AQUA 2024

August 26 - 30, 2024

Copenhagen, Denmark

ECONOMIC EVALUATION OF FISH MISLABELING IN EUROPE

José L. Fernández Sánchez* , Ignacio Llorente, José M. Fernández-Polanco,  and  Ladislao Luna Sotorrío

 

Department of Business Administration

Universidad de Cantabria

Avda. de los Castros 56, 39005 Santander (Spain)

jluis.fernandez@unican.es

 



 Even though the European labe ling regulations establish compulsory information, European c onsumers receive little information about the sea fish and seafood they eat whereby they are not able to discriminate between species . Consequently, there are i ncentives  in the supply chain to cheat when premiums exist for specific species or types of fish.  Fish mislabeling results in a series  of varied negative consequences as, for example,  losses in duties and import taxes for governments as well as economic losses for the consumers that buy an unwanted product at expensive prices.

The aim of this work is to answer the following research question: w hat is the economic impact of mislabeling in the fish and seafood industry ?  For it, we have estimated the  economic value  of mislabeled fish consumed in different European countries.  For this estimation , we  have employed a framework proposed by Kroetz et al. (2018). According to them , the potential magnitude of mislabeled fish consumed in a country depends on both the mislabeling rates and the consumption of the most important commercial species i n that country . Thus:

M = R ´ C

 where M is the  value  of mislabeled product, R is the mislabeling rate (R <  1)  and C is the consumption  (in €)  of  a specific  fish species.  To estimate  mislabeling rates  we  have  carried out a systematic literature review of 25 papers published between 2008 and 2023 dealing with mislabeling in the  fish and seafood industry in different European countries , whereas  the co nsumption  of the main  commercial  species  in each country  was  obtained using the  database of household s’ purchases  of fresh  fish and seafood seafood products provided by EUMOFA.  Due to information limitations,  we have only been able to estimate the economic value of mislabeling of two of the main commercial species groups  such as gadoids ( cod, hake, haddock and other white fish) and scombroids ( tunas, mackerel s and bonitos) in 9 European countries (see Tables 1 and 2). We can observe that Italy presents the highest mislabeling rates, whereas the lowest rates are from the Netherlands and UK. On the other hand, the largest economic value caused by mislabeling is presented  in Spain due to the high  fish consumption in this country of gadoids and scombroids species.

 Kroetz, K., Donlan, C.J., Cole, C.E., Gephart, J.A., Lee, P. (2018). Through the Lens of Production and Trade: How Much Mislabeled Seafood Do Consumers Buy? Resources for the Future, report.

 Grant PID2022-137023OB-C31 funded by MCIN/AEI/ 10.13039/501100011033 and by ERDF A way of making Europe.