Scottish Seafood Sector Must Be Supported to Remain Competitive, Says SSA Chief
Fish Focus catches up with Scottish Seafood Association (SSA) chief executive Jimmy Buchan MBE on the challenges facing the Scottish seafood processing sector today.
The Scottish seafood sector continues to face a period of significant pressure, from rising energy costs and trade friction to political uncertainty and funding disputes. Yet despite the challenges, the industry remains resilient and determined to protect its position as a global leader in seafood.
According to Scottish Seafood Association (SSA) chief executive Jimmy Buchan MBE, the focus remains firmly on ensuring that processors are supported and that government policy recognises the strategic importance of the sector.
“The seafood industry is incredibly resilient,” said Jimmy. “But resilience should not be mistaken for endless capacity to absorb pressure. What we need now is practical support and policies that allow the sector to remain competitive.”
Energy costs remain a major burden
One of the most pressing issues for processors is the rising cost of energy. Seafood processing relies heavily on refrigeration, freezing and temperature-controlled environments, making it one of the more energy-intensive parts of the food supply chain.
The SSA is therefore continuing to lobby the UK Government for seafood processing to be included in the Energy Intensive Industries Scheme (EIIS).
“Energy is one of the biggest costs for processors,” Jimmy explains. “If seafood processing were included in the EIIS it would make a real difference to businesses that are already operating on tight margins.”
He points out that the poultry sector already benefits from support through the scheme and believes seafood deserves the same recognition.
“Fish is a vital source of protein, just like poultry,” he says. “So it’s only fair that seafood processors are considered in the same way when the government reviews this scheme.”
The association is currently engaging with government officials ahead of the EIIS spring review, making the case that the sector’s energy demands and economic importance justify inclusion.
Continued trade friction with the EU
Trade with the European Union also remains a concern for seafood exporters. Following last year’s UK Government visit to Europe and the widely discussed “reset” in relations, many businesses had hoped to see improvements in export procedures.
However, according to Jimmy, progress on the ground has been limited.
“There was a lot of talk about resetting relationships with Europe,” he says. “But from an industry perspective we’re still dealing with the same border controls, the same paperwork and the same delays.”
In some cases, exporters have also reported increased scrutiny on high-value seafood species at EU inspection points.
“What’s particularly frustrating is that some businesses feel reluctant to challenge these inspections,” Jimmy adds. “There’s a concern that if you push back too hard you may end up facing even more scrutiny the next time you export.”
The SSA continues to raise these concerns with the Department for Environment, Food and Rural Affairs (DEFRA), urging policymakers to focus on practical solutions that reduce unnecessary barriers to trade.
Funding debate around coastal communities
Funding for coastal development is another issue causing concern within the industry.
The UK Government’s £360 million Coastal Growth Fund was intended to support economic development and investment in coastal communities. However, the distribution of funding has raised questions within Scotland’s seafood sector.
Under Barnett consequentials, Scotland is expected to receive roughly eight per cent of the fund despite accounting for around 60 per cent of the UK’s seafood landings.
“For a country that lands the majority of the UK’s seafood, receiving such a small share of the funding simply doesn’t add up,” says Jimmy.
He warns that the imbalance could limit opportunities for investment and put Scottish processors at a disadvantage compared with their counterparts elsewhere in the UK.
“There’s also an ongoing disagreement between the UK and Scottish governments over where responsibility for funding should sit,” he notes. “Meanwhile the industry is left waiting while what should have been a strategic opportunity risks turning into a political stand-off.”
Looking to future markets
While traditional export markets remain vital, the SSA is also examining opportunities in emerging economies.
The Department for Business and Trade has recently engaged with the association to gather industry input on the proposed India–UK trade agreement.
“India may not be a traditional market for Scottish seafood,” Buchan says, “but it’s the third fastest growing economy in the world and it has a population of more than 1.3 billion people.”
He believes market diversification will become increasingly important as global competition intensifies.
“We’re operating in an increasingly competitive global protein market,” he explains. “If we want Scottish seafood to remain successful long term, we need to explore every credible opportunity.”
The SSA will continue to work with government to ensure the seafood sector is properly represented in trade discussions and that potential opportunities are fully understood.
Cost pressures across the supply chain
Beyond policy and trade issues, the day-to-day reality for seafood businesses is one of rising operational pressure.
Fuel price volatility, partly linked to geopolitical tensions in the Middle East, continues to affect transport and logistics costs. At the same time, businesses are facing higher labour, packaging and distribution expenses.
“There are pressures coming from every direction,” Jimmy says. “Fuel costs, logistics, inflation and competition from lower-cost protein sources all add up.”
Scotland has promoted itself internationally as a “Good Food Nation”, but Jimmy believes the concept must be backed by meaningful investment.
“Food security and resilience don’t happen by accident,” he says. “They require investment in infrastructure, in supply chains and in the industries that actually produce and process our food.”
Political change ahead
The coming months will also bring political change in Scotland, with the Scottish Parliament dissolving on 26 March ahead of the May election.
For the SSA, the period leading up to the election presents an opportunity to engage with new and prospective Members of the Scottish Parliament (MSPs).
“We’ll be speaking to candidates across the political spectrum,” Jimmy says. “Our message is simple – the seafood sector is strategically important to Scotland’s economy and to its coastal communities.”
He also emphasises the need to keep the industry’s interests above political disputes.
“The future of the seafood sector shouldn’t become collateral damage in wider political disagreements,” he adds.
A resilient industry with a clear objective
Despite the challenges of the past year – one of the most economically difficult in recent memory for many businesses – the Scottish seafood sector continues to demonstrate resilience and adaptability.
“Scottish seafood has a global reputation for quality,” Jimmy says. “That reputation has been built over generations by the people who work in this industry.”
Looking ahead, the SSA will continue lobbying for fair treatment across UK support schemes, pushing for workable solutions to export barriers, challenging disproportionate regulation and encouraging investment in the sector.
“The objective is straightforward,” Jimmy concludes. “We want to ensure Scotland continues to have a strong, competitive and well-supported seafood industry – one that can thrive for generations to come.”
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