The distribution system, simply defined, is the series of commercial links through which fish are moved from the primary producer to the final consumer. These systems vary in their length and complexity and in the efficiency with which the objective of supplying the consumer is achieved.
A full and precise description of the distribution system for fish and fish products operating in Greece is outside the scope of this report and, indeed, given the particular difficulties in collecting production and market information in Greece, the subject warrants a detailed study in its own right.
Principal background features which prevent the establishment of precise descriptions are the high proportion of fish production which does not pass through controlled and monitored selling points, the highly scattered and remote nature of the locations where production takes places, and the lack of organization amongst producers.
Controlled selling, despite major efforts by Government, therefore remains a distant objective and, as can be seen below, only accounts for some 30% of the total estimated production. An indication of the complexity of fish distribution in Greece is given by the following estimates. (These are taken from a report commissioned by the Ministry of Agriculture and carried out by the National Centre for Marine Research in 1983.)
Sales by producers to various market levels:
Category of Sale | Proportion of Total Production |
| Producer direct to consumer | 25% |
| Producer to retailer | 20% |
| Producer to wholesaler | 15% |
| Producer to controlled auction | 30% |
Despite the low levels of controlled selling and the qualifications which any analysis must therefore carry, it is possible to give a general picture - at least to the point where problems can be clarified and areas for further investigation identified - using industry and Government sources.
The following description is based on information from Government on trade regulations for fish and fish products and on plans and proposals for public investment in marketing infrastructure, and from industry sources involved in controlled selling activities.
The Government of Greece has attempted to regulate profit margins at the different levels of distribution in the fish trade. Between 1979 and 1986, these included a differential to stimulate selling of cheaper imported fish, a measure aimed at the time at preventing price increases within Greece arising from low supply levels from national sources of production.
The regulated margins are as follows:
| 1979–1986 | - Margins - | ||
| Wholesaler | Retailer | ||
| Imported supplies | Fresh | 18% | 20% |
| Frozen | 10% | 20% | |
| Greek supplies | Fresh | 8% | 20% |
| Frozen | 8% | 20% | |
| 1986 | |||
| All supplies | 12% | 20% | |
In addition to the above, agents acting on behalf of producers have margins set at 6%.
Source: Ministry of Commerce
Other relevant regulations include commission levels for the semipublic fish marketing company Etanal S.A., which are currently set at Dr 15/box from the fish buyer and 1.7% of sale value from the producer.
Fishermen are also obliged to sell through public auction halls in areas where these are provided.
In addition to the regulation of trade, the Government has attempted to extend the control of fish sales through a programme of investment in centralized auction halls and the establishment of Etanal as an agency for the control and management of first-hand fish selling.
At present, Greece has eight central auction halls located at Alexandroupolis, Kavalla, Chios, Halkida, Messolonghi, Patras, Piraeus and Thessaloniki. Two others, at Preveza and Kalymnos, are under construction and a further eight projects are planned for construction within the next five years.
A new centralized retail market is also planned for Athens.
Despite a widespread and successful cooperative structure in the agriculture sector in Greece, cooperative involvement in fish production is low.
Approximately 150 fishermen's cooperatives exist but only 23 of these undertake organized selling activity for their members. The level of sales from these is approximately Dr 30 million/year and they are predominantly concerned with sales of lagoon production.
Significant developments for aquaculture have recently taken place in the Ioannina area where cooperative selling of farmed trout has been successfully organized. There have also been attempts during 1987 to establish cooperative organization of mussel farmers in Chalastra in the northeast of the country.
The national organization of cooperatives (PASEGES) is directly involved in marketing through the annual auctioning of national eel production to North European buyers. Approximately 90% of total production is sold through this channel.
The lack of social organization amongst fish producers is a general problem in Greece to the extent that the industry is generally not able to meet EEC criteria for minimum size for Producer Organizations.
In the rural areas in particular, this lack of organization and the dependence of individual producers on finance from merchants/buyers have, according to industry and Government sources, resulted in inefficient and exploitative selling arrangements.
Despite the attempts at regulation of trade, the realities of fish distribution are that margins achieved by intermediaries are much higher than the official limits and that the level of control within centralized auctions is limited. This view is firmly held by both public servants and Etanal management working in the field.
The general picture of the structure of distribution presented by these sources is as follows:
90% of fishermen landing at controlled markets use agents to sell their catch. The agents apply the legal 6% commission plus a further 6–9% service charge. Only the 6% is documented, the service charge being set by private agreement.
Etanal deduct 1.7% of the value of the sale from the producer and charge the buyer Dr 15/box of fish sold.
The agents, now acting as wholesalers, subsequently sell the fish to retailers (shops, individual “street” retailers, restaurants, municipal and central retail markets). Margins applied by the wholesalers at this stage are as high as 100% for cheaper species and 20% for high value species.
Retailers buying from wholesalers accept these higher prices as, by applying their legally defined 20% margin, they are able to increase actual profit levels.
Outside the centralized markets, similar conditions are widely judged to exist with the exception that Etanal commission and charges are not applied.
Such a system is clearly working both to suppress returns to producers as well as increase prices for consumers. The basic conditions which have allowed the system to evolve in this way are identified as being:
Lack of organization amongst producers.
Producer dependence on buyers for finance and other critical services, such as box supply.
The ability of merchants to operate in ways which are invisible to the regulating authorities.
