Introduction to EC Marketing 
Common organisation of the Markets
The common organisation of the markets in fishery products is an integral component of the Common Fisheries Policy. Since the fishing industry provides a major source of income to some coastal regions of the European Community, market stability should be actively encouraged. Such stability is achieved through various measures which include the application of common marketing standards, the establishment of Producer Organisations and a price support system coupled with intervention mechanisms.
Relevant Legislation: Council Regulation ( EC) No 104/2000 (the common organisation of the markets in fishery and aquaculture products)
Producer Organisations form the backbone of the common market organisation in fishery products. The key role of Producer Organisations is to market the products of their members and to implement measures that will promote the concentration of supply and stabilise prices.
Additional to their marketing requirements, Producer Organisations in the UK are responsible for managing catch quotas on behalf of their members.
Establishment of an Organisation is on the producer's own initiative and membership is voluntary. Although Producer Organisations were created to strengthen the position of producers in the market, the opportunity to manage quotas for their members has probably become the principal reason for membership in the UK.
Relevant Legislation: Council Regulation ( EC) No 104/2000 (the common organisation of the markets in fishery and aquaculture products)
Interbranch Organisations
Interbranch Organisations are composed of representatives in activities linked to production, trade and processing. Like Producer Organisations, Interbranch Organisations are established under the initiative of all or some of the organisations associated with them. Recognition of Interbranch Organisations requires them to implement various measures such as improving knowledge of and the transparency of the market.
Relevant Legislation: Commission Regulation ( EC) No 1813/2001 (the conditions for, the grant of and the withdrawal of recognition of interbranch organisations)
Producer Organisation Recognition
A Producer Organisation must apply for recognition and fulfil certain criteria relating to it and its members. Such criteria for recognition relate to size, area of operation, economic area, number of fishing vessels and production. All these factors contribute in determining whether there is sufficient economic activity, the main requirement for recognition.
One of the requirements of Producer Organisations is to submit an operational programme at the beginning of each fishing year. The operational programme should include a marketing strategy relating to quantity and quality of supply and a catch plan for species, in particular for species covered by catch quotas.
Relevant Legislation: Commission Regulation ( EC) No 2318/2001 (the recognition of producer organisations in the fishery and aquaculture sector)
Relevant Legislation: Commission Regulation ( EC) No 2508/2000 (operational programmes in the fisheries sector)
As previously mentioned, the common organisation of the markets in fishery products is important to the EC and common marketing standards are a means of achieving market stability. Common marketing standards exist for certain species of fish and shellfish and products must be uniformly graded to EC standards for size and freshness prior to first sale. The intention is that fish graded to the common standards will facilitate trade such that buyers can be confident that, for example, a size 1 haddock with freshness category A is the same throughout the European Union ( EU).
Relevant Legislation: Council Regulation ( EC) No 2406/96 (common marketing standards for certain fishery products) as amended
EC Prices and Intervention
Due to the unpredictable availability of fishery resources, arrangements are in place that attempt to encourage market stability. These arrangements serve to counteract the negative effects of the mismatch between supply and demand and to stabilise prices in order to ensure fishermen receive a minimum level of income. Such arrangements are based on a system of prices which, when applied, trigger intervention mechanisms.
There are 4 main categories of EC fish prices: guide prices, withdrawal prices, regional withdrawal prices and reference prices.
Guide prices
Guide prices are fixed for certain products before the start of the fishing year and are based on an assessment of market levels at selected ports throughout the Community over the preceding 3 years.
Relevant legislation: Council Regulation ( EC) No 2033/2005 (for the 2006 fishing year the guide prices and Community producer prices for certain fishery products)
Withdrawal Prices
Withdrawal prices are derived from the guide prices and help to guarantee fishermen a minimum level of income. Producer organisations may withdraw fishery products from the market where prices failed to reach the appropriate withdrawal price. This level, known as the Community withdrawal price ( CWP) is set by the Commission each year for each type of product marketed. Producer organisations are entitled to financial compensation for withdrawn products if they have adopted the CWP.
Autonomous withdrawal prices ( AWPs) are those set by Producer Organisations at levels of their choice. Where AWPs are adopted, fish withdrawn from the market are not eligible for compensation and the Producer Organisation, if appropriate, must itself reimburse its members.
Relevant legislation: Commission Regulation ( EC) No 2176/2005 (the Community withdrawal and selling prices for fishery products in the 2006 fishing year)
Regional Withdrawal Prices
Regional withdrawal prices ( RWPs) apply to fish landed in areas remote from the main Community markets. Factors such as weak local demand, perishability and transport costs are taken into account when deciding whether or not to have RWPs for particular species. The prices are set as a percentage of the withdrawal price applying in the Community as a whole.
Reference Prices
Reference prices are a benchmark against which the entry prices of imports of fish from Third Countries are measured. Reference prices are in place to avoid disturbance of the market caused by supplies from Third Countries at abnormally low prices. Action may be taken if there is a marked tendency for entry prices to be below reference prices.
Relevant legislation: Commission Regulation ( EC) No 2178/2005 (the reference prices for certain fishery products for the 2006 fishing year)
Intervention arrangements
Producer organisations can opt for either the Community withdrawal scheme (see Withdrawal Prices section) or for carry-over aid on the behalf of their members.
In the case of Community withdrawals fish is withdrawn completely from the market and is disposed of for charitable purposes, the manufacture of animal feed, or for purposes other than human consumption.
Carry-over aid is applied for fish that is subject to withdrawal, which is processed, stored and returned to the human consumption market at a later date.
In both cases members of Producer Organisations are eligible for financial compensation.
Relevant legislation: Commission Regulation ( EC) No 2509/2000 (granting financial compensation for withdrawals of certain fishery products)
Relevant legislation: Commission Regulation ( EC) No 2814/2000 (the grant of carry-over aid for certain fishery products)