U.S. Lobster, Squid Score in Italy
By Vanda Besozzi
U.S. seafood exporters,
already harvesting profits from the sales of lobster and squid in
the Italian marketplace, need to check out unfolding
opportunities for other seafood exports.
Over half the seafood consumed by Italy's residents is imported. In 1996, these imports amounted to 622,000 metric tons, valued at $2.2 billion. With eating habits now tempered by health concerns and by the declining catches mandated for Mediterranean countries, Italian consumers must look to imports to fulfill domestic demand.
While European Union (EU) countries have reeled in almost two-thirds of the seafood export market to Italy by virtue of their proximity and tariff-exempt status, sales by non-EU exporters gained 3.5 percent to the detriment of EU exporters in 1996.
Spain weighed in as the largest EU supplier at 128,000 tons in 1996. Argentina topped non-EU exporters with 26,000 tons. U.S. exports totaled 7,250 tons.
In Italy's evolving seafood market, almost any fresh, white-fleshed edible fish variety is a prime candidate for dinner. Salmon, in its many preparations, is the only flesh-colored fish considered acceptable. Once only for the elite, salmon now graces the plates of middle- and even lower income restaurants.
Growth Opportunities Abound
U.S. seafood exports to Italy netted $26.2 million in 1996, down from $29.6 million in 1995. But these figures do not accurately reflect the consumption, due to some export market sleight-of-hand. Eager to avoid the strict Italian inspections required for seafood products imported from a non-EU country, many Italian traders import large quantities of U.S.-origin fish through France and Germany.
Besides the lobster and squid that are already best sellers for U.S. exporters, what's projected to move? Fresh mollusks and bivalves, live crabs, frozen tuna and fresh and frozen sole and hake. And coming into Italy through France--frozen dog fish and monk fish.
In 1996, Italians consumed about 78,000 tons of frozen fish; imports accounted for about two-thirds of this amount. Consumers are also discovering the versatility and convenience of shellfish.
Italy cans more tuna than any other fish product, but imports still more canned seafood than it produces. In 1996, Italy produced over 115,000 tons of canned seafood, exported 12,000 tons and imported 136,000 tons. Major imported canned seafood included tuna, clams, anchovies and pilchard.
Regional Cuisines Differ
Palates and pocketbooks vary between northern and southern Italy. Generally, pricier seafood imports are targeted for the north, more economically priced products for the south.
Fresh seafood is preferred in the south where easy access to landing ports helps maintain traditional consumption patterns. The more distant northern and inland areas eat more frozen seafood.
Coastal cooks usually prefer grilling, while inland consumers prefer fried or boiled dishes. Northern Italy consumes the most sea bream, seabass, fried cod, mixed-fish dishes and anchovies. Mussels and clams, universal favorites, are often used in spaghetti and rice dishes.
Product availability at supermarkets has undoubtedly increased the use of frozen products. Frozen fish and prepared fish are becoming more widely accepted due to a positive consumer perception about their quality and, of course, for the convenience factor. Besides the rising demand for convenience another characteristic of the market: Whether the purchaser buys for two or for a restaurant chain, quality counts, and the Italian customer is usually willing to pay for it.
Individual consumers like products that are simple and safe with good nutritional value; brand recognition is very important. They will try new frozen products as long as the quality is high and the preparation is not too different from accustomed methods.
Seafood eating patterns have changed recently in Italy. While still considered a luxury item, seafood is no longer consumed only during vacations or special events. Restaurant and pizzeria patrons enjoy the treat year round. However, shellfish sales are generally stronger during the summer vacation months when a strong foreign tourist demand supplements normal consumption.
While Italian per capita consumption of seafood is below the European average, this is expected to change. There has been renewed interest in the benefits of light, healthy protein-rich seafood. And improved distribution systems now enable an increasing presence of seafood products in supermarkets, leading to more sales.
Divergent Marketing Channels
Domestic and imported seafood are distributed in very different ways. The fresh domestic catch distribution network relies on informal, long-standing relationships. Importers tend to be more organized and centralized.
Imports, mostly frozen, funnel through about 100 companies, a fifth of which are shareholders in vessels operating in major fishing countries.
Live (such as U.S. lobsters) and fresh fish are mainly imported through the Rome and Milan airports. From there, importers keep the lobster in water tanks until sold, sometimes supplying shops and restaurants with water tanks to keep the catch alive. Refrigerated trucks transport other fresh seafood in cardboard boxes packed in ice.
Private networks, import and wholesale, complete with modern distribution systems and freezer warehouses, move 95 percent of frozen fish products. These groups are introducing private labels, improving store loyalty and increasing the number of frozen fish items in the stores.
Retail outlets include street markets, supermarkets and discount food centers; customers generally rely on supermarkets for the widest variety of frozen seafood products.
Frozen shellfish reaches the consumer primarily through supermarkets and small retail outlets specializing in frozen foods.
Promoting U.S. Sales
Italy has an organized door-to-door frozen seafood sales sector composed of four companies that could give lessons in what marketing can do for your bottom line. In 1996, the companies increased their seafood sales 10 percent by introducing new specialties, innovative packaging and strong promotional activities.
The benefits gained from effectively promoting seafood exports cannot be overstated. Generally, knowledge of U.S.-origin product is lacking at the consumer level. Following the lead of other successful seafood exporters such as Canada and some northern European countries, U.S. businesses can increase sales of their products with activities targeted at the hotel/restaurant/institutional (HRI) and supermarket sectors.
Other proven marketing tools include the education of consumers about fish species and quality marks or grades for U.S. fish, along with preparation guidelines.
French seafood exporters, while not direct competitors for U.S. species in Italy, have undertaken a widespread and expensive campaign to strengthen consumer knowledge of French-origin seafood. Their efforts start with the wholesale networks and extend to retail chains with a large budget for HRI promotions.
Of course, with the increasing appeal of the convenience factor, a wider availability of filet and bone-free products that are ready-to-cook enhances the exporter's chances of success.
USDA Sources
Italy and the EU have substantial laws and regulations regarding imported seafood--enough so that it takes experience to navigate the shoals. It is highly recommended that U.S. traders contact reputable, established agents and wholesalers or importers in Italy before initiating exports to Italy. Help is also available through FAS' Milan office and the offices listed below.
To export to the EU, U.S. exporters must be certified through the U.S. Food and Drug Administration. The U.S. establishment must appear on the current approved list received by the inspection border posts. All products must be labeled with the country of origin, the central file number (CFN) of the establishment of origin and the "best before" date. The CFN number must appear on the health certificate.
For a copy of the complete market report from which this article was prepared, contact:
Trade Assistance and Promotion Office
AgBox 1052
AGX/FAS/USDA
1400 Independence Ave., SW.
Washington, DC 20250-1052
Phone: (202) 720-7420
Fax: (202) 690-4374
E-mail: FASInfo@fas.usda.gov
For specific market information:
Forest and Fishery Products Division
AgBox 1047
F&FP/FAS/USDA
1400 Independence Ave., SW.
Washington, DC 20250-1052
Phone: (202) 720-0638
Fax: (202) 720-8461
Homepage: http://www.fas.usda.gov/ffpd
If you are new to the Italian market and need contacts of suppliers or buyers, please contact:
Ag Export Connections
AgBox 1052
AGX/FAS/USDA
1400 Independence Ave., SW.
Washington, DC 20250-1052
Phone: (202) 720-7103
Fax: (202) 690-4374
E-mail: info@fas.usda.gov
Fishing for Quality
Lobsters are obviously fresh; they can pinch back. Live oysters, clams or mussels react to taps on the shells. But for other fresh and frozen seafood products, what does a buyer look for when checking out quality and freshness?
The National Fisheries Institute recommends that consumers look for specific characteristics to ensure optimal taste and safety. In a competitive market, seafood exporters must be exceptionally aware of what prompts a consumer to purchase one item over another--and exert stringent measures to ensure product quality. A product that "smells fishy" spells disaster.
What is fresh? Smart purchasers look for glistening, flawless fish without odor; firm flesh should spring back when pressed. If the fish is whole, they want bright red gills and shiny skin.
How about frozen? Cold does mean quality. Modern technology quickly transforms newly caught fish to a chilling 0E degrees F, locking in color, moisture and flavor. Look for packages of rock-hard products, without ice crystals or thawed juices. Avoid products with white spots, which indicate freezer burn. Packaging should be clean with a tight seal.
The author is an agricultural specialist at the FAS Office in Milan, Italy. Tel.: (011-39-2) 290-352-59; Fax: (011-39-2) 659-9641; Email: fas.milan@agora.stm.it
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