Processing -fisheries and aquaculture

The key supply chain activity that supports the core marine sectors of fishing and aquaculture is considered as primary and secondary processing activities:

• primary processors are involved in the cutting, filleting, picking, peeling, shelling, washing, chilling, packing, freezing, heading and gutting of fish and shellfish.
• secondary processors are involved in brining, smoking, cooking, freezing, canning, deboning, breading, battering, vacuum and controlled packaging and the production of ready-to-eat meals.

Processing activities were traditionally located near coastal locations (to minimise the time and costs to transport the landings from the harbour/port) and are an important local employer, particularly in more rural locations.

As mentioned in the overview for the Productive chapter introduction of the Solway Review, this section is populated with data and information from the Socio-economic Assessment’s for the Scottish (SEASS), and English Solway (SEAES), which are two separate projects completed in 2020. Text below will be predominantly directly from the SEASS or SEAES Reports but is altered at times. These reports are available here. These socio-economic reports were needed in light of the changing face of socio-economic aspects impacting the Solway Firth, and also for the purpose of populating the productive section of the Solway Review. Text from the SEASS and SEAES reports is not referenced individually.

Image; Scallops and Starfish. © Solway Firth Partnership. Photographer; Colin Tennant

Processing -fisheries and aquaculture

Scotland - Summary

Seafood Processing is a key sector in the Dumfries & Galloway economy, currently employing around 400 people across the region.

The main area of activity is in Annan which is home to Young’s seafood scampi processing plant, and the recently closed Pinneys of Scotland smoked salmon processor. Pinneys was by far the largest fish processing employer in the region, and around 450 jobs were lost after its closure in 2018. However, the site has recently been purchased and is estimated to create around 100 jobs when it reopens.

The other main location for activity is in Kirkcudbright, where West Coast Sea Products is based and is a processor for Scallops which are landed at Kirkcudbright by its own fishing fleet.

Defining the Sector

The economic contribution of the sea fisheries sector is measured through the Standard Industrial Classification (SIC) code (Office for National Statistics, 2007): 10.2: Processing and preserving of fish, crustaceans and molluscs.

A summary of the changes across economic indicators (2014 to 2018) is presented in the table below.

* 2014 to 2017 and adjusted to 2017 prices

Image; West Coast Sea Products. © Solway Firth Partnership. Photographer; Colin Tennant.

Processing -fisheries and aquaculture

Scotland - Contribution to the Economy

Employment

Fish processing employment has remained steady at around 900 to 950 since 2009. However, there was a significant reduction and shock to the economy in 2018 due to the closure of Pinneys in Annan with the loss of around 450 jobs (BBC News, 2018), see figure below, ‘Scottish Solway: Seafood Processing Employment, 2009 – 2018’.

Scottish Solway: Seafood Processing Employment, 2009 – 2018. (Source: Office for National Statistics (Various) (BRES))

Fish processing is a key industry in Dumfries & Galloway, with a very high location quotient of above four, up to 2017. Even considering the recent job losses at Pinneys in Annan, the location quotient remains high, see figure below, ‘Scottish Solway: Seafood Processing Location Quotient 2009 – 2018’. Please see the Productive overview for an explanation of Location Quotients.

Scottish Solway: Seafood Processing Location Quotient 2009 – 2018. (Source: Office for National Statistics (Various) (BRES))

Economic Output – Turnover and GVA

The turnover of the fish processing industry in Dumfries & Galloway has been broadly stable over the last decade, with some fluctuations. GVA on the other hand, has been on a broad upward trend. It should be noted that figures for 2018 were unavailable at the time Socio-economic Analysis for the Scottish Solway was prepared, and we would expect a decline due to the recent closure of Pinneys in Annan, see figures below, ‘Scottish Solway: Seafood Processing Turnover, 2009 – 2017’ and ‘Scottish Solway: Seafood Processing GVA, 2009 – 2017’.

Scottish Solway: Seafood Processing Turnover, 2009 – 2017. (Source: Scottish Government (2019))

Scottish Solway: Seafood Processing GVA, 2009 – 2017. (Source: Scottish Government (2019))

The GVA to turnover ratio has increased in recent years, following a decline from 2009, however, in general it remains at a low level. This reflects the relatively resource intensive nature and high operating costs of the fish processing industry, coupled with the relatively ‘lower value’ nature of the product. See figure below, ‘Scottish Solway: Seafood Processing GVA to Turnover Ratio 2009 – 2017’.

Scottish Solway: Seafood Processing GVA to Turnover Ratio 2009 – 2017. (Source: Scottish Government (2019))

Image; Scallop processing. © Solway Firth Partnership. Photographer; Colin Tennant.

Processing -fisheries and aquaculture

Scotland - Fish Processing Sites

Dumfries & Galloway is home to a number of large fish processing sites, as well as a number of smaller, artisan smokers. The large sites are:

• Pinneys of Scotland, Annan – Pinneys was the largest fish processing employer in the region before it closed in 2018 with the loss of 450 jobs. However, the site has recently been purchased by food processing company Bhagat Holdings Limited which aims to create around 100 jobs on the site (BBC News, 2019). Nevertheless, this represents a net loss of around 350 jobs;

• Young’s Seafood, Annan – Young’s Seafood is a large fish processor in Annan which processes scampi for sale in supermarkets. This site processes seafood which is caught outwith the Solway, and therefore there are no wider linkages to the local coastal economy; and

• West Coast Sea Products, Kirkcudbright – West Coast Sea Products makes a number of products, but primarily processes scallops caught by its own fishing fleet and landed in Kirkcudbright. West Coast Sea Products is responsible for a large proportion of the Scallop catch in the region.

Of the smaller processors, the majority are small scale smokers, primarily using salmon, most of which is caught or farmed outwith the region.

Image; Kirkcudbright Harbour and scallops. © Solway Firth Partnership. Photographer; Colin Tennant.

Processing -fisheries and aquaculture

Scotland - Regional Look Forward

Seafood processing is a key industry in Dumfries & Galloway, employing large numbers of people and contributing considerably to the regional economy.

The closure of the Pinneys plant was a blow to the industry, with the loss of approximately half of industry employment in the region. The recent purchase of the site does give some reason for optimism, yet only a fraction of the numbers of jobs lost are reported to be created by the new owners.

It is notable that, barring one facility, the industry has few links with the local area beyond the people employed there. Fish processed are caught outwith the region, and most of the output is then sold in supermarkets nationwide or exported.

Brexit poses a particular risk for the fish processing industry in Dumfries & Galloway. The short-term consequences of the Brexit vote on the value of the pound has had an impact on cost of inputs for many businesses, such as imported seafood for processing. Conversely, the falling pound has made exports cheaper and more competitive. The extent of the impact on individual businesses is dependent upon their level of imported inputs and exports.

Further Brexit related concerns included uncertainty with regards to:

• future trading relations with the EU and with rest of the world once the UK is no longer subject to EU negotiated trade deals;
• quotas or regulation, and whether responsibility over fisheries will rest at the Scottish or UK level; and
• the impact on the availability of seasonal labour from EU countries, which a number of the larger processors make use of.

Image; Scallops in Kirkcudbright. © Solway Firth Partnership. Photographer; Colin Tennant.

Processing -fisheries and aquaculture

England - Summary

The main area of fish processing activity on the English Solway Firth is Harbourside Products in Maryport which primarily processes smoked salmon before exporting to Europe.

Defining the Sector

The economic contribution of the sea fisheries sector is measured through the Standard Industrial Classification (SIC) code (Office for National Statistics, 2007): 10.2: Processing and preserving of fish, crustaceans and molluscs.

Image; Maryport. © Solway Firth Partnership.

Processing -fisheries and aquaculture

England - Contribution to the Economy

Employment

Fish processing employment has fallen considerably by 60% from its 2011 peak at around 250 to 100 in 2018. This is largely due to the closure of the two Cumbrian Seafood sites in Maryport and Whitehaven (Times & Star, 2009) & (Food Manufacture, 2012). See figure below, ‘English Solway: Seafood Processing Employment, 2009 – 2018’.

English Solway: Seafood Processing Employment, 2009 – 2018. (Source: Office for National Statistics (Various) (BRES))

Fish processing is an important industry on the English Solway Coast relative to the rest of the country, with a very high Location Quotient (please see the Productive overview for an explanation of Location Quotients), although this has declined in recent years, see figure below, ‘English Solway: Seafood Processing Location Quotient 2009 – 2018′.

English Solway: Seafood Processing Location Quotient 2009 – 2018. (Source: Office for National Statistics (Various) (BRES))

Economic Output – Turnover and GVA

Due to the small scale of the fish processing sector and the concentration of activity on a single site, the turnover and GVA figures are suppressed and unavailable.

Image; Skinburness. © Solway Firth Partnership.

Processing -fisheries and aquaculture

England - Fish Processing Sites

The English Solway Coast is currently home to one large scale fish processor, Harbourside Products in Maryport. The site primarily smokes salmon from Scotland and exports to a variety of European countries, including Italy, Germany, France, Holland, Spain and Switzerland.

There is a Brown Shrimp (Crangon crangon) processing unit in Silloth. The fishing and processing are undertaken by Ray’s Shrimps Limited. The shrimp are cooked onboard the vessel and then transported to the processing unit where grading, peeling and inspection are undertaken before the shrimp are vacuum packed or potted.

Image; Maryport Harbour. © Solway Firth Partnership.

Processing -fisheries and aquaculture

England - Regional Look Forward

Seafood processing is an important industry in the area, employing around 100 people on a single site in Maryport, and makes an important contribution to the regional economy.

The Harbourside Products site has few links with regional supply chains beyond locally employed staff, with fish being sourced from Scotland, and much of the outputs exported.

Brexit poses a particular risk for the fish processing industry. The short-term consequences of the Brexit vote on the value of the pound has had an impact on the cost of inputs for many businesses, such as imported seafood for processing. Conversely, the falling pound has made exports cheaper and more competitive. The extent of the impact on individual businesses is dependent upon their level of imported inputs and exports.

Further Brexit related concerns include uncertainty with regards to:

• future trading relations with the EU and with rest of the world once the UK is no longer subject to EU negotiated trade deals;
• quotas or regulation; and
• the impact on the availability of seasonal labour from EU countries.

Image; Boats on the Solway (Kirkcudbright). © Solway Firth Partnership. Photographer; Colin Tennant.

Processing -fisheries and aquaculture

References

Baxter, J.M., Boyd, I.L., Cox, M., Donald, A.E., Malcolm, S.J., Miles, H., Miller, B., Moffat, C.F., (Editors), (2011). Scotland’s Marine Atlas: Information for the national marine plan. Marine Scotland, Edinburgh. pp 191. Available here. (Accessed 22.07.19)

Marine Management Organisation. (n.d). Marine Planning Evidence Base. Available here. (Accessed: 14.05.18)

Marine Scotland (n.d.). Scotland’s National Marine Plan Interactive. Available here. (Accessed: 06.08.19)

Mills, F., Sheridan, S. and Brown S., (2017). Clyde Marine Region Assessment. Clyde Marine Planning Partnership. pp 231, Available here. (Accessed: 14.05.18)

Office for National Statistics (Various) Annual Business Survey (ABS): custom data request from the ONS & Public data. Available here. (Accessed: 28.07.20)

In-Text References;

BBC News (2019), Over 100 jobs to be created at Pinneys plant in Annan. Available here. (Accessed: 03.09.20)

BBC News (2018), Pinneys of Scotland staff in Annan ‘devastated’ by closure. Available here. (Accessed: 04.09.20)

Food Manufacture (2012) Young’s to axe 555 jobs at Cumbrian Seafoods.
Available here. (Accessed: 03.09.20)

Office for National Statistics (Various) Business Register and Employment Survey (BRES). Available here. (Accessed: 28.07.20)

Office for National Statistics (2007). Standard Industrial Classification of Economic Activities. Available here. (Accessed: 22.07.20)

Scottish Government (2019) Scottish Annual Business Statistics 2017 (SABS). Available here. (Accessed: 28.07.20)

Times & Star (2009) Seafoods firm closing Maryport fish factory for good. Available here. (Accessed: 03.09.20)

Image; Scallops landed in Kirkcudbright. © Solway Firth Partnership. Photographer; Colin Tennant.