Sandy Neil reports
Scottish salmon sector thinks positive as it pushes product in US and Europe
SCOTLAND’S salmon farmers and smokeries have a lot to gain, and lose, in the markets of North America, the Far East and Europe. Every year, many seek their fortunes at the world’s largest seafood trade events, the first in March in the US, and the second, this year in May, in Europe.
As Brexit looms, how, and where, are these Scottish companies drumming up business abroad? To find out, this month we look back, and forward, to these two expos in Boston and Brussels.
There is a lot at stake. After whisky, salmon is Scotland’s biggest food export - and it is the UK’s biggest too. Its export value doubled over the last decade, hitting a record high of £600 million in 2017, an increase of 35 per cent from the previous year, according to Scottish government figures.
In 2018, exports were worth £505 million, with France overtaking America to become the largest market, buying £165 million worth of Scottish salmon. US imports were worth £139 million, China’s amounted to £68.3 million, and Taiwan’s were valued at £21.8 million.
Around 20,000 industry professionals descended on the vast Massachusetts
Convention Centre in Boston on March 17-19, for the annual Seafood Expo North America (SENA).
‘More than 90 per cent of seafood consumed in the US is imported,’ its website explained, ‘making SENA a sizeable sales opportunity for suppliers from everywhere to bring their products to buyers.’
More than 1,300 exhibitors turned up from 49 countries- fewer than the 57 that made it last year, in the face of a record breaking blizzard that dropped 15 inches of snow. Scotland’s salmon companies were not deterred by bad weather.
The Scottish pavilion, harbouring Loch Fyne Oysters, the Scottish Salmon Company, Dawnfresh, Wester Ross and Scottish Seas, among others, may have been dwarfed by Canada’s pavilion, but it had an edge.
‘We got a tremendously positive response selling
Scottish salmon into North America,’ explained Lorraine Bruce Helmkay of Scottish Development International.
‘It is viewed as the very best here. The story of our crystal clear waters, our animal welfare, our pen density, all those wonderful things create an amazing product that Americans love.’
Beside the warm reception, there was victory for a Scottish company too in the expo’s Seafood Excellence Awards, when Annan based St James Smokehouse won the Best New Retail award for its Saint Pure Salmon, produced at its Miami site, and smoked with orange and grapefruit.
There were politics too. At last year’s show, a talk entitled ‘Global Trade in a World of Local Populism’ was given by Professor Mark Blyth of Brown University, a Scottish political scientist from Dundee well-known for his early predictions of Donald Trump’s victory and Brexit. But this year, the official Brexit date was less than a fortnight away, and plans had to be in place.
Loch Fyne looked chipper. ‘We at Loch Fyne look forward to exporting our products across the world and always look forward to new challenges,’ its sales
“It is in high demand and will be sold Brexit” regardless of
director Simon Briggs said.
‘There are lots of opportunities all over the world, but at the moment the most exciting markets are the USA, Canada, the Caribbean and Asia, in addition to our longstanding partnerships throughout Europe.
‘The USA is a key focus for our business in 2019, and we aim to make our Loch Fyne smoked Scottish salmon available from coast to coast.’
Last year its smoked salmon became available in ‘Central Market’ gourmet
grocery stores throughout America’s second largest state, Texas. This year it was pushing its ‘Mey Selections’ range of smoked salmon, inspired by HRH Prince Charles.
Briggs explained: ‘The Duke of Rothesay, as he is known in Scotland, launched Mey Selections to foster closer connections between farmers, fine food producers and customers, helping to maintain a balanced way of life in the Highlands of Scotland.
‘It’s a range which is of particular interest to consumers in the US because our royal heritage is very popular overseas.’
The bigger challenge, Briggs said, came from the Argyll firm’s local council, rather than Brexit: ‘We have made no secret of the fact that a huge rise in export charges imposed by Argyll and Bute Council has been an unwelcome burden and I know other seafood companies have joined our call for local councils to help rather than hinder Scotland’s seafood industry.’
The Scottish Salmon Company, which attends both the American and European expos, sounded confident in its plan.
‘Like any business, we have been monitoring Brexit negotiations closely,’ a spokesperson said, ‘but we have a global perspective and long-term strategy in place to support growth.
‘We export around 60 per cent to 26 countries across the world, and are focused on driving exports to key markets in North America and the Far East, where demand for quality, traceability and Scottish provenance continues to grow.
‘We have seen significant growth in these key markets, with sales to North America growing sixfold in the last two years. Sales to the Far East in the last two years have doubled.
‘Provenance underpins all that we do and differentiates us in the global market. We will be showcasing our premium Scottish salmon, including
“We have a global perspective and longterm strategy to support growth”
Tartan Salmon Label Rouge, Lochlander Salmon and our award winning Native Hebridean Salmon, a truly unique and native strain of Scottish salmon with Hebridean provenance and heritage.’
Across the Atlantic Ocean from Boston, an even bigger seafood trade event awaits in Europe: the Seafood Expo Global in Brussels on May 7-9.
More than 29,100 seafood professionals from 152 countries attended the fair in 2018, and this year welcomes newcomers Guyana, Uganda and Tanzania.
As trade has grown, so has the event, its website explains: ‘Some 60 million tonnes of total fish and fish products exported in 2016 represent a 245 per cent increase [since] 1976. During the same period, world trade in fish and fish products also grew significantly, with exports rising from $8 billion in 1976 to $143 billion in 2016.
‘Food fish consumption has grown from nine kilograms per person in 1961 to 20.2 kilograms per person in 2015, at an average rate increase of about 1.5 percent per year. World fish consumption in 2030 is projected to be 20 per cent higher than in 2016.’
This bigger, closer to home event has drawn many more Scottish exhibitors, including the Scottish Salmon Company, Dawnfresh, Loch Duart, Mowi, Scottish Sea Farms, Wester Ross Fisheries, Macduff Shellfish, Associated Seafoods Limited, St James Smokehouse, John Ross Jr, the Scottish Salmon Producers Organisation (SSPO), Scottish Development International, Scottish Enterprise, and Seafood Scotland, which is organising the Scottish pavilion, one of 70 in the arena.
Amid the Brexit uncertainty, just days before flying to Boston and the postponement of Brexit beyond March 29, the SSPO’s chief executive, Julie Hesketh-Laird, said: ‘The EU is a big market for Scottish salmon, worth over £290 million annually, playing its part in fuelling increasing global demand for what has become a much sought after product.
‘A no deal exit would cause immediate problems for the Scottish farmed salmon sector, including tariffs for product being exported to European markets and the very real threat of logistical delays of getting salmon into the EU.
‘For hauliers carrying perishable goods such as fresh fish, this is obviously more of a risk than for other carriers.
‘There is still confusion over how many certificates will be required, who can
“The demand outstrips the supply so we can cater for the top end of the market”
issue them and even if there will be a temporary grace period when the certificates won’t be needed.
‘The current withdrawal deal poses problems as it couples all seafood exports to Europe with access to North Sea fishing grounds and caught fish quotas.
‘We believe salmon exports should continue, regardless of discussions over quotas and fishing grounds and we will be arguing for that to continue.’
Mowi, formerly Marine Harvest, added their call for clarity. ‘Our voice is very important in the Brexit discussion as Scottish salmon is both the UK’s and Scotland’s single largest food export,’ Georgina Wright, Mowi’s head of sales UK, said.
‘A hard Brexit indicates immediate move to WTO rules and the UK and Scottish government do not currently have the infrastructure to manage exports under these terms.
‘The Scottish salmon industry is a business that operates seven days a week, which requires government infrastructure to match. The continued lack of clarity is most frustrating, but fortunately our sector has a strong Brexit working group which continues to highlight the importance of frictionless trade to both the UK and Scottish government.
‘We are not overly concerned about any longterm impact of Brexit, considering global demand outstrips supply.
‘We have a premium food product that is in high demand and will be sold regardless of Brexit. That said, a two per cent export tariff under WTO rules is negative and, as we have pointed out, the UK does
not currently have the infrastructure to manage a no deal exit.
‘The EU is Mowi Scotland’s largest foreign market, with France being the biggest within the EU. However, we do export to another 29 countries, so we have a well balanced portfolio.’
Scottish Sea Farms had prepared its pitch for the European expo. ‘Brexit will undoubtedly be a key discussion point, and we have been liaising internally and externally with suppliers and partners to ensure that, whatever the outcome, we can continue to fulfil customer orders smoothly,’ its export sales manager, Celine Kimpflin, said.
‘In the six short years since Scottish Sea Farms put in place its own dedicated export team, our export volume has grown by 61 per cent – rapid growth by anyone’s standards – therefore our priority is to strengthen those relationships and ensure we’re meeting our customers’ every need.
‘We will be highlighting the positive impact of ongoing investment in our farms: from the increased use of cleaner fish to keep our salmon in tip-top condition and the roll-out of Seal Pro nets to help ensure that salmon and seals safely co-exist, to our humane harvesting techniques.
‘We’ll also be discussing the advances we’re making with regards to trialling more carbon friendly packaging; something we’ve done successfully for our UK customers.’
Loch Duart is taking its own tack. ‘Loch Duart is already broadly spread across 20 plus countries globally, and wishes to continue to grow organically in these markets,’ said Andy Bing, sales director.
‘Loch Duart will be making the crucial link between farming practices, the best feed and taste.
‘Producing less than four per cent of Scottish farmed salmon, we don’t supply supermarkets, instead supplying niche markets, generally to wholesalers and hotels. The demand outstrips supply, so we cater for the top end of the market.
‘There are always new and emerging challenges when farming in the healthy seas off the Scottish coast, with interesting biological challenges around every corner.’
Bing added that with changing sea water temperatures, and especially warming waters, salmon farms now face challenges that didn’t exist previously.
‘We are already exploring new ways to address challenges and find new ways to take our farming to the next level.
‘We are also reaping the success of our fight against food fraud by working with Oritain, experts in scientifically proving the origin of food products, to prevent fraudsters from passing off other salmon as Loch Duart.’
Despite the Brexit uncertainty, which looked set to continue at the time we went to press, the SSPO was keen to push a positive message: ‘The Scottish salmon farming industry is optimistic in the long-term, and sees a bright future ahead.’