News / Shetland Catch focusing on Far East
PELAGIC fish processor Shetland Catch is working hard on developing new markets in the Far East to compensate for its loss of trade following EU sanctions against Russia and the near collapse of the Ukrainian market.
Last week it emerged that the amount of mackerel landed in Lerwick during the first three months of this year had halved to around 15,000 tonnes, while the export of frozen mackerel was also down.
Managing director Simon Leiper said the figures were not quite as dramatic as they appeared at first sight because this year’s drop followed on from record landings last winter.
However the loss of Russia and Ukraine as trading partners means the company needs to find new markets for between 15,000 to 18,000 tonnes of frozen mackerel, around 30 percent of its mackerel business.
“It is not unusual for the industry in terms of facing difficulties in the market,” Leiper said. “Yes, there is a reduction in volume this January compared to the previous two years.
“Trade with Russia is banned. Ukraine is not a no-go area, but there are financial difficulties in trading into Ukraine.
“You have to be very careful and make sure you protect your risk, but there is still an underlying demand.”
He added that the particularly bad January weather also played its part – forcing the local fleet into changing its fishing pattern, which in turn led to less fish being landed at the factory.
Leiper said his management team has been working on accessing markets in Japan, Korea and Taiwan for many years, and these efforts have now been stepped up with the help of the Scottish Development Initiative, a UK government programme to promote Scottish industries.
“We and other Scottish processors are working closely with UK agencies in developing these markets,” he said.
“We were at the Japan exhibition in Tokyo last August, and that was run in conjunction with a supermarket promotion.
“We also have been to China, and sales director John Angus and his team are going out to Taiwan this summer.
“It is providing challenges in finding alternative markets, but we have increased our sales into the Far East over the last three months as an attempt to offset the problems in Ukraine and Russia.”
Company representatives have also just returned from the Seafood Expo in Brussels – the largest seafood trade event.
In 2014, just over 60,000 tonnes of pelagic fish (mackerel and herring) worth £45.16 million were landed in Shetland.
Meanwhile, 16,306 tonnes of whitefish with a value of £27.15million (a rise of eight per cent) were landed in Lerwick and Scalloway, last year.
Shetland Fish Producers’ Organisation chief executive Brian Isbister said many fish stocks were currently more abundant around Shetland than they had been for many years and their quality was very high.
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