2016 SEAFOOD PROCESSING INDUSTRY REPORT - Seafish
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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. 8
Seafood 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. 9
1. 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 30
446 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 30
1. 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 12
1.1 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 13
30.4 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 30
Highlands 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 84
1. 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 16
1.3 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). 17
1. 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 18
No. 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. 19
77 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 2016
1.3 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). 21
1. 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. 22
1.3 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 23
1. 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. 24
Year 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 10
1. 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%. 26
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