Newly released figures provide insight into the difficulties faced by the UK fishing industry, based on Seafish’s 2022 fleet survey.
The effects of Covid-19 and lockdown measures continued to be felt into the first part of 2021, combined with the new trade requirements after EU exit. This was followed by indications of economic recovery by the second half of 2021 as prices and demand recovered.
The fleet’s total operating profit in 2021 was £256 million, a 5% increase from 2020 although still below the £267 million of 2019.
But Russia’s invasion of Ukraine in early 2022 and the subsequent rise in fuel prices dramatically altered the landscape, according to Seafish’s analysts.
The overall spend on marine fuel in 2022 was an estimated £195 million, a 75% increase compared to 2021. As fuel prices were pushed up, so did total operating costs – reaching the highest figure in the last four years. Rising costs on gear, packaging and insurance put further pressure on fishing businesses, with negative effects on vessel owners all over the UK.
Market prices rose during 2022 alongside rising costs, with significant per tonne landing price increases.
Nephrops jumped an average of 39% and scallops 18% compared to the previous year – although scallops still hadn’t reached pre-Covid price points.
While this translated into higher revenues for the sector with the fleet’s turnover at around £1b, a figure similar to the pre-Covid-19 and EU exit level of 2019, with the cost of living and fuel prices rapidly escalating, profits dropped. In 2022 the fleet returned 13% less profit than in 2021 and 17% less than in 2019.
‘Our preliminary economic estimates show that 2022 was another difficult year, with fuel costs impacting profits as we predicted back in April 2022. The rise in fuel prices had a significant effect, partially counteracted by a global shortage of whitefish due to the Russian-Ukrainian conflict. Sanctions on Russian seafood increased average prices of whitefish fish while increased demand drove up prices of shellfish, which helped many businesses stay afloat,’ said economics analyst Marta Moran-Quintana.
‘It’s still too early to assess how other costs, such as labour and wages, have changed. We are working to get better understanding of changes in costs structures and fleet adaptability to economic pressures experienced last year.’
The Seafish 2023 fleet survey is currently in progress – with over two hundred surveys completed so far and the survey set to close at the end of September.
‘Last year, one of the biggest challenges was the soaring fuel costs, which took a significant toll on fishermen’s businesses. Vessel owners tell me that while this year saw a drop in fuel prices, the ongoing cost of living crisis and inflation continues economic pressure on business expenses. Some fishers have also seen their harbour dues and insurance rise by 10% in 2023,’ reported fleet survey researcher Rebecca Spain, now in her second year at Seafish.
The survey’s findings for 2022 indicated that the number of active fishing vessels continued to decrease in 2021 and 2022 leaving the UK fishing fleet with just under 4080 active vessels in 2022. Of these, around 1300 were classified as low activity, reporting an annual income of less than £10,000.
