RDC(3) FD - P11
Rural Development Sub Committee
Inquiry into the Production and Promotion of Welsh Food
Response from the Welsh Federation of Fisherman’s Associations Ltd.
Brief Submission by the Welsh Federation of Fishermen’s Associations Limited
Background:
The Welsh Federation of Fishermen’s Associations Limited is the umbrella organisation and representative voice for the four Fishermen’s Associations in Wales and through them, the inshore fishing industry.
We have only recently become aware of the Sub-Committee’s inquiry and therefore seek to provide a brief overview and comments with the hope that should they so wish, the Sub-Committee members might like to give greater consideration with regard to the fishing industry in Wales in this respect.
There are currently 443 commercially licenced fishing vessels on the Welsh Register, 408 of which are under 10 metres in length, the 'inshore fleet’. Members of the inshore fleet mainly fish close to the coast (6 miles) for a wide range of species including bass, crabs, scallops, lobster, prawns, brill, turbot, sole, plaice, rays, cod and whelks. Many of these species are of high commercial value and high quality due to the methods of capture used and short time between capture and landing. These small scale fisheries contribute most to the Welsh economy in volume and value. The inshore sector supports around 600 businesses, and the fleet works from 33 recognised ports and harbours, plus numerous beaches, coves, estuaries and jetties along the Welsh coastline.
The industry, for the first time, now has the benefit of a specific Welsh Fisheries Strategy, a partnership document created by Government and Stakeholders in Wales to guide and drive forward the sustainable development of an increasingly important rural industry.
In the light of probably little in depth knowledge of the Welsh fishing industry by some Members, please find below a relevant extract from the Strategy for your information:
"The Strategy is supported by an annually reviewed implementation plan which sets out the key actions to delivery. The purpose of the Strategy is to provide the framework within which we can achieve that aim but to also set it within the context of the other Welsh Assembly Government and UK commitments. The vision of the Wales Fisheries Strategy is to: 'Support the development of viable and sustainable fisheries in Wales as an integral part of coherent policies for safeguarding the environment’ In achieving this vision we have identified a number of goals applicable to all fisheries sectors which we aim to achieve as indicators of the success of this Strategy.
Healthy fish stocks - development and management of fisheries at sustainable levels as a part of healthy and productive ecosystems.
Positive Community role - recognition of fisheries as a positive contribution to the communities of Wales.
Environment - Fisheries developed and managed in a sustainable way contributing positively to environmental policies of Wales
Partnership Working - To further the partnership working already established between policy makers, stakeholders, and delivery agents for fisheries and establish this joint role as custodians for the future.
Economic contribution - Maximising the economic importance and contribution of fisheries to the development of the "Wales‟ brand on a Wales/UK/EU/International level.
In reaching our vision and meeting these objectives the strategy aims to provide:
A long-term vision for managing and developing Welsh fisheries (The Strategy);
An outline methodology for achieving that vision (Implementation Plan);
A clear plan for the management of fisheries in Wales;
A framework for greater stakeholder involvement on the development and management of Welsh fisheries.
The strategy identifies the principles by which the Welsh Assembly Government, its partner management organisations, and stakeholders will work together to develop policies for managing fisheries in Wales, to ensure environmentally sustainable and profitable fisheries and to be consistent with Welsh Assembly Government’s commitment to responsible management of the marine environment. The Strategy is a vision for the next 15-20 years, but it is also needs to be dynamic and will be reviewed and updated, in consultation with all the interested parties, at regular intervals.
Relevance of the Strategy:
The Welsh Fisheries Strategy aims to meet the needs of the industry and the environment in both the short and long-term. However, given frequent shifts in consumer culture, economic policy and legislation this is an ambitious goal. These factors are in turn compounded by environmental concerns over stock depletion, habitat management and predicted changes in climate. It is therefore paramount that the strategy identifies the key areas that underpin the future viability of fisheries in Wales and their possible benefits to those parties concerned.
Socio Economic Development:
Fisheries provide the economic and social heart of a number of communities around the coasts of Wales where the fishing industry is the main employer and contributes to the rural economy via recreational angling tourism. The seas, coasts and inland waterways comprise an important part of the natural heritage which enriches the day-to-day lives of many people, as well as being where many others go for their holidays and recreation. The Welsh Fisheries Strategy should therefore meet the needs of the industry for optimised socio-economic benefit in a manner consistent with sustainable harvesting and cultivation. If the Welsh Fisheries Strategy is to meet the future needs of the fishing and aquaculture communities in Wales there is a requirement to improve infrastructure and build capacity within the Principality. Current limitations place important constraints on rural employment opportunities, the feasibility of establishing local value added processing and access by Welsh producers to key markets such as the UK multiple retail sector. This last point is particularly pertinent given the recent and significant shift by UK multiple retailers towards the promotion of locally sourced products. For fish and shellfish there is a further move towards produce sourced from sustainable fisheries with a growing emphasis on seasonality. This shift in retail policy will be of direct benefit to commercial sea fisheries in Wales by providing market opportunities for a wider range of species whilst reducing the pressure on more traditional species consumed throughout the UK. Socio-economic benefits will also be evident for the Welsh aquaculture sector through a greater demand for sustainable products leading to increased production capacity and employment opportunities. Additionally, a move towards locally sourced produce would bring about improvements to the quality and saleability of fish and shellfish from Wales by reducing logistical demands. This approach is also compliant with a growing consumer demand for reduced food miles which aims to limit the distance a product has to travel before it finally reaches the table.
Public Health:
In future years, the growth in sales of fish and shellfish products in Wales will be partially driven by public health issues as the potential benefits of increased seafood consumption become clearer. For example, there is good evidence that eating oily fish and shellfish reduces the risk of death from heart disease [and a host of other physical and mental illnesses], which killed 117,500 people in the UK during 2002 alone (Food Standards Agency http://www.food.gov.uk). On average, people in the UK eat a third of a portion of oily fish a week; seven out of ten don't eat any fish at all. Food Standards Agency Chair Sir John Krebs stated 'Eating oily fish [rich in omega-3 fatty acids] is a simple way for people to reduce the risks of heart disease. Eating just one portion of oily fish a week has clear-cut health benefits‟. It is now widely accepted that action is required at Government level to bring about improvements to people’s diet if a range of impending public health issues are to be avoided. Within Wales, and the broader UK, the Food Standards Agency (FSA) aims to raise awareness of food safety and healthy eating issues, with an emphasis on school children and vulnerable groups within the community. The FSA has recently issued new advice on eating oily fish, recommending for the first time maximum levels at which the health benefits clearly outweigh the possible risks from dioxins. The driving force behind these recommendations comes from the fact that childhood obesity is now recognised as a major threat to long-term health and the statistics are alarming. To address this growing problem, the Schools Food Trust (SFT) was set up in 2005 by the Department for Education and Skills (DfES) to promote the education and health of children and young people by improving the quality of food supplied and consumed in schools. Guidelines have been proposed by SFT for school meals to be passed in across the UK by 2009. One of the central components of this strategy is to encourage children to eat more fish and shellfish as part of their weekly diet, especially those containing omega-3 fatty acids. Fish [and shellfish] shall be available at least once a week in primary schools and at least twice per week in secondary schools. Of that fish, oily fish should be available at least once every three weeks. This represents a significant increase in the demand for fish and fish products by the education sector that clearly signifies the opportunities for growth within the capture fisheries and aquaculture sectors in Wales.
For commercial sea fisheries, new investments in shore-side handling/holding facilities and transport infrastructure offer the potential of greater economic returns from existing targeted species. There is also substantial scope to capitalise upon local under-utilised species, including seasonal fisheries for oily fish with very high omega3 HUFA contents (sprats, mackerel, etc). Regarding captured marine shellfish that are already subject to export, there is considerable economic benefit to be gained by investing in more effective live transport systems and marketing”.
In summary, Wales has the benefit of a range of high value and especially high protein species within its territorial waters and, given adequate regional protection, these species have the ability to make a sustainable and long term contribution to the Welsh diet, not least in relation to those species rich in Omega 3 such as the oily fishes (the biomass of Sprats in the Irish Sea is approximately 750,000 tons) and shellfish (the Edible Crab has the highest Omega 3 content of any species on land or sea). There is no absolutely no doubt as to the benefits of this sort of diet especially for both the young and the elderly.
The questions raised by the consultation are answered thus:
1: Production at the base level revolves around the utilisation by fishermen in Wales of a small number of methods, focusing on a restricted range of species, i.e. potting for lobster and crab. It is not within the scope of this document to go into the reasons for this narrow focus but sufficient to say that there are significant opportunities for diversification into a range of under utilized fish species that, with the benefit of effective management plans (and the Assembly’s ability to manage them on a regional basis) and support from the European Fisheries Fund can provide the backbone of a profitable and sustainable source of protein rich foods for Welsh consumers as well as those further afield.
In terms of processing, Wales lags far behind other devolved administrations and there are again significant opportunities with the assistance of a similar form of support as mentioned previously. With leadership, representation and guidance from the Welsh Federation, the industry is now waking up to the need to fish smarter, rather than just harder and adding value processing is very much a key part in terms of development for the industry. It should be noted that there is a steep hill to climb in this regard as Wales has effectively no added value or supply chain infrastructure and in many cases not even the ability to get catches from the boat to the quay in a safe manner, never mind access to modern processing facilities (although an Interim Bid for small scale added value equipment is making its way slowly through the Assembly maze).
There is no doubt that Wales has much to offer in terms of labeling and branding. It is easy to look over the heads of Welsh consumers to potentially richer pickings further afield but a questionnaire conducted during the Royal Welsh Show this year (with support from the Assembly Government) showed a strong desire from Welsh consumers for fish and fish products from Welsh sources.
There is of course an increasing demand for a range of high value species abroad but the market has changed dramatically in recent times. The traditional European live market for lobster and crab is being replaced by that from the Far East (but with little supply chain infrastructure in place to meet that demand) and an increase in the local (UK) and European requirement for processed fresh and frozen meats from a range of fish and shellfish, reflecting the rise in demand for convenience foods.
This demand also encompasses a desire for processed products such as fish cakes (this product has shown the greatest increase in demand across the whole range of processed foods in recent times within the UK).
Marketing and promotion initiatives have been severely hampered by the lack of any processing or supply chain infrastructure in Wales. This has resulted in some frustration whereby potential buyers have been thwarted through not being able to source products with any degree of continuity or reliability. It is vital that this shortfall is addressed as soon as possible and that processing and cold storage facilities are provided. Where individuals have promoted their own goods, albeit in a small way, the response has been extremely positive and should provide the foundation and security for further and wide ranging expansion.
As part of the new found and positive approach from the Assembly Government, a market study has been undertaken by external consultants who are expert in the retail field. The report is due to be submitted to stakeholders shortly and is thought to contain a number of exciting opportunities for supply into the retail arena. At the same time, the aforementioned questionnaire responses clearly indicated market opportunities in Wales for an internet based supply chain, providing Welsh consumers with access to locally caught and produced fish and fish products, both fresh and frozen. It is true to say that the refusal to supply two collection and deliver vans as an integral part of the Interim Bid came as a great disappointment and will make the creation of a supply chain, albeit on a small scale, infinitely more difficult than it needs to be.
In summary, the main challenges will be ensuring the sustainable management and exploitation of fish and shellfish species in Welsh territorial waters against a background of the Common Fisheries Policy that provides for equal access to a common resource. This tragedy of the commons must be addressed as a main part of the review of the Policy in 2012 with a view to allowing Wales to have a much greater say in the management, and therefore the sustainability of fisheries in its own waters. Equally, the ability for Wales and the Welsh inshore fleet to obtain and hold quota for some fish species will be of paramount importance. Already in some areas of the UK, quota has been sold or allocated elsewhere and local fishermen are unable to catch fish on their doorstep.
At the same time, it will be important for the Welsh catching sector to be provided with sufficient financial assistance in order to be able to introduce new methods, both at sea and on land and build on the work already done to ensure the long term sustainability, not only of fish stocks but also of the fishermen and others in Wales that rely upon them.
It is important to note that the fishing industry in Wales has only ever received a relatively small amount of grant aid in the past, through recent Objective 1 funds and presently (and hopefully) through the current European Fisheries Fund (EFF). When one compares the circa £10m over 12 years from a combination of Objective 1 and EFF support with the circa £177m paid on an annual basis to our agricultural colleagues, especially when much of that agri aid is focused on 'environmental stewardship’, equally valid for both farmers and fishermen then one can perhaps understand that the fishing industry feels something of the poor relation. The usual arguments relating to ownership of the land carry little weight when one considers that the fishermen of Wales act as guardians of the marine environment, and would wish to play a greater part in that respect, much as farmers are paid to do on land.
A final challenge will be one that we have in common with our agricultural colleagues and that is of an advancing age structure for fishermen and difficulties in recruiting new entrants. The author is confident that in the event that an added value and supply chain infrastructure is put in place and that returns to fishermen increase as a result then that will provide, along with an increase in shore side processing and other support services, a foundation for a renaissance in fishing related employment opportunities.
2: The main opportunity for the fishing industry in Wales is in being able to fulfill what will be an increasing need for locally produced and high protein foodstuffs, rich in goodness and with a low carbon footprint. Managed effectively, this self renewing resource can provide a range of fish and fish products for the future for Wales. Recent reports indicate a need to increase food production dramatically in the next few decades and there is no doubt that being able to lay claim to food resources on our doorstep is a fundamental duty of the Assembly Government in Wales. There is no doubt that other nations will also be looking hungrily at these resources.
Fish, shellfish and derived products are increasingly recognized by consumers to tick the boxes of natural, healthy, quality, local and sustainable. Additionally, whilst many food processors struggle to add Omega3 to their products and spend a fortune on emphasising the efforts made in that respect, fish come already packed with it, as well as a host of other health giving properties.
Starting from a low, almost non existent level of added value, the only way for the industry in supply chain terms, is up, always assuming that the Assembly Government is able to assert its rights to managing much of the nations own affairs in fisheries terms (and supplying a reasonable amount of support to develop the required infrastructure).
There are undoubted opportunities in relation to the integration of the supply chain in Wales and perhaps the Assembly Government should consider taking the lead in this respect. We are aware of some agri food initiatives related to food hubs but a much closer integration and logistical management system is required if Wales is going to get the maximum benefit from this approach.
3a: The industry suffered badly with the increase in fuel prices last year but has taken steps to address consumption issues. The fuel crisis was the catalyst for the Rural Affairs Minister to offer some limited but welcome support in the shape of the Interim Aid Bid and we await that support package with keen anticipation. It should be noted that our fishing colleagues in England and the other devolved administrations chose to demand a direct fuel subsidy from their respective Governments whereas the Welsh industry, through the Federation, requested some practical assistance for adding value to our existing and other products.
The current economic climate is having a significant negative effect on consumer spending and the limited range of high value species currently the mainstay of the inshore industry in Wales will suffer disproportionately. At the same time, the crisis will, and is focusing the minds of all concerned and underlining the already recognized need to broaden the supply base in Wales. At the same time, our attention has shifted towards the processing of under utilized species in Welsh waters and to add value to low value species, thereby providing alternative catching opportunities for fishermen and supplying lower cost but still high quality fish based products such as the fishcakes mentioned previously. This has the added benefit of reducing pressure on traditionally fished stocks. Public sector supply is an area where these potential products should find a ready demand from schools, hospitals and old peoples homes.
In terms of the long term impact on Welsh fish products, provided that the industry can come through the present significant problems then it will provide a firm foundation for the future for Welsh fisheries.
3b: The Assembly Government has responded through the creation of the Food and Drink Advisory Group and its allied sub groups, providing a conduit between industry and Government and a forum for expert debate and practical advice. At the same time and albeit coincidentally, the Implementation Plans linked to the Welsh Fisheries Strategy will provide a roadmap for sustainable development and that, together with the benefits of European Fisheries Funding have the potential to assist the industry through the current crisis.
An added emphasis on the marketing and promotion of Welsh foods would be of considerable assistance at the present time. An initiative identifying opportunities on both a local and global scale, together with the provision of supply chain assistance would be welcomed.
4a: Policies and momentum related to this subject have faltered in recent times with the loss of the WDA and the resultant time lost in setting up and developing the FMDD. It is clear that these problems have been largely overcome with the creation of the aforementioned Advisory Groups and we are confident that the outward facing stance of the Assembly Government will actually provide a better service and support structure to the Welsh industry than was previously the case. There does appear to be a real desire to provide a high level of support and guidance to the food producing industries of Wales and we hope fervently that the impetus currently evident within the Assembly is maintained and improved upon as time goes by. It will be important to encourage individual and collective initiatives and enthusiasm for the future, both the industry and Assembly Government need to display this initiative and enthusiasm everyday if we are to compete and succeed as a nation.
4b: It is difficult to answer from a fisheries perspective as very little if anything has been done in the past to stimulate growth within the sector. The support provided under FIFG has allowed the creation of an effective representational and leadership system for the Welsh industry and that alone provides a foundation on which to build. The previously produced Fisheries and Aquaculture Strategy document (2002) did go some way to focusing attention on the fisheries sector but failed to act as a significant catalyst, not least because the industry had no champions, unlike now.
The True Taste brand is rightly being reviewed as it does not appear to have had much of an effect, either in Wales or further afield. We do collectively have to make a much greater effort to sell ourselves across the entire consumer spectrum and in some ways, we are well placed to do so. It is certainly worth reviewing what are competitors are doing and what has succeeded or failed.
As you can see from the previous text, the fisheries sector in Wales needs some significant short term support in terms of processing and marketing, more than the standard circa 40% normally available. This is not only because of the large gap between this sector and others who have benefitted from some serious support over a much longer time frame but also because the sector does not have the capacity to provide the majority of investment necessary at the present time. We would stress the short term requirement as we have no wish, or see any justification for long term funding to an industry that, given sufficient short term aid, should be able to stand on its own two feet in the future.
5: As mentioned above, very little has been done in this respect in the past. Some little, individual assistance has been forthcoming from the Assembly to one or two fishing businesses in Wales recently but much more needs to be done as there is an identifiable and increasing demand for our products both locally and overseas. Past support has also provided the opportunity to display our wares at the International Seafood Exhibition in Brussels. There was overwhelming interest from a range of potential customers on a global basis but the sector urgently needs to address the lack of supply chain and processing infrastructure if we are to meet even a small element of this demand.
On a local scale, the assistance provided for the Federation to have a presence at the Royal Welsh Show and the Winter Fair in 2008 left no doubt as to the desire from Welsh consumers for locally produced fish and fish products.
6: there are no doubt many opportunities for the more efficient integration of the existing supply chain in Wales and the Assembly Government should focus on that area for what should be obvious reasons. The inability of the Welsh European Funding Office to authorize grant funding for specialist vehicles is a serious drawback as it is very difficult to initiate a supply chain without the means to supply it. The European rationale that there is already sufficient specialized transport available in Wales and that the industry can rely entirely on third party courier transport is frankly a nonsense.
Please note that the Federation does not expect the Assembly to provide everything that the industry requires and we are taking active steps to encourage individual entrepreneurs within the sector to expand but the aforementioned and collective infrastructure requirements are of paramount importance in support of these aspirations.
7: It is difficult to find examples of good practice from the fishing industry perspective in Wales due to the previously mentioned shortfall in production activity and Government support. It is also probably unfair to relate agricultural examples as they have been supported with very significant grant assistance over many years and are therefore not particularly comparable.
8: An excellent example is the South East England Oily fish Project, a partnership project between the Regional Development Agency and the fishing industry, based in Newhaven in Sussex. I include the Hyperlink (http://www.southeastenglandfoodanddrink.co.uk/upload/South%20Coast%20Fishcake.pdf ) for information. In brief, the project provided support for the development of a fish cake, based on locally caught oily fish, for supply to schools etc. The project has been very successful and now supplies large numbers of fishcakes to schools across the South East.
The industry in Wales are currently experiencing difficulty in identifying and gaining access to appropriate processing premises to take forward this and similar initiatives and it does require a far more positive and proactive approach to development support, especially by local authorities, than is presently the case. Having dealt with Southern Ireland on many business development issues, their 'can do’ attitude is a constant revelation and one that is certainly worth copying in Wales. Whilst one must always be mindful of the wide variety of rules and regulations pertaining to development, the encouragement of a dynamic and enthusiastic approach to, and a recognition of the urgent need to drive "Wales Food” forward should be uppermost in the minds of public authority officials at all times.
In relation to the Southern Ireland approach, with support from FIFG they have provided a number of articulated and fully fitted vivier vehicles to producers over there. This initiative has had a particularly positive effect on their ability to meet the european demand for live shellfish and whilst we would suggest that they probably went too far in terms of the extent of the support made available (to the extent that they have flooded the market), support for an effective supply chain is a vital aspect of this form of development.
In fisheries terms, Scotland has focused on a major component of their production from the catching sector, Nethrops norvegicus, otherwise known as Scampi. They have not only chosen to refer to it as Langoustine but have had a major publicity and marketing drive, resulting in much increased sales. The Federation is looking forward to discovering what similar opportunities may present themselves as a result of the previously mentioned Assembly initiative in terms of the retail study by consultants. Overall, it is so important that officials and others are encouraged to take an enthusiastic approach to development opportunities and not regard much of this area of work as run of the mill. Wales has some stiff competition in the food arena and we can make our products, and the country from which they come, distinctive by being really committed and dynamic in this regard.
In summary, the Welsh Federation is grateful for the opportunity to contribute to the consultation and we hope that the comments provided illuminate Members thinking in relation to the Welsh fishing industry.
Whilst our sector is at a low ebb, not least in supply chain terms, there are very significant opportunities available with some support from the Assembly, the green shoots of which are already visible.
We cannot over emphasise the importance to Wales of being able to retain access rights to fish in our own territorial waters, irrespective of European aspirations in this regard and the Assembly needs to focus very clearly on pursuing this ideal in the run up to the review of the CFP in 2012.
Equally, building on the work done by the Assembly and the Federation with the assistance of FIFG funds to date, we have the opportunity to collectively create a processing and supply chain infrastructure in and for Wales that will in turn provide support for the diversification and sustainable development of the sector for the future.
Jeremy Percy
Chief Executive
Welsh Federation of Fishermen’s Associations Limited, 6 Hill Street, Haverfordwest,
Pembrokeshire. SA61 1QF
Telephone: 01437 779 271
Fax: 01437 779 312
E mail: jerry@wffa.org.uk
Web: www.wffa.org.uk
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