cutting edge Want to go straight to the numbers?
Seafood processing industry performance data
29–36
Welcome to the Craft Revolution How lessons from craft success stories can be applied to the UK seafood industry
Also in this issue‌ 04 11 21 37
Expanding Markets Waste Not, Want Not Festival Atmosphere A Leading Role
Issue 01 | 2019 A
Letter from the Chief Executive
At Seafish we balance the needs of a variety of stakeholders from catch to plate. But that’s not to say when working with one set of stakeholders we can’t find a great idea that could help serve another.
In 2015, we published the first issue of Quay Issues, the magazine designed to shine a spotlight on innovative and inspiring examples of best practice in the catching sector. Since then it has gone from strength to strength, winning awards and telling the stories of those looking for ways to evolve, optimise and seek out change for the better in our fishing fleet. Now it’s time for a magazine that does the same for the seafood processing industry. Now it’s time for Cutting Edge… As the political landscape changes and evolves, seafood processing businesses face a range of challenges from sourcing labour to meeting environmental standards to finding their place in a global marketplace. However, with these challenges also come opportunities.
1
In Cutting Edge we look at the creative and innovative approaches seafood processing businesses across the UK are taking to address and overcome the challenges facing the sector and improve their business for the future. Alongside feature articles, we are still providing the same wealth of processing industry data featured in our previous seafood processing industry reports. At the back of the magazine you will find all of the most up to date industry enquiry performance statistics from our 2018 census and most recent financial surveys. The launch of Cutting Edge marks a renewed focus on the seafood processing industry for our Economics team. As well as the magazine we’re now finishing work on a new seafood processing industry enquiry tool that will enable people to get more hands-on with our data than they ever have before, and in 2020 we will be reviewing the way we conduct our economic surveys. Our aim is to gather and provide the most useful data for seafood processors while taking up the least amount of their time.
As always we couldn’t have produced this magazine without the support, enthusiasm and unerring passion of everyone featured in our articles and the hundreds of seafood processing companies who have taken part in our surveys. Of course with this being the first edition of the magazine we’d also really value your thoughts on what worked well and what we could do better. You can send your thoughts to us via the feedback form. With your help we can give Quay Issues a run for its money when it comes to awards time. Read on and stay at the Cutting Edge!
Marcus Coleman
2
Editorial Team
Steve Lawrence (l) Editor & Economics Project Manager Ana Witteveen (r) Editor & Economist
Kelly Beatson (l) Economics Researcher Rannvรก Danielsen (r) Economist
Marta Moran Quintana Economics Researcher
3
Seafish Cutting Edge
Article 01
Cutting Edge explores how UK seafood businesses can use international seafood expos to tap in to growing seafood markets and the barriers they might face.
Expanding Markets By Rannvá Danielsen
Seafood exports from the UK to Asia have grown from less than £100 million in 2011 to more than £300 million in 2018.
4
Expanding Markets
“
The seafood expos are vital for growing … the words of David Markham, your market…
Managing Director of The Blue Sea Food Company in Devon.
UK seafood exports to China have doubled in value since 2015, with China now the number one destination for UK crab, reaching £33 million last year. And crab happens to be The Blue Sea Food Company’s speciality. “We are lucky. Crab is particularly well liked, especially in China,” David says, confirming the story that export data is telling us about China’s appetite for UK crab.
“ 5
Seafish Cutting Edge
The Blue Seafood Company sells live and frozen whole crab, as well as crab meat. Their live crab mostly goes to China, with frozen crab going as far as Japan, Taiwan, Hong Kong and New Zealand.
Our exports to Asia have grown faster in both volume and price than our UK market.
There is a massive demand for seafood in Asia, partly driven by population growth. The UN predicts that the world’s population will reach 8.5 billion people by 2030. China, with its population of 1.4 billion – and growing by 5 million a year – accounts for a large chunk of that.
“ The main barrier is fear.
The Blue Sea Food Company has been selling crab to Asia for a few years now. David used to live in China, so that felt like a natural place to start. “About 10 years ago, I went back to Asia to build a customer base by going to seafood shows,” he says. The idea of expanding beyond Europe and trying to build a customer base in far-away Asian markets might sound daunting to people who don’t have experience of living in Asia. David insists any reservations are not necessary – operating in Asia is just like operating anywhere else, including the UK. In his experience, Asian customers are young, intelligent, IT savvy and speak excellent English, and he’s found that language barriers are more of an issue in some European countries than they are in most Asian countries. There are of course challenges, particularly with distance and payments, but ultimately the precautions you have to take are the same as in any market.
With this growing population and an evident taste for species that UK processors can offer, David believes that the Chinese market presents an opportunity for the UK seafood industry.
“You have to find the right businesses, so you don’t get caught out, but those same rules apply in the UK.” Foreign currency fluctuations can be a concern and David concedes that China can be a fickle market and politics play a huge role – the trade tensions between China and the US come to mind. “But the main barriers for exporting to Asian countries are the fear factors, you know, issues around going out and finding customers,” he stresses. Getting past the fear factor is well worth it. As well as an opportunity to increase sales, businesses can also expect to get better prices for their products. “Asia normally has better prices than Europe,” David says.
6
Expanding Markets
“
For us, China is the most important show. The international seafood expositions are where David makes his sales (see page 10). Attending international seafood expos is, David believes, the best way for UK businesses to connect with foreign buyers and tap into that growing market for UK seafood.
For businesses looking to take the first steps towards exporting to new markets, Seafish can provide a route into expos in China and Japan. Phillip Quirie, who helps organise the Seafish pavilions at these shows, emphasises the support that Seafish can offer.
With many seafood expos to choose from if you are looking to expand your market, David recommends finding the most appropriate show for you and then spending some money on a stand if you can. “If you can’t go yourself, there are many companies that can go on your behalf and represent you,” David explains.
“The greatest barriers stopping firms from exhibiting are often the simplest things,” says Phillip. “We can take a lot of hassle out of the process, from arranging an invitation from the Chinese minister for agriculture for visa purposes to dealing with the logistics of getting exhibitors from downtown Qingdao to the expo centre about 50km away.”
Chinese demand is driving growth
Total worldwide exports of UK seafood have grown more than 50% in value in the last decade, exceeding £1.9 billion in 2018. The increase in volume was less than 25%, but that is good news for the UK seafood industry – it means the average price of exports has gone up. A big driver for this growth is the increased appetite for UK seafood in Asia. China is responsible for a large part of that growth. Seafood exports to China alone were worth nearly £150 million last year.
7
Seafish Cutting Edge
South Korea, Taiwan, and Vietnam are also among the countries driving this growth. Export data indicate that the Chinese and Vietnamese favour salmon, crabs, rock lobster and crawfish. South Koreans like molluscs while Taiwan buys mainly salmon. Beyond Asia, Australia is increasingly sourcing fishmeals and fish flours from the UK. Export values to France have also increased quite dramatically in the last few years. France is by far the largest market for UK seafood, reaching £487 million and 80,000 tonnes in 2018.
While Phillip is on hand to provide support in dealing with any practicalities that might arise during the expo, there are benefits of planning ahead.
“It is good to do your preparation,” Phillip emphasises. “We organise translators to facilitate discussions, but you can save a lot of effort just by having the catalogue of species you can offer translated in advance.”
“ Attending is an ongoing investment. “I have been going to the China expo for many years now,” reflects David. “Back when we started, we were the only English company at the show.” More and more businesses appear to have opened their eyes to the opportunities offered by Asian markets. Phillip says participation by UK companies is growing rapidly. “There has been quite significant growth in the number of UK businesses attending. We’re also seeing greater representation from the pelagic side alongside shellfish, which is welcome as there is a demand for mackerel in China, for example.”
T4 – Trade & Tariff Tool in Tableau Seafish’s T4 gives easy access to trade and tariff data for the first time. Containing trade data from 2010 on seafood for human consumption, as well as current tariffs, the user friendly tool is designed to give businesses the information they need to make informed business decisions. Seafish Chief Economist Arina Motova, who developed the tool said:
“Our main objective was to create a simple, visual tool that would save people time. From overviews of new markets to volume, value and tariffs on exporting specific species, the Trade and Tariff Tool provides detailed information in just a couple of clicks, leaving exporters able to focus on how to best use this data.” __________________________ To learn more go to: www.seafish.org/t4 8
Expanding Markets
With a culture, particularly in Japan, which considers that deals are best done face to face, investing the time to return year after year pays dividends. “For the companies who go out there, attending is an ongoing investment,” adds Phillip. “They do stress that the exponential growth comes from going back and re-meeting with contacts.” Market export guides with intelligence on a variety of international markets are among the areas of support that Seafish can offer to exporting businesses looking to trade internationally.
The future?
The global market might be characterised by uncertain times and changing political landscapes, but David sees time and confidence as the key ingredients for success.
“
“We want to support the seafood industry to trade internationally,” says Lynn Gilmore, head of International Trade & Regions at Seafish. “Our presence at these important global events provides opportunities for businesses in the seafood supply chain to join us, investigate new markets and make new trading contacts. We would encourage anyone who is interested to get in touch and find out how they can get involved.”
Taking heed of David’s words may pay off. After all, billions of people around the globe are going for supper tonight, and they all need to get their food somewhere.
You don’t need any prior knowledge of the market. All you need is time and confidence David Markham, managing director of The Blue Sea Food Company
9
Seafish Cutting Edge
International Seafood Expos: Where sellers meet buyers International seafood expos are generally organised around national pavilions, often featuring cookery demonstrations and product sampling, as well as individual booths for companies to showcase and sell their product. There are many seafood expos to choose from but three of the big ones are listed here.
_______________________________________________________________________________
China Fisheries & Seafood Expo Taking place during the first week of November, the China Expo is the world’s largest attracting more than 1,500 exhibitors and 33,000 attendees from over 100 countries. Seafish has a UK seafood pavilion featuring a demonstration kitchen and chef. UK companies can network in an open-plan meeting area with translators provided and pay for individual exhibition booths to showcase their products. Seafood Expo Global Europe’s biggest seafood trade expo with more than 2,000 exhibiting companies and 29,000 buyers, sellers and seafood professionals from 89 countries attending in 2019. Held in Brussels in April/May, UK companies can access a meeting room – suitable for private meetings or hosting briefings – and open plan meeting space on Seafish’s stand. Japan International Seafood & Technology Expo Four expos in one: fishery, aquaculture, sushi, and seafood technology, it is usually held in August and attended by more than 30,000 people. Seafish and Seafood Scotland have a UK seafood pavilion including Seafood Scotland’s demonstration kitchen. UK companies can access a translator and conduct business in an open-plan area. _______________________________________________________________________________
For more information, please contact Lynn Gilmore on Lynn.Gilmore@seafish.co.uk or Phillip Quirie on Phillip.Quirie@seafish.co.uk.
10
Article 02
Waste Not, Want Not By Ana Witteveen
Identifying opportunities to improve efficiency and reduce cost
11
Seafish Cutting Edge
The Benefits of a Circular Economy Linear Economy
Recycling Economy
Circular Economy
While financial factors will always be of vital importance to any business, there is an increasing trend – and expectation – for businesses to adopt a triple bottom line approach, where social and environmental performance indicators are considered alongside economic ones. Cutting Edge investigates how processing businesses can improve resource efficiency, benefiting people, planet and profit. But what is resource efficiency and what can UK processing businesses do to improve it? Resource efficiency is about getting the maximum benefit from resources, while minimising waste and the costs of waste disposal. Savings could come from improving insulation and heating systems, switching to renewable energy, reducing water use and making better use of processing by-products. 12
Waste Not, Want Not
According to the Waste and Resources Action Programme (WRAP), waste could be costing businesses in the food and drinks sector as much as 4% of annual turnover. Energy is another key operating cost for seafood processing businesses around the UK, costing a further 1 to 2% of annual turnover, on average. “Those that improve efficiencies can make significant cost savings, improving business profitability,” asserts Jimmy Buchan, CEO of the Scottish Seafood Association. “Any savings from increasing resource efficiency can then be used for further development and growth of the business.”
Resource Efficient Scotland Call FREE on 0808 808 2268
Resource Efficient Scotland (RES), a Zero Waste Scotland programme, was launched by the Scottish Government in 2013 to deliver on its commitment to help small and medium-sized Scottish businesses reduce energy and resource costs by improving resource efficiency. The RES programme is free for businesses to access, and in the 2018–2019 financial year, it delivered 1,050 projects to approximately 800 small-to-medium enterprises (SMEs) across Scotland, with many of these in the food and drink sector.
Across the UK there are numerous programmes available to help businesses improve resource efficiency. However, it can often be difficult to identify and implement innovative savings opportunities, especially as support and funding options can vary by business size and location. To learn more about business support available to seafood processing businesses, Cutting Edge spoke to individuals involved in three very different and exciting projects in Scotland.
“Reducing operating costs not only improves your margins but can help make you more competitive,” emphasises John Murray, Programme Manager of Resource Efficient Scotland.
Estimated cost savings for different measures ranged from £2,000 to almost £40,000.
”
RES Service Flow
takes up to 1 week from 1st contact Contact RES
13
Seafish Cutting Edge
Framework consultant allocated
RES consultants can help
Complete a support request form
“If you qualify, RES assigns you an expert framework consultant who will review your business’s current situation and assess potential opportunities for resource efficiency savings, no matter where you are located in Scotland,” he confirms. As a result, projects have been carried out in every single local authority area of Scotland, with particularly good uptake from the Highlands and Islands region. A quick snapshot of the typical RES process shows that in under a month from first contact, your business can have a qualifying RES report in hand. The report includes unbiased cost and carbon saving estimates associated with different measures based on the business’s financial and technical information.
Funding comes from the EU and Scottish Government and is distributed on a first come, first served basis each financial year. The loan can be used to implement resource efficiency measures related to energy, waste, water and raw materials: – Insulation – Lighting and heating – Waste reduction – Renewable energy – Water efficiency
Reducing operating costs not only improves your margins but can help make you more competitive.
“Once they have a completed report, businesses can apply for government funding to help with implementation,” explains Lisa Bertrand, consultant at Beyond Green, a RES framework contractor.
“Sometimes businesses come forward with ideas, but consultants also discuss the wider business to make sure they’re not missing any opportunities,” notes John Murray. “It’s more of a general audit if the business doesn’t have specific ideas in mind.”
Government funding is available as an unsecured interest free loan of up to £100,000; 15% cashback may also be available to help SMEs implement identified resource efficiency measures.
Lighting, heating and insulation are the most common areas identified for improvements. “In the food and drinks sector, this extends to include refrigeration and water use as well,” he explains.
”
support available during process Site visit/ phone audit
Assess the opportunities
Implementation
Business makes resource efficiency savings
14
Waste Not, Want Not
“
Jimmy adds, “There’s a lot of scope for smaller businesses, especially those working in small, old units, to upgrade and improve premises to be more resource efficient through investment.”
There’s a lot of scope for smaller businesses. So far, RES has worked on 15 projects with seafood businesses around Scotland. “I recently delivered three projects for seafood businesses covering measures from energyefficient refrigeration, electric vehicles and LED lighting to renewable energy options including solar PV, wind turbines and heat recovery. One business even installed an automated plastic crate washer based on the report recommendations!” comments Lisa. “Estimated cost savings for these different measures ranged from £2,000 to almost £40,000, with payback periods usually less than eight years.” J H Milne, a Peterhead-based processing business run by the Milne family, was one of the first Scottish processors to engage with RES. “We already had an idea of what changes we could make within our business, but going through RES confirmed our ideas and now gives us access to the government loan,” says John Milne. “Now that we’ve got the RES report, we’re hoping to access loan funding for solar panels and a heat reclaim system within the factory.”
15
Seafish Cutting Edge
He explains that because businesses in the sector often operate with tight margins, they can be reluctant to spend money to invest. “But,” he says, “anything that can cut costs in the long term helps, especially during periods when the price of fish is up, and any savings can be reinvested in the business.” John confirms that he would recommend the RES programme to other businesses. “It makes it much easier to justify practical investment,” he concludes. On average, 70% of businesses involved in RES go on to implement at least one identified resource efficiency measure. RES’s John Murray also confirms that nearly 50% of identified cost savings (by value) go on to be implemented: “Some businesses even implement one change now, then in a few years come back and implement another one, with RES supporting them throughout this process.” RES can also provide business support through the implementation phase, which lasts, on average, four years. John adds, “We can help businesses with things like evaluating tenders and identifying local suppliers.” Case studies from other Scottish seafood businesses that have been involved with the programme are available on the RES website.
Nearly 50% of identified cost savings go on to be implemented.
”
The Circular Economy Business Support Service, provided by Zero Waste Scotland, also offers resources, advice and funding support to Scottish SMEs. Similar to RES, this service is funded by the EU and Scottish Government.
The service offers free consulting to help business owners explore new circular economy concepts or applications for their businesses. The Circular Economy Investment Fund is then available to help businesses take development ideas forward to the implementation stage.
Through the programme, Zero Waste Scotland has worked with a number of seafood processors to explore circular economy models based on increasing the value of, or ‘valorising’, waste streams and by-products under the bioeconomy sector umbrella.
“The service provides expertise to support the development of new circular economy solutions in Scotland,” explains Peter McCafferty, Circular Economy Business Support Framework Manager at Zero Waste Scotland.
One company that has received Circular Economy Investment Funds is Pennotec, a biotechnology company working to commercialise the extraction of chitin from crustacean shell waste. Chitin is a fibrous substance that makes up 20 to 30% of shells, giving them their flexibility and shape.
“When it came to disposing of shell ‘waste’, we realised that the processing industry had cost and regulatory challenges, but there was a potential market value for that waste,” explains Dr Jonathan Hughes, Managing Director of Pennotec. “We’re now working to bring science and industry together to create new and exciting chitin products, getting the maximum value from materials.”
Dr Jonathan Hughes with a water clarifier product made from chitin.
Zero Waste Scotland Circular Economy Business Support Service and online acceleration centre: circulareconomy@ zerowastescotland.org.uk
enquiries@pennotec.com
Through the iCRAB (integrated Chitin Ryegrass Acid Biorefinery) project, Pennotec is working to bridge the gap between seafood processors, which consider crustacean shells as a waste, and other industries, like the nutraceuticals industry, which value the products that can be extracted from shells.
16
Waste Not, Want Not
Crab shell components, from left to right: Calcium salt, protein, chitin and astaxanthin.
The idea is that chitin can be used in applications like cosmetics, surgical stitches and as a food thickening agent, adding value to a previously worthless processing by-product.
“
“If you think about whey protein, it used to be a waste product from cheese production, but now it has a massive market. It even has a higher market value than some primary cheese products these days,” says Jonathan. “And we could see something similar happen with chitin!” As Peter points out,
“Our programme primarily supports SMEs but also wider supply chains and other collaborative circular economy projects where the lead is an SME. This enables larger businesses to get involved,” adds Peter. “And regardless of business size, we’re always happy to have a conversation about opportunities and resources available through other programmes.”
The biggest take away is to think outside the box. What was once seen as a waste stream from shellfish processing now presents commercially lucrative circular economy business opportunities. Processing businesses around the UK have the opportunity to get involved in innovation like this to increase the value of processing by-products.
17
Seafish Cutting Edge
Crab shell waste.
The triple bottom line approach also brings people, and especially staff wellbeing, into the business performance equation.
Dawnfresh, a large Scottish-based seafood processor supplying both UK retailers and global markets, is keen to engage its 650+ employees in resource efficiency training as part of its new well-being strategy. To find out more, Cutting Edge spoke to Fiona Anderson and Liz Gemmell at Dawnfresh. “We have organised two employee engagement days at our Uddingston site this summer,” says Fiona. “The first ‘Love Food Hate Waste’ day is to raise awareness about easy practical everyday things people can do at home and work to reduce food waste and increase recycling. The second, ‘Home Energy Advice’ day, run by Home Energy Scotland (HES) and Scottish Water, is about highlighting ways to save on electricity, water and heating.” “It’s important for us to empower staff and encourage everyone to think about resource efficiency and cost savings as part of our well-being programme, especially from a financial perspective,” adds Liz. In addition to helping staff reduce waste and save money at home, Dawnfresh also expects the training outcomes to translate to the workplace, improving the business’s resource efficiency and reducing operating costs. As HES is government funded, these training days are free of charge to the business. “The team were so welcoming and helpful. It’s a great resource, so why not tap into it?” concludes Fiona. Seafish is also working with Seafood Scotland on its new Seafood Industry By-Product Stakeholder Working Group as part of Seafood Scotland’s new Changing Tides action plan launched in May 2019.
“The working group aims to bring readymade circular economy solutions direct to industry,” advises Patrick Hughes, Head of Seafood Scotland. Seafood Scotland is currently working with experts at Zero Waste Scotland, Aberdeen & Grampian Chamber of Commerce, Scotland Food and Drink, local councils and Stirling University, amongst others, to build an understanding of current by-product streams in seafood processing and the potential for these streams to generate value add opportunities. “There’s a lot we can learn from other countries and parts of the food and drink sector,” stresses Patrick. “Now we need to pull this information together and approach the sector with tailor made solutions. This will help businesses reduce waste management costs and increase the value of processing by-products.”
Love Food Hate Waste
Home Energy Scotland Call FREE on 0808 808 2282
Lewis Cowie, Marine Sustainability Manager at Seafish, agrees, commenting that moving from a linear to a circular economy has been shown to benefit businesses by capturing more value from raw materials, reducing running costs and increasing competitiveness.
The team were so welcoming and helpful. It’s a great resource, so why not tap into it?
”
18
Waste Not, Want Not
“Supporting the seafood sector to respond to supply chain integrity and reputation issues is a key area of Seafish’s work,” confirms Lewis. “Our Responsible Sourcing team is currently undertaking a project with industry partners to explore how a circular economy can be established in a seafood industry context.”
Consideration for people and the planet, as well as profit, has pushed businesses to work at the cutting edge to meet social, environmental and financial business needs. Fortunately, there are already numerous programmes and resources available to engage with, helping businesses tackle challenges head on and develop innovative solutions to industry-wide problems.
Other Resources The UK Seafood Innovation Fund calls for applications for either small feasibility studies or large full-scale R&D projects to kick start sustainability and productivity improvements across the UK seafood supply chain. The threeyear, £10 million programme was launched in July 2019 by the Centre for Environment, Fisheries and Aquaculture Science (Cefas), an executive agency of DEFRA. Innovate UK offers UK-based businesses the opportunity to compete for government-backed funding to research and develop a process, product or service, test innovation ideas and collaborate with other organisations. Waste and Resources Action Programme (WRAP), founded as a charity in 2000, works with businesses, individuals and communities throughout the UK
to achieve a circular economy by helping them reduce waste, develop sustainable products and use resources in an efficient way. Advance London is a three-year programme which places London’s SMEs at the heart of the circular economy, offering a community, business support advice and financing. T: 020 3963 0675 E: info@advancelondon.org Future Peterborough aims to apply circular economy principles at the city level. The programme is focussed on making the most of local resources, supporting economic resiliencies, developing strong communities and increasing environmental sustainability. T: 017 3331 7417 E: info@opportunitypeterborough.co.uk
Useful reports • Seafish Introduction to resource and waste management • WRAP Reducing waste in the fish sector • WRAP Self-assessment review for food and drink manufacturers For more information, please contact Stuart McLanaghan, Head of Responsible Sourcing on Stuart.McLanaghan@seafish.co.uk 19
Seafish Cutting Edge
The costs and benefits of end of life fishing gear The sea is a hostile place and can take its toll on fishing gear. When fishing gear reaches the end of its usable lifespan it needs to be replaced so that fishermen can continue catching effectively. Most end of life fishing gear is disposed of in landfill, but does it have a value and is landfill the most cost effective solution? Explore this topic in Quay Issues volume 6 available November 2019. Quay Issues explores the challenges facing the fishing industry and showcases creative and innovative approaches to making the industry more sustainable, efficient and safe. During our annual Fleet Survey we speak to hundreds of vessel owners at ports around the country. While the purpose of these interviews is to seek permission to access financial data we also uncover countless individual stories. To receive your free copy visit www.seafish.org/article/quay-issues
20
Article 03
Check out these sites to see what food festivals are on near you: www.eatdrinkseek.co.uk www.foodfestivalfinder.co.uk www.thefestivalcalendar.co.uk 21
Seafish Cutting Edge
Festival Atmosphere By Kelly Beatson
Food and seafood festivals happen all over the UK, providing an excellent opportunity for local businesses to engage with the public and showcase their produce. Visitors enjoy food and drinks stalls, samples, entertainment, cooking displays and interactive sessions often focused around education. Lynn Gilmore, Seafish’s Head of International Trade and Regions explains, “Festivals like these provide a useful platform for seafood businesses to present their fantastic produce. Seafish sees events like these as an important opportunity to support the UK seafood industry in promoting fresh, local produce.” To find out more about how seafood businesses are using food festivals to connect with consumers Cutting Edge spoke to businesses showing at just a few of the many food festivals that run across the UK.
22
Festival Atmosphere
Portsmouth Seafood Festival
“
Attending the festival gave me a fantastic opportunity to showcase my product to a whole new, very appreciative, foodie audience. Iain Spink, Arbroath Smokies
Three day event 60,000 visitors 23
Seafish Cutting Edge
Following tremendous success in 2017 and 2018 the Portsmouth Seafood Festival was back in June for a third year. Local seafood business Viviers (UK) Ltd are key partners in the festival. Angela Lloyd, Company Secretary, shares her enthusiasm for the event: “The festival provides a valuable opportunity for seafood businesses to promote their products to a large targeted audience.”
“I’m always delighted to join Mike and the Seafish team in promoting great British seafood. The focus is to show how easy it can be to cook many types of seafood. There are so many types of fish and shellfish on offer. It’s all about building the consumers’ confidence to try something new.” explains CJ Jackson.
Iain Spink of Arbroath Smokies agrees: “Attending the festival gave me a fantastic opportunity to showcase my product to a whole new, very appreciative, foodie audience. “As my business relies mainly on direct sales on the day, the considerable number of customers through the gates ensured that I had a truly memorable first experience at the event. It was my first time south of the border to present Arbroath Smokies commercially and it certainly won’t be my last!” Seafish Ambassadors CJ Jackson, CEO of Billingsgate Seafood School, and Mike Warner, ex-fisherman, food writer and fisheries journalist, supported the event with seafood cookery and interactive demonstrations. Seafood cookery demonstration by CJ Jackson and Mike Warner
24
Festival Atmosphere
Balmoral Show
Four day event 120,000 visitors 25
Seafish Cutting Edge
In recent years Balmoral Show, organised by the Royal Ulster Agricultural Society (RUAS), has been increasingly utilised by local seafood producers to promote the best of local seafood provided by the Northern Irish industry. This year Sea Source, a local fisherman’s cooperative, presented cookery demonstrations, a samples area and a display case with locallycaught produce for sale.
Another fresh local seafood display, provided by George S Cully and Son for the Seafish stand, was a tremendous talking point during the show attracting crowds of adults and children alike.
“The show has been a great success,” says Alan McCulla, Chief Executive Officer of ANIFPO and Sea Source. “It provides an unparalleled opportunity to showcase the local fishing industry.”
Hal Dawson, Master Filleter, dropped by the stand and wowed the crowds with his knowledge of various fish and shellfish species, showcasing filleting and cooking techniques.
Alan goes on to say that the Balmoral Show is a permanent feature on Sea Source’s annual calendar. “Our members benefit from the important new business opportunities we develop at the show, both domestically and overseas.”
“This year there was a great level of visitor engagement with many reporting they tried new products and species and expressing a strong interest in trying locally sourced seafood,” explains Hal.
As a result of public interest and business interactions in previous years, Sea Source has successfully opened a seafood shop in Kilkeel and created a new global spin-off business, the “Irish Sea Food Company” which delivers fresh seafood to Abu Dhabi and Dubai. These new business ventures highlight the value of networking and business visibility at the show.
Annika Clements, Seafish Northern Ireland Regional Manager agrees. “The show offers seafood businesses an excellent opportunity for cooperation and joint promotion of fresh, Northern Irish seafood.”
Hal Dawson and Annika Clements.
26
Festival Atmosphere
Dorset Seafood Festival
Three day event 50,000 visitors 27
Seafish Cutting Edge
The Dorset Seafood festival prides itself in offering the public a great opportunity to learn about the superb seafood available just off our wonderful shores. “Dorset Seafood Festival is fantastic as it affords us the opportunity to showcase everything we are proud of,” says Sean Cooper, Owner of Weyfish, who supplied the Seafish stand with a variety of fresh caught seafood from the local area. Sean goes on to say: “Visitors to the festival were very interested in learning more about the variety and seasonality of the locally caught seafood available.” Interactive sessions hosted in the Seafish demonstration kitchen attracted large crowds each day. Similar to other food festivals that Seafish attends, Seafish Ambassadors CJ Jackson, CEO of Billingsgate Seafood School, and Mike Warner, ex-fisherman, food writer and fisheries journalist, supported the event with seafood cookery and interactive demonstrations.
educate, inform and enthuse people as to how our seasonal, sustainable seafood is produced, the better.” In addition to the cookery demos Adrian Bartlett, of The Crabstock Boys, demonstrated crab picking and dressing. “This was a great opportunity to share my knowledge and passion, to show how good UK shellfish is to eat and how easy it is to pick a crab without fear.” Gus Caslake, Seafish South West Regional Manager, says: “The Festival provides an invaluable showcase for seafood. The engagement with the public and local seafood businesses is excellent and seems to improve year on year.”
Mike Warner explains: “For me, the festival is an ideal platform to reinforce what I do in connecting the UK consumer to our fishing and seafood industries. The more exposure I can get to help
28
Article 04
Welcome to the Craft Revolution By Steve Lawrence
While for many, price and convenience are king; for some,the appeal of the ubiquitous pales in comparison to the unique. Across the board, more and more consumers are embracing the individual and handmade in how they dress, which household items they purchase and, most notably for the seafood industry, what they eat and drink. 29
Seafish Cutting Edge
Mass production and modern manufacturing mean that same-day delivery of a good-quality Swedish designed corner sofa is just a few clicks away. For some in seafood processing, automation and mechanisation offer an obvious route forward for a labour-intensive sector.
With a recent Seafish study showing that EU workers represent the majority of the sector’s workforce (51% overall, with an even higher dependency in areas like Grampian, at 69%), and Brexit – in whatever form it takes – likely to bring challenges, it’s not hard to see why reducing recruitment needs and staff costs has great appeal. But at almost the other end of the scale, some are looking at a fundamentally different, but no less innovative, solution.
Welcome to the Craft Revolution… Whether it’s in the rise of the artisan coffee house or the increasing prominence of craft beers in pubs across the country, it’s clear that the idea of ‘craft’ has the potential to energise business. But how can the lessons offered by these craft success stories be applied to the UK seafood industry? The Fishmongers’ Company believes it has at least part of the answer… 30
Welcome to the Craft Revolution
“
Building trust For over 700 years, The Fishmongers’ Company has upheld standards in the trading of fish and shellfish, and today its mission is to promote a healthy, prosperous and sustainable fish and fisheries sector for the long-term benefit of the UK. It sees the development of an industry-recognised Master Fishmonger Standard (MFS) as key to this goal.
Alison Freeman has been involved in the development of the MFS since starting with the company in 2017 as a programme manager.
If we want our consumers to be knowledgeable about seafood, make the best choices and understand quality, it needs to start from within. One of the biggest challenges facing the entire seafood industry is the need to build consumer trust in fish and shellfish. Everyone, from restaurants and retailers to the person catching the fish, has a role to play in building this trust, and the MFS was designed with this in mind. The MFS aims to recognise achievement across five tiers, with a high level of skill and knowledge about the seafood industry key to each of them (see opposite).
31
Seafish Cutting Edge
With a qualification such as this, it’s clear that demonstrable skills will be of the utmost importance. Gary Hooper, who has worked in the industry for 25 years across a variety of jobs and is one of the main architects of the course, says, “Businesses want the best craftsperson possible and their customers want evidence that the people you have preparing seafood are qualified and the best people for the job.”
The Apprentice Throughout the UK there are a number of approved fishmonger apprenticeship schemes where individuals can learn all aspects of the trade from harvesting to selling. On schemes lasting between one to two years, fishmonger apprentices are given the opportunity to demonstrate their skills and knowledge through tests and assessments and upon completion are able to apply for recognition by The Fishmongers’ Company.
MFS Young Fishmonger Award MFS Recognised Fishmonger
MFS Craft Fishmonger MFS Advanced Fishmonger MFS Master Fishmonger MFS Companion Fishmonger
32
Welcome to the Craft Revolution
“
Slightly more unusual with the MFS is the desire to increase knowledge of different parts of the supply chain, including aquaculture and marine fisheries. Participants are even taught about quota allocations and regulations such as the landing obligation. Alison explains, “The aim is to teach people things that aren’t needed for the daily function of their role but that can add to their confidence and job fulfilment.”
We want people to think outside their day jobs and consider the fish they’re handling every day. Similar to the stereotypical hipster barista at the independent coffee shop, they want every participant to be a real expert and be able to talk about the product. Also open to every participant is the chance to be publicised by The Fishmongers’ Company. The biggest names in craft beer are as famous for their marketing as their drinks, and whilst The Fishmongers’ Company isn’t pursuing publicity stunts per se, it does see a need for more ‘disruptive’ and less traditional marketing strategies.
It wants participants to “not just be an ambassador for the course but for the industry in general.” Along with the badges, certificates and invites to the company’s award ceremony, those who qualify will be featured on the company website and could even appear on social media as fishmonger of the day or week. The website also features an interactive map where people can find their nearest certified fishmonger, and The Fishmongers’ Company is dedicated to sharing and promoting any media coverage participants might receive and putting them forward for opportunities such as demonstrations at seafood festivals. Participants might not have the profile of a Great British Bake Off contestant (yet), but The Fishmongers’ Company would like to see them promoting their products in the same way that TV’s star bakers have promoted artisan bread. Gary Hooper hopes that everyone who goes through the MFS will have the same mindset: “It’s not only about the individual – it’s about giving something back to the industry.”
The craft tier Whilst a number of gin distilleries have successfully scaled their businesses with help from shrewdly chosen celebrity influencers, the number of followers on Instagram may not be of interest to many processing businesses. This is where the tier system of the MFS is important.
33
Seafish Cutting Edge
The craft tier of the standard was specifically designed for those working in seafood processing businesses, and it promotes skills particularly suited to these jobs. There is an emphasis on the practical, with customer service and retail aspects omitted entirely and the health and safety aspect tailored to a processing environment.
Most notably, the craft tier is the only one of the tiers in which the skills assessments are time sensitive, which is of course vitally important to the running of any processing business. Terry Martin, multiple-time fishmonger of the year and master fishmonger at M&J Seafood notes, “The people who do this tier can produce yield… they have the skills that customers are after and they can see that they’ve reached a certain level.”
It’s also hoped that having a specific tier targeted at seafood processing could help with staff retention in these businesses. Even taking Brexit out of the equation, many businesses have found it challenging to recruit and retain staff. Alison hopes that the craft tier will be recognised as an important and desirable part of a clearly defined career path, and that having such a path could inspire more British workers to enter the field.
Craft for all In the craft beer world, upstarts like BrewDog have become big businesses, and some of the larger breweries have released their own craft beers or placed more emphasis on the flavour of their traditional big sellers. Craft doesn’t necessarily mean small, and the size of a business should be no obstacle to being disruptive. The team at the Fishmongers’ Company want the craft tier to have flexibility so that staff at seafood processing businesses of all sizes will find it useful. The tier is designed to stand alone or can supplement in-house training, and for larger firms, there is also a possibility to tailor it to specific species types. As Alison says, “The beauty of the course is that you can adapt it to the person quite easily. We cover it all from the individual up.” Another thing ‘craft’ doesn’t have to mean is old-fashioned. Brands have been built on evocative images of bygone days, but the craft movement is more about quality and authenticity than nostalgia. In fact, the craft tier embraces the potential offered by new technology and is completely online, with all materials and assessments broken down into small manageable sections.
The MFS YouTube channel is filled with videos of current masters like Terry Martin and Gary Hooper, so participants can see what they’re aiming towards. The team particularly want to reassure those who left school a long time ago and might find the idea of doing any kind of qualification daunting:
”
We want to give participants the confidence to learn new things and to realise how much knowledge they already have. The design of the craft tier considers the lifestyle of someone working at a seafood processing factory and their usual working day. Using their smartphone or tablet, staff can easily complete a unit on their lunch break, commute or at home in the evening. This approach will also benefit businesses whose staff won’t have to travel or take days or weeks off in order to complete the training.
34
Welcome to the Craft Revolution
The Seafood Training Academy
The Master Fishmonger Standard is just one of many training opportunities available to seafood processing businesses in the UK. If you’re looking to reassess the training needs of your staff then a good place to start is the Seafood Training Academy website:
seafoodacademy.org
35
Seafish Cutting Edge
The Seafood Training Academy is a partnership of organisations in the UK that have a shared interest in supporting learning and development in the seafood industry. Partners range from individual organisations like Seafish to entire networks like the Scottish Seafood Training Network. The Academy focuses on the training and learning development needs of the onshore sectors of the UK seafood industry.
The Fishmongers’ Company has even been exploring the possibility of using virtual reality headsets with a couple of different colleges. This would help recruit students by giving them a taste
for the job without having to leave the classroom, and it would also help reduce the costs involved for trainees as they wouldn’t need to buy fish. On top of that, it would also help reduce waste.
‘A dying art’ Even amongst the excitement of the launch of the MFS, one of my interviewees couldn’t help but refer to fishmongering as a “dying art”. Alison and her team believe the MFS can help change this perception. Whether participants are going back to a shed on a pier or to a large multinational company, she wants them to feel motivated after taking part and supported in sharing their passion for seafood. She wants them to champion and encourage the next generation so that the industry grows and people like them become the norm. As Gary Hooper says, “To have an external body accredit something that could be of benefit to your business, why wouldn’t you want to embrace it?”
Their portfolio of training programmes, qualifications and resources are intended to make cost effective and high quality fish and shellfish training available throughout the UK. The website has a significant amount of information and free learning resources, including online study guides that anyone can access. It is a great place to start if you want to learn more about fish and shellfish and its journey through the supply chain.
And if they can achieve this, an industry filled with people with “worldclass technical skills and a holistic understanding of the seafood industry” may not be too far away. Maybe seafood processing could become another craft success story.
Further Information The craft tier of the Master Fishmonger Standard is set to be launched in late September. You can get further information on this and other courses on the website:
masterfishmonger.co.uk The organisers of the course welcome fishmongers from all backgrounds and all parts of the country.
Potential applicants to the Master Fishmonger Standard will find the website especially useful with Seafish videos about the preparation of fish and shellfish along with details on courses offered by the Academy Partners. Current partners include government departments, colleges, independent training providers, trade organisations and at least one university. If you’re interested in becoming involved with the Seafood Training Academy contact Lee Cooper on academy@seafish.co.uk.
36
Article 05
A Leading Role
By Marta Moran Quintana
37
Seafish Cutting Edge
How seafood processors can become the driving force behind sustainable fishing.
The buzzword today is sustainability. This comes as no news for the seafood sector – after all, it wasn’t that long ago that Hugh’s Fish Fight made headlines aiming to raise awareness about the practice of discarding. Now with issues such as climate change and marine plastic pollution in the front pages on an almost daily basis, public scrutiny of the environmental credentials of companies is becoming more and more intense. “Consumers are becoming more conscious of where their seafood comes from,” says Lewis Cowie, Marine Sustainability Manager at Seafish, and polls agree. 70% of seafood consumers said that they would like to hear more from companies about the sustainability of their seafood in a recent global survey for the Marine Stewardship Council (MSC). The seafood industry is working to address those concerns and there are plans and targets in place to ensure customers get the responsibly sourced seafood they demand. One of the most ambitious targets is that set by the Sustainable Seafood Coalition (SSC), which counts M&S, Sainsbury’s, Tesco and Waitrose among its members. This group holds the vision that all fish and seafood sold in the UK is from sustainable sources.
Their vision is supported by commitments such as enforcing voluntary codes of conduct on responsible sourcing or influencing policy changes. Production of sustainable certified seafood is on the rise worldwide. A report by the State of Sustainability Initiatives (SSI) in 2016 found that since 2003, annual production of certified sustainable seafood over the world is growing 10 times faster than production of conventional seafood.
But more can be done Campaigns in response to seafood sustainability issues have tended to have a catching sector focus, such as the aforementioned Fish Fight or several petitions calling for an end to scallop dredging in areas of Wales and Scotland. While they might have attracted the bulk of public attention, fishermen are just one part of the seafood supply chain. Public perception – and the pressure it puts particularly on retailers to improve their sustainability credentials – can impact on the whole supply chain and there is scope for seafood processors to get involved.
38
A Leading Role
Whitby Seafoods With processing sites in Whitby and Kilkeel, Whitby Seafoods are one of the biggest processors of scampi (nephrops) in the UK.
They have a clear sourcing policy: where possible, they aim to source from MSC certified fisheries. But what should processors do when there is no MSC certification for your main species, nephrops in this case?
39
Seafish Cutting Edge
Whitby Seafoods conducts independent risk assessments on all stocks they source from that are not MSC certified. The assessment is based on all data available on the stock including ICES advice, the Seafish RASS (Risk Assessment for Sourcing Seafood) online tool, MCS sustainability ratings and Sustainable Fisheries Partnership (SFP) profiles.
The result of the assessment then determines where action could be taken to improve the stock’s or the fleet’s environmental standards. When the risk assessment of UK nephrops stocks highlighted that more work could be done to improve their sustainability record, the direction to follow was clear. Whitby Seafoods are part of the Project UK Advisory Group, which in 2016 recommended UK nephrops to be included in the project’s list of candidates for Fisheries Improvement Projects (FIPs). FIPs are stakeholder-led initiatives facilitated by the MSC that aim to improve a fishery towards sustainability and MSC certification. FIPs are being carried out across the globe. In the UK, Project UK, led by Seafish and the MSC, aims to steer six important UK stocks – including plaice, scallops and monkfish – towards MSC standards.
“
Barry Harland, Head of Responsible Business at Whitby Seafoods, explains:
We are one of the big stakeholders in the nephrops fishery so it is natural that we do all we can to improve its sustainability credentials. Work on UK nephrops started in June 2018, when a wide-ranging group of stakeholders gathered together to get the project up and running. Retailers, processors, fishing representatives, NGOs and government scientists all sat around the table to discuss the work ahead, with the MSC facilitating the discussions.
The first step was to carry out a pre-assessment against the MSC certification standards. The preassessment delivered a gap analysis and a draft action plan, from which the group agreed actions to improve the sustainability of the fishery in the main part by initiating a FIP. Barry admits that early discussions were intense but there was a clear common purpose among the group which helped steer the talks. “We knew it was going to be challenging, but as an industry, we wanted to move towards the sustainability goals. The fact that every stakeholder was there and wanted the same outcome was the first big win.” Following the pre-assessment, there is now an action plan in place to help the UK nephrops fisheries in the North Sea, West of Scotland and Irish Sea progress towards MSC standards by 2024. Daniel Whittle, Whitby Seafoods Managing Director, is co-chairing the project, bringing an extra element of engagement for the company. In addition, Whitby Seafoods is involved in the Irish prawn FIP, which is currently in pre-assessment stage and aims to protect the long-term future of nephrops stocks in Irish waters. Whitby Seafoods is keen to drive the project forward and raise awareness of the FIPs among the supply chain. Buyers and retailers may not necessarily be aware of such initiatives; and learning about FIPs can help buyers make informed decisions relating to their own responsible sourcing policies. Barry tells us that customer reception of the FIPs has been positive: “Our customers agree that engaging with the fisheries is a much better approach (to improve their sustainability credentials) than walking away from them.”
40
A Leading Role
Making research happen King scallops are another key shellfish species for the UK seafood market. Unlike nephrops, king scallops are a nonquota species and scientific advice on stocks is not yet as comprehensive as for other species.
Management of scallop fishing is based on regional measures such as days at sea allocations, gear restrictions and seasonal closures – a situation that poses unique challenges for those in the business of processing scallops.
Macduff Shellfish Based in Mintlaw, Macduff Shellfish not only process scallops and other shellfish but also own nine scallop vessels.
41
Seafish Cutting Edge
Macduff are part of the steering group of the English Waters King Scallop Stock Assessment Project, along with other UK processors. Starting in 2016, this project has brought together catching businesses, processing businesses and representatives from DEFRA and the Centre for Environment Fisheries and Aquaculture Science (Cefas) to provide much needed stock assessment information on scallops in English waters.
Macduff scalloper MFV Sylvia Bowers.
Scallop stock research and fisheries management is top of Macduff’s sustainability agenda and they are heavily involved in securing advances in the assessment and management of king scallop stocks. “Our business depends upon healthy, plentiful and dependable supplies of these species, thus we have a vested interest in looking after the seas and sustaining stocks,” explains Macduff’s Chief Operating Officer Roy Cunningham.
“
Macduff has taken a leading role in several stakeholder initiatives aiming to fill the gap in king scallop stock research and management. Collaboration is essential for sustainable management, as Andrew Brown, Director of Sustainability and Public Affairs, puts it
It is critical that we work with other stakeholders in the industry and beyond. Experience has shown that lasting solutions to fisheries and marine environmental management are best established through consensus and engagement.”
“Macduff has been a real driving force,” says Hazel Curtis, Director of Corporate Relations at Seafish and Chair of the Project Steering Board. “They provided a practical contribution from early on, including funding and support. The project would not have progressed as it has without their involvement, and that of other processing businesses.” Now in its fourth year, the project has delivered two stock assessment reports and aims to produce guidance on the amount of scallops that can be safely harvested in English waters. Macduff are also active members of the Scallop Industry Consultation Group (SICG) and support two Fisheries Improvement Plans for scallops, as well as one for nephrops. More recently, Macduff co-organised and co-funded (along with Seafish and The Fishmongers’ Company) the first UK national conference on scallop science and management held in London in February 2019. “Industry must be willing to show leadership if stock management is to be successfully implemented,” says Roy. Ultimately, the expectation is that improved management will bring benefits to all involved, not just processing businesses.
42
A Leading Role
“
Fishermen are dependent upon buyers and processors who are in return dependent upon exporters and retailers. By better connecting processors and catchers, it brings opportunities to make more efficient use of the resource to the benefit of all.”
Macduff scallops on the half shell.
43
Seafish Cutting Edge
King scallop research in the UK has gained considerable momentum over the last years, thanks to initiatives such as the SICG and the stock assessment project. Roy is optimistic about the outcomes: “We see a positive future for shellfish management and for the fishers and communities that are reliant upon them. At Macduff we will continue to dedicate time and resources to playing a positive and constructive part in the sustainable management of these fisheries.”
What the future brings‌
Everyone in the seafood supply chain can play a role. Collaborative, stakeholder-led projects such as FIPs have a great potential to contribute to the improvement and long term sustainability of key stocks. At a time when the need and demand for sustainability is greater than ever, the role of processors can increasingly be that of a leading driving force.
In addition to Project UK, Seafish collaborate with industry and science partners to improve the knowledge base of key data limited fisheries including monkfish, sprats and sardines, with work on common whelk fisheries expected in the coming year. ____________________________________________________________________________________________
For more information on work in this area, please contact: Lewis Cowie on Lewis.Cowie@seafish.co.uk or William Lart on William.Lart@seafish.co.uk.
Further Reading To read more about FIPs in the UK, visit www.seafish.org/article/project-ukfisheries-improvements You can track the progress of individual FIPs all over the world at https://fisheryprogress.org/directory
For more information about underlying data and methodologies please refer to the Processing Methodology Report and Processing Enquiry Tool, which can be found on the Seafish website.
Seafish 18 Logie Mill Logie Green Road Edinburgh EH7 4HS October 2019 Š Copyright Seafish 2019
www.seafish.org cuttingedge@seafish.co.uk
seafood processing industry performance data
Issue 01 | 2019
Get the latest UK seafood processing industry performance statistics from our most recent surveys.
All data refers to majority seafood processing sites located in the UK. Majority seafood processing sites are defined as those that derive 50% or more of their annual turnover from seafood processing (as opposed to trading, wholesaling, retailing, importing, exporting). FTE refers to Full Time Equivalent jobs. For more information about underlying data and methodologies please refer to the Processing Methodology Report and Processing Enquiry Tool, which can be found on the Seafish website. Enquiries can be sent to processingenquiries@seafish.co.uk.
Industry Profile (2018) 16,318
Full Time FTEs
2,247 19,191
353 sites
FTE jobs
Seasonal FTEs
626
11,553
FTE Male
7,638
FTE Female
Part Time FTEs
Economic Performance (2017)
£3.4bn £390m £794m Turnover
Operating Profit
GVA
Costs (2017)
£2.3bn £405m £223m £40m
Raw Material
Labour
20%
1
Other Operating
40%
60%
Energy
80%
100%
Industry Trends (2012-18) turnover resulting in an up-tick in operating profit. This reduction in operating costs was largely driven by a decrease in raw material costs from £2.6bn to £2.3bn between 2016 and 2017.
Between 2013 and 2016, turnover and operating cost declined in tandem leading operating profit to remain fairly constant over time. In 2017, however, operating costs decreased more significantly than £5bn
Economic Performance
Turnover
Operating costs
Operating profit
GVA
£4bn
£3bn
£2bn
£1bn
2012
The number of majority seafood processing sites and Full Time Equivalent (FTE) jobs supported by the sector have declined since 2012. While FTE jobs appear to have increased between 2016 and 2018, some of this change is likely due to seasonality of the workforce. Censuses prior to 2018 were carried out at the end of summer (July – August), while the 2018 census was carried out at the end of the year (November – December). Depending on the type of processing activity, employment can vary considerably during the year and may partially explain this change. In the lead up to Christmas, for example, some processors may have employed more seasonal staff.
2013
2015
2014
2016
2017
Number of sites 400 300 200 100 0
2012
2014
2016
2018
2014
2016
2018
Number of FTE Jobs 20000 15000 10000 5000 0
2012
2
Regions of the UK
Highlands and Islands Grampian
Other Scotland
Northern Ireland
Northern England
Humberside
Wales South England & Midlands South West England
3
Seafish Performance Data
Regional Profiles (2018) Grampian, Humberside and Other Scotland remain key regions for fish processing in the UK in terms of both number of sites and FTE jobs supported. The number of sites in every region either declined or remained constant between 2016 and 2018.
Grampian Size Band
During this same period, the number of FTE jobs supported increased in Grampian, Humberside and Northern Ireland and declined in North England and Wales.
Highlands and Islands Number of Sites
FTE Jobs
Size Band
Number of Sites
Other Scotland Size Band
FTE Jobs
Number of Sites
FTE Jobs
FTE 1-10
16
92
FTE 1-10
12
63
FTE 1-10
24
126
FTE 11-25
8
111
FTE 11-25
7
146
FTE 11-25
14
229
FTE 26-50
12
406
FTE 26-50
4
121
FTE 26-50
3
134
FTE 50-100
7
501
FTE 50-100
3
231
FTE 50-100
5
433
12
3,216
FTE 101+
4
729
FTE 101+
8
2,361
FTE 101+
North England* Size Band
Humberside
Number of Sites
FTE Jobs
Size Band
South England & Midlands Number of Sites
Size Band
FTE Jobs
Number of Sites
FTE Jobs
FTE 1-10
24
133
FTE 1-10
17
104
FTE 1-10
30
131
FTE 11-25
7
121
FTE 11-25
11
198
FTE 11-25
11
182
FTE 26-50
8
261
FTE 26-50
8
287
FTE 26-50
5
168
FTE 50+
6
653
FTE 50-100
6
480
FTE 50-100
6
453
10
4,622
FTE 101+
3
731
FTE 101+
South West England* Size Band
Number of Sites
Wales
FTE Jobs
Size Band
Northern Ireland* Number of Sites
FTE Jobs
Size Band
FTE 1-10
23
113
FTE 1-10
4
6
FTE 11-25
6
106
FTE 11-25
3
46
FTE 26-50
5
161
FTE 50+
7
930
Number of Sites
FTE Jobs
FTE 1-10
6
26
FTE 11-25
5
75
FTE 26+
3
305
*Size bands have been merged where number of sites per size band were less than three.
4
Fish type (2018) Size Bands FTE 1-10 FTE 11-25 FTE 26-50 FTE 50-100 FTE 101+
Shellfish FTE Jobs Number of sites
Demersal 2,939 76
Number of sites
1,105 60
Most shellfish processing sites (70%) in 2018 were in the smallest two size bands. Shellfish sites are more evenly spread around the UK than either demersal or pelagic processing sites; however, nearly half of FTE jobs at shellfish processing sites in 2018 were in England.
In 2018, most demersal processing sites (77%) were in the smallest two size bands. Both Grampian and Humberside are clear regional hubs for demersal processing, with 86% of the FTE jobs supported by sites in these two regions.
Pelagic
Salmon/Trout
FTE Jobs Number of sites
1,091 17
In 2018, three-quarters of FTE jobs at pelagic processing sites were in the Grampian region. Most pelagic processing sites were either in the smallest size band (six sites) or the largest size band (five sites).
FTE Jobs Number of sites
12,662 171
In 2018, 66% of seafood processing FTE jobs in the UK were at sites processing a mixture of fish types. Sites in Humberside supported almost 40% of all FTE jobs at mixed processing sites in 2018, followed by sites in Grampian (20%) and Other Scotland (19%). Seafish Performance Data
FTE Jobs Number of sites
1,394 29
The largest proportion (45%) of all FTE jobs at salmon processing sites in 2018 were at sites in the Highlands and Islands region, with most of these jobs supported by sites in the largest size band.
Mixed
5
FTE Jobs
Processing type (2018) Primary Processing Includes: cutting, filleting, deboning, picking, peeling, washing, chilling, packing, heading and gutting.
In 2018, 56% of primary processing sites were in the smallest size band. These small sites together supported 13% of FTE jobs at primary processing sites in the UK, most of which were located in Grampian and Humberside.
Secondary Processing Includes: brining, smoking, cooking, freezing, canning, breading, vacuum and controlled packaging, production of ready meals.
Six secondary processing sites were in the largest size band in 2018. These six sites supported 72% of the FTE jobs at secondary processing sites in 2018. Four were located in England and two were located in Scotland.
While nearly 40% of mixed processing sites were in the smallest size band in 2018, nearly three-quarters of FTE jobs at mixed processing sites were supported by sites in the largest size band, most of which were located in Grampian, Humberside and Other Scotland.
Mixed Processing A mix of primary and secondary processing.
Primary FTE Jobs Number of sites
2,102 96
Secondary FTE Jobs Number of sites
2,724 48
Mixed FTE Jobs Number of sites
14,364 209
6
What is the Seafish Processing Financial Survey?
The Seafish Economics team conducts an annual financial survey of the UK’s majority seafood processors. The survey provides key information about the financial situation of businesses. Using data gathered through the biennial census of the UK’s seafood processing industry, majority seafood processors are defined as having at least 50% turnover from seafood processing. All majority seafood processors are invited to participate. Participation is voluntary.
Why do we collect data from financial accounts? Seafish uses data from financial accounts to form industry wide estimates on costs and earnings of the sector. According to a 2016 European Commission Factsheet, the UK seafood processing sector is estimated to be the largest in Europe in terms of employment and turnover and is an important part of the seafood value chain. To make informed decisions, decision makers at all levels need accurate information about the financial performance of the sector. What does it involve? Annually, through email or over the phone, seafood processing businesses are asked to provide basic information about business costs and earnings.
How is your data used? 1. D ata collection: Seafish collects costs and earnings data from participating UK seafood processing businesses. 2. S egmentation: Businesses are grouped into segments by FTE band. 3. S caling data: Data collected are used as samples and scaled up to provide estimates for all majority seafood processing businesses across the UK. 4. D ata analysis: Aggregated data is analysed to estimate financial performance for the industry as a whole. 5. R eporting: Data feeds into advice and reports for industry and policy makers.
Data Protection: All information we collect is treated as strictly confidential. We never share information about individual sites or companies and no individual site or company is ever identified in any of our reports or other outputs.
7
Seafish Performance Data
Case Study
In 2016 we saw increased engagement from Welsh seafood processors in our UK processing industry census and financial surveys. The data benefited the Welsh seafood industry by allowing Welsh seafood processors to be formally considered in the ‘Wales Seafood Strategy’. With support from Seafish and the Welsh Government, the strategy, developed by the Seafish Wales Advisory Committee (SWAC), presents the committee’s vision for a thriving, vibrant, safe, and sustainable seafood industry in Wales. The strategy sets out targets for 30% sustainable growth in seafood supply and economic value by 2025, as well as targets for increasing employment and improving fishing safety. Driven by the ’Wales Seafood Strategy’, Seafish and SWAC have since collaborated to produce the ‘Wales Seafood Industry Dashboard’ where data from our processing surveys are presented alongside other industry data. Holly Whiteley, Wales Regional Manager at Seafish, said: “We rely on the support of industry so that we can do things like the Wales Seafood Industry Dashboard. If it wasn’t for the increased participation of processors in Wales, we wouldn’t have been able to publish any specific processing data for the industry in Wales. The more businesses that contribute data, the more robust and useful the work Seafish can do will become.” As well as providing improved accessibility to key information about the Welsh seafood industry, the dashboard aims to contribute in monitoring progress against the targets of the strategy.
8
9
For more information about underlying data and methodologies please refer to the Processing Methodology Report and Processing Enquiry Tool, which can be found on the Seafish website.
Seafish 18 Logie Mill Logie Green Road Edinburgh EH7 4HS October 2019 Š Copyright Seafish 2019
www.seafish.org cuttingedge@seafish.co.uk
