Update from the processing sector

Trade deal disappoints Norwegian seafood processors

Seafood Norway, the employer trade body which represents both aquaculture and fishing companies, has said it is disappointed with the UK-Norway trade deal, describing it as a lost opportunity. And the seafood industry in Iceland is not too happy either

THE agreement between London, Oslo and Reykjavik was signed in June - as part of a trio of trade deals which also included Iceland and Liechtenstein - and hailed by senior politicians on all sides as a deal which will safeguard and strengthen the seafood sector.

But it is not a view universally shared by industry leaders. Seafood Norway CEO Geir Ove Ystmark said the government had not succeeded in its aim and would mean the industry was, by and large, standing still.

He states: “What we are left with is a lost opportunity. The industry has all the way asked for lower tariffs on processed products. This would have generated (processing) activity and created jobs in Norway.”

Seafood Norway believes the deal means the country will remain a largely raw material supplier.

Norway’s largest seafood organisation believes that Norway will now remain a raw material supplier with this agreement.

“The government has given up a unique opportunity to put in place an agreement that would provide important - and necessary - industrial development along the coast.”

Seafood Norway chairman Paul Birger Torgnes said the country needed profitable and long lasting jobs in order to secure its welfare

“What we are left with is a lost opportunity”

state into the future.

“This must be the last time we let such an opportunity pass us by,” he added. “ This agreement could have been an important step in that direction. Instead, we more or less stand on the spot resting, without any of the party speeches about the investment in the sea and seafood being realised.”

The agreement has also been met with disappointment by Fisheries Iceland (SFS), which claims the deal did not include improved market access for its members’ products.

Heiðrún Lind Marteinsdóttir, CEO of SFS said seafood made up more than 60% of Iceland’s exports to the UK and this should have had stronger emphasis during the negotiations.

Iceland’s Marel set to take over Valka

IcelandIc food processing group Marel has struck a deal to acquire Valka ehf, a fish processing business also based in Iceland.

Under the deal Marel will acquire more than 90% of Valka’s share capital and the remaining shareholders will be invited to sell their stock on the same terms.

The purchase price will be paid 50% in cash and 50% in Marel shares, except for smaller shareholders who will have the option of a full cash payment. Sellers that receive Marel shares will undertake a lock-up period of 18 months.

Valka operates in the salmon and whitefish processing industries. Its product range includes waterjet cutting, trimming, and grading solutions for whitefish and salmon. Valka is based in Iceland and Norway and its annual revenue is around €17m. The company has 105 employees.

Helgi Hjálmarsson, Valka’s founder and ceO, will take on a role as Director of Solution Integrity within Marel. He said: “The establishment of Valka in 2003 was a big step for me after nine excellent years in Marel where I worked on many innovative projects. By joining Marel you could say we are moving back home because both companies share the same vision and passion for developing high-tech processing solutions that transform the way fish is processed in a sustainable way.

“Our combined product offering will make us stronger together and even better at providing full-line solutions for our customers.”

Guðbjörg Heiða Guðmundsdóttir, Executive Vice President Marel Fish, said: “We are excited to join forces with Valka, an innovative provider of advanced processing solutions for the fish industry. Valka is technologically very strong and has good insight into market needs.

“Together the companies will build on the best of both, increase scale, accelerate innovation and strengthen our combined offering to continue to provide our customers with best-in-class processing solutions in the growing food processing industry.”

Earlier this year Marel acquired a 40% stake in Stranda Prolog, the Norwegian supplier of salmon processing solutions.

The closing of the Valka acquisition is subject to customary closing conditions, including anti-trust approval from the Icelandic Antitrust Authority, and is expected to take place later this year.

Loch Duart hails success for plant investment

One year on from Loch Duart’s acquisition of a formerly defunct processing plant at Dingwall, Factory Manager Russell Leslie has said he is “delighted” with its performance.

Independent salmon farmer Loch Duart purchased the site, which had previously been operated by Thai Union/ edinburgh Salmon Company, in 2020. The 50,000 sq. ft. premises had been unused for some time and the site required considerable refurbishment before it could return to operating fully.

Russell Leslie said: “Loch Duart invested £2m in buying and refurbishing the factory and we now employ over 70 people. Having worked under the previous ownership and now running the plant myself, I am delighted by the improvements in staff conditions in the last year under the new ownership. The factory and yard are substantial in size allowing us to design in lots of space for working, social distancing and staff welfare.”

Following the refurbishment, Loch Duart obtained the British Retail Consortium’s “AA” Grade certification, the UK supermarkets’ benchmark for food premises.

The company said that the factory is already exporting to Europe and the USA each week, and added that its high standard of gutting and filleting work has already brought in contracts from other salmon companies, in addition to processing all of Loch Duart’s harvested output.

Leslie said: “Our clear message to the local community is that we offer high quality jobs with good career prospects and reasonable rates of pay for the sector.

“For example, a line operative can be promoted to team leader within six months and career development plans are available for everyone who wants to progress. Previously the factory had significantly seasonal peaks, but Loch Duart is packing fresh fish not smoked (which is mainly geared to Christmas market).

“Loch Duart prides itself on its longserving staff and low absence from work. We aim to be exemplary employers offering long term prospects and career development.”

Right: Russell Leslie

Asian processor embraces transparency initiative

ASIAN processor and exporter LP

Foods Pte Ltd has become the latest company to participate in a project that aims to increase transparency in seafood sourcing.

Based in Singapore and Vietnam, LP Foods is one of the first seafood suppliers in Southeast Asia to join the Ocean Disclosure Project (ODP). LP has committed to voluntarily disclose the origin of its shrimp, octopus, and fish products.

The company has published an ODP profile containing a list of its seafood sources alongside information on the country of origin, certification and ratings, and environmental impact of production (oceandisclosureproject. org/companies/lp-foods).

An LP Foods spokesperson said: “We are proud to be one of the first Southeast Asian companies to disclose farmed and wild caught seafood sourcing information through the ODP platform. LP Foods is committed to transparency and to improving our sourcing. We endeavour to provide more sustainable products in the marketplace to help ensure sustainable consumption and product quality.”

Tania Woodcock, Project Manager for the ODP said: “By becoming one of the first companies in Southeast Asia to participate in the ODP, LP Foods has shown strong leadership and a commitment to transparency in seafood.”

Sustainable Fisheries Partnership started the ODP in 2015 to provide a valuable information resource for responsible investors, seafood consumers, and others interested in sustainable seafood. To date, 37 other companies including retailers, suppliers, and aquaculture feed manufacturers from around the world have participated. Other new participants this year have included seafood suppliers Thai Union Group and Hilton Seafood UK.

Minister reiterates confidence in seafood industry

BRITaIn’S fish processing industry has “huge opportunities” in the years to come. That was the message from the UK Government’s Fisheries Minister Victoria Prentis, on a visit to Grimsby on 1 July.

She visited Immingham Border Control Post (BCP) and two leading processors, Flatfish and Young’s Seafood, before hosting a virtual roundtable bringing together industry representatives from across the processing sector, including export and import stakeholders, to consider the challenges and opportunities facing businesses.

The north and north east Lincolnshire region accounts for around one-third of UK seafood processing jobs.

Prentis said: “It was a pleasure to visit Grimsby, to meet local businesses and see for myself the work carried out in what is one of our most important fish processing hubs. There are huge opportunities for people in the town, and the wider processing industry.

“Supporting coastal communities to access trade opportunities outside of the EU is a key priority to ensure that the UK fishing and seafood industry is able to prosper for years to come.”