Skyrocketing food-price inflation in Europe is rearing its head for Wales-based Ocean Bay Seafood.
Ocean Bay Seafood Owner Richard Williams – who spoke to SeafoodSource during Seafood Expo Global in Barcelona, Spain – said inflationary pressure is have a real impact on the business. Dealing in scallops, lobsters, and crab – which typically carry a premium price tag – means the company has been sensitive to higher prices and has seen its margins shrink as its costs have risen.
“You’re getting customers who really don’t want to pay the price. Inflation for us has gone up considerably in the last year, so it is quite hard,” Williams said. “That’s for all sectors in the U.K., not just the seafood sector.”
High energy, fuel, and packaging costs have compounded into a much higher monthly bill, he said.
Another big factor impacting the company’s bottom line, Williams said, is poor harvests.
“We also have issue[s] with the weather, not much product coming in, but you’re still getting costs,” Williams said.
The poor weather has mainly affected the lobster harvests, according to Ocean Bay Seafoods Sales and Marketing Manager Kimberley McHardy.
“We’ve focused a little bit more this past year on the scallops, just because we struggled a little bit with the lobster, but certainly during the scallop season we were able to get quite a bit of product in, and the ability to get quite a bit out again,” she said.
Overall, the difficult market has led to a “few companies that we know that are not here anymore,” Williams said. But Ocean Bay is navigating the difficult economic climate, and despite getting a few acquisition offers, Williams said he plans continue to operate as an independent company.
“Who would want to merge in this economic climate?” Williams said.
McHardy said the company has continued to maintain its sales despite the numerous difficulties, and has also been able to expand its markets domestically with sales to local restaurants.
“I think the best news is that we’re still here, we’re still turning a profit, and that’s more that can be said for a lot of companies at this time, so we’re very grateful for that,” she said. “And our customers are still with us!”
Photo by Chris Chase/SeafoodSource
