Brexit costing Scotland up to £100m a year in ‘lost’ salmon exports, MSPS told
BREXIT has cost Scotland up to £100 million a year in “lost” salmon exports, the sector has warned.
MSPS will today hear of the financial impact on the industry of the UK pulling out of the European Union in January 2020, with farming companies reporting that they have since faced increased red tape and costs.
Scottish salmon is the UK’S largest food export, and while in 2019 more than 53,000 tonnes of the product were exported to the bloc, the figure fell to 44,000 tonnes in 2023.
Export values to the EU were only down 3% to £356m because strong global demand drove up prices, but if the sector had maintained volumes at 2019 levels, then sales would have been above £430m.
Trade body Salmon Scotland says that this means there has been a net “loss” of around £75m, or up to £100m had the sector grown at the rate previously expected.
The Brexit impact has been mitigated by huge growth in other markets, particularly in Asia and the US.
Overall international sales in 2023 were up from £578m to £581m (+0.5%), including a 7% increase to the US and a significant 22% to Asia.
However, with salmon increasingly popular in traditionally smaller European markets such as the Netherlands and Spain, smoother trade flow and new markets would open up the possibility of further economic growth – generating greater investment in the Scottish economy and more high-skilled Scottish jobs, the sector argued.
The Brexit impact of lost sales does not include the direct £3m a year cost to farming companies because of the lack of an e-certification scheme.
Chief executive of Salmon Scotland Tavish Scott will today address MSPS on the constitution, Europe, external affairs and culture committee as part of their inquiry into the EU-UK Trade and Cooperation Agreement (TCA).
The agreement is up for review after the General Election.
Calling for the next UK Government to take urgent action, he will highlight the challenges facing salmon farmers post-brexit, including competitive disadvantage – there is still significant paperwork and processes which can lead to delays which may have knock-on impacts if consignments are
delayed. There is also the lack of a certification for export health certificates (EHCS), and issues with the current outdated system, which costs salmon farming companies £3m a year.
And Border Control Posts (BCPS) which come into force in April this year have brought in a raft of new import requirements for the feed sector.
Speaking ahead of his committee appearance, Mr Scott said: “Scottish salmon is the UK’S largest food export and a major contributor to our economy, with demand rising at home and abroad.
“And despite soaring sales to Asia and the US, the EU is still the most significant region for our exports, accounting for more than 60% of international sales.
“The world-renowned quality of nutritious low-carbon Scottish salmon means that we could significantly grow markets such as Spain, Italy and the Netherlands.
“But Brexit red tape continues to hold back the potential of Scottish exports, despite the hard work and investment put in by farmers to address the issues.
“We need the next UK Government – whatever formation it is – to ease the burden on exporters so that sectors like ours can sell more Scottish produce, delivering economic growth and creating jobs here at home.”
Salmon exports sales were up from £578m in 2022 to £581m (+0.5%) in 2023, according to figures from HMRC.
In 2019, the export value was £618m.
In 2023, EU sales were down 3% to £356m, and volumes were down 17%. However, US sales were up 7% to £140m, and exports to Asia were up 22% to £70m.
The UK Government have been approached for comment.