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Background Paper
Seafood
Note: The views expressed in this background paper do not purport to reflect the views of the
Minister or the Department of Agriculture, Food and the Marine
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1. Background context
2. Sectoral goals
3. Current Sectoral Analysis
a) Economic
b) Socioeconomic
c) Technological
d) Environmental
e) Legal / regulatory
4. Future market prospects
5. Specific actions planned
6. Sustainability considerations
7. Challenges up to 2025
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BACKGROUND CONTEXT
Irish seafood exports recorded a decline in 2013 to reach a sales value of €496 million, following very
strong growth of almost 65% in the value of exports over the 2009 – 2012 period. The performance
in 2013 which represents a drop in value of around 7% is a result primarily in the reduction of raw
material available for supply (volumes dropped by 13% during this period). The on-going strength of
demand within the sector is evident by the continued rise in unit prices (around 7% higher),
particular for certain species such as salmon and oysters during 2013.
Strong export performances to emerging markets were recorded during 2013, notably to markets
such as Cameroon, Russia, Korea, China and Hong Kong, which all showed high double digit growth.
The core European markets were most difficult due to a mixture of limited supply for traditional
species such as salmon and whitefish but also sluggish markets due to a poor economic climate and
weak consumption.
The core European markets of France, Spain, Germany, Italy and the UK remain the main outlet for
Irish seafood exports with the top five markets accounting for more than 55% of total exports.
However, this compares to a 60% share in 2012 and demonstrates the on-going focus of the leading
Irish seafood exporters in the development of new business in emerging markets to offset some
price resistance in core European markets.
Seafood exports to International markets continued to grow strongly in 2013 reaching an estimated
€175 million, representing a value increase of around 7%. The strongest emerging markets with high
double digit growth have been Cameroon, Russia, Korea, China and Hong Kong. Good performance
for pelagic species in these countries partly explains strong growth, but also a wider range of species
into Korea, China and Hong Kong where crab, razors and oysters are beginning to make significant
market entry at foodservice and retail level.
The poor availability of Irish salmon was a key factor impacting on seafood volumes available for
export in 2013, with output down by around 22% in volumes terms, which had a major impact on
salmon exports in all its formats, including smoked. Despite demand for organic salmon continuing
to rise significantly, Irish producers were not able to meet current demand levels due to limited
production during this period. Oyster exports performed well with strong demand both in traditional
markets and emerging markets such as Hong Kong. Japan, Malaysia and the UAE all recorded very
strong double digit growth in the value of exports albeit from a low base. The French market
continues to dominate oyster exports, with a value growth of 74% in 2013. The Italian market also
performed well. Growers are holding onto oysters longer until they reach market size, with a
decrease in trading of half-grown oysters, which explains volume as well as value increase of 18%
and 53% respectively.
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Crab exports performed strongly in 2013 with an increase in value of around 14% against a
background of stable volumes. A strong performance to China was recorded with an increase of
168% in value terms. The French, Italian and UK markets also performed well for this species.
The total value of pelagic exports fell slightly in 2013, mainly as a result of the reduction in blue
whiting available for processing and export. Total blue whiting export volumes reduced from 63,000
tonnes in 2013 to 45,000 tonnes in 2013, resulting in a drop in export values during this period.
The focus for 2015 will continue to be on building exports, reflecting the Food Harvest 2020 export
target of €12 billion for the Food & Drinks sector. This increase in exports will be achieved through
greater penetration of sales into premium niche markets in Asia, the US and the Middle East along
with a higher value positioning for key species in the traditional markets of France, Spain, Italy,
Germany and the UK. Opportunities within this sector can only be maximised through
improvements in raw material availability and output.
CATCHING SECTOR
The seas around Ireland (ICES Sub Areas VII and VI) are among the most productive and biologically
sensitive areas in EU waters. Most of the fisheries resource within the area comes under the remit
of the Common Fisheries Policy (CFP). The 2013 fishing opportunities (i.e. Total Allowable Catches,
TAC’s species) for the international fleets that operate in the waters around Ireland were 1,040,117
tonnes of fish, with an estimated landed value of €1.161 billion. These economic values are based
on 2012 average prices and represent a conservative estimate. Ireland’s share of these fishing
opportunities represents 23% by tonnage and 17% by value. These values do not include the
valuable inshore fisheries (e.g. lobster, whelk) which are not managed using internationally agreed
TACs but do come within the remit of the CFP.
The Irish fishing fleet is largely a coastal fleet made up of 2,217 vessels, varying in size from in excess
of 24 metres to under 12 metres. The fleet operates over five segments: pelagic, polyvalent, beamtrawl, specific and aquaculture.
Catching of wild fish is regulated at national and EU levels under the Common Fisheries Policy (CFP).
Annual quotas are also set for most fish species under the CFP. Primary responsibility for the
allocation and management of these quotas rests with the Minister of Agriculture, Food and the
Marine. Following the agreement of the Total Allowable Catch (TAC) and Quota Regulations at the
December Fisheries Council each year, which set out for each Member State the total tonnage of
catch for certain species in specific areas of the sea that they are allowed to catch, it is the
responsibility of each Member State to manage their fisheries within these quotas.
AQUACULTURE SECTOR
The practice of Aquaculture is regulated at national level under the Fisheries Amendment Act 1997.
In order to engage in aquaculture, a licence is required from the Minister of Agriculture, Food and
the Marine. Furthermore, if the public foreshore is to be used for the aquaculture activity (marine
aquaculture), a foreshore licence is also required from the Minister. Closed containment systems
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(ponds or tanks) may also be used on land, and planning permission may be required from the Local
Authority (in addition to the aquaculture licence). Marine aquaculture is by far the most common
method in Ireland.
Marine aquaculture can be divided into finfish and shellfish farming. Currently, aquaculture in
Ireland is comprised of 850 licensed operations covering 2,000 sites, primarily consisting of shellfish
production. The number of active enterprises engaged in marine aquaculture has remained stable
with total of 292 enterprises. In recent years, there has been an increase in salmon and Gigas oyster
production, while mussel production has decreased due to both seed supply and market demand
reduction.
Over the last 10 years aquaculture output in Europe has stagnated and there has been little or no
net growth. According to the Food and Agriculture Organisation (FAO) aquaculture has been the
fastest growing food sector globally, however the EU has not followed this worldwide trend. The EU
has recognised this unsustainable position with regard to seafood supply and has targeted
resurgence in growth in output from aquaculture. Ireland’s long coastline, with numerous bays and
inlets makes it well placed to increase its aquaculture output.
Aquaculture takes place mainly in coastal areas but also occurs in inland freshwater areas and on
land based recirculation systems. As such, it provides a vital source of employment and economic
activity that contributes to the preservation of viable rural communities on a year-round basis. It is a
relatively diverse sector encompassing a substantial shellfish farming element combined with a
significant finfish element. There are certain areas within Ireland that have higher concentrations of
aquaculture such as in, Donegal, Carlingford Lough, Wexford, Waterford, West Cork, Kerry, Galway
and Mayo. The area covered by aquaculture in Ireland is 0.001% of the sea area and 0.01% of the
land area.
Aquaculture is a significant provider of employment in the bays where it is practiced and particularly
so, along with the fishing and agriculture industries, along the west coast. The northwest, principally
Donegal, provides the highest value of aquaculture production: €48 million in 2011.
Finfish, shellfish and seaweed are all cultured in Ireland. The finfish production was valued by BIM in
2012 at nearly €83 million while shellfish was valued at nearly €50 million for the same year1. The
principal species in Irish aquaculture are salmon, trout, rope cultured mussels, bottom grown
mussels and pacific oysters (Crassostrea gigas). The industry also has other smaller productions of
scallops, clams, abalone, char, perch, urchins and seaweed.
SEAFOOD PROCESSIN G S ECTOR
Ireland’s seafood processing industry provides an important source of economic activity and
produces high value products which generate substantial export earnings to Ireland’s economy. The
1
http://www.bim.ie/media/bim/content/publications/BIM%20Strategy%202013-2017.pdf
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total turnover of the Irish seafood processing industry in 2011 was €559 million which was an
increase of €14m or 2.6% from 2010.
The Seafood processing industry in Ireland is comprised of mostly small enterprises with less than 10
employees. Only 8% of Irish processing companies had more than 50 employees in 2011. There are
currently an estimated 169 companies engaged in the handling, processing, distributing and
marketing of seafood in Ireland which has remained constant since 2009. The industry is comprised
of finfish, shellfish, smoked, pelagic and whitefish operators. Shellfish companies accounts for the
largest number of fish processing companies in Ireland. Many companies in Ireland specialises in
more than one species.
In 2009, BIM opened the Seafood Development Centre (SDC). This was the first dedicated innovation
facility for the Irish seafood sector. Through the support of the SDC, companies can exploit market
opportunities and maximise the potential for success through integrated business development and
new product development strategies.
FISHERY HARBOUR CENTRES
The 6 Fishery Harbour Centres were established around the coast of Ireland to promote and develop
fishing activities. The Fishery Harbour Centres were and are being developed to reflect the need for
this State to facilitate larger Irish and Foreign vessels fishing in deeper water to land into and
operate out of Ireland. They are also developed to meet the standards expected of a modern
seafood producing and processing industry.
This network of 6 Fishery Harbours Centres strategically located around our coast provide state of
the art facilities and infrastructure for the increasingly mobile and large scale Irish Fishing Industry.
The waters around Ireland contain some of the most productive fishing grounds in the EU. On
average, an estimated 1.2 million tonnes of fish are taken by the fishing fleets of EU member states
from the waters around Ireland each year. The Fishery Harbour Centres have a critical role to play in
implementing Government policy to firstly facilitate the Irish Seafood industry develop a modern
offshore fishing fleet and a modern on shore processing industry, in addition to attracting increased
numbers of landings from foreign vessels from inside and outside the European Union.
To provide for the ongoing development, construction and maintenance of this important coastal
infrastructure for fish and aquaculture landing sites, the Department runs an annual Fishery Harbour
and Coastal Infrastructure Development Programme. A total of €17.2m has been spent on the
Fishery Harbour Centres since 2011. The strategic objective of this programme is to further develop
our infrastructure and facilities to best international standards, which can facilitate growing offshore
fishing and onshore processing sectors, and to lead to a greater proportion of the 1.2 billion tonnes
of fish caught in waters around Ireland being landed and processed in Ireland.
The tonnage and value of landings in the Fishery Harbour Centres is increasing. Additionally, foreign
landings in the Fishery Harbour Centres show recent significant increases. In 2013, total landings in
the Fishery Harbour Centres was 237,000 tonnes, with a value of €227 million. This compares with
210,000 tonnes and a value of €137 million in 2010. Foreign landings into the 6 Fishery Harbour
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Centres in 2013 were up by 30% (approx) from 1,040 tonnes in 2010 to 1,305 tonnes in 2013. This
trend in combination with catering for the home fishing fleet means that adequate investment in the
fishery harbour centres which are strategically placed around the Irish coast must continue to be
provided. It is vital in order to ensure a fresh product that sufficient quay space and draught is
available to avoid queuing and facilitate quick vessel turnaround at the ports.
The increase in fuel costs and a strategy whereby more raw material is required to meet the demand
for further processing of product reinforces the importance of having good port infrastructure to
meet the increasing demand and to encourage landings avoiding long distance steaming.
It is important also to note the fact that finfish farms are set to move further offshore resulting in
the requirement to have larger, more robust and seaworthy vessels to service them. This in
combination with the drive to see the inshore fishing and aquaculture industry move to higher levels
of sustainability means that other ports and fishery harbours may also have to be prioritised and
developed to an adequate standard so as to avoid any constraints due to a lack of fundamental safe
port facilities.
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SECTORAL GOALS
The outlook for the seafood industry up to 2025 is outlined under each sub sector as follows:
Capture Fisheries:
Pelagic: Based on the twin mega trends of global population growth and increased buying power in
the Asia-pacific region, it is predicted that the current product mix coming from Ireland’s pelagic
fisheries will shift from relatively low value, commodity forms towards a mix of commodity and
higher value processed and convenience offerings. Inevitably as supply tightens due to the
increased demand from Asia pacific, commercially viable opportunities will arise to maximize the
value of Ireland’s pelagic catch for consumption, both on the home and European markets. BIM
estimates that while the volume of the pelagic landings are likely to be relatively static (relative to
2012), there will be some value enhancement in this sector, with product development including
that of marine proteins.
Demersal (whitefish and Dublin Bay Prawns): Similar to the current situation pertaining to the
pelagic landings, BIM anticipates that there will be continued growth in processing and value adding
of this sector. These species enjoy a high level of consumer acceptance and recognition and lend
themselves more readily to value adding and to transformation into convenience products. BIM
estimates that by 2025 landing volumes will remain stable but some 30 - 40% of the catch will be
utilized in further processing.
Inshore Fisheries and Shellfish: The establishment in 2014 of the National Inshore Fisheries Forum,
based on a network of regional forums, places a renewed focus on this important sector. With over
80% of the fishing fleet less than 12m overall length, the Forums provide a long overdue voice for
the most numerous but fragmented sector of the fishing industry. Coastal communities now have
the platform to participate in developing sustainable, long-term plans from the ground up through
the inclusive representation on Regional Inshore Fisheries Forums (RIFFs). Harnessing the
knowledge and expertise of these communities at a local and regional level and availing of
guidance/advice from DAFM and its marine agencies, the Forums aim is to strike a balance between
maintaining healthy marine ecosystems and providing sustained economic activity for the many
single-crew boats which comprise this sector. The RIFFs bring together inshore fishermen, seafood
processors, environmental interests and other marine users to get all-encompassing input from the
start. There is tremendous potential to tackle limiting factors such as over-exploitation of certain
stocks, over-reliance on individual species, poor visibility of existing sustainable practices and slow
response to changing markets.
Anticipating a more disciplined approach to local fisheries management, underpinned by
appropriate research and commercial support structures could bring about a transformational
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change. Once abundant fisheries, such as lobsters, scallops, crab, crayfish and possibly sea urchins
could be restored to their former levels. Innovative techniques such as hatchery grown seed stock
could supplement stock levels if matched with appropriate fishing effort controls and incentivised
conservation initiatives. BIM estimates that landings from these fisheries could be significantly and
sustainably increased and this, combined with access to best-price global markets, would result in a
major increase in value. This increase in raw material supply will bring about substantial increased
employment in the service and support elements such as processing, logistics, food safety
management and sales and marketing which would all be deeply rooted at local level.
By 2025, through a combination of increased processing of all seafood and improved output from
the inshore sector, it is estimated that Ireland’s capture fisheries could yield an additional €190
million per annum.
Aquaculture:
By 2025, BIM envisages aquaculture as being much more integrated with inshore fisheries than is
currently the case. A pilot national lobster hatchery is currently under examination by BIM and the
Marine Institute to refine and assess the potential for this aquaculture technique to supplement
stock levels. With interest already emerging from industry in regionally based hatcheries, the
potential exists for expansion into other high-value inshore shellfish catches. In addition to this
major departure from the current situation, BIM sees continued significant growth in the existing
conventional aquaculture species (inter alia salmon, trout, oysters, mussels). It is also anticipated
that there will be an upsurge of investor interest in producing farmed seaweed products. Assuming
that the 2020 targets for expansion of aquaculture are achieved well before 2025, BIM envisage a
sector yielding an additional €60 million per annum.
In summary, BIM predicts that the Irish seafood sector will have substantially evolved from its
current state by 2025. BIM estimates that total seafood value to the Irish economy will be €1.25
billion per annum and that it will employ an extra 1,250 full time equivalent jobs. BIM expects that
there will be a smaller number of well-resourced and appropriately scaled corporate entities owning
and operating the seafood sector. These may include specialised producer organisations that will
bring discipline to the management of inshore fisheries and ensure stability, while providing high
grade professional business, sales and marketing services to the sector generally.
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CURRENT SECTORAL ANA LYSIS
ECONOMIC ANALYSIS
CATCHING SECTOR
The tables below outline the structure, activity, production and economic performance of the Irish
fishing fleet in the period 2008-2011.
National Fleet
Small Scale Fleet
2008
2009
2010
2011
2008
2009
2010
2011
No. of vessels
1972
2044
2119
2162
835
751
769
788
Average Age of vessels (Years)
24
25
25
25
23
23
24
24
GT (thousand tonnes)
78.3
71.7
70.8
72.2
3.9
3.5
3.4
3.4
Engine power (thousand kW)
216.2
198.4
197
202.4
36.5
32.7
32.0
32.1
No. of Enterprises (N)
1833
1866
1929
1846
1357
1213
1249
1277
FTE (N)
2761
2528
2825
3166
1050
692
1000
1311
Average wage per FTE (thousand €)
16.9
15.4
21.3
21.0
2.3
n/a
8.4
2.7
Days At Sea (thousand days)
49.6
49.5
54.3
49.5
7.1
8.2
8.9
7.6
GT fishing days (thousands)
4975
4689
5143
4464
n/a
n/a
n/a
n/a
Structure
Employment
Fishing Effort
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Energy consumption (million litres)
75.7
73.9
65.0
63.8
4.1
6.0
6.5
6.8
Fuel consumption per kg landed (litre/kg)
0.38
0.28
0.21
0.32
1.17
1.47
1.24
1.45
Landings weight (thousand tonnes)
198.0
262.6
314.2
199.4
3.5
4.1
5.2
4.7
Landings value (million €)
196.5
185.9
202.1
200.3
6.0
8.6
7.7
6.8
Production
Source Data: DCF 2013 Fleet Economic Member State data submissions
Table 1: Fleet Data Part 1 (2008-2011)
National Fleet
Variable (million €)
Small Scale Fleet
2008
2009
2010
2011
2008
2009
2010
2011
Landings Income
202.9
173.3
220.2
239.6
21.7
15.3
44.4
54.9
Other income
17.3
12.3
5.7
6.7
0.2
-
1.4
1.0
Labour Costs
46.5
38.8
60.3
66.3
2.4
n/a
8.4
3.6
Energy costs
43.6
32.7
38.6
49.8
2.6
2.5
3.5
5.3
Repair Costs
21.0
23.5
24.0
29.7
0.9
1.5
1.9
3.3
Other variable Costs
19.4
16.5
17.9
17.2
0.9
1.9
2.0
5.8
Non-variable costs
43.5
27.2
29.3
38.1
1.8
1.7
3.8
10.2
Capital Costs
35.7
55.7
58.4
59.5
0.7
n/a
6.9
5.1
Gross Value Added (GVA)
92.7
85.8
116.1
111.6
15.6
7.7
34.6
31.2
Gross Profit
46.2
47.0
55.8
45.2
13.1
7.7
26.2
27.7
Net Profit
10.5
-8.7
-2.6
-14.3
12.5
-
-
22.5
Income
Costs
Economic Indicators
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Capital Value
Fleet depreciated replacement value
426.0
410.1
511.9
367.4
6.6
n/a
93.0
56.1
In-year investments
37.7
14.5
41.5
28.7
2.5
2.7
4.7
6.2
Net profit margin (%)
4.8
-4.7
-1.2
-5.8
57
-
-
40.3
RoFTA (%)
2.5
-2.1
-0.5
-3.9
191.5
-
-
40.3
GVA per FTE (thousand €)
33.6
33.9
41.1
35.2
14.8
11.2
34.6
23.8
Profitability and development trends
Source Data: DCF 2013 Fleet Economic Member State data submissions
Table 2: Fleet Data Part 2(2008-2011)
AQUACULTURE
The value and production of the aquaculture sector is set out in table 3 below. The value of the
sector increased in 2011 to €128 million, while the volume of output fell slightly to 44,789 tonnes.
The overall economic performance of the aquaculture sector is analysed in table 4.
Table 3: Weight and value Irish Aqauculture Sector (Source: The Economic Performance of the EU
Aquaculture Sector 2013)
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Table 4: Economic performance of the Irish aquaculture sector: 2008-2011. (Source: The Economic Performance of the EU
Aquaculture Sector 2013)
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PROCESSING SECTOR
The total turnover of the Irish seafood processing industry in 2011 was €559 million which was an
increase of €14m or 2.6% from 2010.
Figure 1
In 2011, the amount of income generated by the Irish fish processing industry was €565 million,
consisting almost exclusively by turnover. Data reveals that, after a 6% decrease in 2009, total
income increased, however, it did not reach 2008 levels even though Irish seafood exports grew
between 2008 and 2011. The domestic market experienced a decline in sales between 2008 and
2011 but it has recovered and sales have increased in 2012. In terms of economic performance the
Gross Value Added (GVA), Operating Cash Flow, Earnings before Interest and Tax and Net Profit for
the Irish processing sector, in 2011 were €99.3 million, €27.6 million, €12 million and €8.1 million
respectively. Operating Cash Flow decreased by 15% from 2010 due to increases in the costs of raw
materials for production and wages and salaries.
Figure 2
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Table 5
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SOCIO-ECONOMIC ANALYSIS
Employment in the seafood sector is concentrated on the Western seaboard between Donegal and
Cork, with significant pockets of activity in the South East and Dublin.
Figure 3 Distribution of Seafood Sector Employment (Full & Part-time)
Donegal
Cork
Galway
Kerry
Mayo
Dublin
Wexford
Waterford
Louth
Sligo
Clare
Other
0%
5%
10%
15%
20%
25%
Source: BIM
AQUACULTURE
Total aquaculture enterprises fell by -4% to 292 in 2011, of which 209 employ 5 people or less. These
enterprises employed 1,748 people, showing a 2% increase on the previous year although between
2008 and 2011 employment fell by -11%. FTE for the period also fell (-26%) and at the end of the
period represented 958 employees. The female FTE figure increased by 13%, but was still very low.
Having said this, labour productivity for the period had risen by 160% to €55,000 but the average
wage fell -10% to €26,700.
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Table 6: Aquaculture sector overview for Ireland: 2008-2011. (Source: The Economic Performance of the EU Aquaculture
Sector 2013)
Figure 4: Irish aquaculture sector employment trends: 2008-2011. (Source: The Economic Performance of the EU
Aquaculture Sector 2013)
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SEAFOOD PROCESSING
In 2011 , there were approximately 2,829 FTE’s employed in the fish processing industry which was
made up of 1,990 Male FTE’s and 839 Female FTE’s.
Table 7
The average wage within the seafood processing industry decreased from €32,200 in 2008 to
€26,700 in 2011, a drop of 17% due to the downturn in the national economy but the figures from
2010 to 2011 remained unchanged which is positive. The number of employees and FTEs in the Irish
seafood processing sector increased constantly from 2008 to 2011, reaching respectively 3,270 and
2,829 in 2011. Male employees represent around 70% of the total employees and the proportion of
male/female employees has been relatively constant over time.
Figure 5
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TECHNOLOGICAL ANALYSIS
BIM sees the need for continued investment in new product development and the processing
technology required to create transformational new product formats to cater for the rapidly
evolving consumer preferences. BIM’s Seafood Development Centre (SDC) will act as a spearhead
and a range of measures and interventions will be required to drive innovation and continued
investment in the sector.
In the context of capture fisheries, BIM sees the need for a range of technological developments to
cater for the demands created by the obligation to land all catches (new discards policy). These will
include much improved gear selectivity, techniques to reduce bycatch, improved fuel and other
energy efficiencies, the adoption of ever more stringent responsible fishing standards and the
introduction of aquaculture based restocking and fisheries enhancement technologies to support
sustainable exploitation of certain inshore fisheries.
The aquaculture industry has always been driven by technological advances and the period to 2025
will continue to reflect this trend. BIM predicts that there will be substantial progress in establishing
and operating offshore marine finfish farms. It is likely that Re-circulation Aquaculture Systems
(RAS) will also be advanced over the period and that these will give rise to the improved and efficient
production of juveniles across a wide range of marine animal and seaweed species. In the context of
shellfish aquaculture, BIM predicts that the pacific oyster sector will become largely self-sufficient in
terms of spat supply and that techniques to bolster the supply of seed mussels by artificial collection
will have been developed to stabilize output from the bottom grown mussel sector. All of the
technologies will continue to be “greener” in their performance, maximizing the use of recycling and
reusing core components and minimizing energy inputs. It is also likely that significant elements of
multitrophic aquaculture development will emerge over the period serving to increase output whilst
mitigating unwanted environmental impacts.
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ENVIRONMENTAL ANALYSIS
Outlook
There will be a general movement towards “greening” that all sectors of the Irish seafood industry
will share in common over the period. As producers seek to leverage the value of initiatives such as
Bord Bia’s Origin Green, all seafood businesses will seek to reduce energy inputs, increase levels of
recycling and will adopt independent, third party verified standards, in order to be able to
demonstrate their bona fides in this regard to the market place. All of the elements of the seafood
chain will concentrate heavily on improving their environmental sustainability credentials. Seafood
processing companies will focus on reducing energy inputs, whilst developing product formats which
minimise transportation requirements and will employ environmentally friendly manufacturing
techniques and eco-friendly packaging.
On the capture fisheries side, vessel propulsion and catching technologies will be developed to
reduce fuel inputs. Along with this, there will be a significant increase in uptake of responsible
fishing standards and, where appropriate, fishing sustainability standards such as MSC, (Marine
Stewardship Council) or the FAO standards.
In regard to aquaculture, marine finfish production is likely to increasingly shift offshore into high
water-exchange locations where environmental impact is very low and the possibility of negative
interactions with migratory salmonids is significantly reduced. It is likely also that seaweed farming
may develop in a multi-trophic fashion to further mitigate any negative environmental impact
created by the marine finfish sector.
Shellfish farming, already a net carbon fixing activity, will continue to develop production
technologies focused on reuse of core components and the use of bio degradable materials. In
common with capture fisheries, aquaculture will see a continued strong uptake of certification and
assurance standards such as organics, MSC where appropriate and the adoption of the new
aquaculture stewardship council standards (ASC)
CFP Discards Ban
A key element of the new CFP is the introduction of a ban on discards, the practice of dumping
unwanted fish overboard. The ban on discarding in pelagic fisheries will come into effect on 1
January 2015. A landing obligation for all other commercial fisheries will be phased in from 1 January
2016. Whilst the overall package has been agreed in the CFP Regulation, there is significant
discussion taking place at many levels regarding the interpretation of some articles in advance of the
Commission preparing its common understanding. The key to addressing the Discards Ban will be for
Member States in a Region to collectively agree and submit for ratification in EU Law a “Discards
Implementation Plan” for the Fishery concerned. This Discards Implementation Plan should be
agreed through Regional Decision Making between the Member States concerned.
This is particularly challenging for Ireland as we have many mixed demersal/whitefish fisheries in
which current discard rates run between 40% & 80% depending on species and fishery. If all discards
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are simply landed with current quotas, fisheries may close early in the year for specific
fisheries/species. To facilitate the phasing in of the landing obligation, a National Discards
Implementation Working Group has been established consisting of representatives of all relevant
stakeholders. The purpose of this group is be assist in the development of agreed practical technical
proposals (e.g. storage of fish no longer being discarded on board vessels and on land, incentivising
changes in fishing practices, reducing catches of juvenile fish and allowing fish stocks to grow over a
set period) for submission to the relevant Regional Advisory Councils and to the Regional Member
State Group. The secretariat for this group is provided from within DAFM and the Marine Institute
and BIM are both centrally involved. Practical control issues surrounding the implementation of the
discards ban will also require significant input from the Sea Fisheries Protection Authority.
Sustainable Fisheries (Achieving) MSY
A key element of the new CFP is the setting of fishing levels on the basis of the MSY Principle
(Maximum Sustainable Yield). The MSY exploitation rates shall be achieved by 2015 where possible
and, on a progressive, incremental basis by 2020 at the latest for all stocks. This should lead to
healthy fish stocks, higher quotas for Irish fishermen and more sustainable fishing patterns. MSY for
many species is not well known and proxy measures will have to be put in place. Significant input will
be required from the Marine Institute and significant negotiation efforts will be needed with the
Commission and in Council to ensure that there are not undue economic impacts for Ireland.
Natura 2000
In December 2007, as part of a wider case against Ireland in relation to the implementation of the
Birds Directive, the Court of Justice of the European Union ruled that Ireland had not complied with
the Directive by not conducting appropriate assessment prior to licensing aquaculture activities.
Since 2009, Ireland has been implementing a Programme of Measures to comply with the decision of
the European Court, including in relation to aquaculture. That Programme of Measures also includes
Ireland’s management of its fisheries in Natura 2000 areas.
In relation to aquaculture and fisheries, the Programme of Measures has involved a multi-annual
work programme by the Department of Agriculture Food and the Marine and its agencies, together
with the National Parks and Wildlife Service. This work programme has involved a new legislative
framework for fisheries, collection of benthic data on marine Natura 2000 sites, collection of data in
SPAs on habitat use by waterbirds, setting of conservation objectives by the NPWS, appropriate
assessment of aquaculture licence applications for sites in Natura 2000 areas and of proposals for
management of fisheries in those areas, risk assessment of unmanaged fishing activities, supporting
research to inform and underpin the process, and arrangements for monitoring fishing and
aquaculture activities in Natura areas.
While very considerable progress has been made on the Programme of Measures, and appropriate
assessments are continuing to inform ongoing aquaculture licensing decisions, the scale of
aquaculture activity in Natura 2000 areas has meant that many applicants for aquaculture licences
have faced lengthy waiting periods. Industry representatives have asserted that this has had the
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effect of constraining growth in Ireland’s aquaculture sector. It is worth noting that other factors
may have contributed to the lack of growth in the sector, such as access to finance during the
recession years, diseases, biotoxin outbreaks and constraints on seed supply.
In compliance with EU law, Ireland has not permitted aquaculture enterprises located in Natura
2000 areas to access financial supports under Ireland’s Seafood Development Programme 20072013 for the construction, extension, equipment and modernisation of aquaculture enterprises, until
the site has been licensed in accordance with the conclusions of appropriate assessment.
While progress on eliminating the licensing backlog arising from the European Court decision will
continue to be incremental, it is expected that this environmental issue will increasingly cease to be
a constraint on the licensing system in the coming years and thus on access to State supports for the
development of the aquaculture sector.
Sea Lice Controls
Ireland’s sea lice control protocols are operated by the Marine Institute and involve regular
inspections of marine fin fish sites by Marine Institute Inspectors (sites are inspected 14 times per
annum). Results of inspections are provided to the farm operators within 5 working days. Results
are also reported to the Department and to other interested parties such as Inland Fisheries Ireland.
Overall results and trends are published annually. Notices to treat are issued to operators if lice
levels are found to be above treatment trigger levels.
These protocols are more advanced than those operated in other jurisdictions for the following
reasons:

The inspection regime is totally independent of the industry.

Data obtained as a result of inspections is published and made widely available.

Treatment trigger levels are set at a low level.
In 2008, the State introduced a new Pest Management Strategy, supplementing the control regime
already in place. This has resulted in a steady decline in average sea lice numbers on farmed salmon
since its inception. The controls in operation are generally regarded as representing best practice
internationally.
Aquaculture licensing and environmental considerations
The Department’s procedures governing the regulation of Aquaculture are rigorous and
comprehensive in nature. All applications for marine based aquaculture licences are considered in
accordance with the following legislation:

Fisheries (Amendment) Act 1997

Foreshore Act 1933
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
EU Habitats Directive (92/43/EEC)

EU Birds Directive (79/409/EEC)

Consolidated Environmental Impact Assessment Directives (2011/92/EU).
The Department meets regularly with individuals and groups with environmental interests to
discuss all aspects of aquaculture and will further enhance this interaction in the medium term.
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LEGAL / REGULATORY ANALYSIS
1. COMMON FISHERIES POLICY REGULATION (1380/2013)
The new Common Fisheries Policy (CFP) entered into force on the 1st January 2014 and is designed to
ensure the long term sustainability of fishing throughout EU waters. The CFP provides the
framework for the long term sustainability of fish stocks, the continued economic viability of fishing
fleets and fish processing, while supporting the communities that depend on a vibrant fishing
industry. The CFP will support the rebuilding of fish stocks in European waters and will allow for
setting TACs and quotas to reflect catches when a landing obligation is introduced on the basis that
for the first and subsequent years, discarding of that stock will no longer be allowed. In the longer
term, as fish stocks reach and are maintained at healthy levels, it will support increased fishing
opportunities for fishermen. The ultimate aim of the reformed Common Fisheries policy is to end
overfishing and to make fishing sustainable – environmentally, economically and socially thus
resulting in a competitive and viable seafood sector for all.
The new CFP involves a number of important elements. These are:





Discards Ban
Maximum Sustainable Yield
Regionalisation
Fleet balance and
Advisory Councils.
The discards ban and MSY have been described in the previous section.
The new CFP will see an end to micro-management from Brussels and will bring the decision making
process on technical and conservation measures closer to the fishing grounds, in particular to
national administrations, fishermen and other interest groups. The agreed model enables Member
States to work regionally, and with Advisory Councils, to develop detailed management measures,
based on high level objectives set out in co-decided multi-annual plans. If agreed between the
Member States, the Commission is then generally required to put these agreements into EU Law and
enforce them. If Member States do not deliver decisions through the new Regional Decision
Framework, the Commission is empowered to take decisions which will almost certainly be more
demanding, less flexible and more damaging to Ireland’s interests. Many of the challenges to be met
and changes to be made under the new CFP are in our region (North Western Waters) due to the
high level of mixed fisheries, high level of discards and poor situation of many stocks.
Ireland has already taken the lead in the establishment of a North Western Waters Member State
Group (Ireland, UK, France, Belgium, Netherlands & Spain) and the development of its work
programme. This Group will continue to require significant resources from within the Department,
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as well as the Marine Institute, the SFPA and BIM. The work of this group will be especially important
in the context of the implementation of the discards ban (see below)
All Member States are now required to put in place measures to adjust fleet capacity (number and
size of vessels) to the available fishing opportunities. An annual report must be submitted to the
Commission, along with an action plan where overcapacity is apparent. Failure to carry out the
action plan may result in suspension or interruption of EMFF funding.
The Advisory Councils (ACs) are stakeholder-led organisations that provide the Commission and EU
countries with recommendations on fisheries management matters. This may include advice on
conservation and socio-economic aspects of fisheries management, and on simplification of rules.
The ACs are also consulted in the context of regionalisation. In addition to the seven existing ACs,
the new CFP foresees the creation of four new ACs for the Black Sea, Aquaculture, Markets and the
outermost regions. The North Western Waters Advisory Council and the Pelagic Advisory Council are
the AC’s of significant relevance for Ireland.
2. THE EUROPEAN COMMON ORGANISATION OF THE MARKET S IN FISHERY A ND
AQUACULTURE PRODUCTS (CMO) REGULATION
The CMO regulation (1379/2013) was adopted on 11 December 2013 and entered into force on 1
January 2014. The CMO Regulation sets out the EU regime to manage the market and maximise
value for EU seafood products. The objectives of the CMO are to ensure that the broad aims of the
newly reformed CFP are translated into a production and marketing process based on sustainable
fisheries and aquaculture. The CMO supports the seafood industry in facing challenges ranging from
market failures, such as asymmetric information (e.g. consumer information on product
sustainability), to supply shocks (e.g. natural variation).
The primary aim of the CMO is to establish a stable fisheries market based on the concept of long
term sustainability and a thriving fisheries industry and marketplace which is more consumer
focused. The CMO uses the mechanisms of:




common marketing standards (on quality, freshness, size/ weight and presentation),
Production and Marketing Plans (PMPs) prepared by Producer Organisations to plan
members’ production and develop joint marketing strategies,
price-support schemes, and
rules on trade with non-EU countries.
The CMO regulation substantially changes EU funding in this field, reducing the previous 6
mechanisms to one – storage aid – which is itself due to disappear on 1 January 2019 (ref
Commission implementing regulation (EU) No 1419/2013).
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It provides for a new mandatory tool – Production & Marketing Plans. These plans are designed to
help focus recognised EU Producer Organisations with the day-to-day implementation of the
Common Fisheries Policy's reform goals and allow them to manage their activities in a business-like
and market-oriented manner.
It improves consumer information requirements, to help consumers make informed choices. These
provisions, which complement regulation (EU) 1169/2011 on food information for consumers
("FIC"), will apply from 13 December 2014.
3. EUROPEAN FISHERIES FUND REGULATION
The European Fisheries Fund (EFF) Regulation (1198/2006) is the framework regulation governing EU
co-funded financial supports to the seafood sector for the period 2007-2013. Ireland’s Seafood
Development Programme (SDP) 2007-2013 is implemented through the EFF Regulation and will
continue to disperse development funding to the seafood sector until the end of 2015. Ireland’s SDP
is the principal source of development funding to the seafood sector and comprises a total fund of
€66.3 million, including €42.3 million co-funding. The SDP funded Ireland’s 2008 fleet
decommissioning scheme and continues to fund investments in the fishing fleet, development of
aquaculture, the seafood processing sector, stock conservation measures and development of
coastal areas through Fisheries Local Action Groups.
4. EUROPEAN MARITIME & FISHERIES FUND REGULATION
The European Fisheries Fund (EFF) Regulation (508/2014) is the framework regulation governing EU
co-funded financial supports to the seafood sector for the period 2014-2020. The Regulation was
adopted on 22 May 2014. The Department of Agriculture Food and the Marine is developing a new
Seafood Development Programme 2014-2020 to disperse investment funds under the Programme.
The new SDP will comprise a total fund of €241 million, including €147.6 million in EU co-funding.
While the new SDP is still in preparation, it is clear that it will provide significant financial supports
for the development of the aquaculture and processing sectors, and for FLAGs, stock conservation
and environmental management measures, measures to support the CFP reforms and to support
compliance with the Habitats, Birds and MSFD Directives and for data collection and control and
enforcement.
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FUTURE MARKET PROSPE CTS
There are a number of significant macro trends which are poised to have an impact on the future
direction of the Irish seafood sector and which indicate that the prospects for this industry both at a
global and European level are very favourable, especially in the medium to long term. Strong global
population growth which is expected to reach 8 billion by 2025 will result in a huge new market for
seafood. Some experts estimate that an extra 40 million tonnes of seafood will be required annually
by 2030.
Coupled with the forecast global population growth, the rate of income growth in the Asia Pacific is
also anticipated to have far reaching implications for the consumption and trade of seafood. Asia is
the world’s largest and most populous continent with a population of 4.3 billion people, it makes up
60% of the world’s population. Asia’s population growth rate has quadrupled during the last 100
years led by China which today has a population of just over 1.3 billion. It is estimated that by 2030,
Asia will host 64% of the global middle class and account for 40% of the global middle class
consumption. Growing incomes in this region will result in strong demand for a wider range of
premium seafood as evidenced by the strong growth in seafood consumption in China which far
outpaces domestic production. China is the world’s largest producer, consumer, importer and
exporter of fish products-handling more than 35% of global production. Imports of seafood products
to meet growing in-country consumption are projected to increase. Seafood consumption in China
increased rapidly from 11.5kg per person in 1990 to 25.4kg in 2004, and is predicted to increase to
35.9 kg/year in 2020. With China’s middle class expected to increase to 650 million by 2015, coupled
with a growing population of young sophisticated and affluent consumers – all the signs are pointing
towards increased imports of seafood. Certain analysts are predicting that China has the potential to
become a €15.5 billion seafood import market by the end of the current decade, with rising incomes
and increasing domestic demand for seafood, particularly in relation to premium species. The
opportunities that this trend presents for the Irish seafood industry are significant, and will continue
to be harnessed and developed further throughout 2015 and further.
The Middle East also offers exciting opportunities for Irish seafood companies. Irish exports to the
UAE have almost doubled since 2009 and now stand at €36mn, up 17% from the previous year. This
growth is driven primarily by seafood, dairy and infant formula. According to the FAO, the UAE retail
sector is worth €4.7 billion and within this; only 25% of the food available is produced domestically.
Due to the high level of expats and changing tastes amongst locals, many of the retailers in the
region cater to western tastes. Similarly, the UAE foodservice market is increasing by 11% p.a. and is
valued at €2.7bn. According to some of the leading players in this market, the foodservice sector
demands a very high quality product with a growing demand in this sector for live and processed
high value seafood such as oysters, crab and mussels. A large number of luxury hotels (140 five-star
hotel and growing) with millions of tourists each year (Dubai's 371 hotels host a record 6.5 million
guests) makes up an upper-class consumer segment where seafood consumption is growing. Recent
figures show that $100m worth of seafood was imported by the UAE and food consumption is
growing at a rate of 12% p.a. In order to meet this increasing demand, imports will continue to play
an important role.
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The US is another important and growing market for Irish seafood exports, particularly for certain
species such as fresh, frozen and smoked salmon and increasingly for shellfish, albeit from a small
base. The US fish and seafood market grew steadily between 2008 and 2013, reaching an estimated
$16.2 billion and is estimated to grow to $19.5 billion by 2018. The rise of certain ethnic groups
within the US e.g. Asian, as well as a greater awareness of fish being a healthy protein replacement,
are all fuelling growth. The fresh fish market accounted for $9.1 billion, frozen makes up $4.4 billion,
while shelf ready/prepacked accounts for $2.6 billion. Americans consumed 4.5 billion pounds of
seafood in 2012. The US is the world’s third largest consumer of seafood after China and Japan. To
meet consumer demand, the United States continues to be a major importer of seafood. Over 90%
of the seafood consumed in the US is imported, measured by edible weight.
Fish and seafood consumption in the US is expected to increase by 9% between now and 2017 with
growth anticipated across all categories as consumers become increasingly aware of the health
benefits of eating seafood and supported by a range of government initiatives to drive demand. The
US aquaculture industry currently meets less than 5% of US seafood demand. Given the currently
sluggish domestic supply coupled with the increasing demand for seafood, imports will continue to
grow in importance. Sustainability is a key driver in demand for seafood in the US and it will be
increasingly important for exporters to this market to demonstrate their credentials in relation to
raw material sourcing and environmentally friendly production practices.
From an Irish producer perspective, opportunities are predominantly in smoked and fresh salmon.
There is also an emerging US demand for Irish shellfish (crab) products. Irish fish exports to the US in
2013 were €3m (up 59% on the previous year).
Despite these opportunities for Irish seafood in emerging markets, it is important to note that longer
term opportunities are not restricted solely to these regions. Despite the challenging market
conditions that continue to prevail in the traditional markets for Irish seafood such as Spain, Italy
and to a lesser extent in France, supply constraints in these markets as a result of the shift in global
supply to the East will present niche opportunities for Irish seafood exporters in the longer term and
in the European market also. It is important therefore that Ireland’s strong position and reputation
in these markets is maintained and promoted to encourage loyalty and to hold market share.
Irish Seafood sector - Current State of Play
The Irish seafood sector is well positioned to capitalise on many of the opportunities that will be
presented in the growing global marketplace for seafood. The industry has many unique selling
points such as its geographical position within rich fishing grounds, the diversity of species,
sustainability credentials and unpolluted waters with low levels of harmful residues. Its credentials in
producing premium organic seafood for example, are very strong, allowing certain Irish species such
as salmon and mussels to be positioned at the top end of the market securing a price premium in
key export markets. Ireland has adopted a pioneering position on organic seafood which has
allowed the industry to develop a positive quality image for Irish seafood in the global marketplace.
Currently, an estimated 80% of total annual salmon production in Ireland is organic and accredited
to quality labels such as AB Bio, Naturland and the European organic certification label. An
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estimated 35% of Irish rope grown mussels are accredited to the European organic mussel standard
and this figure is growing.
In addition, Irish seafood has strong sustainability credentials and the industry has been able to
promote and communicate across a range of internationally recognised quality labels including MSC
mackerel; MSC Celtic Sea herring and the European organic standard for a number of aquaculture
species. Clearly defined USP’s of Irish seafood are therefore achievable through quality standards,
food safety and Ireland’s unique geographical location within Europe’s richest fishing grounds close
to the Gulf Stream. This leads to the rational conclusion that Ireland is also a source of a wide variety
of species in all product categories which can cater for many international markets.
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SPECIFIC ACTIONS PLA NNED
Seafood Development Programme 2014-2020 (EMFF)
As described in earlier sections, the Department of Agriculture Food and the Marine is presently
developing a new Seafood Development Programme 2014-2020. The new SDP will be the principal
mechanism for dispersing public funds to support investments in the seafood sector up to at least
2020.
The new SDP will comprise a total fund of €241 million, including €147.6 million in EU co-funding.
While the new SDP is still in preparation, analysis to date, together with stakeholder input, suggests
that there is a clear need for public support in many areas of the seafood sector to foster sustainable
growth and to enable the seafood sector to achieve its enormous potential for export-led growth
and increased employment in peripheral coastal communities.
The European Maritime and Fisheries Fund Regulation (508/2014) provides the legal framework and
significant EU co-funding to allow a broad-based programme of financial supports, subject to
strategic priorities.
For the aquaculture sector, it is likely that the new SDP will see the introduction of measures to build
productive capacity, foster innovation and new technological development, build knowledge and
skills, and promote organic aquaculture.
For the seafood processing sector, it is likely that the new SDP will see the introduction of measures
to promote new product development, add value to commodity products, build knowledge and
skills, support the move to more efficient industry structures, improve market organisation and
assist in the development of new markets for Irish seafood.
For the catching sector, it is likely that the new SDP will see the introduction of measures to support
the fleet in adapting to the requirements of the new CFP, including development of more selective
fishing gear to reduce landings of unwanted catch, scientific supports and technological trials, the
building of knowledge and skills in the industry and the maintenance of a balance between fishing
capacity and fishing opportunities.
For coastal communities, it is likely that the new SDP will see further development and increased
emphasis on the economic development of fishing communities through Fisheries Local Action
Groups.
The new SDP is also likely to see significant public investment in measures to support the sustainable
development of the seafood industry. These will include measures to support ongoing compliance
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with the Habitats, Birds, and Marine Strategy Framework Directives and measures to support the
more effective enforcement of CFP rules, and collection of scientific and economic data to inform
the future management and development of the industry.
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SUSTAINABIL ITY CONSI DERATIONS
Sustainability is at the heart of the new CFP. The CFP Regulation (1380/2013) states that it “shall
ensure that fishing and aquaculture activities are environmentally sustainable in the long-term and
are managed in a way that is consistent with the objectives of achieving economic, social and
employment benefits, and of contributing to the availability of food supplies. ….The CFP shall apply
the precautionary approach to fisheries management, and shall aim to ensure that exploitation of
living marine biological resources restores and maintains populations of harvested species above
levels which can produce the maximum sustainable yield…...The CFP shall implement the ecosystembased approach to fisheries management so as to ensure that negative impacts of fishing activities
on the marine ecosystem are minimised, and shall endeavour to ensure that aquaculture and
fisheries activities avoid the degradation of the marine environment.
The European Maritime and Fisheries Fund Regulation (508/2014) states that “the EMFF shall
contribute to the achievement of the following objectives:.......promoting competitive,
environmentally sustainable, economically viable and socially responsible fisheries and aquaculture”.
Sustainability considerations will be essential elements of all measures implemented by Ireland
through its proposed new EMFF co-funded Seafood Development Programme 2014-2020.
More generally, the seafood sector is moving strongly to establish unimpeachable sustainability
credentials. This is being achieved by the adoption of independent third party verified standards
such as MSC, ASC, organic certification, green manufacturing and Responsible Fishing Standards, all
of which will dovetail into the national Origin Green Initiative.
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CHALLENGES UP TO 20 2 5
The principal challenges facing the sector have been well analysed both in BIM’s 2013-2017 Strategy
“Capturing Ireland’s Share of the Growing Seafood Opportunity” and in other strategies such as
“Harvesting Our Ocean Wealth”.
In the processing sector, the challenges are to secure greater raw material supply, create greater
scale within the operating entities, secure further investment and develop a range of innovative,
new product formats which will give the sector a competitive advantage and grow value.
With regard to capture fisheries, the challenges are to come to terms with the obligation to land all
catches in the new CFP, improve environmental sustainability, match the catching effort to the
resource available in the demersal sector in particular and bring about a transformational
rejuvenation of the once abundant inshore fisheries sector.
In the context of aquaculture, because it is a livestock driven sector, there will always be new and
emerging challenges for the operators in the sector to come to terms with. In recent times these
have included amoebic gill disease, oyster virus and the challenges posed by climate change. The
industry has shown itself to be very resilient and innovative in facing these challenges. In terms of
structural issues, the main challenges for aquaculture are:

the timescale for licence decisions, having regard to the requirements for appropriate
assessment and other EU environmental law;

to conquer the technological challenges posed by operating in the offshore environment;

to lessen the dependence of the pacific oyster sector on imported spat and to also lessen
the dependence of the bottom grown mussel sector on the wild seed mussel dredging;

to develop the techniques and technologies for the cultivation of high value farmed seaweed
species to the point where the process is commercially viable.