Crab and Lobster Strategy Group Minutes of Meeting – 04 February 2009 Hilton Hotel, Edinburgh Airport Attendees Alan Coghill (Chair) (Orkney FA) Duncan MacInnes (Western Isles FA) Nick Turnbull (Mull FA) David Shiel (SFF) David Hodge (Ayrshire Static Gear) Beth Leslie (NAFC) Chris Leakey (SNH) Sandy Ritchie (Anglo Scottish FA) Alex Watt Lachie Murray (MNWFA) Alistair Stewart (SFPA) Sandy Gordon (Scottish Creelers and Divers) Peter Davidson (Highlands & Islands FA) Anne Moseley (Seafood Scotland) Grahame Sinclair (Burgon) Anne McLay (FRS) Albert Ritchie Cephas Ralph (SG Marine Directorate) Allan Gibb (SG Marine Directorate) Rob Roberts (SG Marine Directorate) Katriona Gillespie (SG Marine Directorate) Jamie Combe (SG Marine Directorate) Apologies: Don Mackay, Jane Sandell, Stewart Crichton, Helen Dobby, Ivar McBay, James Willox, Andrew Lochhead, Frazer Scott, Jennifer Mowat, Billy Hughes, Patrick Stewart, Louize Hill, Brian MacLeay INTRODUCTION 1. Chairman Alan Coghill opened the meeting, thanked everyone for attending, recorded apologies and asked everyone around the table to introduce themselves. 2. Rob Roberts outlined the context for the Crab & Lobster (C & L) Group, reminding everyone that it was one part of the Scottish Fisheries Council. As such it followed the SFC’s overarching strategic aims and sought to work on a partnership basis – by government, industry and other stakeholders – towards a shared goal of well managed, sustainable and profitable fisheries that support strong coastal communities. 3. Alan recapped some of the issues that had been raised in the first meeting and how they had been developed by the working group in the intervening period. Today was the key opportunity for the Strategy Group to discuss, input and approve the identified workstreams. MANAGEMENT Quotas 4. Alan advised that in a personal capacity he had some concerns about quotas; particularly the methodology for their formulation and the possible disadvantage to small boats caused by the lack of recorded landings prior to the last couple of years. This is in contrast to the larger vessels that have a strong “track record” of landings going back many years. 5. Anne McLay added that Crab & Lobster data is nowhere near the level of fin fish and it would be very difficult, from a science and sustainability aspect, to arrive confidently at a suitable quota figure. Peter Davidson felt there was no need to have quotas to protect the stocks which he thought were still healthy. However he could see there may be a benefit to quotas from a marketing point of view by restricting the catchers to a volume of landings that it is feasible to sell at a good price. Licensing 6. Lachie Murray asked whether it may be possible to restrict effort through the licensing system. He added that many whitefish vessels have shellfish licences obtained by catching lobster in gill nets and wondered whether they could be restricted to catching them in that method and prevent them switching to creels on the same licence. 7. Duncan MacInnes supported Lachie’s comments, adding that although there were various different categories of licence many of them had shellfish entitlement. He was concerned about the latent capacity in the sector and feared that if and when the prices recover many vessels that do not currently have the right to fish for crabs and lobsters will do so. Duncan also spoke about the need to recognise the difference between inshore and offshore fisheries. The offshore fisheries are seeing a greater concentration of effort through being targeted by larger vessels - this is illustrated by the purported fact that only 25 vessels are responsible for over 70% of the crab landings into Scotland. 8. Allan Gibb highlighted that licensing is complex and that there was a review underway. He encouraged anyone who wanted to feed into the Licence Review Group to e-mail him with their thoughts. Allan also confirmed that the amount of latent capacity could be calculated accurately and was known by his licensing staff. 9. Alan Coghill added that latent capacity had been identified as a problem across the rest of the UK, as well as the Republic of Ireland (ROI), and that it had been discussed in the transnational meetings. Alan suggested a further problem was that of small boats being sold and licences being amalgamated onto larger vessels that could fish in a more intensive, dedicated fashion, landing more than could have been achieved collectively by the small vessels. Transnational Meetings 10. Alan and Rob gave an update on the transnational meetings, which have involved representatives from all UK nations and the ROI. The meetings had focussed on identifying common issues across the UK and ROI in relation to the problems in the brown crab market. Some progress had been made, including agreement that effort should be reduced and marketing plans agreed. There was also an emerging voluntary agreement to increase MLS by 10% or 10mm whichever was smaller. 11. Grahame Sinclair asked what the timescale would be for formalising any voluntary agreements through the EU. Allan explained that the review of the regulation was under way and minimum landing size is one of the items that are up for discussion. He added that it may be more likely that MLS agreements could be reached in bi-laterals with other neighbouring member states. Either way any formal regulation would take time to achieve and in the short term voluntary initiatives could be applied more swiftly. Allan went on to say that there was a possibility that the Commission might want to do away with any stipulated minimum landing size. This would be opposed by UK, France & Ireland but the voting structure is such that there may be a danger of that change being passed anyway. There was a lot of concern around the table regarding that possibility and everyone agreed that MLS should be maintained as a management option and that officials should make that case strongly to the Commission. 12. Some raised concerns over the lack of any minute of the previous meeting and about clear ownership of the group’s work and its organisation. Rob undertook to contact the NFFO to ask about the minute of the previous meeting (in York) and also to ask about details of the next one. Post-meeting note – Minutes have now issued. Inshore Fisheries Groups (IFGs) 13. Rob & Duncan gave a brief update on IFGs explaining that there were now pilots up and running and that roll out of the Groups around the coast was ongoing. It will be very important for the C & L Group (as well a/s other SFC Groups) and the IFGs to be apprised of each others’ work and to inter-relate constructively. SCIENCE 14. Beth Leslie and Anne McLay gave an update on scientific projects. Beth indicated that the tagging exercise in Shetland had produced some interesting data. Tagged crabs, particularly females were being seen to move up to 50 nm with some travelling from the inshore grounds offshore to the Papa bank. The majority of animals were recorded travelling in a southerly direction. Anne spoke about another tagging exercise that looked at the movement of crabs between inshore and offshore grounds. 3500 crabs had been tagged and 44 tags had been returned. The evidence to date indicated that females were moving south easterly from the offshore grounds to the inshore and covering up to 75nm in one month. Work is ongoing but Anne expressed concerns about the volume of crabs being taken from the offshore grounds and FRS were looking at how to gather more information from industry to aid population estimates. 15. Allan Gibb suggested there was a lack of “catch per unit effort” (CPUE) data and whether any work was being done to address that. Anne McLay said that there was some historical data available but it would need to be revisited. It would be possible to obtain anecdotal evidence also. She added that there was some information on the Shell1 forms but not all of it finds its way onto FIN. Beth advised that the Shetland RO uses a logbook system so they could certainly do some work on catch per unit effort. 16. There were suggestions of launching a postcard campaign with simple tick boxes to try and compare historic experience of fishermen to the current time. This may be flawed by the change in practices over time, comparing now and then is not like for like. Improvements in technology and changes in the types of creel used make comparisons difficult. David Shiel said he would be able to provide historic data for the Northumberland area and would forward such info to Allan Gibb. Anne McLay felt that a good deal of thought should go into gathering CPUE in the long term to make sure it is done thoroughly rather than rely on anecdotal evidence. 17. Alan mentioned that it was clear that most scientific activity was based in fisheries in the north and off Shetland and Orkney. There seemed to be a dearth of scientific studies taking place further south down both the west and east coasts. MARKETING 18. Anne Moseley raised the importance of catching for the market, stressing the importance of communication between catchers and processors. Catching effort should be reduced in line with reduced demand from processors to protect prices. Grahame Sinclair added that the market is volatile and that it is not always easy to pin down in advance what demand might be. He informed the group that his company certainly tried to buy for the market and adjusted their buying patterns to meet demand. As an example his company had reduced their buying target in the autumn as a reflection of market conditions. 19. Anne Moseley spoke about the marketing issues facing the crab and lobster sector. She said the aim should be to enhance the reputation and raise the profile of Scottish C & L produce. She added that the European market was very competitive and it was necessary to give buyers who had a great deal of choice a reason to buy the Scottish product. More could be made of the health benefits of eating these species, the low cholesterol and Omega 3 oils. Anne explained that she was intent on showcasing crab and lobster products at the European Seafood Exhibition by having samples available at a seafood bar. 20. Anne then spoke about the importance of the Responsible Fishing Scheme and how it needs to be explained to some of the international markets who currently don’t seem interested in it. A multi-language leaflet will hopefully be produced that may help to advertise the benefits of the scheme to a wider audience. Market research has been conducted in 5 European countries and work is ongoing in seeking new opportunities and ways to add value. More targeted marketing strategies are required to reflect the consumer demands in different countries. What works in France may not work in Spain etc. 21. Anne talked about the opportunity to market local produce under Protected Geographic Indication (PGI) and Protected Geographic Origin (PGO) certification which verifies that a product is uniquely available from a particular area of origin. Anne had some concerns about funding and Allan Gibb said the Marine Directorate could certainly provide some money towards printing leaflets and that EFF funds may be available too. 22. Grahame Sinclair spoke about the difficulties facing the processors. He said that prices that had once held up from the Christmas peak through to Easter were now dropping off much more quickly after Christmas. The bad weather this winter has helped somewhat by reducing the supply to the market. He went on to say that the live sector is facing major problems due to a change in public attitudes. In fact, the consumer seems to be losing interest in live crab and more and more they are turning to cheaper breaded products in preference to crab products which are seen as a luxury. 23. Grahame pointed to the over production of the Norwegian fleet as a major problem in why the crab price has fallen. The Norwegian industry is subsidised by their Government and the catchers there have a tonnage and price agreed at the start of the year with the processors which provides certainty to both parties. MSC Accreditation 24. Katriona Gillespie explained that MSC accreditation was increasingly important and likely to become a condition of sale. Certainly, many supermarkets were moving in that direction. The Scottish Government is supporting industry in its efforts to secure accreditation. Two new posts have been created, at Seafood Scotland (Jess Sparks, who may be contacted for further information) and an Outreach Officer at MSC. The Outreach post will focus particularly on helping the inshore sector. It is envisaged that the Outreach officer will run workshops and seminars to advise industry on how to gain accreditation. 25. David Hodge and David Shiel both expressed some disappointment in their experience of going through the Responsible Fishing Scheme process. It had been costly both in financial terms and in time and they were not seeing any benefit to the price achieved by their catch. They felt extra profit was being generated by the accreditation schemes but that profit was benefitting the processors and the retailers and was not filtering down to the catching sector. 26. Allan Gibb and Grahame Sinclair made the point that accreditation was not necessarily about increasing profit but was more about maintaining market opportunity by ensuring your product meets the demands of the consumer. 27. Peter Davidson and Alan Coghill both acknowledged that the Responsible Fishing Scheme was increasingly becoming a requirement but both felt that fishermen had been misled at the outset by the suggestion that accreditation would mean enhanced prices. SWOT Recommendations 28. Anne Moseley talked the meeting through the SWOT recommendations. Many of the recommendations overlapped with the objectives identified by the Working Group and that made up a core part of the emerging Action Plan. 29. Code of best practice. Allan Gibb explained that something similar operates very successfully in the pelagic sector and involves industry and government signing up to a set of agreed practices. Duncan MacInnes suggested that the hotel and catering trade should be included as they would be the most likely buyers were there catchers breaching such an agreement. As it is a voluntary agreement it could be implemented fairly quickly if all parties can agree to it. 30. Grahame spoke about the problems processors had in dealing with Animal Waste regulations. The shell of crabs is categorized as animal waste currently and as such it cannot be returned to see and is costing up to £90 per ton to be sent to landfill. Grahame said that this was such a serious problem that it was probably the biggest issue they currently faced and that it could jeopardise the profitability of processors. In the processor’s opinion shell ought to be re-categorized or derogated to allow it to be returned to the sea. Allan Gibb said that work is ongoing to try and obtain derogation from the Animal Waste regulation. ACTION PLAN 31. There was agreement that the action plan tabled was along the correct lines and the working group should take it forward and develop it further. Rob explained that he saw it as a document that will evolve over time but it was useful to have everything pulled together as a point of reference going forward. Duncan suggested that it might be helpful to note more clearly sources for possible funding. Agreed: that the Strategy’s objectives were appropriate, that the workstreams identified were the right ones and that the Working Group had the support of the whole Strategy Group. AOB 32. Peter Davidson spoke about a trend in the north west of vessels moving from crabs to prawns due to a lack of demand and a lack of local buyers and processors. 33. With no further business raised Alan Coghill closed the meeting, thanking those in attendance and advising that the working group will focus on developing the action plan in their meeting the following day. It was agreed that the next meeting of the Strategy group would probably be arranged for Autumn but the group can be recalled at any time if there is a particular need for it. SGMD Sea Fisheries (Management) February 2009