2016 SEAFOOD PROCESSING INDUSTRY REPORT - Seafish
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2016 SEAFOOD PROCESSING
INDUSTRY REPORT
Acknowledgements Seafood Processing Industry Report 2016
ACKNOWLEDGEMENTS
Authors Acknowledgements
Struan Noble Most of all, the authors would like to thank the owners and
managers of seafood processing businesses for taking the time
Marta Moran Quintana to complete questionnaires and to provide valuable survey
Hazel Curtis data for this report. A particular thank you goes to those who
permitted site visits and willingly offered their time and industry
expertise to the authors.
Other Contributors
The authors received much appreciated help and guidance from
Steven Lawrence colleagues within Seafish and would especially like to thank the
Kirsten Milliken major contributors listed, as well as the rest of the Seafish Economics
team and the temporary staff who assisted at various stages of the
Sebastien Metz project.
Arina Motova The authors would also like to thank:
Tsvetina Yordanova • Other industry stakeholders, trade associations and regional
seafood bodies who provided valuable input, industry knowledge
Michaela Archer and advice during the surveys.
Julia Brooks • All other Seafish and Seafood Scotland colleagues who
Ivan Bartolo contributed their time and expertise.
Fiona Wright • The Marine Management Organisation for their continued
partnership.
Lee Cooper
Phillip Quirie
Erin Forrest
Sean Bright
The views expressed in this report are those of the authors and do not necessarily represent those of the UK Government or Ministers.
1
Seafood Processing Industry Report 2016 Contents
CONTENTS
Seafood Processing Industry 2. Sea Fish Processing:
1. Industry Structure & Employment 9
Report 2016 Cost Structure & Inputs into Production 27
Acknowledgements 1 1.1 Fish Processors: 10 2.1 Cost Structure: 28
Contents 2 1.1.1 Trends in number of sites and 2.1.1 Summary of industry cost structure 28
employment 10
Executive Summary 4 2.1.2 Summary of operating cost structure 28
1.1.2 Breakdown by site size 11
Introduction 8 2.2 Summary of Inputs into Production 29
1.1.3 Processing type 12
2.3 Labour Input: 31
1.1.4 Regional and home nation distribution 13
2.3.1 Wages and labour costs 31
1.2 Salmon & Freshwater Fish Processors: 15
2.3.2 Training and skills 32
1.2.1 Trends in number of sites and employment 15
2.4 Capital Input: 33
1.2.2 Breakdown by site size 15
2.4.1 Fixed assets – tangible and intangible 33
1.2.3 Processing type 16
2.4.2 Capital employed 33
1.2.4 Regional and home nation distribution 16
2.5 Raw Material Supply Base: 34
1.3 Sea Fish Processors: 17
2.5.1 Seafood Value Chain 34
1.3.1 Trends in number of sites and
2.5.2 Sea fish processing raw material
employment 17
supply base 35
1.3.2 Breakdown by site size 18
1.3.3 Processing type 19
1.3.4 Sites and jobs by fish species category 20
1.3.5 Processing Industry Profile:
the UK pelagic processing sector 22
1.3.6 Regional and home nation distribution 23
1.3.7 Labour force profile –
employment type & seasonality 25
1.3.8 Overview of importers and exporters 26
2
Contents Seafood Processing Industry Report 2016
3. Sea Fish Processing: 4. Sea Fish Processing: Industry
5: Supporting the Industry 57 Appendices 59
Output and Productivity 37 Business Environment 43
3.1 Summary of Output and 4.1 Strengths, Weaknesses, 5.1 How can the industry be Appendix 1:
Productivity 37 Opportunities & Threats supported – comments from Regions of the UK for
3.1.1 Summary: (SWOT) Analysis 44 industry 57 Reporting Purposes 59
economic performance 4.2 Operating Environment 45 Appendix 2:
of the sea fish Definitions 60
4.2.1 Raw material supplies 45
processing industry 37
Appendix 3:
4.2.2 Customer base 48
3.1.2 Summary: key ratios 38 Sample for Financial Estimation 63
3.2 Industry Financial Output 4.2.3 Operating conditions:
Appendix 4:
Trends 39 Financial climate 49
Research Approach and
3.2.1 Output trends – turnover, 4.2.4 Operating conditions: Methods 67
operating profit and Trade 50
A4.1 Scope of study 67
Gross Value Added 39 4.2.5 Operating conditions:
A4.2 Research stakeholders
3.2.2 Regional distribution Regulation 52
and objectives 67
of turnover and Gross 4.2.6 Operating conditions:
Value Added 39 A4.3 Research methods 68
Changing international
3.3 Turnover and Gross Value trade environment and Appendix 5:
Added per site by FTE band 41 political-economic Census Survey Form (2016) 70
climate 54
3.3.1 Turnover and Gross Appendix 6:
Value Added per site Financial Survey Form (2014) 71
by FTE band 41 Appendix 7:
3.3.2 Beyond Gross Value Report Data 72
Added and Gross
Domestic Product 41
3.4 Customer Base 42
3
Seafood Processing Industry Report 2016 Executive Summary
EXECUTIVE SUMMARY – SEAFOOD PROCESSING INDUSTRY REPORT 2016
Fish Processing: Industry 2016 profile Fish Processing: Industry trends
1 INDUSTRY SIZE AND STRUCTURE (section 4 REGIONAL DISTRIBUTION (section 1.1.4): 6 CHANGE IN INDUSTRY SIZE (section 1.1.1
1.1.1 and 1.1.2): There were 376 majority Humberside, Grampian and ‘Other Scotland’ and 1.1.2): The industry has consolidated with
fish processing sites and 17,999 Full Time were the most important regions for fish a 33% decrease in the total number of fish
Equivalent (FTE) jobs. Sites with 1-25 FTE processing as measured by the number processing sites from 2008 to 2016. During the
jobs made up 68% of all sites and 12% of total of sites and FTE jobs. The largest average same period, FTE jobs per site increased by
industry FTE jobs. Sites with over 100 FTE jobs regional site size was in Humberside (81 FTE 32% to an average of 48 FTEs per site in 2016.
made up 12% of all sites and provided 65% of jobs per site), although all three regions had a
total industry FTE jobs. higher than UK average site size. 7 CHANGE IN PROCESSING TYPE (section
1.1.3): Between 2010 and 2016, the
2 PROCESSING TYPE (section 1.1.3): 11,586 5 SALMON & FRESHWATER PROCESSORS distribution of fish processing FTE jobs by
fish processing FTE jobs were at mixed (section 1.2): A total of 4,445 FTE jobs were processing type has remained steady.
processing sites, 4,383 FTE jobs were at at 69 salmon & freshwater majority processing
secondary processing sites and 2,031 FTE sites. The average salmon & freshwater site 8 CHANGE IN REGIONAL DISTRIBUTION
jobs were at primary processing sites. Most size was larger than that of the average total (section 1.1.4): Between 2010 and 2016,
larger processors were engaged in mixed fish processing industry site size. 87% of all the number of sites in the top three regions
processing, whereas most small processors (1- salmon & freshwater FTE jobs were at mixed decreased, in Humberside and Grampian total
10 FTE jobs) were engaged in either primary or processing sites. ‘Other Scotland’ (23 sites) FTE jobs increased. South West of England
secondary processing. and the ‘Highlands and Islands’ (15 sites) had showed the strongest percentage growth in
the largest numbers of salmon & freshwater number of sites (10%), and South/Midlands
3 HOME NATION DISTRIBUTION (section fish processing sites. the strongest percentage growth in number of
1.1.4): Just over half of sites and FTE jobs are FTE jobs.
located in England. The average size of sites in
Scotland (55 FTE jobs per site) is higher than 9 CHANGE IN SALMON & FRESHWATER
the rest of the UK. PROCESSORS (section 1.2): Between 2010
and 2016, the number of sites classified as
salmon & freshwater majority processors
increased. Some of this increase may be
explained by processors switching focus
to salmon & freshwater processing from
previously processing other sea fish species.
FTE jobs have varied between years with an
overall decrease of just over 11.5% between
2010 and 2016.
4
Executive Summary Seafood Processing Industry Report 2016
Sea Fish Processing: Industry profile (2016) and financial position (2014)
10 INDUSTRY SIZE (section 1.1.1): There were 14 REGIONAL & HOME NATION DISTRIBUTION 18 KEY FINANCIAL RATIOS (section 3.1.2): In
13,554 FTE jobs across 307 majority sea fish (section 1.3.6): The three regions with the 2014, the average operating profit margin was
processing sites, representing three quarters highest proportions of sea fish processing 10% and average net profit margin was 8%.
(75%) of all fish processing FTE jobs and 82% FTE jobs were Humberside (36%), Grampian In terms of productivity, average turnover per
of all fish processing sites. (25%) and South West England (10%). By FTE job was £233,283 and GVA per FTE job
home nation, Scotland accounted for 35% of was £41,298. The industry had a current ratio
11 INDUSTRY STRUCTURE (section 1.3.2): sea fish processing FTE jobs, England 62%, of 1.13, (measure of financial health), which
The sea fish industry structure was similar to Northern Ireland 3% and Wales less than 1%. indicates that industry operations may be, to a
overall fish processing. Over 60% of sea fish degree, restricted by working capital problems.
processing employment was concentrated at 15 SEASONAL EMPLOYMENT (section 1.3.7):
less than 10% of all sea fish processing sites. 47 sites (17% of all sites) employed an average
of 14 seasonal staff for just under 17 weeks
12 PROCESSING TYPE (section 1.3.3): Mixed per year.
processors made up over half of sea fish
sites (54%) and FTE jobs (57%). Primary 16 INDUSTRY COSTS (section 2.1 and 2.2):
processors represented 32% of sites and 12% Total costs in 2014 amounted to £3 billion
of FTE jobs. 14% of total sites were secondary with the majority of this operating costs. Raw
processors with 31% of FTE jobs. materials were 74% of operating costs, labour
costs 13%, other operating costs 12% and
13 SPECIES TYPE CATEGORY (section 1.3.4): energy costs 2% of total operating costs.
Just over half (55%) of sites processed a mix
of species types and 29% of sites processed 17 VALUE OF INDUSTRY (section 3.1): In 2014,
shellfish only. Most sites processing mixed total industry turnover was £3.13 billion,
species types (76%) process both sea fish Gross Value Added (GVA) was £554 million,
species and salmon & other freshwater operating profit was £184 million (6% of
species. The most common species type turnover) and net profit was £113 million (4%
processed at mixed species type sites was of turnover).
demersal (95%).
5
Seafood Processing Industry Report 2016 Executive Summary
Sea Fish Processing: Industry trends
19 CHANGE IN INDUSTRY SIZE (section 1.3.1 The largest decrease in FTE jobs was in South
and 1.3.2): The number of sea fish processing West England (23% decrease).
sites decreased by 37% since 2008 to 307
sites in 2016. The average number of FTE 22 CHANGE IN INDUSTRY COSTS (section 2.1):
jobs per site increased by 41% over the same Between 2010 and 2014, total industry costs
period to 44 per site in 2016. There are fewer increased in nominal terms by 1.5%, which
sites with 1-10 FTEs and 11-25 FTEs, a in real terms (adjusted for inflation) would be
decrease of over 40% in terms of both number a slight decrease. The structure of operating
of sites and FTE jobs between 2008 and 2016. costs remained largely steady from 2010-
FTE jobs at sites with over 100 FTEs increased 2014.
by 11% over the same period. Between 2014 23 CHANGE IN VALUE OF ASSETS (section
and 2016, employment rose marginally by 147 2.2): One notable change was the total
FTE jobs (1%). value of balance sheet fixed assets, (such as
20 CHANGE IN SPECIES TYPE CATEGORY equipment, premises and technology), which
(section 1.3.4): Between 2010 to 2016, nearly doubled between 2010 and 2014.
the numbers of pelagic sites and shellfish 24 CHANGE IN INDUSTRY VALUE (section 3.1
sites have remained steady whereas, sites and 3.2): Industry turnover peaked in 2012
processing mixed and demersal species before nominally decreasing back to 2010
decreased by 22% and 38% respectively. FTE levels in 2014. GVA nominally decreased from
jobs at sites per species category showed a £590 million in 2010 to £554 million in 2014,
marked change from 2010 to 2016: FTE jobs largely as a result of a decrease in operating
at pelagic sites increased by 87% (associated profits (which varied over the period).
with an increase in landings) and FTE jobs at
shellfish sites rose by 57%. Demersal species 25 CHANGE IN KEY RATIOS (section 3.1.2):
category processing FTE jobs decreased by Profitability ratios decreased from 2010 to
44% and FTE jobs at mixed species type sites 2014. Productivity ratios varied, with turnover
decreased by 19% per FTE nominally increasing overall from
2010 to 2014 and GVA per FTE marginally
21 CHANGE IN REGIONAL DISTRIBUTION decreasing. Between 2010 and 2014,
(section 1.3.6): Between 2014 and 2016, FTE estimated financial health ratios, current ratio
jobs in Humberside increased by 17% and and total debt to total assets, decreased.
FTE jobs in Grampian increased by 7%.
6
Executive Summary Seafood Processing Industry Report 2016
Industry Business Environment Summary
26 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS OF THE UK PROCESSING INDUSTRY (2016)
(reported by industry interviewees)
Helpful Harmful
Strengths: Weaknesses:
• High quality of all UK sourced and imported raw material. • Remote geography of some plants limits access to resources or
• Very good environmental status of the majority of UK supply chain fisheries. market.
• Increasing vertical integration – both in terms of customers and the supply base. • Low overall levels of vertical integration.
Internal
• Increase in freezing and storage capacity. Therefore, increasing ability of industry to adapt to changes in supply • Cumbersome administration work (in particular for small processors
and demand. with regards to access to funding).
• Increase in investment in physical capital resource. • Narrow client and/or supplier base (in terms of sales) for some
• Good relationships with clients and suppliers globally. processors.
• Consolidation of the sector translating to long-term economies of scale lowering the marginal cost of producing • Access and supply of skilled labour is low.
an extra unit of product. • Processor interests not fully accounted for in fisheries management.
• Investment or updating of physical capital, reducing the scale of labour requirement.
Opportunities: Threats:
• Growing demand for seafood products. • Uncertainty of the financial climate.
• Large domestic seafood market. • Declining supplies of UK raw material.
• Strong export markets. • Increased uncertainty in raw material supply.
• Trade agreements increasing access to export markets and increasing supply of raw materials. • Labour supply – migration conditions for entry or stay in the UK,
• Increasing uptake of certifications for sustainable seafood. and attractiveness of the UK as place to work (lower value of pound
• Trend of converging regulatory requirements across nations, increasing access to raw materials in the long term. equates to lower relative wage for migrant workers).
• De-valuing of the pound – strengthen UK export competitiveness and UK assets potentially more attractive for • Increased price of raw materials.
External
foreign capital investors. • Increased competition between processors.
• Stronger demand for sustainable seafood. This raises the profile of seafood being sustainable and raises barriers • Poor environmental reputation of some fisheries.
to entry for competing industries outside the UK to access the domestic market. For example through the • Uncertainty over UK trade status with EU and other trade partners.
Responsible Fishing Scheme (RFS) or Risk Assessment for Sourcing Seafood (RASS). • New regulatory conditions and customs procedures may increase
• New trade environment may allow access to other sources of labour which current trade agreements do not non-tariff barriers.
allow for. • Overcapacity in the sector.
• New trade conditions may lower advantage of competitor countries with policies designed to support national
industries (for example, the Faroe Islands and Norway).
• The increasing number of ‘metro stores’ increase the number of sales outlets for seafood. However, whilst they
will sell limited ranges, they may be different products to those sold in main store hence increasing the overall
range diversity for processors to deal, which could also be a threat (increasing production complexity).
Summarised findings of the qualitative research into a SWOT analysis (strengths, weaknesses, opportunities and threats) of the UK seafood processing industry.
This diagram is repeated at the beginning of Section 4 of this report where more detail can be found, including discussion of the areas that affect the UK processing
industry business environment.
7
Seafood Processing Industry Report 2016 Introduction
INTRODUCTION
The fish processing sector is an important part ■ The 2014 financial survey of the industry was
of the seafood value chain. According to the carried out by Seafish Economics between Please be aware
European Commission 2016 Factsheet1, the UK February and March 2016. This survey All data collected to inform this report are treated with the
strictest confidentiality and no individual sites or company
fish processing sector is estimated to be the largest collected annual financial information from records disclosed. Confidentiality checks have been made
in Europe in terms of employment and turnover. a sample of businesses. The survey data so that no individual businesses can be identified in this
collected are then supplemented with data report.
This report presents an overview and detailed from published financial accounts (covering
analysis of the fish processing industry with Continuing and significant improvements in data
at least six months of the relevant year) of collection, management, estimation methods and
particular emphasis on the sea fish processing fish processing businesses. The financial increasing the robustness of definitions mean that direct
sector. Primary research conducted by Seafish data are analysed to produce estimates for comparisons with data for earlier years may not always be
Economics included the 2016 census data, the whole industry4. Although we do have possible, even where seemingly comparable figures have
the 2014 financial survey data, and included information about the size and nature of every
been previously published. However, general trends are
qualitative interviews undertaken in 2016. believed to be reflective of actual business activity.
company, nevertheless, our estimates of the
total financial figures for the sector are only Throughout the report, percentages are rounded to the
■ The 2016 census survey of the UK seafood nearest whole number and therefore figures may not
processing industry was carried out by estimates (rather than direct observations).
always sum to 100 due to rounding.
Seafish Economics between August and ■ Qualitative interviews were conducted between Data was gathered either before or shortly after the UK/
October 2016. This biennial survey achieves May and September 2016. These were semi- EU referendum. A discussion of the changing trade
coverage (by interview or estimate) of every structured in-depth interviews (30 minutes relationship of the UK with other countries is presented in
majority fish processor that we identify. Only to 1 hour in length) with business owners section 4.
majority processors (with at least 50% of and managers, as well as other industry Seafish is working with industry and stakeholders to gather
turnover from fish processing) are included in stakeholders (non-representative sample). their views on potential Brexit implications and has hosted
the analysis2. This survey data provides key The purpose of this research was to explore a number of events on Brexit such as panel sessions and
information on the structure of the processing the factors and trends that have affected their industry forums. To keep up with the work Seafish is doing
industry including the number of processing on Brexit visit http://www.seafish.org/industry-support/
business currently and over the last two years. brexit.
units, employment levels, type of processing The results from this research are illustrative
activities undertaken and the type of species of parts of the sector and are not necessarily This publication is supplemented by data tables which
being processed, amongst other features3. representative of the views of the entire
can be downloaded from the following web link http://
www.seafish.org/research-economics/industry-economics/
industry5. processing-sector-statistics.
1. https://ec.europa.eu/fisheries/sites/fisheries/files/docs/body/pcp_en.pdf
2. This correctly implies that estimates of the size and financial contribution of the industry are conservative due to the exclusion of minority processors (where the activity is internalised along with complimentary activities within one business).
Please see Appendix 4 for the reasoning behind our definitions.
3. Please see Appendix 4 and 5 for detailed description of approach and Census form respectively.
4. Please see Appendix 3 for response rates, Appendix 4 for details of the research methods used, Appendix 4 for estimation methods and Appendix 6 for a copy of the Financial Survey Form.
5. The results are presented as ‘comments from industry’ in relevant sections throughout the report and in particular Section 4.
8Seafood Processing Industry Report 2016
1 FISH PROCESSING:
INDUSTRY STRUCTURE & EMPLOYMENT
Section 1 presents findings on the size, structure and
recent changes in the UK fish processing industry based
on Seafish census survey data for the years 2008, 2010,
2012, 2014 and 2016. Section 1.1 presents an overview
of all UK fish processors, while Sections 1.2 and 1.3 focus
on salmon & freshwater species and sea fish (including
shellfish) processing respectively.
For more information on how individual processing units
were counted and classified, see the terms ‘processing’,
‘site’ and ‘main fish category’ in Appendix 2 Definitions.
See Appendix 4 Research Methods for a detailed
description of the research methods used.
For the purposes of this report, processing units (also referred to as sites, or
processors) are individual fish processing factories or facilities which derive
50% or more of their turnover from fish processing activities.
91. Fish Processing: Industry Structure & Employment 1.1 Overview of all Fish Processors
25,000
20,395
19,133 18,718 18,608 17,999
20,000
4,681
1.1. OVERVIEW OF ALL FISH PROCESSORS
5,029 4,419 5,201 4,445
FTE Jobs
15,000
10,000
15,714
1.1.1 Fish processing: Trends in number of5,000sites and employment
14,104 14,299 13,407 13,554
-
Discussion:
Figure 1.1.1 Fish Processing: jobs (FTEs) by Figure 1.1.2 Fish Processing: Year
number of sites 2008 2010 2012 2014 2016
The observed consolidation in the industry
main fish category (2008-2016) and average FTEs per(seasite
Saltwater fish) (2008-2016)
Salmon & other freshwater reflects a pattern observed in other
manufacturing and food sectors1.
No. of sites & average no. of FTEs per site
600 561
Consolidation in fish processing might be a
25,000
500
446 result of excess capacity relative to the volume
20,395 405 401
20,000
19,133 18,718 18,608 17,999 400 376 of raw material available (mentioned in the
4,681
5,029 4,419
qualitative research) and pressure on profit
5,201 4,445 300
margins (section 3 of this report). More sites
FTE Jobs
15,000
10,000 200 went out of business, for whatever reason, than
15,714 14,104 14,299 13,407 13,554
100
changed ownership. Processors have also been
5,000 46 46 48
36 43
operating in difficult economic conditions - the
-
2008 2010 2012 2014 2016
0
2008 2010 2012 2014 2016
recession which occurred during 2008 - 2014
Year Year and lower GDP per capita. Only recently has the
Saltwater (sea fish) Salmon & other freshwater Sites Average FTE per Site
country begun to recover (in 2015 UK GDP per
capita once again reached 2008 levels2).
No. of sites & average no. of FTEs per site
Employment
600 561
in fish processing fell by 12% between 2008 and 2016 to 17,999 full time equivalent
The 2014 report mentioned that consolidation
(FTE)500
jobs. Most of446this decline in employment was at sea fish processing sites rather than at sites
of the industry may also be occurring at a higher
processing
400
salmon and freshwater
405
fish
401 (Figure 1.1.1).
376
level of ownership (investment and equity
The industry
300 has consolidated, with a 33% decrease in the total number of fish processing sites groups).
from 2008
200 to 376 sites in 2016. Between 2008 and 2016, FTE jobs per site increased by 32% to Source: 1. “Sustainable Growth in the Food and Drink Manufacturing Industry”, Food
and Drink Federation, Grant Thornton, 2012.
an average of 48 FTEs per site in 2016 (figure 1.1.2). The main reasons reported for the removal or 2. Office of National955
Statistics.
100
addition of sites
36 between
43 2014
46
and 2016
46
are 48
summarised in 45
table 1.1.1. FTE Bands 1,280 FTE Bands
1-10 1-10
0
2008 2010 2012 2014 2016
11-25
Table 1.1.1 Fish Processing:Year
reported reasons for removal30 11-25
Sites Average FTE per Site 1,707 26-50
or addition to the population between 2014 and 2016 181
26-50
51-100 51-100
47
Change No. of Sites 100+ 2,382 100+
11,675
Out of Business 28
No longer Majority Fish Processor (50%+ of income) 27 73
Additional Sites Included in 2016 33
“Additional sites included” does not necessarily mean new companies but can be existing companies not identified or not included during
955
the previous census.
1,280 FTE Bands
10 FTE Bands
45 1-10
1-10
11-25 11-25
30446
No. of sites & average no. of FT
405 401
400 376
17,999 1.1 Overview
300 of all Fish Processors Seafood Processing Industry Report 2016
4,445 200
100
36 43 46 46 48
13,554
1.1.2 Fish2008
processing:
2010 Breakdown
2012 2014 by site
2016 size
0
Year
Average FTE per Site Sites
2016 Analysis in this section groups sites by size (using Most (65%) industry employment is concentrated in sites that have more than 100 FTEs, and this
eshwater the number of FTE jobs as a measure of size). situation has been prevalent in the industry in the last decade or so. The change in numbers of sites
The number of sites in the five reported FTE size within each FTE Band over time is shown in figure 1.1.5.
bands and the total FTE jobs supported at these
Figure 1.1.5 Fish Processing: number of sites within FTE bands (2008-2016)
sites are shown in figure 1.1.3 and figure 1.1.4.
376 300
Figure 1.1.3 Fish Processing: number of sites by 282 2008
2010
FTE size band (2016) 2012
250 955 2014
FTE Bands 1,280 FTE Bands 2016
45 208
1-10 1-10
48 200 186 181
No. of sites
11-25 11-25
30 169
2016 26-50 1,707 26-50
181 150
51-100 51-100
47 124
100+ 2,382 100+
11,675 95
100 88
76 73
61 58
73 54 50 51 49 51
47 48 43 45
50 38 41 41
30
Figure 1.1.4 Fish Processing: FTE jobs by FTE 0
1-10 11-25 26-50 51-100 100+
size band (2016) Sites by FTE Size Bands
955
1,280 FTE Bands In all but the largest FTE size band site numbers
1-10 decreased between 2008 and 2016. The sharp Discussion:
300 11-25 decrease in site numbers in 2010 and 2012 can Decreases in numbers of smaller sites could
2008
282
1,707 26-50 be attributed to the economic climate,
2010
with the be due to lower working capital or the ability of
51-100 1-10 FTEs site category recording2012 the largest those businesses (nearly all one-site businesses)
250
2,382 100+ decrease in site numbers over these
2014 years. to adapt to economic conditions (for example,
2016
11,675 208 Numbers recovered slightly in 2014 and 2016, difficulty accessing finance). The reduction
200 186181 possibly a reflection of improved economic in small to medium sites might also be due to
169
conditions. issues such as lack of succession within family
No. of Sites
businesses.
150
124
95
100 88
76 73 11
61
54 58 50 51 48 49 51
47 43 41 41 45
50 38
301. Fish Processing: Industry Structure & Employment 1.1 Overview of all Fish Processors
1.1.3 Fish processing: Processing type
Sites are categorised as primary processor, secondary processor or mixed Figure 1.1.6 Fish Processing: FTEs by site processing type (2008-2016)
processor (mix of primary and secondary). The definitions and characteristics
of these processing types are outlined in table 1.1.2.
12,452
12,438
11,656
14,000
11,586
Mixed Processors
11,052
Primary Processors
Table 1.1.2 Fish Processing Types: definitions and characteristics 12,000
Full Time Equivalent (FTE) jobs
Secondary Processors
Type: Primary Processor Secondary Processor Mixed Processor 10,000
Definition of Primary processing Secondary processing Processing units that 8,000
5,274
Activities: includes: cutting, includes: brining, smoking, carry out a mix of
4,621
4,383
4,006
filleting, picking, cooking, freezing, canning, primary and secondary 6,000
3,992
3,950
peeling, washing, deboning, breading, vacuum processes are classed
2,105
chilling, packing, and controlled packaging, as ‘mixed’ processors. 4,000
2,146
1,959
2,031
heading and gutting. production of ready meals.
2,000
Characteristics: ■ Adding limited ■ Adding more to the original ■ Both primary and
(basic alterations to the raw material. secondary activity -
characteristics raw material when ■ Primary processing done undertaken in- 2008 2010 2012 2014 2016
based on Seafish bought. elsewhere – often on the house. Year
understanding) ■ Low margins but fishing boat if imported ■ Both secondary and
high volume. or at another primary mixed processors Figure 1.1.7 Fish Processing: proportion of sites by FTE band in each
■ Primarily serving processing plant (does may undertake
live and chilled not make sense for the additional business processing type (2016)
market outlets. processor to internalise activities of
operation). branding/ packaging
100% 4% FTE Bands
■ Some secondary processors and product design.
16% 5% 15%
may keep primary 90%
8%
100+
processing capability 5% 51-100
80% 11%
in case of changes in 8% 26-50
circumstance. 70% 26% 11-25
16% 15%
60% 1-10
% of sites
The distribution of FTE jobs across different types of processing has been 50% 17%
steady since 2008. In 2016 there were 11,586 FTEs in mixed processing 40%
sites, 4,383 FTE jobs in secondary processing sites and 2,031 FTEs in 30% 58% 57%
primary sites. The largest size sites with over 100 FTEs are mostly secondary
20% 40%
or mixed processors. Of the primary processing sites, most (84%) were small
10%
with 1-25 FTE jobs. Even among secondary processing sites, 72% of sites
had 1-25 FTE jobs. 0%
Mixed Primary Secondary
Processing type
121.1 Overview of all Fish Processors Seafood Processing Industry Report 2016
1.1.4 Fish processing: Regional and home nation distribution
The geographic distribution and number of Figure 1.1.8 Fish Processing: sites by region (2008-2016)
processing sites and FTE jobs are reported for
97
nine regions of the UK (defined in Appendix 1). 100
88
2008
90 87
Grampian and Humberside remain key regions 78 77 75
83
2010
80 74
for fish processing with ‘Other Scotland’ also 70
68 66
2012
64
important in terms of site numbers and jobs 59 59 61 61 60 60 58
62
2014
No. of sites
60 56 56
53 53
supported. Humberside has seen significant 50 43 42
48
42
48 46
43
2016
40 40
consolidation between 2014 and 2016 with a 19% 40
39
35 34
28
decrease in sites and a 10% increase in FTE jobs. 30
18 19
20 15 15
11 7 10
In contrast, South West England, Northern Ireland 10 5
and South/Midlands have had no decline or a 0
Grampian Highlands and Humberside N. Ireland North England Other Scotland S W England South/Midlands Wales*
slight rise in site numbers and a decline in FTE Islands
Region
jobs (figures 1.1.8 and 1.1.9).
Figure 1.1.9 Fish Processing: FTE jobs by region (2008-2016)
5,000
2008
4,922
4,500 2010
4,617
4,503
4,490
2012
4,000
4,265
2014
3,935
3,882
3,867
3,803
3,500 3,766 2016
3,708
3,509
3,454
3,444
No. of FTE jobs
3,355
3,000
2,500
2,499
2,000
2,154
2,117
2,107
2,084
1,809
1,500
1,766
1,747
1,687
1,666
1,613
1,552
1,459
1,404
1,401
1,332
1,330
1,000
1,258
553
418
1,107
372
361
339
862
500
108
83
53
51
-
Grampian Highlands and Humberside N. Ireland North England Other Scotland S W England South/Midlands Wales*
Islands
Region
* A specific data collecting effort for Wales was made in 2016. Therefore, historical comparison of changes in Welsh processing should take this into account
1330.4
S W England 53
55.2
Other Scotland
1. Fish Processing: Industry Structure & Employment 1.1 63
Overview of all Fish Processors
Regions
31.7
North England 42
24.8
N. Ireland 15
80.7
Humberside 61
37.8
Highlands and Islands 30
Figure 1.1.10 Fish Processing: number of sites and average FTE jobs Figure 1.1.11 Fish Processing: number of sites and
63.8
average FTE jobs
per site by region (2016) perGrampian
site by home nation (2016) 59
0 10 20 30 40 50 60 70 80 90
5.1 FTEs per Site No. of sites & FTE jobs
Wales
10
Sites
30.9
South/Midlands
43 FTEs per Site
46.2
30.4
England
S W England 199 Sites
53
Other Scotland 57.9 5.1
58 Wales
Regions
Home nations
10
31.7
North England
42
24.8
24.8
N. Ireland
N. Ireland 15
15
Humberside 80.7 55.1
61 Scotland
152
Highlands and Islands 36.0
35 0 50 100 150 200 250
Grampian 63.8 No. of sites & FTE jobs
59
0 10 20 30 40 50 60 70 80 90
No. of sites & FTE jobs
Sites
100
88 Average FTE per Site
In 2016, Humberside had the highest concentration (80.7) of FTE jobs per Analysing according to 78
home nation, just over half of all sites (53%) are located
No. of sites & average no.
80 75
site. This region is followed by Grampian with 63.8 FTE jobs per site and in England. Sites in Scotland have the highest average
70 FTE69 per site (55.1,
69
64
of FTEs per site
63
‘Other Scotland’ with 57.9 FTE jobs per site. which is 7.2
60
FTEs60
higher than the
57 UK industry average) (figure 1.1.11).
In 2016, 9,196
40
fish processing FTE jobs were located in England, 8,380 FTE
jobs were in Scotland, 372 FTE jobs were in Northern Ireland and 51 FTE
jobs in Wales.
20
0
2008 2010 2012 2014 2016
Year
80 FTE Bands
70 100+
60 51-100
No. of Sites
26-50
14 50
11-25
40
1-10
30Highlands and Islands 30 14 11 11 15 13
63.8 0
Grampian 59 Demersal Mixed Species Pelagic Shellfish
1.2 Overview
0
of
10
Salmon
20
& Freshwater
30 40
Fish
50
Processors
60 70 80 90
Seafood Processing Industry Report 2016
Sea Fish Species Category
No. of sites & FTE jobs
FTEs per Site
1.2 OVERVIEW OF SALMON & FRESHWATER FISH PROCESSORS
46.2
England
199 Sites
5.1
1.2.1
Wales Salmon and freshwater fish processing: 1.2.2 Salmon and freshwater fish processing:
Home nations
10
Trends in number of sites and employment 24.8
Breakdown by site size
N. Ireland 2016 928 7,491 1,184 3,950
Salmon & freshwater
15 fish processing is included in this short section Figure 1.2.2 Salmon & Freshwater Species: number of sites by FTE band
despite freshwater fish not being part of the Seafish remit. This sector is (2008-2016) 2014 875 7,237 1,412 3,883
55.1
included
Scotland because the industry itself is integrated, with a majority of mixed
152 80 FTE Bands
species sites processing both freshwater and sea fish. 2012 1,445 9,207 822 2,535
Year
69 69 100+
0 50 100 150 200 250 70
63
Figure 1.2.1 Salmon & Freshwater Species:
No. of sites & FTE jobsnumber of sites and average 60
57 2010 1,658 9,258
51-100
633 2,522
60
FTE jobs per site (2008-2016) 26-50
50 11-25
2008 1,950 9,392 870 3,494
No. of sites
Sites 1-10
100 40
88 Average FTE per Site
78 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000
No. of sites & average no.
80 75 30
70 69 69
64 No.of FTE jobs
of FTEs per site
63
60
57 20
60
10
40
0
2008 2010 2012 2014 2016
20
Year
0 Numbers on this graph not shown as one or more category has less than 5 sites.
2008 2010 2012 2014 2016
Year In 2016, most sites (62%)
160 had 1-25 FTE jobs (13% higher than 2014). Demersal
Sites with 100+ FTEs made up144
20% of the number of sites in 2016 Pelagic
The overall
80 trend of a reduction in the number of fish processing sites with
FTE Bands
140
decreasing by 2 sites from 2014. Shellfish
increasing
70 average Full Time Equivalent (FTE) jobs per site is reversed for100+ 120 109 Saltwater
sites60processing salmon and freshwater only species (figure 1.2.1). 51-100 100
Salmon
No. of Sites
87 Trout
No. of Sites
50 26-50
Sites previously classified as sea fish majority processors might be re- 11-25
80 Other Fre
40
classified as salmon and freshwater majority processors in particular census 1-10 60
55
49
30
years. This can influence the trend observed (figure 1.2.1). Between 2014 40
20
and 2016, 11 sites either moved into a different category or were included 23
10 20
in our records for the first time and three sites were previously majority sea 11
0
fish processors
2008
but in 2016
2010
were majority
2012
freshwater
2014
processors.
2016
Of the 69 0
Demersal Pelagic Shellfish Saltwater Salmon Trout Other
salmon and freshwater sites identifiedYearin 2016, 39 were included in the Exotic Freshwater
2008 census and 10 of these 39 were previously majority sea fish processors.
6,000 Mixed
352 Primary 15
5,000 515
258 Secondary 100
368 536 205 92 2008
387 404 374 90 841. Fish Processing: Industry Structure & Employment 1.2 Overview of Salmon & Freshwater Fish Processors
1.2.3 Salmon and freshwater fish processing: 1.2.4 Salmon and freshwater fish processing:
Processing type Regional and home nation distribution
In 2016, the majority of FTE jobs (87%) were at mixed processing sites (40 ‘Other Scotland’ and the ‘Highlands and Islands’ had the largest numbers of
sites or 58% of total salmon and freshwater fish processing sites). salmon processing sites in 2016. ‘Other Scotland’ had 20 sites (34% of all
fish processing sites in the region) and Highlands and Islands had 18 sites
Figure 1.2.3 Salmon & Freshwater Species: number of FTE jobs by (51% of the total fish processing sites in the region). In terms of employment,
processing type (2008-2016) ‘Other Scotland’ had 55% of total salmon and freshwater processor FTE
jobs (increased by 4% from 2014). ‘Highlands and Islands’ had 18% of total
salmon and freshwater FTE jobs (decreased by 20% from 2014).
6,000 Mixed
352 Primary
5,000 515
258 Secondary
368 536 205
387 404 374
4,000
479
FTE jobs
3,000
2,000 4,022 4,019 4,313
3,509 3,866
1,000
0
2008 2010 2012 2014 2016
Year
161.3 Overview of Sea Fish Processors Seafood Processing Industry Report 2016
1.3 OVERVIEW OF SEA FISH PROCESSORS
1.3.1 Sea fish processing:
Trends in number of sites and employment
Figure 1.3.1 Sea Fish Processing: number of sites & average FTE jobs per
site (2008-2016)
600 Sites
501 Average FTE per site
500
No. of sites & average no.
389
of FTEs per site
400
342 332
307
300
200
100
31 36 42 40 44
0
2008 2010 2012 2014 2016
Year
The number of sea fish processing sites decreased by 37% since 2008
to 307 sites in 2016. Average Full Time Equivalent (FTE) jobs per site
increased by 41% over the same period to 44 per site in 2016 (figure
1.3.1).
Total sea fish processing employment decreased from 15,714 FTE jobs in
2008 to 13,554 FTE jobs in 2016. Employment rose marginally by 147
FTE jobs (1%) between 2014 and 2016 (see figure 1.3.3).
171. Fish Processing: Industry Structure & Employment 1.3 Overview of Sea Fish Processors
1.3.2 Sea fish processing: Breakdown by site size
Figure 1.3.2 Sea Fish Processing: number of sites by FTE band Within all size bands the number of sites decreased. Other than sites with
(2008-2016) at least 100 FTEs, total FTEs in each size band also fell between 2008 and
300 2016. FTE jobs in sites with over 100 FTEs increased by 11% since 2008 and
FTE Bands
265 by 8% since 2014 (or 619 FTE jobs). In 2016 sea fish processing sites with
1-10
250 over 100 FTEs, had 8,341 FTEs representing 62% of total employment in sea
11-25
fish processing.
200 192 26-50
No. of sites
159
51-100 There is substantial variation of employment levels per site. Among the sites
151 151
150 100+ with 100+ FTEs, 32% have over 300 FTEs. The 51-100 FTE category saw the
108 largest decline in site numbers (48% decrease) and second largest decline in
100 89
76 FTE jobs (41% decrease) between 2008 and 2016. Between 2014 and 2016,
65 60
50
53
42 46 47
38 43 43 sites within this band recorded the largest decreases of 27% in site numbers
33 33 29 30 35
30
22
31
and 20% in FTE jobs. A proportion of this decrease can be accounted for by
0 employment growth of some sites pushing them into the 100+ size band.
2008 2010 2012 2014 2016
Year There are fewer sites with 1-10 FTEs and 11-25 FTEs, a decrease of over
40% in terms of both number of sites and FTE jobs between 2008 and 2016.
Figure 1.3.3 Sea Fish Processing: number of FTEs by FTE band This trend was also observed between 2014 and 2016 except for a minor
(2008-2016) increase of FTE jobs by 0.5% in sites with 1-10 FTEs.
FTE Bands The number of sites employing 26-50 FTEs decreased by 19% between 2008
1-10
and 2016, with an associated 22% decrease in FTE jobs. Between 2014 and
2016 801 1,054 1,557 1,802 8,341 13,554 11-25
2016, there was no change in site numbers and a 4% increase of 56 FTE jobs.
26-50
2014 797 1,130 1,501 2,258 7,722 13,407 51-100
Site Breakdown - FTE Band and Processing Type:
100+
■ Mixed – The majority of sites in every FTE band category were mixed processors in 2016. There is
Year
2012 771 1,234 1,783 2,772 7,739 14,299
a higher proportion of mixed processing sites in higher FTE bands.
■ Primary – sites with 1-10 and 11-25 FTEs form the majority of primary sites. Almost 40% (84
2010 992 1,432 1,705 2,315 7,660 14,104 sites) of all sites in these combined FTE bands are categorised as primary processors (85% of
total primary processors).
2008 1,432 1,767 1,985 3,030 7,500 15,714 ■ Secondary – nearly 30% of sites employing 100+ FTEs are secondary processors. However,
many of these have been classified as mixed at some point previously, suggesting they retain the
capability to undertake primary processing. It may not currently be cost-effective for these sites to
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 conduct primary processing.
No. of FTE jobs
18No. of Sites
150 2016
122
1.3 Overview of Sea Fish Processors 107 Seafood
100 97 99 Processing Industry Report 2016
64
50
48 43 48 42
1.3.3 Sea fish processing: Processing type 0
Mixed Primary Secondary
Figure 1.3.4 Sea Fish Processing: number of sites by processing type Figure 1.3.5 Sea Fish Processing:Processor
number Typeof FTE jobs by processing type
(2008-2016) (2008-2016)
250 2008
227
2010
210
200 2012 Mixed
186 186 2016 7,719 1,657 4,178
175 2014 Primary
166
2016
No. of sites
150 2014 8,139 1,610 3,654 Secondary
122
107
Year
100 97 99 2012 7,543 1,480 4,906
64
2010 7,637 1,701 4,107
50
48 43 48 42
2008 8,417 3,563 3,734
0
Mixed Primary Secondary 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
Processor type No. of FTE jobs
In 2016, mixed processors accounted for 54% of total sites and 57% of FTE jobs. Primary processors Site & FTE Breakdown - Processing Type and Sea Fish Species
represented 32% of sites and 12% of FTE jobs and secondary processors accounted for 14% of total Type Category:
sites and 31% of FTE jobs. ■ Demersal – The majority of demersal processors conduct
either mixed (41%) or primary (52%) processing. A total of
The number of mixed processors declined by 21% between 2008 and 2016 and by 11% from 2014. 33% of primary processing sites process demersal species
There was an associated decrease in FTE jobs of 8% and 5% between 2008 to 2016 and 2014 to 2016 only.
respectively. ■ Pelagic – The majority of pelagic processors are mixed
primary and secondary processors.
The number of primary processors decreased by more than half (56%) between 2008 and 2016, whilst
■ Shellfish – 44% of processors are mixed and 41% are
increasing by 2% between 2014 and 2016. There was an associated decline in FTE jobs of 54% over the primary processors. 32% of all primary sites process
last eight years. From 2014 to 2016, FTE jobs increased by 3%. shellfish.
The number of secondary processors decreased by 34% between 2008 and 2016 and by 13% from ■ Mixed species types – 58% of mixed processors and 55% of
secondary processors handle a mix of species types.
2014. In contrast, FTEs increased by 12% from 2008 to 2016 and by 14% from 2014 to 2016.
1977 78 80 81 79
80.7 64
61
50
30
37.8
1. Fish Processing: Industry Structure & Employment 14 11 11 15 13
1.3 Overview of Sea Fish Processors
63.8 0
59 Demersal Mixed Species Pelagic Shellfish
40 50 60 70 80 90
Sea Fish Species Category
of sites & FTE jobs
1.3.4 Sea fish processing: Sites and jobs by fish species category
Figure 1.3.6 Sea Fish Processing:
FTEs per Site number of sites by sea fish species Figure 1.3.7 Sea Fish Processing: number of FTE jobs by sea fish species
category (2008-2016)
199 Sites category (2008-2016)
2008
250 2010
231
2012 Demersal
194 2016 928 7,491 1,184 3,950
200 2014 Mixed Species
159 2016
154 151 2014 875 7,237 1,412 3,883 Pelagic
No. of sites
150
152 128 126 Shellfish
2012 1,445 9,207 822 2,535
Year
103
100 150 20092 250
100
No. of sites & FTE jobs 77 78 80 81 79
64 2010 1,658 9,258 633 2,522
50
Sites 15 13
2008 1,950 9,392 870 3,494
14 11 11
88 0 Average FTE per Site
Demersal Mixed Species Pelagic Shellfish - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
75
70 69 69
64 species category No.of FTE jobs
63 Sea fish
7
From 2010 to 2016, the numbers of pelagic and shellfish sites have remained From 2014 to 2016, demersal and mixed species group sites did show small
broadly steady. Sites processing mixed and demersal species decreased by increases in FTEs of 6% and 4% respectively, and pelagic species processing
22% and 38% respectively across the same period (figure 1.3.6). FTE jobs decreased by 16%. FTE jobs at shellfish sites continued to increase
(by 2% between 2014 and 2016) (figure 1.3.7).
FTE jobs at sites per species category showed marked changes from 2010 to
2010 2016:2012
FTE jobs at pelagic
2014 sites increased
2016 by 87% and FTE jobs at shellfish In 2016, just over half (55%) of sites processed a mix of species types. In
sites Year
rose by 57%. Demersal species category processing FTE jobs decreased 160 2016, demersal only processing FTE jobs as percentage Demersal
of the industry
144
by 44% and FTE jobs at mixed species type sites decreased by 19% (figure total represented 7%, pelagic 9% and shellfish 29%. ThePelagic
composition of
140
1.3.7). FTE Bands the industry in terms of species processed changed onlyShellfish
slightly since 2014
100+ 120 (figure 1.3.6). 109 Saltwater Exotic
Salmon
51-100 100
No. of Sites
87 Trout
26-50
80 Other Freshwater
11-25
55
1-10 60 49
40
23
20 20 11
0
010 2012 2014 20161.3 Overview of Sea Fish Processors Seafood Processing Industry Report 2016
Table 1.3.1 Sea Fish Processing: mixed species category number of Figure 1.3.8 Sea Fish Processing: number of sites processing each fish
majority sea fish processing sites broken down into combinations of fish species category at mixed species type sites (2016)
species category processed (2016)
Number of Sites % of Total Mixed Species Sites 160
144
No. of species category processed
140
Process 2 species categories 71 47%
120 109
Process 3 species categories 32 21%
Process 4+ species categories 48 32% 100 87
No. of sites
Mix of species 80
Both sea fish and salmon & freshwater 115 76% 60
55
49
Sea fish only 36 24%
40
Top 5 species combinations 23
20 11
Demersal + salmon & freshwater 41 27%
Demersal + pelagic + salmon & freshwater 30 20% 0
Demersal Pelagic Shellfish Saltwater Salmon Trout Other
All saltwater species + salmon & freshwater 24 16% Exotic Freshwater
Demersal + pelagic 18 12% Fish species category
Demersal + shellfish 11 7%
Site & FTE Breakdown - Size of Sites (FTE Band) and Sea Fish Species Category (2016):
In 2016, the majority of mixed species category processing sites (68%) ■ Demersal – 83% of sites have between 1-25 employees. Larger firms that process demersal fish
species are more diversified, processing a mix of different species types (144 or 95% of all mixed
process two or three species categories of fish. Most (76%) sites processing species types sites process demersal fish).
mixed species types process both sea fish species and salmon and freshwater
■ Pelagic – a higher proportion of large sites are pelagic than other species categories (over 50% of
species. Analysis of specific species combinations at site level showed the pelagic sites support over 50 FTE jobs).
top species category combination (27% of sites) processed at mixed species ■ Shellfish – over 50% of shellfish sites are small (1-10) employees. This species category has the
group sites in 2016 was demersal species combined with salmon and second highest concentration of 100+ sites next to mixed species (13% of sites employing 100+
freshwater species (table 1.3.1). FTEs).
■ Mixed species types – 45% of sites have 1-10 FTE jobs and 19% support over 50 FTE jobs.
In 2016, 144 mixed species type sites processed demersal species and 109
sites processed salmon (figure 1.3.8).
211. Fish Processing: Industry Structure & Employment 1.3 Overview of Sea Fish Processors
1.3.5 Processing Industry Profile:
the UK pelagic processing sector
In 2016, there were 13 sites and 1,184 full time equivalent jobs at UK
pelagic processing sites.
Pelagic stocks such as mackerel or herring are highly mobile and the
fishing seasons are short, lasting usually for several weeks. UK catches
of pelagic species are dependent upon coastal state agreements, with
Norway, Iceland, Russia, Faroe Islands and other EU states being key
players. Therefore, landings of these stocks are highly influenced by
political-economic considerations.
Pelagic species are highly traded, with a relatively low value per
tonne. The key end-markets in terms of volume include Russia, Asia
(commanding premium prices), Nigeria and the EU.
The pelagic processing sector in the UK tends to be more vertically
integrated than other sectors. Supply is currently under pressure due
to domestic policies in competitor countries aimed to secure the best
value from national assets. For example, in late 2016 it was reported in
news outlets that ex-vessel prices of mackerel for UK pelagic processors
had increased by over 60% in a year as a result of greater competition
with Norwegian processors for raw material. It is also difficult to access
end markets, with Russia currently inaccessible due to a trade embargo
and Norwegian products in a strong competitive position to sell to Asian
markets. There are also other geo-political issues such as Turkey’s tariffs
on imports from the EU and the unsettled situations in other Eastern
Europe markets such as Ukraine. Therefore, there is pressure on the UK
industry in terms of access to supplies and access to end markets.
221.3 Overview of Sea Fish Processors Seafood Processing Industry Report 2016
SEA FISH PROCESSORS
1.3.6 Sea fish processing: Regional and home nation distribution BY REGION
SEA FISH PROCESSORS
BY REGION
Figure 1.3.9 Sea Fish Processing: map of UK Total number of
processing sites
with regional distribution of sites and FTE jobs 56
Total number of
(2016) processing sites
11-25
56
1-10
11-25 26-50 Processing site by FTE
band (size category)
1-10
>100
Processing site by FTE
26-50 51-100
band (size category)
HIGHLANDS AND ISLANDS >100
GRAMPIAN 51-100
HIGHLANDS AND ISLANDS Total number of
GRAMPIAN 3439 FTE jobs
17 446
Total number of
56 3439 FTE jobs
3439
17 446 DEMERSAL
3439 PELAGIC FTE jobs by main
56
DEMERSAL
SHELLFISH species category
MIXED
PELAGIC FTE jobs by main
OTHER SCOTLAND
SHELLFISH species category
MIXED
OTHER SCOTLAND
38 888
NORTHERN IRELAND
38 888
NORTHERN ENGLAND
NORTHERN IRELAND
NORTHERN ENGLAND
14 371
36 1008
14 371
36 1008
HUMBERSIDE
HUMBERSIDE
57 4817
WALES
57 4817
WALES
SOUTH / MIDLANDS
10 51
SOUTH / MIDLANDS
10 51
35 1123
35 1123
SOUTH WEST ENGLAND
SOUTH WEST ENGLAND
44 1410
44 1410 231. Fish Processing: Industry Structure & Employment 1.3 Overview of Sea Fish Processors
Figure 1.3.10 Sea Fish Processing: number of sites by region (2008-2016)
100
92 2008
90 84
81 2010
80
72 72 72 69
70 67 2012
63 61
57 57 2014
No. of sites
60 55 56 54
50
50 44 46 44 42 45 44 2016
39 41 40 38 38
40 36 34 35
30
30 24 22 26
22 18 17
20 17 15 14
11 10
7
10 5
0
Region
In 2016, the three regions with the highest proportion of sea fish Figure 1.3.11 Sea Fish Processing: number of FTEs by region (2008-2016)
processing FTE jobs were Humberside with 36%, Grampian with Grampian
25% and South West England with 10%. Highlands and Islands
2016 3,439 446 4,817 371 1,008 888 1,410 1,123 51
Humberside
Between 2014 and 2016, FTE jobs in Humberside increased N. Ireland
by 17%, FTE jobs in Grampian increased by 7% and FTE jobs 2014 3,209 439 4,110 418 1,061 1,070 1,841 1,238
North England
decreased by 23% in South West England. Other Scotland
Year
2012 3,667 474 4,115 336 2,226 1,120 1,522 782 53 S W England
‘Other Scotland’, although in the top three regions for overall fish South/Midlands
processing, accounts for just 7% of sea fish processing FTE jobs. 2010 3,233 506 4,296 339 1,913 1,322 1,306 1,101 83
Wales*
The distribution of sea fish processing at home nation level has
been steady since 2010. In 2016, Scotland accounted for 35% of 2008 3,088 686 4,452 529 1,867 1,691 1,677 1,612 108
sea fish processing FTE jobs, England for 62%, Northern Ireland
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
for 3% and Wales for less than 1%.
No.of FTE jobs
*A special data collection effort was made in Wales for the 2016 census and so comparison of Welsh sites across years should be undertaken cautiously. Fewer than 5 sites were recorded in Wales in the 2014 census.
24Year
2012 3,667 474 4,115 336 2,226 1,120 1,522 782 S W England
South/Midlands
1.3 Overview of Sea Fish Processors Wales Seafood Processing Industry Report 2016
2010 3,233 506 4,296 339 1,913 1,322 1,306 1,101
2008 3,088 686 4,452 529 1,867 1,691 1,677 1,612
1.3.7 Sea
0 fish processing:
2,000 4,000 6,000 Labour
8,000 force
10,000 profile
12,000 14,000 16,000
No.of FTE jobs
Figure 1.3.12 Sea Fish Processing: total employees by employment type Figure 1.3.13 Sea Fish Processing Seasonal Employment: number of sites,
(2010-2016) average seasonal weeks of employment and average employment per site by
employment type (2010-2016)
18,000
16,000 Full-Time
14,820 14,968
14,406 14,195 Seasonal 2010
80
14,000 Part-Time 2012
69
70 2014
12,000 64
No. of sites & No. of staff
Employment
2016
60
10,000 53 52
50
50 47
8,000 13,558 13,616 12,559 12,898 42
40 36
6,000
30
4,000 19
20 15 17
15 14 14
11 13
2,000 10
958
730 668 653
532 684 889 644
- 0
2010 2012 2014 2016
No. of sites Average No. of Average No. of Average total
Year employing seasonal seasonal seasonal staff employment
staff staff weeks
Table 1.3.2 Sea Fish Processors Seasonal Employment: percentage of In 2016, 5% of total industry employment was part-time and 5% were
seasonal workforce in sites employing seasonal workers and sites employing seasonal positions. This has been broadly steady over the past 6 years (figure
seasonal workers as a percentage of all sites (2010-2016) 1.3.12).
In 2016, 47 sites or 15% of all sites employed seasonal workers. Within these
SEASONAL WORKFORCE 2010 2012 2014 2016 sites, average seasonal staff employment was 14 people which accounted for
80
2010 28% of the total average number of employees for an average duration of 17
Seasonal workers % of69total employment within sites
70 seasonal workers
employing 64
32% 30% 27% 28%
2012 weeks (figure 1.3.13 and table 1.3.2).
2014
% of sea
60fish processing sites that have seasonal
No. of Sites & No. of Staff
workers 53 16% 15%
51.7
21%
2016
15% Between 2010 and 2016, the number of sites employing seasonal workers
49.8
50 47 varied, with an overall downward trend. The average number of seasonal staff
42.3
40 36.2
employed per site has increased by 22%, however this is below the increase
in overall employment (38%) within these sites. The average duration of
30
employment has increased by 12% (figure 1.3.13).
18.9
20 15.1 15.3
16.9
11.4 12.6
13.9 13.9
25
101. Fish Processing: Industry Structure & Employment 1.3 Overview of Sea Fish Processors
1.3.8 Sea Fish Processing: Overview of importers and exporters
This section analyses responses from sites regarding import or export activity. Please note that some sites
are processing fish that has been imported into the UK, but not necessarily directly by the site that is
processing, so they would not have identified themselves as importers.
Table 1.3.3 Sea Fish Processing: imported raw materials for sea fish processing sites (2014-2016)
2014 % of all sites 2016 % of all sites
No. of sites using only domestically-sourced materials 262 79% 230 75%
No. of sites using imported raw materials (any amount) 70 21% 77 25%
% of Importers
Sites responding to further import questions 2014 responding to 2016 % of Importers
Q’s
No. of importing sites responding to further import questions 51 63
No. of sites using ≥50% imported raw materials (in value terms) 30 59% 40 63%
≥50% raw materials from the European Union (EU) 17 33% 16 25%
≥50% raw materials from the Rest of the World (RoW) 13 25% 30 48%
A total of 102 sites (33% in 2016) identified themselves as exporters.
■ FTE Band Category – in 2016, 55% of 100+ FTEs sites were exporters, 58% of sites with 26-50 FTEs and 41% of 51-100 FTEs
were exporting. A smaller proportion of smaller businesses were engaged in exporting.
■ Sea Fish Species Category – in 2016, 54% of pelagic processing sites exported, 35% of shellfish processing sites and just under
a third of demersal and mixed species type processors exported. Only shellfish processors saw a decrease in proportion of sites
exporting between 2014 and 2016, while others species types saw an increase in proportion exporting.
■ Regional Distribution – in 2016, six of the nine regions had over one third of sites engaged in exporting with the exception of South/
Midlands which had 26%, South West England at 23% and North England at 19%.
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