SEAFOOD INDUSTRY IN SCOTLAND

SEAFOOD INDUSTRY IN SCOTLAND

SEAFOOD INDUSTRY IN SCOTLAND KEY FACTS April 2013 Flanders Investment & Trade Edinburgh Conference House 152 Morrison Street Edinburgh EH3 8EB UK Scotland edinburgh@fitagency.com T +44 131 200 60 80

TABLE OF CONTENTS 1 INTRODUCTION 3 2 SEAFOOD MARKET BY SEGMENT 3 3 THE PROCESS 5 3.1 PHASE 1: LANDING OF THE FISH 5 3.2 PHASE 2: FURTHER PROCESSING 6 3.3 PHASE 3: TRANSPORT 6 4 IMPORT & EXPORT MARKETS 7 5 KEY SCOTTISH SEAFOOD INDUSTRY PLAYERS 8 6 CONCLUSION 17 7 REFERENCES 17 Seafood Industry in Scotland April 2013 2

1 INTRODUCTION Seafood is one of two dominating products within the Scottish food industry. The other one being whisky. 60% of seafood landed in Scotland is destined for international export. By the end of 2012 it was estimated that the total value of export had increased to over 1 billion, a significant increase of more than 30% since 2010. However the relative importance of seafood has declined over recent years, as EU quotas have become more restrictive, catches have fallen, and fleets have been decommissioned. Despite this, the Scottish seafood industry remains strong and new aquaculture sites and fish imports from Iceland and the Faroe Islands have boosted flows through the country. 2 SEAFOOD MARKET BY SEGMENT The table underneath confirms that in general catches have fallen in the UK as a whole. Important to note, though, is that fresh fish has flourished at the expense of frozen and ambient fish, and that despite the decline in volumes, there s a growth in value compared to 2011. In terms of species we see some interesting trends in the tables below. The most important export product for Scotland and the UK in general is its Scottish salmon, often cultivated in special salmon farms. Its established, substantial overseas markets were worth more than 220 million in 2010. Given the 600 million mentioned in table 3, this value is believed to have at least doubled. Scottish fresh salmon reached 50+ countries worldwide in 2010, with the USA, France, Spain, Germany, The Benelux, China and Japan as the most notable importers. Another interesting trend is that just five species cover 52% of the market in terms of volume. Seafood Industry in Scotland April 2013 3

Seafood Industry in Scotland April 2013 4

3 THE PROCESS 3.1 PHASE 1: LANDING OF THE FISH Generally the landing of the fish is geographically located in the North East coast of Scotland. There are 6 big harbours, accounting for 88% of all the fish coming into Scotland: Shetland Islands, Peterhead, Fraserburgh, Lochinver, Scrabster and Ayr. The two most important tend to be the one on the Shetland Islands and the one in Peterhead. After the landing of the fish on the Shetland Islands, a short sea shipping takes place into the Mainland, which is often destined for Peterhead. In contrast to the main seafood harbours being located in the North East, salmon is mostly farmed on the West Coast. Further processing of the salmon is done all over Scotland (43 units are scattered around the country): 6 units are located in Grampian, 17 in Highlands and Islands, and 20 over the rest of Scotland. The maps above visualise the landing of fish in Scotland, emphasising on the biggest harbours (first image) and the inward flow of fish (second image) in which we see that a lot of Scottish seafood is imported from Iceland. Seafood Industry in Scotland April 2013 5

3.2 PHASE 2: FURTHER PROCESSING Processing takes different forms, depending on the ultimate destination: Direct shipments from the Shetland Islands Besides the seafood shipped to the Scottish mainland through short sea shipping, a lot of seafood is also shipped directly to harbours abroad. Some seafood is shipped to Rotterdam, which serves as a hub for shipments to Asia. There are also direct shipments to Russia, Nigeria and East Asia. Seafood for North America Since Northern Americans tend to be fond of Scottish salmon, a lot of these products are shipped by plane to the American continent from Glasgow airport. Road transport Belshill, near Glasgow, is the main hub for onward delivery of seafood by road. The hub has temporary chill and cold storage facilities where relevant products are consolidated before onward delivery. Main destinations of seafood destined for export are transported to Humberside, Dover or Portsmouth and then shipped to Boulogne Sur Mer. On arrival in Boulogne the majority of fish are fresh and whole, not frozen. They are then processed at Boulogne. 3.3 PHASE 3: TRANSPORT Transportation of Scottish seafood mainly happens through road transport, both for domestic and international destinations, because it s flexible, fast and frequent. In order to maintain freshness, seafood has to be processed, shipped and arrive at destination within 60 hours. Therefore one prefers the rapidity of road transport over ships, because the journey by ship takes longer. Moreover frequency of transport increases the freshness of the products. This is another argument for using road transport, because the existing number of trucks allows companies to ship more frequently. Indeed no Rosyth Zeebrugge movement of seafood takes place because of these arguments. Shipments to the European Union travel via Dover and Portsmouth. From Dover, products are shipped by sea and through the tunnel to Boulogne, France s biggest fishing port and home, to a big seafood market. Shipments to the rest of France and to Spain go through the port of Portsmouth. Seafood Industry in Scotland April 2013 6

The figure above visualises the complete stream of seafood transport over the UK mainland. 4 IMPORT & EXPORT MARKETS The tables below identify the top 10 countries of source for seafood imports and a top 10 of destinations for exports in terms of value. Important to note is that this information is for the whole of the United Kingdom (figures from UK governmental data). Nevertheless Scotland s dominance with regard to seafood allows us to reflect this information onto the Scottish seafood sector. Seafood Industry in Scotland April 2013 7

Source: HMRC - https://www.uktradeinfo.com/statistics/buildyourowntables/pages/table.aspx 5 KEY SCOTTISH SEAFOOD INDUSTRY PLAYERS This list of key companies is compiled from the Top 500 database of Scottish companies in 2012. Therefore the companies identified in this section are selected based on a combination of turnover and profit, not so much on volumes of trade. Seafood Industry in Scotland April 2013 8

Aquascot Aquascot is a fish-farming company in the Highlands specialised in salmon, sea-grown trout and cod. Turnover: 29,240,000 Profit: 1,470,000 Employees: 119 Denis K. Overton - Managing Director Fyrish way Alness IV17 0PJ +44 (0) 1349 899800 service@aquascot.com www.aquascot.com BioMar The BioMar group is one of the leading suppliers of high performance fish feed to the aquaculture industry. Their main business areas are feed for salmon and trout in Norway, the United Kingdom, and Chile, and feed for trout, eel, sea-bass, and sea-bream in Continental Europe. The company supplies feed to around 50 countries and to more than 25 species. Turnover: 70.890.000 Profit: 3.940.000 Employees: 54 G.W. Mace - Managing Director Northshaw Road, Grangemouth Docks Grangemouth FK3 8UL +44 (0) 1324 665585 info@biomar.co.uk www.biomar.co.uk Browns Food Group Browns Food Group is one of the UK s leading food manufacturers. Besides meat and other food products, the company also has 3 subsidiaries in the seafood sector. Lions Specialty Foods Lions Speciality Food Ltd is a salmon and seafood processor in Central Scotland, dedicated to the development and innovation of salmon and fish products for the wholesale, retail and foodservice sectors. Seafood Industry in Scotland April 2013 9

Ocean Catch The Ocean Catch brand is a widely recognised and a well-established seafood brand, which is synonymous with great value, consistency and high quality. The company encompasses supply across 80 species from 25 supplying countries. Mostell Seafood Mostell Seafood specialises in the direct import of a broad range of fish and seafood from all corners of the globe. They offer the broadest range of mixed pallet deliveries to the UK, Eire and Europe, encompassing amongst others fish and seafood (besides poultry and cooked meats). Turnover: 108.200.000 Profit : 4.480.000 Employees: 776 Wayne Godfrey - Managing Director Unit 1, Kelloholm Industrial Estate Kirkconnel, Sanquhar DG4 6RB +44 (0) 1659 66405 enquiries@brownsfoodgroup.com www.brownsfoodgroup.com Dawnfresh Seafoods Dawnfresh is the largest supplier of fresh and frozen trout, whole, fillets, portions and added value, and is the second largest supplier of scampi frozen in the UK. The group also produces breaded fish, fishcakes, hot & cold smoked fish, marinated fish and mussels. Brands include Kintyre, RR Spink and Daniel's Herring. Turnover: 50.460.000 Profit : -9.100.000 Employees: 685 Brian McMonagle - Managing Director Bothwell Park Industrial Estate Uddingston G71 6LS +44 (0) 1698 810008 sales@dawnfresh.co.uk craig.paterson@dawnfresh.co.uk www.dawnfresh.co.uk Seafood Industry in Scotland April 2013 10

Allan and Dey Erskine Holdings ltd Ever since their establishment in 1890, this company has been a major influence in the development of Fish processing and Trading in Scotland. They re specialised in international trading in fresh, frozen, smoked and shellfish products, whilst also dominating in a range of Scottish Salmon Products. Turnover: 37.930.000 Profit : 1.350.000 Employees: 169 David Galashan - Managing Director 45 Sinclair Road Aberdeen AB1 3PL Direct line to M.D. +44 (0) 1224 854028 dgalashan@allananddey.com www.allananddey.com Farne Salmon and trout Farne Salmon and Trout is located in Duns, a small market town located 45 miles south of Edinburgh and 15 miles west of Berwick upon Tweed. The Duns factory is now amongst the biggest smoked salmon facilities in Europe. As well as Smoked Salmon, Farne also produces a growing range of added value products, based on or containing salmon, shellfish and other fish varieties. Turnover: 52.350.000 Profit : 700.000 Employees: 485 William Duncanson - Managing Director Station Road Industrial Estate Duns TD11 3HS +44 (0) 1361 883588 william.duncanson@farnesalmon.com www.farnesalmon.com IFC Holdings The IFC Holdings consist of two subsidiary companies: International Fish Canners and Nor-Sea Foods. International Fish Canners is the only manufacturer of canned fish in the UK, focussing on the production of mackerel fillets, brisling sardines and other quality seafood products under private label agreements. Seafood Industry in Scotland April 2013 11

Nor-Sea Foods has two production units. The company predominately does cold smoke white fish (haddock, cod, whiting and coley) and kippers in Aberdeen, whilst in Fraserburgh they predominately hot smoke to produce chilled, ready to eat, mackerel fillets and salmon. Turnover: 36.270.000 Profit : 820.000 Employees: 429 Michael Clark - Managing Director Bath Street Fraserburgh AB43 5DY +44 (0) 1346 513191 sales@intfishcan.com www.intfishcan.com LHD Limited L.H.D Limited has provided fish selling and fishing vessel management services to its fishermen clients for more than 100 years. They are currently agents for 65 vessels based in the Shetland and Orkney islands. Turnover: 24.343.000 Profit : 2.350.000 Employees: 48 Richard Simpson - Managing Director Alexandra Building Lerwick ZE1 0LL +44 (0) 1595 693768 info@lhdshetland.co.uk www.lhdshetland.co.uk Lunar Fishing Company Based in the fishing ports of Peterhead and Fraserburgh, Lunar is in a commanding position to supply herring, mackerel and whitefish products from catching to final delivery worldwide. Turnover: 71.490.000 Profit : 8.970.000 Employees: 277 Seafood Industry in Scotland April 2013 12

Alexander Buchan - Managing Director East Quay, The Harbour Peterhead AB42 1JF +44 (0) 1779 473344 enquiries@lunarfreezing.co.uk www.lunarfreezing.co.uk Macrae Food Group The Findus Group is one of Europe s largest frozen food and seafood companies with leading brands, 6000 employees and over 1.1 billion turnover. It is the parent company of Young s and Young's Chilled Division. Zzzz Young's is the leading branded producer and distributor of seafood in the UK, with a 200 year old heritage of selling a wide range of high quality seafood products - both chilled and frozen - in retail and foodservice channels. Young's Chilled Division is the UK's leading producer of chilled, private-label seafood products, selling to all of the major UK multiples. It is Europe's biggest processor of farmed Atlantic salmon. Turnover: 29.550.000 Profit : 940.000 Employees: 309 Roy Cunningham - Managing Director Starlaw Business Park Livingston EH54 8SF +44 (0) 1506 401300 www.theseafoodcompany.co.uk Marine Harvest Scotland In Scotland, Marine Harvest has farming, processing, distribution and sales activities. With operations along the west coast of Scotland and on the Western Isles, this unit is one of the biggest producers of high-quality Scottish salmon. The main product is salmon, sold as whole fish. Turnover: 126.580.000 Profit : 33.130.000 Employees: 392 Seafood Industry in Scotland April 2013 13

Alan Sutherland - Managing Director Ratho Park, 88 Glasgow Road Newbridge EH28 8PP +44 (0) 1397 701550 info@marineharvest.com steve.bracken@marineharvest.com www.marineharvest.com Northern Isles Salmon Northern Isles Salmon (formerly Mainstream Scotland) was acquired by Morpol ASA in 2010 and formed, together with The Lakeland Group, The Meridian Salmon Group in 2011. The Meridian Salmon Group specialises in vertically integrated production of Atlantic salmon, from the egg right through to market size fish. This gives total control over every stage of the production cycle, resulting in fish of consistently high quality. Morpol is the world leader in smoked salmon products prepared using equipment optimised to create delicious cold and hot smoked salmon from top quality. Atlantic salmon farmed in Norway and Scotland, organic Atlantic from Ireland and wild sockeye salmon, MSC certified from the Pacific coast of Alaska. Turnover: 29.920.000 Profit : 7.420.000 Employees: 112 Northern Isles Salmon William Young - Chief Operating Officer Crowness Point, Hatston Kirkwall KW15 1RG +44 (0) 1856 87 6101 www.northernislessalmon.com www.morpol.com The Meridian Salmon Group Mark Warrington - Managing Director Admiralty Business Park, Admiralty Road Rosyth, Fife. KY11 2YW +44 (0) 1383 221200 mark.warrington@meridiansalmon.com www.meridiansalmon.com Seafood Industry in Scotland April 2013 14

The Scottish Salmon Company The Scottish Salmon Company is the leading independent producer of superior Scottish salmon. They supply fresh Scottish salmon of the highest quality worldwide. Their current production exceeds 20,000 tonnes and represents 20 per cent of all Scottish salmon production. Turnover: 91.300.000 Profit : 14.390.000 Employees: 285 Bill Hazeldene - Chief Executive Officer 8 Melville Crescent Edinburgh EH3 7JA +44 (0) 131 225 5679 info@scottishsalmon.com www.scottishsalmon.com Scottish Sea Farms Scottish Sea Farms is one of Scotland's leading international aquaculture companies. With farms on the West Coast of Scotland, Shetland and Orkney, they argue that their output represents around 24% of the total production of Atlantic-farmed salmon in Scotland. They sustainably produce premium quality salmon in a low-stress, efficient, ecologically sympathetic way. Turnover: 109.990.000 Profit : 28.750.000 Employees: 360 Jim Gallagher - Managing Director Laurel House, Laurel hill Business Park Polmoise Road Stirling FK7 9JQ +44 (0) 1786 445521 sales@scottishseafarms.com exports@scottishseafarms.com www.scottishseafarms.com Sea Products of Scotland Sea Products of Scotland is now (part of) The Meridian Salmon Group. Meridian Salmon Group is a leading Scottish salmon aquaculture company. It has activities on the Shetland and Orkney islands as well as on the Scottish mainland. These include hatcheries, freshwater sites, seawater sites and processing activities. Seafood Industry in Scotland April 2013 15

While the majority of the salmon is further processed by their parent company Morpol into smoked or marinated salmon and other popular salmon products, Meridian Salmon is also able to supply external customers with top quality salmon products such as portions and fillets, fresh and frozen, prepared and packaged to customer specifications. Turnover: 57.550.000 Profit : 1.590.000 Employees: 11 Mark K. Warrington - Managing Director Phoenix House, Strathclyde Business Park Bellshill ML4 3NJ +44 (0) 1698 503610 seaproducts@ednet.co.uk www.seaproductsofscotland.com Shetland Catch Shetland Catch is the largest pelagic factory of its kind in Europe, specialised in mackerel and herring. Turnover: 63.250.000 Profit : 2.180.000 Employees: 93 Simon Leiper - Managing Director Point of Shetland Gremista, Lerwick ZE1 0PX +44 (0) 1595 695740 main@shetlandcatch.com www.shetlandcatch.com Thistle Seafoods Thistle Seafoods Limited, a privately owned family business, is one of the top fish processing firms in the UK, specialising in frozen fish fillets and added value fish products with state of the art facility near Peterhead, Aberdeenshire. Turnover: 45.570.000 Profit : 730.000 Employees: 20 Seafood Industry in Scotland April 2013 16

Anthony J.A. Scattery - Managing Director The Harbour Boddam, Peterhead AB42 3AU +44 (0) 1779 478991 mail@thistleseafoods.co.uk www.thistleseafoods.co.uk 6 CONCLUSION The seafood industry is vital to Scotland s economy. With international sales worth more than 1 billion of which almost 600 million is salmon, seafood is a significant export product. Whilst the individual export of salmon adds the most value, it also makes up 52% of all seafood sales together with 4 other species: haddock, cod, mackerel and warm water prawns. Scotland is by far the most dominant seafood producer in the United Kingdom, accounting for more than 60% of all UK sales. Seafood tends to land in the North East of Scotland whereas most salmon farms are located in the North West. The vast majority of seafood destined for Europe - Scotland s main export market - is transported by road to the southern ports of the UK. 7 REFERENCES Transport Research Institute, Synthesis report of freight flow mapping - Scotland part, 2012, 16p. HM Revenue & Customs, Statistics - Data by commodity code, online on https://www.uktradeinfo.com/statistics/buildyourowntables/pages/table.aspx Seafood Scotland, UK Seafood Market Performance to December 2012, 2012 Seafood Industry in Scotland April 2013 17

8 DISCLAIMER The information in this publication is provided for background information that should enable you to get a picture of the subject treated in this document. It is collected with the greatest care on the bases of all data and documentation available at the moment of publication. Thus this publication was never intended to be the perfect and correct answer to your specific situation. Consequently it can never be considered a legal, financial or other specialized advice. Flanders Investment and Trade (FIT) accepts no liability for any errors, omissions or incompleteness s, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organization mentioned. Date of publication: April/2013 Seafood Industry in Scotland April 2013 18