91999E1764

WRITTEN QUESTION E-1764/99

by Roberta Angelilli (UEN) to the Commission

(11 October 1999)

Subject: Crisis in the fish market and unfair competition on the part of Greece

The crisis which has been affecting the market in certain species of fish (sea bass and gilthead sea bream) since the beginning of 1999 has worsened during the summer. Italian fish-breeders are finding it difficult to sell their fish, which has remained in the fish farms for months. On the other hand, products from Greece, which are undoubtedly less fresh than Italian products, have been driving market prices down to below actual production costs, LIT 8 000 per kilo for gilthead sea bream and LIT 9 000 per kilo for sea bass.

Since the costs of feed, fry and transport are higher than in Italy, one can only suppose that the Greeks are practising dumping. The reason for this might be that the largest Greek fish producers are quoted on the stock exchange and are therefore more interested in the volume of turnover, in order to show an apparent profit to the stock market, than in a genuine operating profit.

Can the Commission say:

1. whether it does not consider the above constitutes a threat of dumping;

2. whether it does not consider an inquiry should be launched to ascertain a possible infringement of the principles of free competition;

3. whether it does not consider it appropriate to ascertain that there has not been an infringement of Community regulations (and exploitation of Community funds) with adverse consequences for employment)?

Answer given by Mr Fischler on behalf of the Commission

(23 November 1999)

The Commission is aware of the current market difficulties for sea bass and sea bream linked to the rapid growth in the cultivation of these species which has overtaken growth in market demand. Total Community production in 1988 was 2 801 tonnes, the figure for 1998 is an estimated 60 188 tonnes.

Given the experience of the salmon sector which has experienced a series of marketing crises over the past decade, due to supply outstripping the growth in the market, the Commission is concerned that the same difficulties do not befall the sea bass and sea bream sector. The lesson has to be learned that effective marketing is a prerequisite if this important part of the Mediterranean aquaculture is to consolidate and grow. This is primarily an industry responsibility, but assistance from the Financial instrument for fisheries guidance (FIFG) is available and has been used for this purpose already in some Member States.

The question of dumping does not arise between Member States but predatory pricing or abuse of a dominant market position, if proven, may be addressed under competition rules. The Commission will intensify its monitoring of the current market situation and consider whether any further action may be required to prevent production running ahead of market growth.