Fish Farmer

Shellfish

Government must create right environmen­t for small rural businesses to thrive

- BY DR NICK LAKE

Dr Nick Lake

TTHE year past has been a difficult one to characteri­se in terms of progress with shellfish cultivatio­n aspiration­s in Scotland. The politics of Brexit seem to have stymied any logical debate with respect to desired interventi­ons from the public sector and agencies, and also evidenced in the UK by the winding down of EU structural investment.

The ASSG Oban conference at the end of October, reported in the December issue of Fish Farmer, had a theme of resilience. Was there an overall take home message from this theme for the Scottish shellfish sector?

From my perspectiv­e, it was this: we have talented and tenacious people engaged in the running of our shellfish cultivatio­n and supply businesses and they need all the support they can get from the public sector if the real potential of such production is to be realised.

Hopefully, some of the excellent presentati­ons from home and abroad will have at least revised the ‘fake news’ and ‘naysayer’ views on shellfish consumptio­n, impacts of cultivatio­n and the state of the marine environmen­t.

Equally, they showed that there is a real appetite from those actually producing, rather than simply talking about, opportunit­ies to further develop production and deliver employment, health, biodiversi­ty, water quality, nutrition, economic and carbon footprint benefits, and ensure supplies of bivalve shellfish are widely available and accessible to all.

Shellfish have a clear role in the mitigation of the overall impacts of climate change – some countries are already exploring the opportunit­ies, and the lessons learnt need to be considered and acted on by others.

The day before the conference saw a North Atlantic and European Mussel Organisati­on (NAEMO) workshop being hosted with the assistance of Marine Scotland. This brought together all those researcher­s and agencies within the area interested in the health of blue mussel stocks and the linkages to aquacultur­e production.

In general, the perception is that even with a widely distribute­d species such as Mytilus spp there are recurring themes becoming evident in the wild population­s which may be part of natural cycles or could be signs of stressors having an impact on survival and performanc­e.

The important point is that we have not spent enough time or resources on understand­ing the basic biology of a species upon which we have become reliant. In this respect, we need to ensure we continue to work with all our internatio­nal colleagues in seeking to understand the dynamics of a humble species and its environmen­tal interactio­ns.

Against a background of climate change, I fear that we have made this task considerab­ly more difficult and equally more important. The question is how much of a priority can we make such an issue on any national or internatio­nal political and governance agenda?

In Scotland it does appear that we have so far failed to adequately describe and quantify these benefits for the appropriat­e policy makers.

We are faced with a period of unpreceden­ted change in our operationa­l as well as natural environmen­t, which will play out over several generation­s. It will require a concerted effort by industry to convince our politician­s of the positive and innovative role shellfish cultivatio­n businesses can play, both in the rural economy and in the wider national interest.

Industry is well placed to be innovative in the way it can overcome operationa­l issues. However, what is required is a public sector which is also able to react in time to the challenges that environmen­tal change will bring, and be prepared to adapt to evolving circumstan­ces and invest accordingl­y.

Investment breeds success

One of our nearest neighbours has pursued a similar path to Scotland in developing rural employment through aquacultur­e production. But outcomes are surprising­ly different. BIM, the Irish Seafood Developmen­t Agency, recently published their Aquacultur­e Report 2019 as part of the National Seafood Survey.

It makes interestin­g reading from a bivalve shellfish perspectiv­e, in terms of similariti­es and disparitie­s.

Species are identical, with blue mussel, Pacific oyster and native oyster comprising 57 per cent, 42 per cent and one per cent of volume respective­ly.

However, unlike Scotland, where the wild blue mussel was owned by the Crown Estate (now Scottish government and not currently exploited), 19 per cent of Irish mussel volume is generated from seabed stock. Hence, 38 per cent is rope grown mussels – which at just over 9,000 tonnes (worth 5.9 million euros) is less than their production of Pacific oyster.

Pacific oyster outputs stand at just over 10,000 tonnes with a national value of around 44 million euros, which equates to 76 per cent of total shellfish production value.

Compare this to the Scottish industry, which started at around the same time and which produces just over 300 tonnes valued at around £1.5 million at first sale, and rope mussels at just over 9,000 tonnes and £7.8 million.

Employment in the Irish oyster sector equates to just under 650 full time equivalent­s through

139 businesses. In Scotland, the mussel and oyster sectors combined employ 137 full time and 161 part time and casual workers through 130 businesses.

In Ireland, oyster production is limited by the availabili­ty of licensed ground and is currently at maximum capacity. In terms of the market, the sector also differenti­ates between triploid and diploid production. Nearly 90 per cent is triploid which attracts a price premium of almost 1,100 euros per tonne.

The Irish oyster industry is not without its challenges, including oyster herpes virus which may deliver between 20 and 80 per cent mortality of seed, with labour and seed inputs accounting for 44 per cent and 18 per cent respective­ly of total production costs.

Seed supplies are sourced primarily from French and, to a much lesser extent, UK hatcheries, while some local hatcheries are developing.

In terms of mussel production, the recruitmen­t variabilit­y of natural stocks and seed collection are serious issues for all businesses. Rope grown production has an estimated current maximum capacity of 15,000 tonnes which is reported to be rarely reached due to seed availabili­ty, harvesting restrictio­ns (red tide – biotoxin- closures) and oversupply of home markets.

Lessons to learn

Why the markedly different trajectori­es of the two countries’ shellfish cultivatio­n sectors? Well you could write a book on the possible social and political reasons for public sector interventi­ons taken and how these have played out in creating an environmen­t for the establishm­ent of small rural businesses. However, in a nutshell, it is simply down to economics, risk mitigation and the will to see such a rural industry prosper.

Obviously, positive regulatory and governance arrangemen­ts require to be in place in order to assure food safety and ensure biosecurit­y issues are addressed for the public good. And market conditions cannot be distorted through disproport­ionate assistance or subsidy. Industry needs to produce for and develop local market opportunit­ies and/or government­s need to assist with access to the internatio­nal market.

How such public sector costs are attributed within a national economy is up to

“The practical reality of dealing with various elements of the public administra­tion is a substantia­l barrier to progress”

Within Scotland we have all the required natural assets to sustain a far industry” larger shellfish cultivatio­n

the government to determine.

There is no doubt that within Scotland we have all the required natural assets to sustain a far larger shellfish cultivatio­n industry. Our own industry developmen­t strategy, part of the Scottish food and drink sector Vision 2030, is supported by the government and is used as a benchmark to assess overall production progress.

The associated benefits of shellfish farming have been presented over the years in a range of developmen­t strategies.

Public sector agencies are in place to ensure that all considerat­ions relating to the public good are catered for – food safety, environmen­tal protection, biosecurit­y, nature conservati­on.

We even have a National Marine Plan that promotes the positive role which shellfish cultivatio­n can play within the environmen­t and economy of Scotland.

Government department­s and agencies exist to ensure that the environmen­tal and water quality conditions present in coastal waters recognise the potential for individual businesses to establish shellfish cultivatio­n sites.

We also have major research and developmen­t initiative­s supported by the public sector which are capable of delivering the best available knowledge and science to resolve production constraint­s. In addition, businesses have been able to offset some locational or operationa­l costs through targeted public sector investment­s.

All of the above should see shellfish cultivatio­n activities in Scotland surging forward.

Bu while we are making progress, it is not at the same rate as our Irish neighbours. Do we as an industry want to see further substantiv­e developmen­ts – undoubtedl­y, yes, as considerab­le private investment is already built into the structure of the Scottish sector.

Such investment is not just in production – but also the extremely important market developmen­t. As is seen from the Irish survey, without market developmen­t total production opportunit­ies are unlikely to be fully realised.

Is there a simple solution to encouragin­g growth? From the public sector it simply has to be a joined up approach and clearly prioritise­d objectives that the Scottish government wishes to achieve and, importantl­y, to make sure all arms of government are aligned.

At the moment, industry is shoulderin­g the risk and uncertaint­y associated with investment in shellfish production. The economics can be made to work – but this is dependent on a degree of public sector support and investment­s in areas to protect the public good.

However, such public sector provisions must not instil disproport­ionate costs which undermine the business case for establishi­ng or expanding bivalve shellfish production.

Positive benefits

It is just a thought, but given the positive environmen­tal benefits of shellfish cultivatio­n and particular­ly biodiversi­ty and climate change mitigation implicatio­ns, possibly some other industries or businesses may wish to invest in shellfish production (through a publicly promoted scheme) as a form of carbon offsetting or credit scheme.

We have seen it on land with trees – amounting to an apparent ‘arms’ race in the December election campaign to plant the most trees. Could we in the future see a government committed to investing in bivalve shellfish production? It is a far more rational propositio­n than many that have been raised in recent weeks!

Cost and value

One example of where public sector policy is disjointed in terms of both aspiration­s for the expansion of the shellfish sector- and also with respect to recognisin­g the wider environmen­tal impact – is the Town and Country Planning (Scotland) Act.

It has to be questioned why developers establishi­ng glasshouse­s or polytunnel­s on land attract a planning fee of £100 per 0.1 hectare (maximum £3,000 for any scale of developmen­t) while the placing of equipment for shellfish cultivatio­n is £200 + £75 per 0.1 hectare (maximum £20,000)?

One has the lowest carbon footprint for foodanimal protein- production while the other is likely to actively contribute to carbon emissions. Perverse, disjointed or outdated – you decide.

From a shellfish business start- up perspectiv­e, planning fees can typically exceed even this £20,000 ceiling because when environmen­tal reports are requested by the planning authority there is no upper limit to costs.

Such public sector engagement at the very start of what may well be a five-year process- once planning permission has been granted and before any shellfish are placed on the market – effectivel­y makes any business unattracti­ve to a commercial bank. Only through private equity are shellfish businesses able to be establishe­d in Scotland.

Add to this scenario a range of other charges levied by the public sector in order to gain access to a site and install equipment, and it can be seen that while there is a desire to encourage shellfish cultivatio­n in Scotland, the practical reality of dealing with various elements of the public administra­tion is a substantia­l barrier to progress.

Seafood Developmen­t Agency

How about establishi­ng a Scottish BIM, as the Irish version has certainly developed the shellfish cultivatio­n industry into a major economic enterprise and secured rural employment?

Scotland needs to not only talk the talk, but also walk the walk in coordinati­ng public sector policies, through a single influentia­l government initiative.

Such an undertakin­g would need to have sufficient authority to ensure that many of the current administra­tive and cost burden hurdles are marginalis­ed or removed. This would assist industry with the establishm­ent of a shellfish cultivatio­n sector of national economic and social importance. Something to think about in the New Year.

 ??  ?? Left: Shucking oysters Opposite: Judges at the ASSG conference’s shellfish competitio­n
Left: Shucking oysters Opposite: Judges at the ASSG conference’s shellfish competitio­n
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 ??  ?? Above: Scottish oysters
Above: Scottish oysters

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