The development of Greek aquaculture

a repeated story in aquaculture history.

Dimitri DimopoulosProduction manager

Saudi Fisheries Company

The start• The Aquaculture in the sea starts in Greece in the mid 80’s

with small farms. • Those farms import fingerlings from France and technology

mainly from Scotland (kames wooden cages).• In the late 80’s the first hatcheries start production and with

the aid of E.U (subsidies for the equipment) the growth was soon ejected.• The 16,300 km shore and the thirst for innovation from a

nation with 3,000 year maritime history push the aquaculture for this growth. • In 1991 the annual production jumped from 2,500 tones to

12,500 tones from 120 farms.

The market• Both of species ( bream and European bass) was well known

in south Europe as the most expensive fishes due to the extensive culture in French, Italian and Greek lagoons for ages

• The big demand help the farmers to focus in production technology and do not care about sales.

• Italy was the main export destination and 65% of the production was exported there and only 15% to all the other countries and 20% for the local market.

The 1st, 2nd and 3rd crisis• In 1993 the production reach the level of 35.000 tones. The price dropped down in less than the production

cost of these years. The small farms with bad management absorbed from bigger companies with large sales department and hatcheries. The production get stabilized, the price goes to profitable level, the production is growing again.

• 2000. In 1998 the E.U stops the imports from Turkey (the main competitor) and the price reaches the levels of 1991. The cost is much lower now and the profits are huge. All the farmers want to produce more and the production grows more than the capitals of the companies can support. The production goes to 85.000 tones. Turkey is open again in 1999 and the second crisis is here, bigger and more severe. This time 2 of the 5 biggest companies bankrupt, one absorbed and the one closes. The companies with large sales department, large hatcheries and feed mills are getting stronger.

• 2007. In 2002 Greece comes to Eurozone. Easy lending, low interest, no money exchange cost, the profits are back again. In addition, Turkey subsidies the exports and the Greek production is reaching 110,000 tones in 2007. The price is lower than the cost and each producer is keeping the fish in cages waiting for a price increase. Everyone wants to reduce the production but the fish which is not sold is growing up in the cages and the production is getting bigger and the c0st is getting higher. In year 2008 the global crisis comes in addition with aquaculture crisis. The banks stop funding the companies with “red results” attaching them to big companies, Turkey continues funding aquaculture and the third crisis is the longest of all till now.

Similarity of Greek and Norwegian development of production and price

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

0

1

2

3

4

5

6

7

8

9

10

Greek production

Production in tones Price in US$

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Norwegian production

production in tones price in US$

A repeated story• In the beginning of the industry in 90’s, all the experts was warning

about the connection between production volume and price. • We all known what will happen but we made the same mistakes.• Always there is a competitor country (like Turkey and Chile) who has

different economy, different target and affecting the price fluctuation too.• The story starts with a lot of small scale companies and in the

procedure some of them grows faster. • The large companies absorb the ineffective small and medium farms. • The feed mill companies becoming farmers as well.• The largest companies acquire vertical structure (hatchery, feed mill,

sales department, R&D).

Conclusions• As an aquaculture industry is developing in a country, every 6 to 8

years there is a drop of the price, sometimes lower than the cost. So the yearly profits are not so considerable as the average quinquennial (5 years) profits.• The production depends on the hatchery technology and the sales

price.• The new technology (advanced feed formulas, equipment, genetic

improvement) reduce the cost.• The companies with hatchery, feed mill and effective sales

department are dominate the industry and not the companies with large production.• The very small family farms always survive because they have few

quantities, better quality, low funding and they focus to quality customers.• The medium size farms are the most vulnerable.

The solution• To avoid or to minimize the unstable sales price, the farmers

must have an organization to control the production and the export price. Cooperation between the farmers is necessary and significant. • But every year the global consumption of fish is growing

more than 8% and the fishing sector is shrinking. 5 of the 7 important fishing fields have lower production due to over fishing.• And as you know the most healthy, digestible protein is fish

protein and the only fat which is healthy with the right ratio of Omega 3 to Omega 6 is fish oil.•So the solution is sustainable Aquaculture

Thank you

I hope you enjoy it