Emerging Markets in Eastern Europe
European Union countries are the second-largest export destination for Alaska seafood, receiving $580 million of Alaska seafood in 2006. While Eastern European countries received only about $50 million in Alaska seafood exports in 2006, the region has potential to develop into a more significant export destination for Alaska seafood.
Eastern Europe has seen significant political, economic and cultural change in the last 15 to 20 years, as Soviet influence diminishes and ties to Western Europe and the European Union grow stronger. Economic conditions in numerous Eastern European countries have improved markedly during the time period, and some have experienced phenomenal economic growth and increased personal wealth. These changes have been accompanied by shifts in food markets as people gain exposure to products that were not previously available or affordable. Additionally, some countries in the region are becoming centers for seafood reprocessing activities. These and other factors have resulted in an increase of trade of Alaska seafood products into Eastern Europe.
Exports of Alaska seafood products to the countries of Eastern Europe have increased remarkably since the end of the last decade. Export volumes to the countries of Eastern Europe increased nearly 800 percent (from 1,900 metric tons (MT) to 16,800 MT) from 1998 to 2006. The volume increase was accompanied by a substantial surge in value, from $3.4 million to $47.5 million. (Data from GTIS Global Trade Atlas. Countries include Lithuania, Ukraine, Czech Republic, Hungary, Russia, Belarus, Poland, Estonia and Latvia.)
In some countries, such as Poland and Lithuania, accession to the European Union in 2004 has driven increases in reprocessing activity for product bound for Western European countries. Reprocessing that has historically occurred in countries such as the Netherlands, Denmark, or Germany shifted east to take advantage of cheap labor in the new EU countries. Other increases, for example in Estonia, reflect increased wealth in the country and visitor industry growth from travelers from Western Europe. Russia also serves as a major economic powerhouse in the region, and responses to new opportunities in that market have pushed developments not only in Russia but also in neighboring countries such as Belarus and the Ukraine. The increased strength of the Euro and some other currencies against the dollar have also benefited exporters, whose customers can obtain higher value seafood products at a relatively lower cost.
Species and product forms in the new Eastern European markets vary, though some interesting trends have emerged. Markets for caviar products, particularly salmon caviar, appear to offer opportunity in Russia and the countries influenced by it. Caviar is a traditional food product, and chum and pink salmon roes have found increased opportunity therein. Pink and chum meat products also present opportunities in Russia and its neighbors.
Lithuania is also an important reprocessing center for surimi products. These appear to be bound ultimately for Western European markets, in analog forms (such as fish sticks or crab analog products).
