Required Report - public distribution

**Date:** 10/4/2004

**GAIN Report Number:** SW4015

SW4014

**Sweden**

**Fishery Products**

**Annual Report**

**2004**

**Approved by:**

![](media/image1.wmf)Lana Bennett

U.S. Embassy, Sweden

**Prepared by:**

Asa Lexmon

**Report Highlights:**

Imports of fish and fish products to Sweden which have been rising due
to declining domestic production will likely continue to increase. With
the weaker dollar vis-à-vis the Swedish krona, the U.S. has potential to
gain market share. In July 2004, the first wild fish products certified
and labeled as organic were launched on the Swedish market.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Unscheduled Report

Stockholm \[SW1\]

\[SW\]

# 

# 

# TABLE OF CONTENTS

# 

[Executive Summary 3](#executive-summary)

[Production 3](#production)

[Consumption 4](#consumption)

[Trade 4](#trade)

[Policy 5](#policy)

[Marketing 6](#marketing)

[Statistical Section 7](#statistical-section)

#   {#section-3 .unnumbered}

# Executive Summary

The fishing industry represents a minor part of Sweden's economy but is
nonetheless very important in some coastal areas. In 2003, a total of
281,000 metric tons valued at SEK 870,000 million (USD 107,500 million)
was caught. Groundfish catch amounted to 16,094 metric tons in 2003,
down 1.6 percent from 2002. Due to reduced cod quota for Sweden, catch
is expected to continue to decrease the following years.

Imports of fish and fish products have been rising during the past years
due to declining domestic production and will likely continue to
increase. Norway and Denmark are the largest suppliers of fish and fish
products to Sweden and accounted for 83 percent of total imports in
2003, with 68 percent and 15 percent shares, respectively. The U.S.
share of total imports was 1 percent in 2003. With the weaker dollar
vis-à-vis the Swedish krona, however, the U.S. has an improved
opportunity to gain market share.

Overall consumption of fish in Sweden is increasing, partly due to the
general perception among Swedes that fish is a healthy alternative to
meat, and partly due to successful promotions of the organization Svensk
Fisk (Swedish Fish). It is mainly the consumption of processed and
prepared fish products that is increasing. Consumption of fresh fish is
relatively stable.

The average exchange rates used in this report are:

CY2003: USD 1 equals SEK 8.09

CY2002: USD 1 equals SEK 9.72

# Production

The Swedish catch of sea fisheries (wild catch) amounted to 280,844
metric tons in 2003, down 2 percent from 2002. In value, total landings
amounted to SEK 870 million (USD 107.5 million), down from SEK 1.01
billion in 2002. Groundfish catch amounted to 16,094 metric tons in
2003, down 1.6 percent from 2002. (Please note that groundfish numbers
have been revised downwards in this report due to access to more
detailed information in official statistics.) In 2005, production is
expected to decrease by 15 percent due to reduced cod quotas.

Fish for feed is the largest single commodity, amounting to 65 percent
of the total 2003 catch. Of the catches for human consumption, herring
is the principal species in Sweden, followed by cod. In 2003, these
species amounted for 19 percent and 6 percent, respectively, of total
landings. The herring catch decreased to 53,458 metric tons, from 62,586
metric tons in 2002. The cod catch decreased to 14,181 metric tons, from
15,115 metric tons in 2002. The Swedish fish industry heavily relies on
cod fishing. About 25 percent of the total income (about USD 26 million)
of professional fishermen in Sweden comes from cod fishing.

Sweden is a member of the International Baltic Sea Fishery Commission
(IBSFC), which sets quotas for member countries. Over-fishing of cod in
the Baltic Sea has been a serious problem for several years. The 2004
quotas in metric tons are (Sweden's approximate shares in parentheses):

2004

Herring 232,550 (47,524)

Sprat 420,000 (72,019)

Cod 61,600 (12,323)

Salmon\* 495,000 (126,400)

\*Number of salmon.

In 2003, catch in inland waters amounted to 1,490 metric tons, valued at
SEK 43.7 million (USD 5.4 million). The most important species in inland
fishing are pike-perch, eel and whitefish. Domestic production of
crayfish is fairly small and amounted to 42 metric tons in 2003. Fishing
in private waters is popular, but the quantities of catches are
difficult to estimate.

Aquaculture in Sweden is relatively limited. In 2003, the yield amounted
to 4,585 metric tons of fish for human consumption, which was 10 percent
less than the year before. Rainbow trout is the principal species,
comprising approximately 90 percent of total yield. Other aquaculture
species, listed in order of production volume, include blue mussels,
char, eel, trout, and crayfish. The number of enterprises in 2003
engaged in aquaculture was 360, of which 232 produced fish for
consumption and 15 produced blue mussels. In addition, 130
establishments cultivated fry for stocking. In 2001, small-scale
production of organic rainbow trout was initiated. Production amounts to
about 20,000 metric tons.

The major canning company in Sweden is ABBA Seafood. ABBA operations
include processing and marketing of ABBA brand fish products in Sweden,
Denmark and Germany. In addition, marketing offices have been
established in Norway, Poland, Finland and Austria. ABBA Seafood is a
part of the Norwegian group Orkla Foods. Other important fish processing
industries include Findus, Felix and Festab AB. Findus belongs to EQT, a
private equity firm, Felix is also part of the Orkla group and Festab AB
belongs to the Norwegian Dornstein Group.

# Consumption

Swedish consumers are becoming increasingly environment and health
conscious in their choice of food, and the general perception among
Swedes is that fish is a healthy alternative to meat. Recent data on
fish consumption is not available. However, the perception among fish
traders is that consumption of shellfish and "pan-ready" fish products
is increasing, while consumption of fresh fish is relatively stable. The
general increase in fish consumption is also partly attributable to
successful promotions of the organization Svensk Fisk (Swedish Fish). In
addition, an increase of product assortment seems to have had a positive
affect on consumption of processed and prepared fish. Products such as
gratins, rolls, sushi, prepared crayfish tails, schrimp, crab and
lobster are receiving more market exposure.

Swedes are purported to be the world's leading crayfish consumers.
Swedes consider crayfish to be a very special delicacy. They are cooked
according to traditional Swedish recipes using brine, dill and beer.
Consumption is estimated around 3,000 metric tons per year, of which
2,500 metric tons are imported.

# Trade

Currently, Norway and Denmark dominate the Swedish import market for
fish. Together they account for 83 percent of total imports by Sweden,
with individual shares of 68 percent and 15 percent, respectively.
Considering their geographical nearness and strong commercial ties to
Sweden, these countries will most likely maintain dominance in this
market. In 2003, total imports of fish and fish products into Sweden
amounted to USD 1,0 billion. Imports from the U.S. amounted to USD 6.9
million (down from USD 8.4 in 2002), which makes the U.S. the tenth
largest supplier of fish and fish products to Sweden. Pacific salmon is
the main species imported from the U.S. Other species imported from the
U.S. are halibut, fish liver and roe, lobster, shrimps and prawns. A
substantially greater amount of fish and fish products are imported from
third countries by Sweden than is apparent from trade data because of
transshipment via the Netherlands. These imports are reflected in trade
data as imports from the Netherlands.

Imports of groundfish amounted to 10,733 metric tons in 2003 valued at
USD 29 million, compared to 8,013 metric tons valued at USD 21 million
in 2002. Due to smaller cod quotas, imports of groundfish will likely
continue to increase in this year and the following year.

Imports of crayfish amounted to 4,351 metric tons in 2003, compared to
2,159 metric tons in 2002. This big increase is due to the fact that the
EU ended a temporary ban on imports of various seafood products from
China. The ban was imposed in 2002 due to findings of antibiotic
residues in Chinese fish products. Hence, in 2003, imports from China
rose to more normal levels and accounted for 52 percent of Swedish
crayfish imports, up from 26 percent in 2002. Imports from the U.S. have
been rather small during recent years due to a supply shortage in
Louisiana and strong price competition from China, Turkey and Spain. In
2003, imports from the U.S. amounted to 32 metric tons, compared to 86
metric tons in 2002.

Although Swedish exports of groundfish increased by 12 percent to 12,754
metric tons in 2003, exports were substantially smaller than they use to
be. The decreasing trend in exports is explained by limited supply of
cod due to smaller quota. Exports are expected to decrease further this
year and the following year due to the concern for over-fishing of cod
in the Baltic Sea and hence reduced quotas.

Prices of groundfish increased by 8 percent in 2003 compared to 2002,
which is also explained by smaller cod quotas.

# Policy

Since it became a member of the EU in 1995, Sweden has adhered to the
Common Fisheries Policy (CFP) of the EU.

At the end of 2001, the European Commission decided to implement
thresholds for dioxin in fish. It was decided that fish exceeding the
EU's thresholds could not be sold for human consumption in any of the EU
member states, with the exception of Finland and Sweden. The exception
will remain in effect until December 31, 2006. Until then, fish with
dioxin levels exceeding the EU thresholds may be sold in Sweden (and
Finland), under the condition that they are not exported to other EU
countries. The National Food Administration (NFA) has been conducting
tests of dioxin levels in the Baltic Sea. As a result of these tests,
the NFA now allows exports of various species such as eel, pike pearch,
cod, and sprat from the Baltic Sea. The EU decision to make an exception
for Sweden was based on Swedish authorities' argument that health
benefits of lower thresholds do not exceed the lost benefits of eating
fish.

The Swedish organization Svensk Fisk (Swedish Fish) is supported by both
the industry and the Swedish government. The organization's goal is to
increase fish consumption through communicating the benefits of eating
fish to consumers. The Swedish government is supporting the organization
with initial paid-in capital of SEK 5 million (USD 620,000).

The Swedish Environmental Protection Agency has provided SEK 35 million
(USD 4.3 million) of funding to a research project called MARBIPP
(Marine Biodiversity, Patterns and Processes). The aim of the project
was to create a base for ensuring sustainable development by studying
biodiversity along the coast of Sweden. The project started in 2001 and
is planned to end in 2006.

In 2001, the private organization KRAV started a project to develop
standards for the inspection and certification of organic wild fish and
shellfish caught in Scandinavian waters. (KRAV is recognized by the
National Food Administration to carry out inspection and certification
for organic production.) A project group with representatives from the
Swedish government, fishermen, fish industry and other stakeholders was
established. As a result of this project, wild fish products can now
carry organic labeling and have been marketed as organic to Swedish
consumers since July, 2004. Importers who have an import license issued
by KRAV or IFOAM (International Federation of Organic Agriculture
Movements) may import products and sell them as KRAV-certified. KRAV is
accredited by IFOAM. IFOAM is a worldwide movement for organic
agriculture and a platform for global exchange and cooperation. (For
more information, please visit KRAV's web site www.krav.se)

# Marketing

Duty-free imports from other EU member states, the EU's barriers to
imports from third countries (import tariffs on fish products range
between 2 and 23 percent), and the short shipping distances from EU
countries compared to overseas transit times makes the competitive
environment difficult. However, the facts that quotas for fishing in the
Baltic Sea are diminishing and the U.S. dollar has weakened
substantially against the Swedish krona increase possibilities for U.S.
exports to Sweden. In addition, consumption of processed and prepared
fish products such as gratins, rolls, sushi, prepared crayfish tails,
shrimp, crab sticks and lobster is steadily increasing in Sweden could
provide opportunities for U.S. exporters.

The findings of U.S. scientists at the University of Wisconsin-Milwaukee
on high levels of cancer-causing toxins in farmed salmon have been
extensively reported in Swedish media this year. (See GAIN report
SW4001). In Sweden, salmon consumption is relatively high at 2 kg per
capita annually and the vast majority of the salmon consumed is farmed
salmon from Norway. Since Sweden has a very health-conscious population,
the news of additional findings of toxins in farmed fish was
particularly worrisome. This, along with the weaker U.S. dollar, points
to growing opportunities for U.S. wild fish, especially salmon.

# Statistical Section

  ------------------ --------------------- ---------- ---------- ---------- ---------- ----------
  **Country**        **Sweden**                                                        

  **Commodity**      **Groundfish,                                          (MT)       
                     Whole/Eviscerated**                                               

                     2003                  Revised    2004       Estimate   2005       Forecast

                     USDA Official \[Old\] Post       USDA       Post       USDA       Post
                                           Estimate   Official   Estimate   Official   Estimate
                                           \[New\]    \[Old\]    \[New\]    \[Old\]    \[New\]

  **Market Year                            01/2003               01/2004               01/2005
  Begin**                                                                              

  Beginning Stocks   0                     0          0          0          0          0

  Total Production   50000                 17161      47000      14500      0          14000

  Intra-EC Imports   5000                  2454       3000       3000       0          3100

  Other Imports      7000                  8279       10000      9500       0          9500

  TOTAL Imports      12000                 10733      13000      12500      0          12600

  TOTAL SUPPLY       62000                 27894      60000      27000      0          26600

  Intra-EC Exports   20000                 12752      8000       11500      0          11000

  Other Exports      1000                  2          500        100        0          100

  TOTAL Exports      21000                 12754      8500       11600      0          11100

  Domestic           41000                 15140      51500      15400      0          15500
  Consumption                                                                          

  Other Use/Loss     0                     0          0          0          0          0

  TOTAL Utilization  41000                 15140      51500      15400      0          15500

  Ending Stocks      0                     0          0          0          0          0

  TOTAL DISTRIBUTION 62000                 27894      60000      27000      0          26600
  ------------------ --------------------- ---------- ---------- ---------- ---------- ----------

  ------------------ ------------------- -------------- ----------------------
  **Export Trade                                        
  Matrix**                                              

  **Country**        Sweden                             

  **Commodity**      Groundfish,                        
                     Whole/Eviscerated                  

  Time Period        CY                  Units:         Metric tons

  Exports for:       2002                               **2003**

  U.S.               0                   U.S.           0

  Others                                 Others         

  Denmark            4731                Denmark        5538

  UK                 2574                France         3051

  France             2187                Netherlands    1393

  Netherlands        839                 UK             1362

  Total for Others   10331                              11344

  Others not Listed  1002                               1410

  Grand Total        11333                              12754
  ------------------ ------------------- -------------- ----------------------

  -------------------- ------------------- --------- ----------- ---------- -----------
                                                                            

  **Import Trade                                                            
  Matrix**                                                                  

  **Country**          Sweden                                               

  **Commodity**        Groundfish,                                          
                       Whole/Eviscerated                                    

  Time Period          CY                  Units:                Metric     
                                                                 tons       

  Imports for:         2002                                      **2003**   

  U.S.                 0                   U.S.                  0          

  Others                                   Others                           

  Norway               6410                Norway                7442       

  Denmark              973                 Denmark               2011       

  Finland              217                 Finland               411        

  Latvia               190                 Latvia                236        

  Total for Others     7790                                      10100      

  Others not Listed    223                                       633        

  Grand Total          8013                                      10733      
  -------------------- ------------------- --------- ----------- ---------- -----------

  --------------------- ------------------------- ------------- -----------
  **Prices Table**                                              

  **Country**           Sweden                                  

  **Commodity**         Groundfish,                             
                        Whole/Eviscerated                       

  Prices in             USD                       per uom       metric ton

                                                                

  Year                  2002                      2003          \% Change

  Average for year      2282                      2475          8

  Exchange Rate         8.09                      Local         
                                                  Currency/US   
                                                  \$            

  Date of Quote         2003                      MM/DD/YYYY    
  --------------------- ------------------------- ------------- -----------