Contents:

1. Executive Summary 2. Context Analysis 2.1. Present and History 2.1.1. International 2.1.2. Romania 2.1.3. Fishing 2.1.4. Aquaculture 2.2. Taxes/ Legislative Barriers (Other Barriers) 2.2.1. Taxes 2.2.2. New Laws 2.2.3. UE Relations – Romanian Position 3. How does the Industry Operate? 3.1. Production Cost 3.2. Brands 3.3. Entry Strategy 4. SWOT Analysis – Fish & Seafood Industry 4.1. Strengths 4.2. Weaknesses 4.3. Opportunities 4.4. Threats 5. SWOT Analysis- Importers 5.1. Strengths 5.2. Weaknesses 5.3. Opportunities 5.4. Threats 6. SWOT Analysis - Producers 6.1. Strengths 6.2. Weaknesses 6.3. Opportunities 6.4. Threats 7. SWOT Analysis- Distributors 7.1. Strengths 7.2. Weaknesses 7.3. Opportunities 7.4. Threats 8. SWOT Analysis - Horeca 8.1. Strengths 8.2. Weaknesses 8.3. Opportunities 8.4. Threats 9. Key Success Factors Appendixes D2 Custom Taxes in Romania V7 Entry Strategy L6 Frequency of First Seven Brands In Smoked Fish Industry L7 Frequency of First Five Brands In Canned Fish Industry L8 Frequency of First Five Brands In Roes Industry L9 Frequency of First Six Brands In Fish Industry X12 Professional Associations

Summary:

In 2003, total fish & seafood consumption was 70.819 tons (53.6 mil EUR). Total consumption registered a small increase of 15% comparing with 2002 and for 2004 an increase of 7% (75.642 tons / 57.920 mil EUR) was estimated. These values represent an average consumption of 3.48 kg/capita (for a population of 21,733,556). This average consumption is very small if we take into account consumption before 1989 (10 kg/capita in the '80) and also compared to the EU average consumption of 20kg/capita. Stakeholder's expectations (as well as these industry overview conclusions) confirm a potential increase of 4.3 times for internal consumption in the next ten years (it means 326.000 tons /230,000,000 EUR). Maximum production and consumption for Romania was about 2,000 tons, with a maximum internal production of 91,990 tons in 1988 and catches in international waters of 190,000 tons in 1986). We estimate that with modern technologies, market oriented business relations and better motivation of workers, internal production could be bigger between 2005 and 2010. If we take into account Romania's fish resources, we could justify even bigger objectives/regional ambitions, such as export: 240 million persons live on a range of 1000 km and after the EU integration we could export to developed countries (Germany, France etc) that in 2002 registered a deficit of 10.5 billions EUR for these products. Thus, we estimate an increase of 3-7 times in next 5-15 years (210,000 – 490,000 tons / 160.8 – 375.2 mil EUR). Romania's competitive advantages are: ownership of the Danube Delta, access to over 800 km along the Danube River, access to the Black Sea at a length of 245 km, a few hundreds lakes and small inshore rivers, so the total water surface with fish potential cumulates to about 1,300,000 hectares (over 3% of Romanian territory). In the '70s and especially in the '80s, Romania had a well organized fishery infrastructure (disorganized by transition and privatization in the '90s). So, for the moment we have the know-how and almost all the infrastructure (landscape) for aquaculture. Romania differs from her neighboring countries because of these elements. High expectations could be justified if we look at Hungary that registers remarkable results (prevalent from aquaculture) – and it doesn't have the hydrographic potential (natural resources) - like Romania does. Actual consumption is satisfied by 61% (52,042 tons, 32,651,740 EUR) by imports. About 80% of imports is made by 10 companies, most of them new domestic companies (most of these companies were founded after 1995). Actual production is only 19,176 tons (22,865,567 EUR), but exports are almost non-existent (444 tons / 1,925,656 EUR). In 2002 leasing was initiated and production will grow in the next 1-3 years. Companies that have leasing contracts must quickly find financing sources and experienced partners in order to be profitable. Thus, only some of these companies had the necessary money for starting repopulation with saplings and investing in modern technologies. Distribution represents an important limitative factor that is partially attenuated by the rapid development of hyper/supermarkets (over 86 stores of Metro, Carrefour, Selgros, Billa, Cora, Profi, XXL, Mega-Image, Gima). Investors are encouraged by EU integration from 2007. These partners imposed a different way of working (certifications, marks, organized work, financial instruments etc.). This type of work will accelerate Romanian partner's professionalism. Entry-Market Strategy depends on the particularities of each interested entity. If the entity wants to reach over 8% from the Romanian market quota, it could start by importing fish in Romania and then afterwards it could start processing the imported fish in modern units (units that must satisfy EU – 2007 demands). After processing, it can distribute first through big chains of hyper/supermarkets and as soon as possible through HoReCa. Simultaneously, it should develop brands portfolio and a professional management. Then at the right time it should take in leasing fisheries. At the beginning it should earn a quota of the market and then in 2-3 years start to return on investments.

Companies Mentioned

Relevant brands: - Negro - Toranavis - Condemar - Bonito - Ocean Fish - Sardes - Saupique - John West - King Oscar - Pescarusul