Fish Farmer

Scottish Salmon exports reel under impact of strong £

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CURRENCY fluctuatio­ns have had a marked effect on the salmon export business. In January 1980, for example, a Scottish salmon farmer exporting an 8Ilb salmon to france at £2 a Ib would have been asking his French buyer to find 147.20 francs a fish.

By the end of January this year, however, the buyer would have needed to reflect the influence on the market of supply and demand, it does reveal the part played during 1980 by currency movements.

In January 1981 the exchange rate between the UK and France stood at 11.56 francs to the £ while 12 months earlier the exchange rate was 9.20 francs to the £.

Suffering

‘It means that we’ve suffered a 26 per cent cut in our potential export earnings because of the growing strength of the £ against the franc’, said Mr Angus Morgan, trading director for Marine Harvest, the Unilever-owned salmon farming company.

‘And we’ve suffered that effect while inflation within the UK has been running at 15 per cent a year.’

Obviously Marine Harvest and Scotland’s other exporters have used their production and marketing skills to minimise the impact of that 26 per cent change in currency values.

To make matters worse for UK exporters, the relationsh­ip between the Norwegian kroner and the franc hasn’t changed so dramatical­ly during the past 12 months as was the case with the £.

‘While our exchange value was declining by 26 per cent the Norwegians have suffered a cut of just 7 per cent. In comparativ­e trading terms we are now 18 per cent worse off against the Norwegian producer in our approach to the French market.

‘There is no doubt that our product has become less competitiv­e because of currency movement. We’re having a lot harder time selling into the export market now than we did a year ago.’

Mr Morgan admitted that the strength of the £ had helped protect UK producers against the full force of protein and energy price rises on the world market.

‘Scotland exports between 40 and 60 per cent of its farm-produced salmon and France is the major outlet,’ he said. ‘Salmon exports also go into most other EEC countries.

In attempting to develop those export opportunit­ies we’ve had to cope with three to four years of the currency moving against us. It would be very pleasant to have a spell with the £ moving in the other direction.’

There is no doubt that our product has become less competitiv­e

 ??  ?? Above: Peter Barrow
Right: Angus Morgan
Above: Peter Barrow Right: Angus Morgan

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