Consumer confidence uncertainty in Europe makes selling seafood more challenging yet.

The frozen fish and seafood industry continues to navigate tricky sales channels in Europe. In some quarters, such as flatfish processing, it's a question of getting enough supply from quota-regulated waters to keep the factories running. In others, such as the shellfish sector, it's a matter of persuading buy-shy customers to place orders.

"In general, business is not good worldwide," summed up Olivier Hottlet, president of Pierre Hottlet & Co. Frozen Foods N.V. "Life was a lot simpler in the old days, when we were quite content with buying and selling container loads. But today it is we who must take all the risks."

The Kontich, Belgium-based importer of tropical shrimp, crabs and other fishery products linked the sluggish seafood market to a consumer confidence crisis looming in Europe and elsewhere. But this lack of confidence has nothing to do with negative perceptions of product quality. Rather it is concern over one's future economic well being that has put a damper on current levels of spending.

"On average, people are not earning less money and are not less employed. They are simply less secure about what tomorrow holds for them in light of today's changing economics and politics," assessed Mr. Hottlet.

He continued: "Lower seafood sales are not even a matter of price resistance. We experienced better sales at the beginning of 1995 when product was more expensive, compared with late in the year when prices were lower. As a matter of fact European currencies were strong in 1995 relative to the dollar, which is what we pay for imports with."

It seems that importers, distributors and wholesalers can do little more than wait out the doldrums. And as for shrimp prices, it is unlikely that they will turn up anytime soon due to hard competition in a soft marketplace. Add to that pressures on farmers and packers in Asia and Latin America to move stocks of cultured shrimp, and the downward trend is magnified.

Of course if demand should pick up in Japan - the country whose mega-buyers drive global pricing of preferred species and sizes - then all bets are off.

Meanwhile, selling seafood is not the only thing Pierre Hottlet & Co. is engaged in these days. A third-party distribution warehouse operation run by sister company Eurocold will almost triple available capacity to 1,500 pallet positions at the Kontich premises. The coldstore expansion is designed to accommodate a myriad of products ranging from seafood and meat to vegetables and value-added items.

Goudschelp

J.J.G. Nijborg of Goudschelp B.V. was in full agreement with Mr. Hottlet's assessment of market conditions. "It's been a difficult year, to be honest. It would seem that people have just stopped eating shrimp in Germany," the sales manager told QFFI. "Still, we have managed to maintain overall sales levels through sheer hard work."

Based in Yerseke, Holland, Goudschelp (Fax: [phone]) is known best as a processor and marketer of frozen and preserved mussels and cockles sold under La Bigorne, La Sirene and De Mosselman brand names as well as private labels. A good deal of raw material is sourced from its own fleet in waters off the Dutch coast, with supplemental supplies from Germany and Denmark.

Over the years Goudschelp has become more active in the shrimp trade. It sells coldwater varieties procured locally as well as tropical species from Asia. Imported blocks are defrosted in preparation for cooking and value-adding in the Netherlands.

The company, which caters to both retail and foodservice accounts, plans to launch a number of new products in 500g and 1kg bags in 1996. Among them will be breaded mussels, shrimp, squid rings and a seafood cocktail. Established catalog listings include clam juice (which is generally used by chefs), fish fillets, and shellfish components for salad makers and pizza producers.

Pieters

"Generally, it's a tough time throughout Europe now," Mia Op de Beeck of Pieters Visbedrijf n.v. told QFFI. "It's not that sales quantities have diminished, but rather that people are buying less costly products. While many customers are requesting less expensive fish, they are at the same time demanding products that are more sophisticated in presentation."

And that, along with a complete range of traditional fare and custom orders, is exactly what the Brugge, Belgium-based company (Fax: [phone]) is giving its clients.

Value-added convenience items such as 240g retail packs of Prawn Croquettes were recently introduced to the trade under the Azur brand. Two new frozen soups in one-liter tubs, including a Lobster Bisque, were also unveiled. For the catering sector, there's pre-fried salmon burgers and salmon with cheese sauce and crumbs.

Pieters is placing a lot of emphasis on ready-to-eat "in-between dishes" such as sauce-filled fillets and lemon sole filled with salmon. Additionally, it is utilizing more fish of African origin and sourcing greater amounts of raw materials from beyond the North Sea to offset reduced quotas that are in effect there.

On the shrimp side, subsidiary Wisco Processing of Scotland provides the parent company with a reliable supply of Western Isles branded shellfish (Nephrops norwegicus) in 1kg retail boxes. The factory in Stornoway processes approximately 1,500kg of shrimp daily. Expansion into other cooked and smoked value-added seafood items is expected later in 1996.

In spite of sluggish economic conditions in Europe, Pieters fully expects that revenues for 1995 will be up over the previous year's gross of 3.5 billion Belgian francs (US$ 110 million).

"We sold larger quantities, but at lower prices," said Ms. Op de Beeck. "By taking cost-cutting measures, our final results will be better than the year before. But while under normal conditions turnover would be up about 10%, we have to settle for 5% this time."

Pittman Seafoods

Echoing the view expressed above was Dirk Vandepitte, general manager of Zeebrugge, Belgium-based Pittman Seafoods (Fax: [phone]). "We had to work twice as hard and get new customers to maintain expected business levels," he told QFFI.

A pioneer in marketing nitrogen-frozen lobsters in Europe, Pittman offers cooked and blanched product ranging in size from 200- to 499g weights. Half-lobsters, tails and shell-free meat are also offered, as are traditional ice-frozen "popsicle" varieties (10 per case).

"We source from selected Canadian suppliers on Prince Edward Island and New Brunswick," said Mr. Vandepitte. "Supermarkets are the biggest outlet for lobster in northern Europe, taking about 80% of the supply."

In addition to lobsters, Pittman Seafoods sells other fishery products including scallops and surimi. Lately, a sharper focus has been placed on the production of ingredients for stir-fry dishes and mixes. The company's plant, situated in front of the European Fish Center, is equipped to thaw, slice, dice, spice, mix and bag up to five seafood varieties simultaneously.

Supermarket chains and further-processors are the main recipients of Pittman recipes that range from Romanesco, China and Caribbean mixes to paella and seafood cocktail (squid rings and tentacles, shrimp, mussels and cockles).

Northseafood

When Quick Frozen Foods International magazine arrived at the Urk offices of Northseafood-Holland b.v. on Dec. 5, the company's director was just on his way out to attend an emergency meeting of the Dutch Flatfish Association called to formulate a strategy for fighting an EU proposal in Brussels to slash harvests of flatfish from local waters by 40%.

"This is absolutely unacceptable," he said. "Our Minister our Fisheries says he will not go along with this recommendation. Even a 20% cut would put a severe strain on the operation of factories here in Urk, which greatly depend on dover sole and plaice."

So goes the annual debate among processors in Holland, Denmark and the UK on one side, and ocean biologists and bureaucratic regulators on the other.

Fishermen, whose livelihoods depend on stable landings, say that there is no need to panic over perceived resource shortages. Experience tells them that all that's needed to build up the fish population is one or two harsher than normal winters. Apparently, a habitat of colder water has a positive effect on the numbers. But biologists can not document this, and regulators tend to be more inclined to place their faith in scientific data.

If supply problems were not enough, Northseafood and other Urk producers of frozen sole and plaice fillets exported to Italy and Spain had to contend with the effects of a devalued lira and peseta. This made their products all the more expensive against home-grown chicken alternatives and imports of hoki fillets from New Zealand.

Despite such adversity, Northseafood and its 200 employees are determined to weather these storms as they have others in the past. Such is routine for residents of a former island (Urk is now part of the land-filled Noordoostpolder), whose families have made a living from the tumultuous sea for generations.

The company is working to diversify its customer base, which is presently heavily skewed toward Italy. Sweden is another good market, and the strengthening kroner is a welcome sign. Meanwhile, retail chains in Germany are being targeted with lines of 300- to 400g breaded and natural fish fillets, as well as 500g to 1kg vacuum packs of dover sole.

On the factory floor - which provides jobs for highly-skilled manual labor - new automatic packaging machinery for five- and 10kg catering packs was recently installed. Robotic palletization will be the next investment in technological efficiency.

Sterk

As the largest buyer of fish auctioned in Holland, Hazlewood International B.V. (Fax: [phone]) has had no difficulty obtaining ample tonnage to fill customer requirements, Drs. Pieter L. Schop told QFFI. Headquartered in Bergen op Zoom, the Netherlands, he is in charge of a [pounds]88 million four-company Fish Group comprised of Sterk Frozen Seafood, Diepvries Monnickendam (DIMO), Orca and Hansen/Vd Veen.

"We are managing well despite the quota situation," said Mr. Schop. "But there is no denying that landings are down in Europe. Plaice supplies are off somewhat, though dover sole landings are good considering the overall picture."

Lemmer-based Sterk (Fax: [phone]) is by far the biggest operation, employing half of the Group's 600-person workforce. Its large factory is heavily engaged in flatfish production, turning out different grades of natural and breaded fillets of plaice, lemon sole, dab, cod and dover sole. Fillet rolls and filled fish are also packed.

"More than 95% of our production is exported, primarily to retail private label customers and catering accounts in Germany, Italy, Great Britain, Belgium and Scandinavia," said Hans Rusius, commercial director. "France is a growing market for us, and we plan to expand more into northern and southern Europe in the near term."

Sterk also aims to increase the varieties of fish offered to include cod and pollock-based items. There will also be more selections of value-added products available. Among its offerings at the moment are plaice and sole fillets filled with salmon, oven-crisp fillets, fish with bacon bits, skewered items and all kinds of shaped fish for the children's market.

"Snack-type, microwaveable fish recipes are under development," said Mr. Rusius. "Our plant is flexible enough to continue being a creative force in the private label field, as well as pack according to exact specifications."

DIMO Innovates

Monnickendam, Holland-based DIMO (Fax: [phone]) has been in the frozen flatfish business for 33 years. And in that space of time a lot has changed.

"We have to adapt and learn to live with lower quantities of traditional fish," said Jan Veerman. "Landings from local waters are just 50% to 65% of what they were in 1989."

One way DIMO is dealing with that reality is by moving beyond commodity competition by developing more value-added items. Breaded plaice fillets were brought out last year, and most recently fillets in wine, mustard and lemon sauces were launched. Marketed in 3kg catering boxes, they are known as Schollenfillets mit Schnee in Germany and Filets de Plie in France.

Mr. Veerman was not one to complain about results in 1995. "Sales were up, though the flatfish sector is not as profitable as it used to be due to tighter margins brought on by increased capacity," he explained.

DIMO is selling a good deal of product in Spain though cooperation with Dutch french fry specialist Farm Frites, which utilizes its Barcelona-headquartered distribution arm to move a number of fish and vegetable items into Spanish retail outlets along with frozen potatoes.

Meanwhile, on the other side of the world, things are looking up in Japan. "This year (1995), for the first time, we had turnover of significance there," Mr. Veerman reported. "Now we are waiting to see if repeat orders are placed."

As for the European scene, look for DIMO to formulate more dishes featuring different kinds of fish. A variety of tasty sauces are available from recipe development specialists in the Hazlewood Foods Group. Sauces with almonds, carrots, peas

[INCOMPLETE TEXT FROM ORIGINAL PUBLICATION]