Salmon boosts seafood industry jobs
In its 2014 Seafood Processing Industry Report, published this week, the organisation said employment in the salmon sector had increased by 28% since 2012. As a result, UK-wide employment had increased, despite numbers of seafood processing units declining.
However, there had been growth in the numbers of processing units among the largest and smallest manufacturers, the research indicated.
Size and structure
The report details the size and structure of the industry, including processing units, employment levels, regional distribution, types of processing activity and species processed.
The largest units accounted for 65% of industry employment last year, compared with 58% in 2012 and there had been a 10% increase in the amount of smaller units, the report claimed.
The latest financial data from 2012 indicated a turbulent period for the sector, with turnover increasing by 16% over 2008 figures, but a 20% increase in operating costs gobbling up profits, it claimed.
Raw material costs
Higher raw material costs were thought to be the main reason for the reduced profitability, with increasing costs generally not fully passed on to customers, the research suggested.
Despite this, there was evidence of strong investment in assets such as equipment and premises, with their value increasing by almost half between 2010 and 2012, indicating a recovery in commercial confidence.
“The supply of raw materials, regulatory and trade developments such as exchange rate movements, skill shortages, securing finance and retailer pressure on suppliers create problems for many businesses in the seafood processing industry,” said Hazel Curtis, chief economist at Seafish.
“At the same time, growing demand for seafood and signs of economic recovery underpin industry confidence in the long-term sustainability and profitability of seafood processing in the UK.”
