Q&A with the Irish Fish Processors’ and Exporters Association’s Lorcán Ó Cinnéide

Lorcán Ó Cinnéide is national secretary of the Irish Fish Processors’ and Exporters Association (IFPEA) and a board member of AIPCEE, the European Union processors’ organization.

The Irish fish processing and exporting sector has a turnover valued at EUR 800 million (USD 894 million) and supports 11,000 jobs. According to O Cinnéide, Brexit will complicate efforts to consolidate and grow the sector, as Irish and British vessels currently share waters and several key species. Brexit may mean a redrawing of fishing territories and resources, he said, and it casts questions over the Irish government’s Seafood Development Programme 2014-2020, which commits EUR 241 million (USD 269 million) of E.U. and Irish funds for growing national aquaculture output and marketing Irish seafood at home and abroad.

SeafoodSource: What are the likely impacts of Brexit on the Irish seafood sector?

Ó Cinnéide: Brexit as a process brings very unwelcome uncertainty. From March 2017 [the date set by British government for the triggering of the exit process] we’re looking at two years of negotiations but it could be a five-year process before we’re clear of the impact on fisheries which is a very, very complicated part of the unravelling of Britain’s relationship with the EU. The British national position is now clearer, and the scale of ambition of the British seafood industry has increased. The impact on Ireland’s seafood processing and catch very much depends on a whole series of very complex angles. There’s a whole EU infrastructure of science and access in fisheries that will have to be reconfigured.

SeafoodSource: Regaining control of fishing rights was a major point for some Brexit campaigners.

Ó Cinnéide: Yes, and I note some counterparts in the UK fishing sector are expecting a much better situation [post-Brexit]. I wish them well.

SeafoodSource: There are lots of voices in Irish fisheries who are negative about the EU’s impact on Irish fisheries. Is it possible Ireland will follow Britain’s lead?

Ó Cinnéide: There is a great deal of anti-EU sentiment in our industry. There is low access in our own EEZ [exclusive economic zone], the share is imbalanced. But I don’t think our leaving is possible for wider economic and political reasons. Where does this leave us in post-Brexit? The UK will be like Iceland, the Faroes and Norway. There is a whole question of UK waters and the degree to which all of that is tradeable in Brexit negotiations. The least worst outcome would be as close to trade status quo that exists as possible.

SeafoodSource: Are there any opportunities in Brexit for your members?

Ó Cinnéide: Our industry is very supply-dependent. There is an amount of reciprocal activity in the EEZ. Dublin Bay prawns and mackerel are our two biggest species in valuation and volume but we share access to these species with Britain. All is very much intertwined. It would take a great crystal ball to see what’s going to happen, but I don’t see any good coming out of Brexit.

SeafoodSource: How big is the UK market for your members?

Ó Cinnéide: It’s not that significant. Overall, the exports from Ireland are EUR 564 million (USD 630 million), which includes in fresh and unprocessed and eight percent of that is going to the UK. But if you look at our imports, a lot of our raw materials and EUR 148 million (USD 165 million), or 65 percent of that come from the UK. Remember, we have to transport a big percentage of our imports, including of raw materials, through the UK. So there is a unique set of circumstances.

SeafoodSource: British supermarket chains have a major share of the Irish retail market. Will Brexit change this?

Ó Cinnéide: Significantly, British chains like Tesco control over 30 percent market share in the Irish grocery market. Much depends on how Tesco’s expansion in Ireland is predicated on being in the single market. And how they figure that out.

SeafoodSource: How does the emergence of low-cost processing hubs in Eastern Europe impact your members?

Ó Cinnéide: There isn’t a significant impact…Our focus has been on developing world markets like West Africa. Part of our difficulty has been on the capacity of Nigeria to pay for seafood given the fall in oil prices. There is also the Russian embargo blocking access. But we want to move towards adding more value and shortening the supply chain. If you look at the lower level pelagic stocks, 70 percent of our volume is leaving Ireland unprocessed.

SeafoodSource: And you are having some success in making this transition?

Ó Cinnéide: It’s the published strategy of the Irish government to reduce the percentage of what we export unprocessed to 50 percent and the trend is going that way. The nature of the products we trade is more value-dominated. We have significant imports and overall demand growth [in Ireland] is positive. We are making some inroads.

SeafoodSource: Have you been able to grow domestic consumption of seafood and why is Irish per capita consumption comparatively low?

Ó Cinnéide: Seafood consumption has been promoted by Bord Iascaigh Mhara [Irish fisheries promotion agency]. There is an awareness of the health qualities but there are cultural attitudes. Seafood has been associated with religious obligations. Fish was a penitential product. And we compete domestically with a large meat industry. There are also perceptions over the ease of cooking seafood.

SeafoodSource: Is there also a perception that seafood is expensive?

Ó Cinnéide: Seafood has a perception for being expensive. People are looking at the price per kilogram rather than price per portion. And we are talking about species each with their own price economies. We don’t want to set up fish as a cheap product but rather one that’s good for you.

SeafoodSource: Can you compete with processed products from low-cost processing centers?

Ó Cinnéide: There’s a lot of products on which we cannot but we see products in which we can. We have to box clever. We won’t be competing on price but rather on provenance and environmental sustainability.

SeafoodSource: Can you share an example of products you can add more value to in Ireland?

Ó Cinnéide: Dublin Bay prawns into the EU market. Going into sophisticated catch methods, very high quality. Some companies are already adding significant value. And we look at what selling to Irish retail market. Key is supply, and sustainable catch practises. The Irish fleet is landing only a fifth of what is being produced, for example in hake. The rest is going to processors and retailers abroad. We would like to get more. Can we get more supply into Ireland? And add value to that? We have a lot to do. We are still in the infancy of our plans.

SeafoodSource: There has been media attention on work conditions for immigrant workers in the Irish fisheries sector. Does this remain a problem?

Ó Cinnéide: That perception did exist. I can’t speak for the catch sector but government has introduced schemes which have created robust framework to deal with that issue, to provide a safe and viable set of circumstances. It’s difficult to do but massive strides have been made to eliminate this from the catch sector.

Subscribe

Want seafood news sent to your inbox?

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500
None