Marketing, structures and aid in the fisheries sector

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As well as the catch itself, the success of a fishing business depends heavily on its ability to add value to its products and maintain high-performance production facilities. The marketing of seafood products, which are perishable par excellence, is subject to strict quality requirements and health standards. At the same time, the need to adapt the fishing fleet to the resources available and to modernise businesses often involves substantial investment, for which aid is available, but only in a limited number of cases. precise regulatory framework.

How can you ensure that your products can be sold on the market? What mechanisms exist to support prices in the event of poor sales? What are the rules for importing and exporting? How are Europe and France managing the development of the fishing fleet, and what financial support is available? This article looks at these key aspects of the economic and regulatory environment for maritime fishing.

Marketing: quality and information requirements

In order to circulate freely and be sold, particularly within the single European market, fishery products must comply with a set of standards designed to guarantee their quality, freshness and safety for consumers.

• Common EU marketing standards The European Union has defined common standards for a large number of fishery products (fish, crustaceans, molluscs, whether fresh, chilled or processed). These standards mainly concern freshness (assessed according to precise organoleptic criteria) and calibration (classification by size or weight). The aim is to harmonise quality on the market and facilitate commercial transactions. In theory, products that do not comply with these standards cannot be offered for sale, sold or marketed. Compliance with these standards is the responsibility of each Member State, which must organise inspections at all stages of marketing, including during transport.
• Health standards: an absolute must Food safety is a major concern. Faced with the diversity of national regulations in the past, the European Union has put in place a harmonised framework applicable to all foodstuffs, including fishery products, with the "Hygiene Package" which came into force in 2006 (replacing the specific directives of 1991). These regulations lay down precise hygiene requirements throughout the food chain:
  • On board ships These include the conditions under which catches are handled, washed, refrigerated or frozen, and the cleanliness of equipment and premises. More stringent requirements apply to factory ships that process products on board.
  • On land Fish markets: fish auctions, fish merchants and processing plants must comply with strict standards concerning the design and maintenance of premises, water management, pest control, staff training, traceability and the implementation of procedures based on HACCP (Hazard Analysis Critical Control Points) principles.
  • In wholesale outlets.

  Any establishment handling fishery products (including wholesalers, as described in article 2) must obtain a health approval issued by the relevant authorities (in France, often the veterinary services of the Direction Départementale de la Protection des Populations - DDPP). This approval certifies that the facilities and practices comply with regulatory requirements. From regular inspections are carried out by the official services to check that this compliance is maintained.

Compliance with these commercial and health standards is a sine qua non for market access and consumer confidence.

The intervention system: stabilising prices through POs

The market for fishery products is subject to major price fluctuations, linked to the seasonal nature of catches and the variability of supply and demand. To avoid price collapses that would be detrimental to fishermen's incomes, the European Common Market Organisation (CMO) has set up intervention mechanisms, including the Producer Organisations (PO) are the main operators.

• The withdrawal price system The idea is to set a floor price below which products are not sold on the primary market (auction) but withdrawn by the PO. There are several types of withdrawal price:
  • Community (or Union) withdrawal prices Prices: Set annually by the EU for a list of defined species (historically: plaice, haddock, herring, sardines, saithe, etc.). They are calculated on the basis of a "guide price", itself derived from average prices observed in previous years. When a batch does not reach this price (with a small tolerance margin), the PO withdraws it and pays financial compensation to its member. This compensation is partly financed by the EU, but on a degressive basis: the greater the quantities withdrawn by a PO (as a percentage of its annual sales), the lower the rate of European aid, or even zero above a certain threshold. The aim is to encourage POs not to make excessive withdrawals.
  • Stand-alone withdrawal prices For another list of species (historically: dab sole, pollack, red tuna, conger eel, skate, etc.), POs can set a withdrawal price themselves. However, this price must not exceed a certain percentage (e.g. 80%) of the average price recorded in previous years. If a product is withdrawn at this price, the PO pays compensation to the member and can benefit from flat-rate European public aid, but limited to a certain volume of annual withdrawals (e.g. 10% of the quantities put up for sale).
  • Withdrawal prices freely set Finally, a PO can decide to set its own withdrawal prices for any species, completely independently. In this case, the compensation paid to the producer is financed entirely by the PO itself, via an intervention fund fed by its members' subscriptions. No public aid is possible, in line with competition rules.
• Managing recalled products What happens to products withdrawn from the market? So as not to disrupt the normal flow of products sold, withdrawn products cannot be put back on the market for direct human consumption in their original form. The PO must find a final destination for them: donation to charities (under strict conditions), use as animal feed (manufacture of meal), or - the most frequent case in the past - denaturing to make them unfit for consumption.
• Storage aid To avoid wastage due to withdrawals, the CMO also provides for financial aid to encourage the temporary storage of certain products withdrawn from the market (e.g. monkfish, sole, crabs, langoustines, etc.). The idea is to enable the producer organisation to process (freezing, salting, etc.) and store these products while waiting for a more favourable period to put them back on the market (for the processing industry, for example). European aid then covers part of the technical and financial costs associated with these stabilisation and storage operations (carry-over or private storage).

These intervention mechanisms are designed to provide a safety net for producers, but their use is regulated so as not to encourage overproduction and to remain compatible with the rules of the single market and competition.

Trade with third countries

France and the European Union are heavily dependent on imports to satisfy their demand for seafood products. Trade with countries outside the EU is governed by specific rules, in addition to bilateral or multilateral fisheries agreements.

• Common External Tariff (CET) Imports of fishery products from third countries are subject to the payment of customs duties defined in the EU TEC.
• Suspension of tariffs For certain products for which the EU has a deficit, these customs duties may be temporarily suspended, in whole or in part, in order to facilitate the supply of the European market at reasonable costs.
• Reference price In order to protect the European market against imports at abnormally low prices (dumping), the EU sets reference prices for certain sensitive products. If the customs value of an imported product is lower than this reference price, additional customs duties may be applied, or the benefit of a tariff reduction may be withdrawn.
• Safeguard measures In the event of serious market disruption (or the threat of it) due to a massive increase in imports or unfair practices, the EU can take emergency measures, known as safeguard measures. These measures, which must remain temporary and exceptional, can go as far as closing borders to the products concerned.

Structural policy: adapting the fleet and supporting investment

The main aim of the structural policy for fisheries is to achieve a sustainable balance between the fishing capacity of fleets and available fish resources, while supporting the modernisation and competitiveness of the fishing industry. companies.

• Adapting fishing capacity Aware of the risks of overexploitation linked to excessive fishing capacity, the EU has put in place tools to control, and even reduce, the overall size of its fleet. Following on from the Multi-Annual Guidance Programmes (MAGPs) of the 1980-90s, the system is now based on each Member State setting reference levels for the total capacity of its fleet (expressed in engine power - kW - and tonnage - GT). Member States may not exceed these ceilings. Any new construction or increase in capacity must be offset by the withdrawal of equivalent or greater capacity.
• The national tool: the Permis de Mise en Exploitation (PME) To manage its fleet capacity within European ceilings, France has introduced the Permis de Mise en Exploitation (PME). This permit is a prior administrative authorisation that is essential for :
  • Build a new fishing vessel.
  • Import a fishing vessel.
  • Modify an existing vessel if this results in an increase in its catching capacity (increase in power or tonnage).
  • Re-arming a fishing vessel after a prolonged period of inactivity (more than 6 months).

  The SME is issued by the administrative authority (minister or prefect, depending on the size of the vessel). It is not awarded automatically, and must take account of fleet management objectives and criteria such as priority for new facilities, ensuring the long-term future of existing businesses, and improving safety or working conditions. Although attached to the vessel, in theory the SME is not transferable independently of the vessel, but in practice its value is incorporated into the sale price of the vessel, representing a "right of entry" into the fishery. Certain activities (seaweed trawlers, sandwashers, etc.) or situations (replacement of a damaged vessel, refitting after training, etc.) may benefit from exemptions or so-called "de jure" SMEs, within the limits of available capacity.

• Structural aid: mainly European funding The financing of fleet modernisation, improvements to port infrastructure, processing and marketing, and social support measures (aid for early retirement and retraining) relies largely on European funds dedicated to the fishing industry. After the Financial Instrument for Fisheries Guidance (FIFG) and the European Fisheries Fund (EFF), it is now the turn of the European Maritime Affairs and Fisheries Fund (EAMEF) which is the main financial instrument for the current period (its successor, the FEAMPA, is planned for the post-2020 period). These funds co-finance, with Member States and project promoters, actions aimed at achieving the objectives of the CFP: adapting the fleet (including aid for permanent exit), modernising vessels to improve safety, energy efficiency or selectivity (without increasing overall fishing capacity), investments in ports, aquaculture, processing and marketing, local development, etc. Direct national aid to the sector, meanwhile, is very strictly regulated by European rules on State aid to avoid distorting competition.

Mastering the complex rules of marketing, understanding the mechanisms of intervention and knowing about investment aid schemes are key factors in the success of a business. profitability and development of your fishing business. Whether you are planning to modernise your vessel, invest in a processing plant or are experiencing difficulties in the market, a personalised analysis of your situation and financing opportunities could prove invaluable. Contact our office to discuss your requirements.

Sources

• Regulation (EU) No 1379/2013 on the common organisation of the markets in fishery and aquaculture products (CMO).
• EU "Hygiene Package" regulations (in particular 852/2004, 853/2004, 854/2004) on the hygiene of foodstuffs.
• Regulation (EU) No 508/2014 on the European Maritime Affairs and Fisheries Fund (EMAF) (and its successors).
• Regulation (EU) No 1380/2013 on the Common Fisheries Policy (CFP - fleet capacity management).
• Code rural et de la pêche maritime (health approval, SMEs, national aid management, etc.).
• Law no. 97-1051 of 18 November 1997 on maritime fishing and marine cultures.
• Decree no. 93-33 of 8 January 1993 on fishing vessel operating licences (check codification/current validity).
• General Tax Code and Customs Code (for tax and customs aspects of trade).

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