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As we become an independent coastal state, the government will remain committed to sustainable fishing”

in value of over £51 million, in the period compared with 2019.

The export decline was felt sharply in March, as coronavirus took hold in several major markets. The value of exports totalled £24.1 million, a decline from £31.7 million in February and 57 per cent lower than March 2019. As a consequence, the Scottish salmon sector pleaded to the Scottish and UK governments for help in a bid to improve market access.

The Scottish Salmon Producers Organisation (SSPO) said the sector is showing great resilience in its operations, with farmers working hard to keep their key workers safe and livestock healthy. But, with the likelihood that quarter two export figures will also be lower than pre-Covid expectations, focus was shifting from early operational challenges to the support required to kick-start and develop export sales.

Julie Hesketh-Laird, chief executive of the SSPO, said: ‘As our export markets gradually open we look to the UK and Scottish Governments to help find ways to ensure supply lines to customers are kept open and are competitive so the UK’s biggest food export can be enjoyed in our key markets.

‘The much-needed support being considered for the aviation sector must focus on freight as well as passengers. High quality Scottish salmon is available and we want to see significantly more flights leaving the UK with salmon in their hold. We operate in a highly competitive, global market and want to hold fast to our market share, which brings economic benefits to local and national economies.

‘In the longer term we need easy access to markets through a swift and fair conclusion to free-trade negotiations with our biggest and most important trading partners in the EU and USA. Support from Governments to make this happen is critically important now, more than ever.

‘At home, the dynamics of consumer shopping and consumption are changing radically. This is an important opportunity for Governments to get behind the promotion of healthy, nutritious, locally produced food. Campaigns that encourage healthy eating and buying locally produced fish would clearly benefit fish farmers and consumers.’

Responding to the salmon farmers’ plea, the Scottish Government said: ‘While every business is responsible for its own commercial activity, we are committed to working with the farmed fish and seafood industry to explore all potential options that might help create more commercial opportunities.

‘We are working closely with a range of industry bodies – including the SSPO – and retailers to increase sales of Scottish salmon across the UK. We are also investing in In-Market Specialists who will build on export strategies to open up existing and new markets for Scottish salmon as coronavirus restrictions ease.

‘Aquaculture is a vital component of the Scottish economy and a significant provider of highly skilled jobs in some of our most remote and fragile communities. We are determined for that to continue into the future, and last month launched a £3 million fund to support businesses in the sector.’

In April the Scottish Government launched the Aquaculture Hardship Fund, initially to support shellfish and trout businesses identified as most at risk from the loss of export and domestic food markets due to COVID-19. By 26th May, the fund had made £345,000 of payments to 30 food related aquaculture businesses covering March and April.

The Scottish Government spokesperson continued: ‘The current situation is not helped by the continued uncertainty about tariff-free access to the EU export market and the likelihood of additional costs and administrative burdens arising from the need for Export Health Certificates for Scottish salmon exports to the EU. UK Government failure to agree a comprehensive trade deal with the EU by the end of the year is a real possibility, which is why the Scottish Government continues to press the UK Government to request an extension to the transition period.’

The UK Government said, though aquaculture is a devolved matter, it prom

ised to ‘work closely together with the devolved administrations on fisheries issues, and will continue to do so as markets reopen’.

The spokesperson at the UK’s Department for Environment, Food and Rural Affairs (Defra) added: ‘We’re actively working to re-open the market in Saudi Arabia to UK seafood exports, which had previously been closed due to sudden changes in the Kingdom’s import regulations. Defra are coordinating with the British Embassy in Riyadh to ensure that all seafood exporters will be able to recommence this trade as quickly as possible.

‘Defra have been working closely with the aquaculture sector, including the SSPO and British Trout Association to ensure that the priorities of UK aquaculture are understood for future trade agreements.

‘As we become an independent coastal state, the Government will remain committed to sustainable fishing and our flagship Fisheries Bill enshrines that commitment in law.’

Meanwhile the EU in May awarded funding worth £800,000 to eleven of Scotland’s shellfish growers and trout producers in a bid to mitigate the impact of the pandemic.

The grants from the European Maritime Fisheries Fund (EMFF) included nearly £100,000 for phase two of the expansion of Seaforth Mussels on the Isle of Harris and around £200,000 for new specialist trout harvesting equipment at Dawnfresh Seafoods in Lanark. The funding is split between oyster, mussel and trout producers.

The Scottish Government’s Rural Economy Secretary Fergus Ewing said: ‘COVID-19 has had a devastating impact on the seafood sector with the market for some products disappearing almost overnight, leaving many businesses at risk of financial ruin.

‘This new funding is being awarded to businesses working in rural areas who have been hit the hardest by this pandemic, helping them to strengthen their business and recover from the loss of markets.

‘Aquaculture is an important part of our food and drink success story which we need to preserve.’

Dr Nick Lake, chief executive of the Association of Scottish Shellfish Growers, added: ‘This shows continued confidence by both the shellfish businesses and

Scottish Government that once the impacts of the current COVID-19 crisis are overcome the industry has continued scope for development.’

In Northern Ireland, Fisheries Minister Edwin Poots MLA announced a £360,000 emergency aid package to help aquaculture businesses that have experienced a significant drop in sales as a result of the COVID-19 pandemic.

The aquaculture sector is a small but valuable niche market in Northern Ireland, employing around 131 people and supporting its rural communities.

Announcing the emergency support package during a visit to Movanagher Fish Farm in Ballymoney Minister Poots said the industry faced ‘extreme difficulties’ and is in ‘urgent need of our support’.

He said: ‘The aim of the emergency package is to help this sector to continue its work in growing, harvesting, shipping and delivering to customers all over the world and help the sector to be sustainable and profitable in the long term.’

Despite all the bad news, industry observers believe aquaculture may be finally emerging from the worst period of this crisis. Rising salmon prices in Norway, often a marker in neighbouring salmon farming countries, are being interpreted as signs many economies around the world are reawakening from the lockdown.

In the last week of May, salmon prices rose by over 10 per cent, according to the Norway Office of Statistics. The kilo price for fresh or chilled salmon rose from NOK 59 per kilo to NOK 65.46 – an increase of 10.6 per cent. The kilo price of frozen salmon was NOK 52.53, a decrease of 10.5 per cent, but volumes were on the rise. The month did not start so optimistically.

‘This year can be split in two for seafood exports: before and after the corona crisis,’ the Norwegian Seafood Council’s Director of Market Insight and Market Access Tom-Jørgen Gangsø said. ‘2020 started off well with a strong increase in value due to increased demand for Norwegian seafood products. This positive trend came to an abrupt end within the introduction of measures to reduce the spread of the coronavirus, which is why we are seeing exports fall for the first time in 18 months.’

For the first four months of the year, the seafood export value had increased by 6 per cent or NOK

2.2 billion (USD 214.9 million, EUR 199.1 million) year-on-year to NOK 36.7 billion (USD 3.6 billion, EUR 3.3 billion). Then the virus hit, and the volume and value of Norway’s seafood exports fell dramatically.

Norwegian seafood companies sold 183,000 metric tons (MT) of fisheries and aquaculture products in April, 30,000 MT less than in March and 7 per cent lower than 2019’s corresponding month.

At NOK 8.2 billion (USD 800.7 million, EUR 742 million), the value of the country’s seafood trade was down NOK 1.4 billion (USD 136.7 million, EUR 126.7 million) compared to March’s revenues, and NOK 666 million (USD 65 million, EUR 60.3 million) less than achieved in April 2019. This was the first time since September 2018 that Norway had experienced a fall in the value of its seafood exports, and came despite a marked weakening in the kroner.

Finally demand appeared to be picking up by the end of May. Paul Aandahl, analyst at the Norwegian

Seafood Council (NSC), said that despite increased freight costs there was now a shift in the flow of fresh salmon towards Asian markets such as China and South Korea where the re-opening of the economy began earlier.

Europe too was also starting to open up. Mr Aandahl explained: ‘We see continued positive development in exports of fresh whole salmon to further processing countries such as Poland and the Netherlands. Exports of fresh salmon fillets help stabilise exports to key overseas consumer markets such as the US and Japan and to larger consumer markets in Europe such as France.’

Sales to the United States showed no signs of slowing with exports of fresh salmon fillets up by 57 per cent during much of the global lockdown period. Pre-packaged seafood products, including salmon appear to have been one of the few winners in this pandemic as consumers switch to home consumption in the absence of restaurants.

Looking ahead, Mr Gangsø added: ‘We also find that the corona crisis has led to layoffs and increased unemployment globally. There is considerable uncertainty about how weakened purchasing power will affect demand for Norwegian seafood in the long-run.’

We like to end our Covid-19 reports with good news if we can, and in Norway it appears the seafood industry could play a key role in getting the country’s economy and workforce up and running again.

‘For Norway and other seafood nations, this is a real opportunity for a blue revolution and illustrate the real meaning of sustainability – social, economic and environmentally,’ said the Norwegian Seafood Council’s CEO, Renate Larsen.

‘Seafood can be an important part of the solution in terms of rebuilding communities, creating jobs and responsible and low-carbon footprint food production.’

Norway is the second largest exporter of seafood in the world, and the largest producer of Atlantic salmon. Last year 36 million daily meals of Norwegian seafood were eaten across 149 countries around the world.

As society is now slowly gradually opening up, the job of how to get the economy back on track has started in earnest. In May Prime Minister Erna Solberg and Fisheries Minister Odd Emil Ingebrigtsen met representatives from the seafood industry to discuss what role it should play in rebuilding the economy.

‘The world is awakening to a new world order after this crisis, and we will feel the repercussions for a long time, both in terms of economic uncertainty and in our everyday choices,’ Ms Larson said. ‘But the world will move on, we still have a mountain to climb when it comes to tackling climate change and food security, and investments into responsible seafood production is part of the solution.

‘In Norway we are in a very fortunate position to be in the financial situation to boost industry and to get new and sustainable projects off the ground in the seafood sector quickly after this crisis. It can be a huge opportunity for the seafood industry, not just in Norway, but also in many of our important export markets, where jobs are created in processing, distribution and sales.’

The important role of the seafood industry post-Corona was also highlighted by Professor of Industrial Economics at the University of Stavanger, Ragnar Tveterås.

‘There is a potential to create jobs in all parts of the value chain in the seafood sector. Since the financial crisis in 2008 nominal value added in the Norwegian seafood sector has tripled, and employment has increased by over 50 per cent. Through quick and decisive action by decision makers the seafood industry could create even more jobs in a situation where there are many competent hands and heads available.’

The question is: could a ‘blue revolution’ happen in Scotland too?