First half figures for 2002 point to increased canned sardine prices and lower market volumes compared to 2001.

Average import prices for canned sardines in France, Germany and Italy during the first 6 to 8 months of 2002 increased with French prices up by as much as 17% on the corresponding period last year. Initial indications are that import volumes for canned sardines will be down in 2002 in a number of markets with the UK as a likely exception. Helped by a price competitive strategy, Morocco continues to consolidate its position as the leading supplier of canned sardines to European markets.

With canned sardine imports of over 12 000 MT last year, France is the leading importer, and the second largest market after Spain, in Europe. Indications for the first 8 months of this year point to higher unit prices and lower volume imports for 2002. Compared with the same period in 2001 average canned sardine prices have increased by over 17% while volume imports have dropped by 9%. At the same time, higher unit prices have pushed import values up by around 7%.

In 2002, Morocco looks set to consolidate its position as the main supplier of canned sardines to France. In 2000, the country accounted for half of French imports for the first time. This year it is likely to account for two thirds despite a drop in volume sales. Competitive pricing has been an underlying factor in the success of Moroccan sales to France. Although its average prices on sales to France increased by 9% in the January - August period this year, Moroccan prices appear to be around 20% below the overall average for canned sardine imports which are also being sourced from Portugal and Spain.

In response to competitively priced imports, French canners have been actively trying to identify value added opportunities. Domestic canned sardine production amounted to almost 11 000 MT in 2001, an increase of 10% on the 2000 output and the highest level in recent years. For a number of years French producers have been focusing on quality and the use of labelling as a means of increasing value. The widely known, but strictly controlled, ' Label Rouge ' certification has been awarded to at least one canner while the promotion of canned sardines using the year of production ('millésime') and the artisanal nature of production ( a l'ancienne) has been adopted by several French companies.

German canned sardine imports average between 9 and 10 000 MT a year. The country is also a significant re-exporter of canned sardines with exports in 2001 at over 2 500 MT.

The strong price orientation of the German market has helped Moroccan canned sardines to dominate the market to a much greater extent than in France. During 2001, Morocco accounted for 95% of the 9 500 MT of imported canned sardines in Germany. During the first 7 months of this year, Morocco has maintained its market sharebut first indications are that with increasing average import prices, German sardine volume imports will be down on last year.

Imports of canned sardines for 2002 also look set to fall in Italy where volumes are down 12% to less than 1 500 MT for the January - July period this year compared to the same period in 2001. As in France and Germany, the drop in imports coincides with an increase, this year, in average import prices, up 9% to euro 2.87 / kg. The importance of Morocco in European sardine markets is also evident in Italy where Moroccan sardines now account for more than 50% of volume imports compared to 45% during the January - July period in 2001.

With its competitive pricing, Morocco still accounts for less than 50% of imports in value terms. In second position, Portugal has experienced a fall of 19% in sales to Italy in the first seven months of 2002. As a result, its market share of Italian imports has dropped to under 30% for this period.

In contrast to other key European markets, sardine imports from both Portugal and Morocco increased in the UK during the first half of the year compared with the corresponding period last year. The UK market is also distinctive in that Portugal remains the leading canned sardine supplier. Sales from Morocco have, however, been increasing more rapidly, + 45% compared to + 27% for Portugal, during the first 6 months of 2002.

It remains to be seen whether the upward trend in canned sardine prices continues. The recent ruling (to be confirmed) by the WTO's Appeal Body in favour of the marketing of the Peruvian Sardinox sagax as sardines in the EU may result in increased supplies of canned sardines in European markets in the foreseeable future.

© 2003 FAO