When the United Kingdom left the European Union in January 2020, increased red tape and higher costs ensued for the nation’s seafood sector, especially in Scotland’s salmon-farming industry, which has missed out on GBP 100 million (USD 126.2 million, EUR 117 million) in annual exports, according to estimates from industry trade body Salmon Scotland.
In 2019, the Scottish salmon sector exported more than 53,000 metric tons (MT) to the E.U.; that figure fell to 44,000 MT in 2023.
Salmon Scotland said export values to the E.U. have fallen 3 percent since 2019, reaching GBP 356 million (USD 449.4 million, EUR 416.4 million) in 2023 because strong demand has driven up prices, it calculated that if the sector had just maintained its volumes at 2019 levels, sales would have been above GBP 430 million (USD 542.8 million, EUR 503 million) last year.
This represents a deficit of around GBP 75 million (USD 94.7 million, EUR 87.7 million), but the GBP 100 million figure comes into play when factoring in sector growth at the rate expected before Brexit, it said.
“Huge growth” in other markets, particularly Asia and the U.S., have helped mitigate Brexit’s effects, according to the trade body. International sales of Scottish salmon were up 0.5 percent in 2023, reaching GBP 581 million (USD 733.4 million, EUR 679.2 million), and included year-over-year increases to the U.S. and Asia markets of 7 percent and 22 percent, respectively.
The trade body pointed out that salmon is also becoming increasingly popular in European markets including the Netherlands and Spain, where salmon has not traditionally been a top seller. Smoother trade flow in those markets, which it claims are difficult to access with current red tape, would generate greater earnings and more high-skilled jobs for the Scottish economy, according to Salmon Scotland.
The organization also said the GBP 100 million figure doesn’t include the direct GBP 3 million (USD 3.8 million, EUR 3.5 million) annual cost to farming companies because of the lack of an e-certification scheme, which has resulted in tedious paperwork that has driven up costs.
Salmon Scotland CEO Tavish Scott outlined these issues to Members of Scottish Parliament (MSPs) on the Constitution, Europe, External Affairs, and Culture Committee on 28 March, as part of an inquiry into the E.U.-U.K. Trade and Cooperation Agreement (TCA) – which is up for review shortly. Scott specifically called for the next U.K. government, which will be elected no later than 28 January 2025, to take urgent action.
“Scottish salmon is the U.K.’s largest food export and a major contributor to our economy, with demand rising at home and abroad. Despite soaring sales to Asia and the U.S., the E.U. is still the most significant region for our exports, accounting for more than 60 percent of international sales,” Scott said ahead of his committee appearance. “The world-renowned quality of nutritious, low-carbon Scottish salmon means that we could significantly grow markets such as Spain, Italy, and the Netherlands, but Brexit red tape continues to hold back the potential of Scottish exports, despite the hard work and investment put in by farmers to address the issues. We need the next U.K. government – whatever formation it is – to ease the burden on exporters so that sectors like ours can sell more Scottish produce, delivering economic growth and creating jobs here at home.”
