Scottish Seafood Partnership “Challenges & opportunities facing the seafood sector” Libby Woodhatch, CEO, Seafood S

1. Scottish Seafood Partnership “Challenges & opportunities facing the seafood sector”Libby Woodhatch, CEO, Seafood Scotland 3 May 2012

2. Agenda • Introduction • Challenges & opportunities in the seafood processing sector • Exploiting opportunities

3. Pelagic £184M Shellfish £164M Whitefish £152M

4. Fisheries management • - Days at sea • - Quotas • Discards • - Technical measures • RTCs • Poor science CHALLENGES Politics - CFP reform - Iceland/ Faeroes - NGOs Environment - Weather - Climate change - Fisheries biology Seafood businesses Lack of continuity of supply • Business • - Rising utilities • Lack of skilled labour • Lack of new entrants • Legislation • -SMEs • -Limited collaboration • Lack of investment • Global competition • - Imports • IUU • Cheaper proteins Economy - Euro zone crisis - Global recession - Reduced margins

5. Mixed messages…………….

6. Whitefish – key issues • Fisheries management regime • Adverse impacts from Cod recovery measures • Cost of leasing quota • Lack of foresight on landings • New control regulation on weighing • Haddock – size profile limiting • Fragmented industry • Limited collaboration • SMEs • Transport surcharges • Competition from Norway

7. Nephrops – key issues • Cod recovery measures • RTC • Introduction of selective gear • Poor fishing • Euro-zone volatility • Lack of available credit to customers

8. Scallops – key issues • Markets currently buoyant • South America year class issues • Japan significant producer pre-tsunami & Fukushima • Lack of alignment between some vessels & processors • Price • Forgotten sector? • SG Scallop Working Group only met once (2008) • Western waters management group addressing this now for Area VII? • Lack of control measures • UK fishery, nomadic fleets • Over capacity?

9. Crab & lobster – key issues • Lack of enforcement • Lack of effort control or restrictive licensing • Lack of robust scientific data • Variable quality • Higher waste disposal costs reducing competitiveness • Forgotten sector? • Crab & lobster Working Group abruptly ended despite time and investment

10. Pelagics – key issues • Iceland & Faroese situation • Continuing loss of market share • Suspension of MSC accreditation • Future loss of quota? • Limited supplies, short seasons • Norwegian competition • Scottish vessels landing in to Norway • Market perception • IPR support for UK companies limited

11. Industry Collaboration • NE supply forum • Advanced Landings System • Cost sharing OPPORTUNITIES • External collaboration • SE/SDI • SF&D, QMS • eNGOs • Domestic market • Provenance • Healthy • Fresh & local • Green credentials • Low food miles Seafood processor • Traditional export • Provenance • Green credentials • New market segments • Quality & taste • Emerging • markets • Growing middle class • Younger populations • - Desire for imported goods Diversity of species

12. Advanced landing information

13. Advanced landing information • System reliant on vessels & agents inputting data • Key foresight information missing: • No. of vessels at sea • No. of vessels at sea but not fishing (oil jobs etc) • Available via electronic log books • Provision of data agreed in principle with Marine Scotland • Charge of £4800 + VAT! • Would still require approval from skippers by SFS

14. The UK Food Service Sector • The value of the UK Foodservice sector FOOD sales is estimated at just under £42bn, with sales to operators/outlets equating to £13bn. • These 259,054 outlets serve 8.1 billion eating occasions a year = Opportunities for Scottish seafood from fish & chip shops to fine dining

15. UK Food Service Project • Working collaboratively with SAOS, SF&D & industry to maximise opportunities for Scottish seafood • The Foodservice channel is highly fragmented compared to Retail. 5 Retailer Groups account for 90% of the Retail channel compared with 2800 Foodservice groups accounting for only 48% share of sales !

16. UK Food Service Project • Food service sector mapping • Development of networks with all seafood buyers • A support programme to match Scottish suppliers with new opportunities • Educational programme for buyers and consumers to raise awareness of Scottish provenance. Awaiting formal confirmation of funding from EFF PAC

18. Developing emerging markets for Scottish seafood 2012 - 2014 EFF-funded project working in collaboration with SDI, SSPO, SF&D & industry Targeting “high-end” food service sector in SE Asia Raising awareness of Scotland and Scottish seafood Will benefit Scottish companies already in the market & help further companies access opportunities

19. Launched at ESE 2012……

20. Domestic market • Regional sourcing opportunities • Morrisons – 1 May 2012 • New processing facility in Humberside • Committed to Scottish sourcing • Requested support to increase supplies, develop marketing messages, handbooks for fish counter staff • Keen this message is relayed to Scottish Government!

21. Seafood ScotlandHow can we help? • Services Available • Business development & marketing • Value added programme • Environmental advice & support • Quality & technical advice • Promotions & marketing • Signposting • Enquiry Service Visit www.seafoodscotland.org or contact us on 01321 557 9344 for further information or specific enquiries.