

Italy is part of the harmonised trade system of the EU. All European Union  (EU) countries are covered by a harmonised trade system. Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia.  Most duties are ad valorem, based on the GATT Valuation Code (approximate CIF value). Goods travelling between EU member states are free of customs duty.

If you are shipping any goods to Europe, we recommend that you obtain a written ruling from the Italian customs service (or another EU member-state) in the form of a Binding Tariff Information (BTI) before shipping any samples or products.

Industry standards

European Union (EU) regulations require that imports of seafood and fish products must be inspected by the EU Food and Veterinary Office. There are two classifications of countries that export seafood products:

• The fully harmonised countries - those that have been inspected and whose health and safety standards are recognised and equivalent to EU.
• The pre-listed countries -  those whose standards are equivalent to those of the EU but have not yet been inspected by the EU.

Countries such as Australia have provisional clearance to export to EU countries, however, the EU reserves the right to carry out inspection visits to verify information and these products are subjects to additional national legislation.

Australian exporters should be aware that Italian authorities impose strict quality control product specification, labeling, and certification requirements for fish products. The regulations are very complex, and exporters are strongly advised to seek information and practical advice on a case-by case basis from experienced agents and importers.

Labelling requirements

The product label must contain:

• The commercial name of the species
• The production method (farmed, or wild catch)

In addition there are specific requirements for the following products:

• Fresh and chilled products:
• species
• country of origin
• presentation
• freshness and size
• net weight in kg
• date of grading and shipment
• processors/packer’s name, address and FDA approval number
  


• Frozen products:
• species and the word 'Frozen' or 'Deep frozen'
• country of origin
• presentation
• new weight in kg
• list of ingredients (except for fish only)
• date of minimum durability
• 'best before' date
• special storage conditions
• instruction for use
• name and address of seller, importer in the EC
• packer’s FDA approved number
• lot number

Marketing your products and services

Market entry

Establish good relationship with key importers. In Italy there are few large importers and many small to medium sized ones. Large importers usually have national distribution and they know the market well. Most of large importers handle different products.

A way to meet importers is to participate in trade shows. Trade shows are also important for companies to maintain contact with existing buyers and distributors as well as finding new customers. The European Seafood Exposition in Brussels, the Rimini Mediterranean Seafood Exhibition and Sapore di Mare are recommended trade shows. Many Italian companies visit the Brussels Show. Trade shows are a very cost effective way to enter the market and meet various trade representatives.

Good contacts and relationship with importers should be maintained. It is recommended that marketing strategies in Italy be coordinated with importers and distributors since they are knowledgeable of the market. Hotel and restaurant promotions are recommended for some fishery products, ie. new to market species or species that need to be valorised.

In-store promotions are not recommended unless Italian importer and/or the retail chains feel that they want to invest in this kind of promotion. These promotions in Italy are usually very costly and most of Italian consumers buy promotional fish products mainly for the promotional price. In general, knowledge of foreign origin product is lacking at the consumer level, despite retailer claims of making clients aware of product origin.

Distribution channels

Domestic and imported seafood are distributed in two different ways. Some of the domestic catch is distributed to wholesalers, fishmongers at landing sites and some is delivered to restaurants; it is commonly accepted that half of the local catch is sold by fishermen directly and consequently doesn’t go through fish markets.

Importers play a crucial role in deciding what to import and from where to import. Large importers sell directly to the modern distribution chains, to wholesalers and to the foodservice sector. Large importers cover the whole country while the middle and small ones cover a specific area. It is interesting to note that some importers are becoming processors due to the fact that customers expect at least basic preparation (such as portioning, cleaning, etc). Some large processors (canners, smokers) import frozen fish directly.

There are eight major fish markets - which also act as dispatching agents. In Italy there are over 1000 companies registered as fish wholesalers. Of these 100 can also be considered importers and about 20 are shareholders in vessels operating in major fishing countries. The food service sector usually buys fish and seafood products daily from the local wholesale market – mainly in large cities. Large wholesalers deliver fresh fish to customers situated far away from the market. Only major catering companies buy directly from major importers.

A number of agents (Italian and foreign) are also very active on the Italian market in providing their customers (wholesalers, industry processor and fish importers) with large quantities of fishery products. There are about 150 freezer centres located in Italy, which have helped to increase the availability of frozen fish on the markets. Private networks of importers and wholesalers distribute more than 95 per cent of all frozen fish products.

Retailers - the role of modern distribution is becoming more important in the distribution of fish products mainly in the North where the concentration of supermarket chains is much more important. Infrastructures are still not adequate in the South but there are signs of improvements.

The presence of large national and international chains are penalising small retailers and local fish shop although their presence is still important in smaller cities where they provide a high level of personalised service. However, the trend is in favour of the organised distribution (supermarkets and hypermarkets) where the number fresh/wet stands is constantly increasing and these stands can in general provide the same services of the fishmongers (eg. cleaning, cutting, filleting and various preparation for special tradition local cuisine). Sales through supermarkets and hypermarkets are more cost efficient than through small shops and the reduced costs have in large part been passed on to consumers by offering lower prices.

Only large modern distribution chains (with a central buying office) import large volumes of seafood (mainly frozen) directly. Small and medium distribution chains buy from the importer. Retailers expect deliveries to be made in the stores and they expect a good price, constant quality and reliability of deliveries. The frozen fish products are usually received in consumer-ready packages including value added products.

Italian consumers choose supermarkets and hypermarkets to buy preserved and semi-preserved products (95.6 per cent of the total seafood market) and deep-frozen and packaged products (91.2 per cent of the total seafood market).

Transport

Local catch travels by truck, for example local catch landed in Sicilian ports can reach the Milan market the following morning by truck. Live and fresh fish coming from European countries is also transported by trucks while imported live/fresh fish (like live lobsters and fresh wild salmon) are brought in principally by air using the Milan and Rome airports.

Links and industry contacts

Seafood–related resources

General Association of Italian Fishing Cooperatives - www.agcipesca.it
How to export seafood to the EU - www.nmfs.noaa.gov/trade/EUCONTENTS.htm
ISMEA - www.pesca.ismea.it
Italian National Federation of fishing (Federpesca) - www.federpesca.it
Lega Pesca - www.legapesca.it
National Cooperative of Fishing - www.uncipesca.it
National Federation of Fishing Cooperatives (Federcoopesca) - www.federcoopesca.it
Private Italian Seafood Association (Assoittica) – www.assoittica.it

Government, business and trade resources for Italy

European Union - www.europa.eu.int

Media

Il Pesce - www.pubblicitaitalia.com/cocoon/pubit/riviste/index.html?lang=eng&Testata=3
Industry periodical dedicated to the local and international seafood, technology and equipment for the aquaculture and fishing industry.