Competitiveness of scallopersin the English Channel Simon Mardle (Fishor Consulting) Bertrand Le Gallic (University of Western Brittany)
Contents Introduction Shape of scalloping industry (production-> value chain) Fleets and regulations Indicators Prices Competitiveness Innovations Conclusions
Introduction Evaluation of the competitiveness of (coastal) king scallop fisheries in the English Channel Scallops are a high value species, with scallop fisheries often specifically targeted by dedicated vessels using dredge. Challenges that fishermen face with regard to technical measures and marine planning issues, including spatial management. Important challenges associated with further integrated management initiatives, especially between France and UK, and the risks associated with Brexit. Approaches to add value to local scallops, including approaches to fishing, direct sales and certification programmes increase competitiveness. Innovations that are apparent in these fleets and the value chains that they use. Can changes improve competitiveness of vessels and fleets targeting scallops?
Scallop landings Source: AER, 2015
Value chain UK LANDINGS * 28,155 t; 66.2m ^ 100% live whole EXPORTS * 9,464 t; 104.0m ^ 70% live whole, 30% processed France 41% Italy 27% Spain 14% France 67% Ireland 10% Italy 10% IMPORTS * 336 t; 4.0m ^ 10% live whole, 80% frozen, 10% unknown PROCESSING/WHOLESALE est. IN * : 28,497 t; 70.7m OUT est. : 10,537 t; 121.3m IN: 99% live whole, 1% processed OUT: 63% whole, 37% processed RETAIL 665 t; 19.1m ^ 100% processed ^ 63% fresh, 37% frozen UK AQUACULTURE * 6 t; 0.06m ^ 100% live whole ** est. FOODSERVICE 408 t; 16.2m est. 100% processed UK France Source: SUCCESS, 2015
Regulations Number of vessels Licenses (shellfish) Number of dredges (inshore offshore) Closed seasons (fishing pressure) Closed areas (Natura etc) Days at sea (Western Waters Management Scheme) Quotas (daily, weekly)
Scallop production in the English Channel UNDER 10m 2013 E3 E4 E5 E6 E7 E8 E9 F0 F1 SCO 30 13 5 91 72 89 2 ALL 29 14 225 166 16 7 92 U10M 28 10 49 23 3,210 tonnes 27 4 44 1 52 26 31 285 1,900 17 10-15m 2013 E3 E4 E5 E6 E7 E8 E9 F0 F1 SCO 30 120 324 6 202 195 127 ALL 29 188 741 690 178 6 81 1,191 708 O10T15M 28 80 8 59 463 2,444 424 14 19,200 tonnes 27 38 36 540 212 2,711 211 26 52 583 5,677 891 OVER 15m 2013 E3 E4 E5 E6 E7 E8 E9 F0 F1 SCO 30 0 1 230 476 119 ALL 29 2 242 477 413 2 1,104 6,931 4,620 O15M 28 503 1,529 247 130 3,339 860 143 24,652 tonnes 27 8 1,076 251 86 1,043 266 26 349 204 Source: FIDES, 2016
Coastal fleets France 2008 2009 2010 2011 2012 2013 2014 0-12m 178 181 171 170 164 173 0 12-24m 110 88 95 91 90 89 0 >24m 0 1 1 1 1 1 0 UK 2008 2009 2010 2011 2012 2013 2014 0-12m 139 140 128 150 129 132 134 12-24m 73 80 93 108 101 123 129 >24m 21 25 28 26 30 30 34 Source: AER, 2015
Productivity CPUE 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 Scotland Dredge Scallops 2011 2012 2013 2014 2015 O10T15M O15M U10M England Dredge Scallops France Dredge Scallops 0.080 0.350 CPUE 0.070 0.060 0.050 0.040 0.030 0.020 0.010 CPUE 0.300 0.250 0.200 0.150 0.100 0.050-2011 2012 2013 2014 2015-2011 2012 2013 2014 2015 U10M O10T15M O15M O10T15M O15M U10M Source: FIDES, 2016
Prices at production 2012 2013 Country Vessel length VIId VIIe VIId VIIe France 0-10m 2.64 2.20 3.07 2.23 France 10-12m 2.71 2.18 2.67 2.20 France 12-18m 2.54 2.23 2.61 2.21 France 18-24m 2.68 2.00 2.57 France 24-40m 3.13 3.18 France Average 2.74 2.15 2.82 2.21 UK 0-10m 1.92 2.23 1.56 2.11 UK 10-12m 2.24 2.02 1.95 2.04 UK 12-18m 0.81 2.06 1.67 2.12 UK 18-24m 1.80 3.43 2.18 2.01 UK 24-40m 1.79 2.00 1.96 1.80 UK >40m 1.87 1.67 UK Average 1.71 2.35 1.87 1.96 Average prices of SCE by DREDGE 2012 2013 Country Vessel length VIa VIIa VIa VIIa UK VL0010 2.41 2.24 2.26 2.08 UK VL1012 2.33 2.43 2.19 2.06 UK VL1218 2.32 2.17 2.23 2.02 UK VL1824 2.32 2.48 2.05 2.23 UK VL2440 2.05 2.41 3.65 2.38 UK VL40XX 1.99 UK Average 2.29 2.34 2.48 2.13 West of Scotland and Irish Sea Source: AER, 2015
A view of competitiveness Competitiveness (Turnover / Net profit) 0.25 0.2 0.15 0.1 0.05 0 2008 2009 2010 2011 2012 2013 Competitiveness (Turnover / Net profit) 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0-0.05-0.1-0.15 2008 2009 2010 2011 2012 2013 Under 10m 12-18m 24-40m Under 10m 12-18m 24-40m UK France Source: AER, 2015
Room for improvement 1 1. Differentiating the product MSC in UK; SSMO Shetland inshore scallop(750 tons in total) Label Rouge in France - http://www.normandiefraicheurmer.fr/les-produits-stars/entry-24- coquille-saint-jacques-de-normandie-label-rouge.html); Why is this so important but difficult: traceability? Example: 'local recipes' made of imported labeled product (e.g. Maréval (http://www.francaise-de-gastronomie.fr/coquilles-saint-jacques-cuisinees-a-la-bretonne- 30-de-noix); incl. when the raw product is coming from 'aquaculture' (see attached Japanese scallops sold fresh or chilled in France...) The way forward: what about the Normandy and Jersey (certified) Lobster fishery? (https://fisheries.msc.org/en/fisheries/normandy-and-jersey-lobster/market-information/)
Room for improvement 2 2. Consolidation of the sector (UK) Direct contract between producers and wholesalers Vertical integration (EP, 2016, Seafood industry Integration in the EU): The general trend, in cases of structural vertical integration, has been fish catching companies investing in downstream segments http://macduffshellfish.co.uk/products/scallop/ To what extent? Ian Smith, CEO of Clearwater Seafoodssaid, "The acquisition of Macduff brings together two of the world's leading and fastest growing vertically integrated wild shellfish harvesters.
Room for improvement 3 2. Consolidation of the sector (France) Merging of key wholesalers (another form of vertical integration ) 1 st April 2017: Le GraëtGroup and Gallenjoined force 12 SMEs; 200 m. turnover Process following the consolidation trend started in the wholesale sector in May 2015 (Océallianceand Mariteam) and July 2016 (ViviersBégantonand Méricq) the (unsuccessful) buying of the CME wholesale entity in 2013 by Le Graët Group and Unipêche(Boulogne sur Mer) the (successful) buying of Marée de Saint-Malo by Le GraëtGroup in 2008 (Bertrand Desplat: this acquisition enables to reinforce partnerships with fishermen in the ports along the Channel Coast
Room for improvement 4 3. Towards better management of the resource (see also label ) Legal context: UNCLOS (Art. 63-64) States Parties should cooperate in case of jointly managed fish stocks that appears in the EEZ of two or more States Channel Fisheries (Recent) Historical context GAP 2 2 nd collaborativeworkshop -11-12 Feb. 2015: There was support for the principle of harmonisationof measuresin Area VIID ( ) Some collaborative measures discussed included the possibility for UK and French fishermen to fish with the same mesh size.this type of constructive dialogue demonstrates there are measures fishermen can come together on. Common objective: Ensuring better (long term) management and getting higher prices (incl. by differentiating local king scallops (pectenmaximus) from other imported products
Room for improvement 5 However, September 2016: Nash / Non-cooperative equilibrium (the more I take, the less you have!) http://www.ouest-france.fr/economie/agriculture/peche/saint-jacques-les-pecheurs-francais-denoncent-la-razzia-britannique-4582759 «Le marché est actuellement inondé de coquilles congelées provenant du Royaume-Uni mais prélevées de façon massive sur nos propres côtes», dénoncent les pêcheurs français, qui ont engagé des démarches pour valoriser la coquille Saint-Jacques en tant que produit frais haut de gamme.
Conclusions Scallop sector is a specific production and important in both UK and France In UK 3 rd most valuable species in 2014, in France 4 th (domestic catches) Scallop is a coastal species but targeted by a range of vessels mostly using dredge this has been shown that it can be sustainable! Highly regulated but not by catches! Difficult to assess stocks (growth, sedentary nature etc) ICES have started The closed season between UK and France is a significant difference Productivity and competitiveness What could a more competitive scallop industry look like?
Thank you The SUCCESS project has received funding from the European Union s Horizon 2020 research and innovation programme under grant agreement No 635188. http://www.success-h2020.eu/