Brexit ‘costs industry up to £100m a year’, Salmon Scotland chief says

Brexit has cost Scotland up to £100m each year in “lost” salmon exports, according to the industry body, Salmon Scotland.

That’s what the organisation’s Chief Executive, Tavish Scott, will be telling MSPs in the Scottish Parliament today.

He will be addressing MSPs on the Constitution, Europe, External Affairs and Culture Committee as part of their inquiry into the EU-UK Trade and Cooperation Agreement (TCA) – which is up for review after the General Election.

Scottish salmon is the UK’s largest food export, but farming companies have faced increased red tape and costs triggered by the departure from the EU in January 2020.

In 2019, there were more than 53,000 tonnes of Scottish salmon exported to the bloc, with the figure falling to 44,000 tonnes in 2023.

Export values to the EU were only down 3% to £356m because strong global demand drove up prices, but if the sector had maintained volumes at 2019 levels, then sales would have been above £430m.

That means there has been a net “loss” of around £75m, or up to £100m had the sector grown at the rate previously expected.

The Brexit impact has been mitigated by huge growth in other markets, particularly Asia and the US.

Overall international sales in 2023 were up from £578m to £581m (up 0.5%), including a 7% increase to the US and 22% to Asia.

However, with salmon increasingly popular in traditionally smaller European markets such as the Netherlands and Spain, smoother trade flow and new markets would open up the possibility of further economic growth – generating greater investment in the Scottish economy and more high-skilled Scottish jobs, Salmon Scotland says.

The estimated Brexit impact of lost sales does not include the direct £3m-a-year cost to farming companies in terms of extra administrative costs because of the lack of an e-certification scheme.

Exports of animal-based products to the European Union require an Export Health Certificate, but while a digital system for this has been introduced for seafood imports to the UK, producers exporting seafood to Europe from the UK continue to struggle with paperwork. The UK Government has promised that a new and improved digital system will be trialled this year.

Tavish Scott, Chief Executive, Salmon Scotland

Brexit challenges outlined

At the committee hearing today, Tavish Scott will highlight the challenges facing salmon farmers post-Brexit, including:

• Competitive disadvantage – there is still significant paperwork and processes which can lead to delays which may have knock-on impacts if consignments are delayed.
• The lack of a new eCertification for export health certificates (EHCs), and issues with the current outdated system, which costs salmon farming companies £3m-a-year.
• Border Control Posts (BCPs) which come into force in April this year, bringing in a raft of new import requirements for the feed sector.
• Bulk exports – improved technologies which are openly in use across the UK would benefit EU customers and consumers through reduced costs and environmental emissions via the use of larger bulk packaging.
• Veterinary agreement – the sector is calling for the UK and EU to create a bespoke and mutually convenient Sanitary and Phytosanitary (SPS) agreement which returns efficiencies to supply chains on both sides of the Short Straits to help consumers and businesses in both territories.

Tavish Scott, chief executive of Salmon Scotland – speaking ahead of his committee appearance – said: “Scottish salmon is the UK’s largest food export and a major contributor to our economy, with demand rising at home and abroad.

“And despite soaring sales to Asia and the US, the EU is still the most significant region for our exports, accounting for more than 60 per cent of international sales.

“The world-renowned quality of nutritious low-carbon Scottish salmon means that we could significantly grow markets such as Spain, Italy and the Netherlands.

“But Brexit red tape continues to hold back the potential of Scottish exports, despite the hard work and investment put in by farmers to address the issues.

“We need the next UK government – whatever formation it is – to ease the burden on exporters so that sectors like ours can sell more Scottish produce, delivering economic growth and creating jobs here at home.”