Required Report - public distribution

**Date:** 10/5/2005

**GAIN Report Number:** UK5025

UK5025

**United Kingdom**

**Fishery Products**

**Annual Report**

**2005**

**Approved by:**

![](media/image1.wmf)Besa L. Kotati

U.S. Embassy

**Prepared by:**

Phil Bicknell

**Report Highlights:**

Fish and fishery product sales remain buoyant in the UK, with chilled
seafood demand driving category growth. UK commercial catch increased in
CY2004 after a decade in decline. However, the UK remains reliant on
imports to meet consumers\' need for seafood, especially for whitefish.
The U.S. remains a key supplier of canned salmon to the UK, although
Alaska Pollack and scallops are increasingly prominent in U.S. shipments
to the UK.

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Annual Report

London \[UK1\]

\[UK\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[SECTION I: SITUATION & OUTLOOK 4](#section-i-situation-outlook)

[TOTAL EDIBLE FISHERY PRODUCTS 4](#total-edible-fishery-products)

[Production: Wild Catch 4](#production-wild-catch)

[Production: Aquaculture 5](#production-aquaculture)

[Fish & Fishery Product Consumption
5](#fish-fishery-product-consumption)

[Retail Consumption 5](#retail-consumption)

[HRI Consumption 8](#hri-consumption)

[Industry Marketing 9](#industry-marketing)

[Trade 9](#trade)

[Salmon and Salmon Products 11](#salmon-and-salmon-products)

[Salmon - Canned 12](#salmon---canned)

[Groundfish, Whole/Eviscerated 12](#groundfish-wholeeviscerated)

[Groundfish, Fillets 13](#groundfish-fillets)

[SECTION II: STATISTICAL TABLES 14](#section-ii-statistical-tables)

[Table 1 - UK Wild Catch, Landings by UK Vessels in the UK, 2001 - 2004
14](#table-1---uk-wild-catch-landings-by-uk-vessels-in-the-uk-2001---2004)

[Table 2 - Salmon and Salmon Products, PS&D Table
15](#table-2---salmon-and-salmon-products-psd-table)

[Table 3 - Salmon and Salmon Products, Prices Table
16](#table-3---salmon-and-salmon-products-prices-table)

[Table 4 - Salmon and Salmon Products, Import Matrix
16](#table-4---salmon-and-salmon-products-import-matrix)

[Table 5 - Salmon and Salmon Products, Export Matrix
17](#table-5---salmon-and-salmon-products-export-matrix)

[Table 6 - Salmon Canned, PS&D Table
18](#table-6---salmon-canned-psd-table)

[Table 7 - Salmon Canned, Import Matrix
19](#table-7---salmon-canned-import-matrix)

[Table 8 - Salmon Canned, Export Matrix
19](#table-8---salmon-canned-export-matrix)

[Table 9 - Groundfish Whole/Eviscerated, PS&D
20](#table-9---groundfish-wholeeviscerated-psd)

[Table 10 - Groundfish Whole/Eviscerated, Prices Table
21](#table-10---groundfish-wholeeviscerated-prices-table)

[Table 11 - Groundfish Whole/Eviscerated, Import Matrix
21](#table-11---groundfish-wholeeviscerated-import-matrix)

[Table 12 - Groundfish Whole/Eviscerated, Export Matrix
22](#table-12---groundfish-wholeeviscerated-export-matrix)

[Table 13 - Groundfish Fillets, PS&D Table
23](#table-13---groundfish-fillets-psd-table)

[Table 14 - Groundfish Fillets, Prices Table
24](#table-14---groundfish-fillets-prices-table)

[Table 15 - Groundfish Fillets, Import Matrix
24](#table-15---groundfish-fillets-import-matrix)

[Table 16 - Groundfish Fillets, Export Matrix
25](#table-16---groundfish-fillets-export-matrix)

#  Executive Summary

The UK is a major consumer of seafood. Total spend on fish and fishery
products by consumers at the retail level was estimated at BPS 1.82
billion (approximately US \$3.37 bn) in CY2004. Chilled seafood sales
are the driving force behind total category sales. An estimated 1.2
million new households have purchased chilled seafood since CY2000.
Chilled seafood sales benefit from positive consumer perceptions about
the relative quality and freshness of the category versus frozen seafood
products. That said, the frozen category is making progress by
broadening its product offering, with premium frozen products
increasingly important to category sales. In addition to retail sales,
the UK foodservice sector is estimated to use 165,000 MT of seafood per
year. The UK's 8,600 fish and chip shops account much of this
consumption.

The UK fishing industry has been characterized by a declining wild catch
over the last decade. However, commercial landings increased in CY2004
to 457,712 MT. A 9 percent increase in the volume of the demersal catch
was key to this upturn. Shellfish landings have grown in importance in
recent years, following the declining fortunes of demersal and pelagic
landings. They accounted for 27 percent of total landings in CY2004
against 17 percent in CY1994. In addition to the wild catch, the UK's
aquaculture industry boosts seafood production. Salmon is the main
species produced, accounting for more than 75 percent of UK aquaculture
output. Shellfish and trout make up the remainder, although there are
high expectations for the production of whitefish species.

The UK is a net importer of seafood and the volume of imports again
increased in CY2004. The growing demand for value added and prepared
seafood, together with more adventurous consumer tastes, means that
there is a growing diversity of seafood entering the UK. The key imports
from the U.S. are canned salmon and frozen fillets of Alaska Pollack.
The U.S. has traditionally been the key supplier of canned salmon to the
UK market. Although the canned food category is regarded as a mature and
well-developed market, canned fish and seafood is one of the standout
categories, with sector growth forecast at 20 percent over the next 5
years. The UK is also a significant exporter of seafood, exporting an
estimated 477,000 MT to the UK in CY2004. Key markets for UK seafood
exports are typically other EU member states and salmon and shellfish
are key export categories.

Exchange rate used throughout this report is 1 BPS = US \$1.85.

# SECTION I: SITUATION & OUTLOOK

# TOTAL EDIBLE FISHERY PRODUCTS

# Production: Wild Catch

UK vessels landed 457,712 MT of fish into the UK in CY2004, according to
provisional data from the UK's Department for Environment, Food and
Rural Affairs (Defra). This represents an increase of 3.7 percent in
landings over the same period in CY2003. The value of landings also
increased. Total landings in CY2004 were valued at BPS 403.5 million (US
\$746.4 m), up 4.1 percent on CY2003.

The overall increase in landings was driven by a 9 percent increase in
the demersal catch to 155,655 MT. This increase is significant because
the UK demersal catch had been in decline since the late 1990s, as
illustrated in the chart below. Pelagic landings continued the upward
trend of recent years, recording a 4 percent increase in landings to
179,572 MT in CY2004. By contrast, shellfish landings were down 3
percent from CY2003 levels, to 122,485 MT. However, strong demand helped
to support prices and the value of the shellfish catch increased by 2
percent.

With the decline in both demersal and pelagic landings over the last
decade, shellfish landings have become of greater significance to the UK
fishing industry. The volume of shellfish landings accounted for 27
percent of total landings in CY2004, against 17 percent in CY1994. In
terms of value, shellfish landings are of even greater significance,
accounting for 42 percent of the total wild catch value in CY2004. That
said, shellfish landings in the first seven months of CY2005 are down by
11 percent on landings in the same period last year. So far this year,
total landings for all fish types is down by 4 percent.

Wild catch data for key species is detailed in Section II: Table 1.

Chart 1: UK Wild Catch, Landings by UK Vessels by Fish Type 1994-2004

![](media/image2.wmf)

Source: Fisheries Statistical Unit, Department for Environment, Food and
Rural Affairs (Defra).

# Production: Aquaculture

UK aquaculture production has grown rapidly since the industry's
inception in the 1980s. The key focus of production has traditionally
been salmon, with Scotland the preferred location for aquaculture sites.
However, tough trading conditions in recent times have restrained sector
growth. The most recent official production estimate placed salmon
production at 145,609 MT in CY2002 and it is likely that production
levels have fallen since then. For more information, see the Salmon and
Salmon Products section (page 11).

Given the challenges faced by UK salmon producers, there have been some
suggestions that production sites could diversify into shellfish
production. Farmed shellfish in Scotland is already estimated at some
4,573 MT. Mussels dominate shellfish production and volume increased by
16 percent year-on-year according to the latest Scottish Shellfish
Production Survey 2004. Total shellfish production in the UK is
estimated at approximately 27,800 MT, with the expansion of mussel
production largely responsible for output increases in recent years.
Increased market demand and subsequent strong prices have helped to
boost UK production.

UK trout production remains relatively static, at circa 17,000 MT. The
majority of this is destined for the table, with 25 percent of the
annual production typically used for restocking or onward growing. Sales
of trout also appear to be relatively stable, and no significant changes
in production volumes are anticipated.

By contrast, there are high expectations for the production of whitefish
species, particularly cod, at UK aquaculture sites. At present, UK
farmed cod production is minimal, with just 600 MT expected to be
brought to market in the current year. However, there are forecasts that
production could be as high as 3,500 MT by CY2007. And with other
species, such as halibut and turbot, already being farmed in Norway
there is optimism about the possible diversification of the UK
aquaculture industry.

# 

# 

# Fish & Fishery Product Consumption 

## Retail Consumption

Data from the Seafish Industry Authority (Seafish) reveals that fish and
seafood remains one of the fastest growing categories in the retail
market. Consumer expenditure on the fish category recorded year-on-year
growth of 6 percent in 2004. More recent data indicates that the
category growth rate has increased, with fish outperforming red meat,
poultry & game and fresh produce in the first quarter of 2005. Total UK
consumer spend on seafood in 2004 was estimated at BPS 1.82 billion (US
\$3.37 bn).

The continued expansion of chilled seafood sales has been a critical
factor in total category growth. Chilled seafood sales benefit from
positive consumer perceptions about the relative quality and freshness
of the category versus frozen seafood products. As indicated in charts 2
and 3, sales of chilled seafood dominate the fish category in terms of
value and command a price premium over frozen seafood. An estimated 1.2
million new households started buying chilled fish over the last five
years and by the beginning of 2005, over 80 percent of UK households
purchased chilled fish at least once in a 52-week period. As a result,
sales of chilled seafood have broken through the BPS 1 billion (US
\$1.85 bn) barrier.

One of the driving factors of the expansion of the chilled food category
has been the increased availability of fresh, farmed salmon since the
early 1990s. Indeed, salmon is the most important species in the chilled
sector, accounting for an estimated 30 percent of chilled fish sales.
Despite well-documented supply issues, haddock and cod also remain key
species at present. However, the real rising star in the chilled sector
is the shrimp sector. Purchases totaled BPS 156 million (US \$289 m) in
2004, representing year-on-year growth of 24 percent. In addition,
volume was up by 19 percent over the same period. This overall market
performance was underpinned by strong growth from warm water shrimp
sales. Volume and value of sales increased by 35 percent and 44 percent
respectively in 2004. The chilled shrimp sector also provides
significant scope for retailers and food manufacturers to add value. For
example, one half of coldwater shrimp are sold as value added products
(coated, shrimp cocktails, fish pie, ready meals, etc). Increasing
numbers of consumers buying chilled shrimps, more frequent purchasing
and a greater average purchase volume are all positive indicators for
continued sector expansion.

Chart 2: Value of Fish & Seafood Sales by Category

![](media/image3.wmf)

Source: Seafish/TNS

Chart 3: Volume of Fish & Seafood Sales by Category

![](media/image4.wmf)

Source: Seafish/TNS

Despite the success of chilled/fresh fish sales, frozen fish and seafood
remains an important category because it accounts for approximately 50
percent of the volume of total seafood sales. However, market share is
declining relative to chilled seafood. Indeed, the more traditional type
products, such as breaded & battered steaks, are experiencing
significant declines in sales. Instead, fillets and added value products
drive frozen category growth. Just as the performance of chilled seafood
is characterized by sales performance of shrimp, so the frozen shrimp
sector tends to reflect the frozen category in general. Frozen product
accounts for more than one half of total shrimp sales, but value growth
has been relatively slow and volume has dipped. Despite the challenges,
the frozen category has made considerable progress in broadening its
product offering. In addition, consumers appear to have traded up to
premium frozen products and the sector has worked hard to shake off its
commodity-type image.

Multiple grocers accounted for 88 percent of fish and seafood sales in
CY2004. In most food categories, the supermarket grocery chains dominate
sales and fish is no different. The dominance of the leading supermarket
chains in fish retailing is reflected in the long-term decline in the
number of independent, specialist fishmongers in the UK. Remaining
independents face a continual challenge, with research indicating that
their customers tend to be older, have lower levels of disposable income
and are from smaller households.

The supermarket retailers are well positioned to benefit from the trend
towards added value and convenience. Wet fish counters are a feature of
most larger supermarket outlets. This provides a mechanism for
encouraging consumers to trial new species and gain information about
preparation. Chiller cabinet displays are also a key display point for
seafood, with packaging material used to communicate recipe ideas,
cooking instructions and nutritional benefits to consumers. Despite the
boost in seafood sales, particularly of chilled fish, British consumers
remain relatively conservative in their tastes and do express concerns
about how to properly cook and prepare fish and seafood dishes.

Private label products dominate chilled fish sales, with 81 percent of
sales by value. This reflects the retailer dominance of fish and seafood
distribution and the lack of branding opportunities available at fish
counters and chiller display units in supermarket stores.

Branding is more evident in the frozen sector. However, the leading
supermarket chains are again expanding their private label market share,
with particular progress recorded in the sale of premium and specialist
frozen seafood products.

Underpinning the current performance of the UK seafood retail market is
a long term upwards trend in household consumption of fish. Since 1974,
weekly per capita consumption has increased by 27 percent, as indicated
in Chart 4.

Chart 4: Weekly Per Capita Consumption of Fish and Fish Products

![](media/image5.wmf){width="6.28125in" height="2.4166666666666665in"}

Source: National Statistics 2003/04 Expenditure & Food Survey

However, as discussed earlier, there has been considerable change in the
components of total fish consumption. For example, there has been a
swing away from white fish to ready prepared products. Driving factors
for changes in consumption patterns are varied, but include the supply
issues surrounding fresh white fish, the greater convenience offered by
prepared seafood products, a desire by the consumer for trading up to
better quality seafood products, the health benefits of fish consumption
and an increasingly adventurous consumer seeking out different species
of fish. Chart 5 indicates the share of fish consumption by product
type, as measured by actual consumption rather than the category sales
data presented earlier in this report.

Chart 5: Share of Weekly Per Capita Consumption of Fish by Product Type
2003/2004

![](media/image6.wmf)

Source: National Statistics 2003/04 Expenditure & Food Survey

## HRI Consumption 

The UK has in excess of 300,000 HRI outlets and the HRI sector is
naturally a very complex and dynamic market. The sector continues to
expand, driven by rises in disposable income and an increasing
perception of eating out as a favored leisure activity. The sector was
valued at BPS 28 billion (US \$52 bn) in 2004, according to Euromonitor
data.

Fish usage in the foodservice sector is estimated to be relatively
constant at approximately 165,000 MT per year. The majority of this
usage is by the profit sector, where consumption continues to be
dominated by fish and chip shops. Despite competition from other
takeaway foods, there are an estimated 8,600 fish and chip shop outlets
in the UK. Collectively, they sell an estimated BPS 480 million (US
\$888 m) of seafood each year. The cost sector is declining in
importance for the seafood category, with institutional caterers showing
a preference for cheaper proteins. In common with the retail sector,
consumers are faced with increasing range of seafood choice in most HRI
outlets. Hotels and restaurants are leading the way and choice will
continue to expand.

With such a fragmented HRI market, there are a number of supply chain
models, dependent on the outlet type. In general, the presence of
wholesalers is being eroded. This is particularly true when looking at
institutions and multi-outlet restaurant chains. Importers/processors
are increasingly selling fish and seafood products direct to these
outlets where unit cost, high volume and product consistency are prime
concerns.

# Industry Marketing

Seafish works across all sectors of the UK seafood industry, including
fishermen, processors, wholesalers, importers, exporters, fish friers,
food service and retailers. Through its activities, Seafish aims to
raise standards, improve efficiency and ensure that the UK industry
develops in a viable way.

Seafood promotion by Seafish includes elements of consumer PR, health
campaigns, an education program, competitions and awards. A highlight of
the PR campaign is Seafood Week in early October. It is supported by
thousands of special events, tastings and promotions across the country
and involves support from the UK's major retailers, restaurant and pub
chains, seafood processors and fish and chip shops.

# Trade

The UK is reliant on imports to meet domestic demand for fish and fish
products. Trade data indicates a 6 percent increase in UK imports to
668,184 MT in CY2004. As indicated in the chart below, this is the
continuation of a long-term trend. The total value of imports entering
the UK last year is estimated at just under BPS 1.46 billion (US \$2.7
bn). The growing demand for value added and prepared seafood, together
with more adventurous consumer tastes, means that there is a growing
diversity of seafood entering the UK. In CY2004, the UK imported product
from over 100 different countries.

Chart 6: UK Imports and Exports of Fish and Fish Products 1994-2004

![](media/image7.wmf)

Source: Defra/World Trade Atlas

The leading suppliers of seafood to the UK are presented in Chart 7. The
prominence of Iceland, Denmark, the Faroe Islands and Norway in this
chart is indicative of the species profile of imports. For example, the
UK's wild catch is supplemented with substantial imports of cod, haddock
and other whitefish from the UK's North Sea neighbors. Even a
significant proportion of trade with China consists of frozen cod
fillets. Perhaps more indicative of the broadening scope of seafood
demand in the UK is the presence of Bangladesh among the leading
suppliers. Bangladesh is a key supplier of shrimp to the UK, while
Mauritius, Ghana and the Seychelles remain key suppliers of
prepared/preserved tuna.

Imports from the U.S. totaled 32,335 MT in CY2004, representing a 20
percent increase in the volume of trade. This trade generated
approximately BPS 65 million (US \$120 m) in revenues for U.S. exporters
in CY2004 and consisted mainly of canned salmon and frozen fillets of
Alaska Pollack. However, scallops now account for 5 percent of U.S.
exports by value and trade has more than quadrupled since CY2000. In
value terms, imports from the U.S. accounted for approximately 5 percent
of the UK's total edible fishery product imports in CY2004.

Chart 7: Top 10 Exporters of Fishery Products to the UK by Value CY2004

![](media/image8.wmf)

Source: World Trade Atlas

The UK is also a sizeable exporter of fish and fish products, exporting
an estimated 477,000 MT in CY2004. The value and volume of exports
remained relatively unchanged to the level recorded in CY2003. However,
CY2005 export levels are set to rise, with an increase in export values
and volumes in the first half of the year. As indicated in the chart
below, the key customers of UK fish and fishery products are other EU
member states. France and Spain remain the most important markets, with
salmon and shellfish key export categories for the UK. Indeed, the UK is
a net exporter of shellfish. Exports in CY2004 totaled some 106,000 MT
versus imports of approximately 60,000 MT.

As well as being a leading supplier of seafood, the U.S. also features
in the leading export markets, although shipments did decrease last
year. The main product shipped to the U.S. is Scottish salmon. In volume
terms, this accounted for 80 percent of the 11,898 MT of UK fish and
fishery products that were shipped to the U.S. in CY2004.

Chart 8: Top 10 Importers of Fishery Products from the UK by Value
CY2004

![](media/image9.wmf)

Source: World Trade Atlas

# Salmon and Salmon Products

UK production of farmed salmon has been in a period of long-term growth
since the mid-1980s. However, the challenges facing the European
aquaculture industry as a result of low-cost competition from
alternative suppliers has been well documented over the last two years.
Scottish producers have been restricted to relatively small production
sites compared to their competitors and have been unable to achieve
economies of scale. An amount of uncertainty continues to characterize
the farmed salmon sector. Merger and acquisition activity has been
common, with Norwegian-owned companies now controlling a significant
proportion of UK farmed salmon production.

Such uncertain market conditions, and particularly price fluctuations,
have inevitably impacted on the levels of UK farmed salmon production.
The latest published results for the Scottish Fish Farms Survey are for
CY2002, when production was estimated at 145,609 MT. Industry and media
speculation indicates that production will have decreased since then,
with a figure of circa 137,000 MT likely for CY2004 production and a
further decrease expected in the current calendar year. However, the
imposition of safeguard measures by the EU to help shield salmon
producers from competition with low priced salmon imports should yield a
recovery in production levels next year.

Consumer demand for salmon continues to be strong. As indicated earlier
in the report, salmon remains the most important fish by species in the
chilled fish sector. The diversity of cuts, ease of preparation and its
premium positioning have all helped to drive salmon sales forward. Over
the longer-term, the increased domestic supply base has also supported
sales expansion in UK retailers. Increasingly, salmon is appearing as an
ingredient in fresh and frozen ready meals, according to the most recent
Mintel report on the sector.

With production levels likely to have fallen and consumption patterns
remaining strong, import volumes entering the UK have increased
significantly. Imports in CY2004 were up by almost 50 percent from
11,309 MT to 16,794 MT. This upwards trend has continued in the first
six months of 2005, with the volume of imports up by 90 percent in the
first half of CY2005. Norway is the biggest supplier, supplying almost
half of the UK imports of fresh and frozen salmon. Other key suppliers
include China, the Faroe Islands and Denmark. All significantly
increased their export volumes to the UK in CY2004, with the volume of
salmon shipped from China growing by a staggering 283 percent.

The threat posed by low-cost imports of salmon and salmon products to
domestic production has been well documented over the last two years.
The average price of salmon and salmon products from leading non-EU
suppliers, was less than the world average in CY2004. Product from
Norway and the Faroes was approximately 10 percent below the world
market price. However, product from China was one third cheaper than the
average world price (\$2.98 per kg versus \$4.49).

Although import volumes have increased, the UK remains a net exporter of
salmon. Indeed, salmon is one of the UK food market's leading exports
and is particularly valuable to the Scottish economy. Exports totaled
61,343 MT in CY2004. This marked a decrease of 13 percent year on year
and volumes have again fallen back in the first half of CY2005. The
decline in exports in CY2004 was not unanticipated because CY2003 had
marked significant exports from the UK, in part due to supply related
problems in North America. And despite the decline witnessed so far in
CY2005, the average price of exports in this time period is BPS 2.68
(\$4.99), representing a 20 percent improvement year-on-year and a big
improvement on prices in recent times. France continues to be the number
export market for Scottish salmon. Despite the many challenges endured
by the Scottish aquaculture industry, exports to France have continued
to rise.

Scottish Quality Salmon (SQS) is the main trade association representing
the salmon industry. SQS actively target the French market with their
promotional activity, with Label Rouge certification being key to their
overseas marketing strategy. SQS also provide support and expertise to
the Scottish salmon industry through information, reassurance and
technical support and operate promotional campaigns in the UK.

# Salmon - Canned

The U.S. has traditionally been the key supplier of canned salmon to the
UK market for the past century. With no domestic production, the UK is
almost wholly reliant on North American supplies. The UK increased total
imports of canned salmon by 19 percent in CY2004. Shipments from the
U.S. were up by 37 percent according to trade data, giving the U.S. a 70
percent share of the UK canned salmon market and generating BPS 38
million (US \$70 m) in export revenue for U.S. shippers. However, trade
statistics can be misleading because product that is recorded as
Canadian is often Alaskan salmon that has been packed or trans-shipped
through Canada.

The canned food category is considered to be a mature and well-developed
market. As such, many market analysts consider future growth prospects
to be moderate at best. However, canned fish and seafood is one of the
standout sub-sectors. Euromonitor has forecast value growth of over 20
percent over the next five years, driven mainly by tuna sales. Current
market value of the canned fish/seafood sector is estimated at BPS 489
million (US \$905 m). Tuna dominates canned fish/seafood sales with over
50 percent of sales by value. By contrast, the share of canned salmon is
approximately 30 percent and has declined marginally. New formats and
packaging, particularly the introduction of premium lines, will also
contribute to category growth. The introduction of pouches could be
critical to growth, as they are perceived as fresher than the
traditional can format by consumers. However, the challenge of
introducing premium lines into the category could limit potential future
growth.

Canned salmon sales are dominated by the John West and Princes brands.
Private label salmon is still discounted heavily at key times of the
year. Canned salmon consumption is characterized by a reliance on older
consumers. Approximately three quarters of canned salmon is purchased by
consumers over the age of 45 and is particularly reliant on consumers
65+.

# Groundfish, Whole/Eviscerated

Whole/eviscerated groundfish production and trade in the UK has
relatively little impact on the U.S. seafood industry. U.S. imports from
the UK amount to less than BPS 1.1 million (US \$2 m), while product
traded in the other direction is even less. Despite the overall increase
in UK demersal landings, imports of whole/eviscerated groundfish
increased in CY2004 to 89,656 MT. Imports are expected to increase
marginally in the current year.

Exports of whole/eviscerated groundfish grew by 19 percent in CY2004. Of
the 29,540 MT exported, over half was shipped China. Export volumes to
China also look set to increase again through CY2005, with shipments
already 2,000 MT greater than last year. China has effectively replaced
France and Portugal as the key export markets for whole groundfish from
the UK, although cod and haddock remain the key species exported.

The HRI sector is considered to be a key outlet for whole/eviscerated
groundfish sales in the UK. Of course, with convenience and ease of
preparation critical driving factors for seafood consumption, whole and
eviscerated fish are not ideally positioned to benefit. However, whole
groundfish consumption only utilizes a small proportion of domestic and
imported suppliers. Rather, the bulk of the groundfish supplies enter
the processing sector.

# Groundfish, Fillets

Imports of groundfish fillets increased marginally in CY2004 to 130,164
MT and remain fundamental to the UK's supply of fillets. However, a
general upward trend in average prices for key species meant that the
cost of these imports increased by 11 percent and totaled BPS 334
million (US \$617 m) in CY2004.

UK imports of key species have risen in relation to the declining wild
catch, with fillets of cod and haddock accounting for over 80 percent of
groundfish fillet imports. Major supplier countries naturally reflect
the key demersal species fishery areas, with Iceland, Denmark, Norway
and the Faroe Islands all exporting over 10,000 MT of groundfish fillets
to the UK in CY2004. Trade data reveals that China again shipped just
over 22,000 MT of product to the UK. This follows a 100 percent increase
in volumes in CY2003. Cod is the prominent species in fillet shipments
from China. However, frozen fillets of Alaska Pollack exported from
China to the UK increased by 42 percent year on year and now account for
almost 20 percent of China's groundfish fillet volume.

As in recent years, Alaska Pollack fillets accounted for almost the
entire volume of groundfish fillet exports from the U.S. to the UK in
CY2004. Volume increased by 4 percent to 7,751 MT, generating export
revenue of BPS 10 million (US \$18.9 m) for U.S. shippers. Volumes are
expected to increase in CY2005, with year to date volumes some 25
percent greater than in the same period last year.

Following a 167 percent increase in UK exports of groundfish fillets in
CY2003, export volumes remained high throughout CY2004. The majority of
shipments were again destined for other EU member states. Shipments have
declined so far in CY2005 and full year exports are not expected to
reach the highs of the last two years. In particular, trade data
indicates that transshipment of frozen Alaska Pollack fillets through
the UK appears to have reduced significantly in CY2005.

# SECTION II: STATISTICAL TABLES

## Table 1 - UK Wild Catch, Landings by UK Vessels in the UK, 2001 - 2004

Source: Fisheries Statistical Unit, Department for Environment, Food and
Rural Affairs (Defra).

  ------------------------- ------------ ------------ ------------ ------------ ---------------
  **LANDINGS BY UK VESSELS                                                      
  IN THE UK**                                                                   

  [Quantity (metric         []{.mark}    []{.mark}    []{.mark}    []{.mark}    []{.mark}
  tonnes)]{.mark}                                                               

  []{.mark}                 **2001**     **2002**     **2003**     **2004**     **% change
                                                                                (2003-2004)**

  Cod                       28086        25724        15504        15184        -2.1

  Dogfish                   6976         5781         6512         4638         -28.8

  Haddock                   42330        51874        40659        45384        11.6

  Hake                      2217         2075         1937         2219         14.6

  Lemon Sole                3594         2323         2195         2065         -5.9

  Anglerfish                15139        13119        10120        10786        6.6

  Plaice                    7665         5939         4364         3496         -19.9

  Saithe (coley)            9653         9888         8481         8995         6.1

  Sole                      2148         2140         2260         1993         -11.8

  Whiting                   15140        11430        8161         7399         -9.3

  Other Demersal            62582        47776        43023        53496        24.3

  **Total Demersal**        **195530**   **178069**   **143216**   **155655**   **8.7**

  Herring                   43808        42466        55248        56214        1.7

  Mackerel                  63912        96609        106468       115299       8.3

  Other Pelagic             18937        17731        10332        8059         -22.0

  **Total Pelagic**         **126657**   **156806**   **172048**   **179572**   **4.4**

  Crabs                     24959        23261        22996        20417        -11.2

  Nephrops                  28405        28382        27599        30317        9.8

  Other Shellfish           82799        79106        75319        71751        -4.7

  **Total Shellfish**       **136163**   **130749**   **125914**   **122485**   **-2.7**

  **TOTAL**                 **458350**   **465624**   **441178**   **457712**   **3.7**
  ------------------------- ------------ ------------ ------------ ------------ ---------------

## Table 2 - Salmon and Salmon Products, PS&D Table

  --------------- --------------------- ----------------- ---------- ----------------- ---------- ----------------- ---------
  **Commodity**   **Salmon,                                                            (MT)                         
                  Whole/Eviscerated**                                                                               

                  2004                  Revised           2005       Estimate          2006       Forecast          UOM

                  USDA Official \[Old\] Post              USDA       Post              USDA       Post              
                                        Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]   
                                                          \[Old\]                      \[Old\]                      

  **Market Year                         01/2004                      01/2005                      01/2006           MM/YYYY
  Begin**                                                                                                           

  Beginning       500                                     800        800               1000       1400              (MT)
  Stocks                                                                                                            

  Total           142200                137600            140000     116000            0          130000            (MT)
  Production                                                                                                        

  Intra-EC        3600                  3300              3000       4300              0          3300              (MT)
  Imports                                                                                                           

  Other Imports   11800                 13500             9500       22500             0          19000             (MT)

  TOTAL Imports   15400                 16800             12500      26800             0          22300             (MT)

  TOTAL SUPPLY    158100                154400            153300     143600            1000       153700            (MT)

  Intra-EC        46800                 49600             43500      38900             0          42800             (MT)
  Exports                                                                                                           

  Other Exports   18200                 11700             14900      12500             0          14500             (MT)

  TOTAL Exports   65000                 61300             58400      51400             0          57300             (MT)

  Domestic        65800                 64900             67100      63200             0          66500             (MT)
  Consumption                                                                                                       

  Other Use/Loss  26500                 27400             26800      27600             0          28100             (MT)

  TOTAL           92300                 92300             93900      90800             0          94600             (MT)
  Utilization                                                                                                       

  Ending Stocks   800                   800               1000       1400              0          1800              (MT)

  TOTAL           158100                154400            153300     143600            0          153700            (MT)
  DISTRIBUTION                                                                                                      
  --------------- --------------------- ----------------- ---------- ----------------- ---------- ----------------- ---------

## Table 3 - Salmon and Salmon Products, Prices Table

  --------------- -------------------------- ------------------- ----------
  **Country**     United Kingdom                                 

  **Commodity**   Salmon, Whole/Eviscerated                      

  Prices in       pence                      per uom             kg

                                                                 

  Year            2004                       2005                \% Change

  Jan             235                        230                 -2%

  Feb             235                        230                 -2%

  Mar             235                        230                 -2%

  Apr             220                        230                 5%

  May             230                        290                 26%

  Jun             230                        290                 26%

  Jul             230                        290                 26%

  Aug             230                        300                 30%

  Sep             230                        305                 33%

  Oct             225                                            -100%

  Nov             230                                            -100%

  Dec             230                                            -100%

                                                                 

  Exchange Rate   0.54                       Local Currency/US   
                                             \$                  

  Date of Quote   8/1/2005                   MM/DD/YYYY          
  --------------- -------------------------- ------------------- ----------

## Table 4 - Salmon and Salmon Products, Import Matrix

  -------------------- ------------------- ----------------- ---------------
  **Country**          United Kingdom                        

  **Commodity**        Salmon,                               
                       Whole/Eviscerated                     

  Time Period          CY                  Units:            MT

  Imports for:         2003                                  **2004**

  U.S.                 730                 U.S.              850

  Others                                   Others            

  Norway               5392                Norway            7978

  Faroe Islands        1693                China             2092

  Denmark              900                 Faroe Islands     2009

  Ireland              733                 Denmark           1507

  Germany              588                 Ireland           752

  China                547                 Germany           598

  Chile                412                 Chile             403

  France               158                 Netherlands       160

  Sweden               70                  France            113

  Netherlands          47                  Belgium           98

  Total for Others     10540                                 15710

  Others not Listed    39                                    234

  Grand Total          11309                                 16794
  -------------------- ------------------- ----------------- ---------------

## Table 5 - Salmon and Salmon Products, Export Matrix

  -------------------- ------------------- ----------------- ---------------
  **Country**          United Kingdom                        

  **Commodity**        Salmon,                               
                       Whole/Eviscerated                     

  Time Period          CY                  Units:            MT

  Exports for:         2003                                  **2004**

  U.S.                 14166               U.S.              9541

  Others                                   Others            

  France               27954               France            30696

  Germany              6095                Germany           3770

  Spain                5651                Spain             3024

  Ireland              3563                Ireland           2946

  Japan                3252                Belgium           2078

  Belgium              2541                Japan             1910

  Denmark              1530                Denmark           1497

  Netherlands          1302                Netherlands       1002

  Canada               1090                China             766

  Taiwan               735                 Poland            668

  Total for Others     53713                                 48357

  Others not Listed    2506                                  3445

  Grand Total          70385                                 61343
  -------------------- ------------------- ----------------- ---------------

##  

## Table 6 - Salmon Canned, PS&D Table

  -------------- --------------- ----------------- ---------- ----------------- ---------- ----------------- ---------
  PSD Table                                                                                                  

  Country        United Kingdom                                                                              

  Commodity      Salmon, Canned                                                 (MT)                         

                 2004            Revised           2005       Estimate          2006       Forecast          UOM

                 USDA Official   Post              USDA       Post              USDA       Post              
                 \[Old\]         Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]   
                                                   \[Old\]                      \[Old\]                      

  Market Year                    01/2004                      01/2005                      01/2006           MM/YYYY
  Begin                                                                                                      

  Beginning      2450            2450              1800       3200              1200       1900              (MT)
  Stocks                                                                                                     

  Total          0               0                 0          0                 0          0                 (MT)
  Production                                                                                                 

  Intra-EC       700             750               1200       800               0          900               (MT)
  Imports                                                                                                    

  Other Imports  24800           26150             24300      23900             0          24200             (MT)

  TOTAL Imports  25500           26900             25500      24700             0          25100             (MT)

  TOTAL SUPPLY   27950           29350             27300      27900             1200       27000             (MT)

  Intra-EC       550             600               600        600               0          550               (MT)
  Exports                                                                                                    

  Other Exports  200             250               200        150               0          150               (MT)

  TOTAL Exports  750             850               800        750               0          700               (MT)

  Domestic       25400           25300             25300      25250             0          25200             (MT)
  Consumption                                                                                                

  Other Use/Loss 0               0                 0          0                 0          0                 (MT)

  TOTAL          25400           25300             25300      25250             0          25200             (MT)
  Utilization                                                                                                

  Ending Stocks  1800            3200              1200       1900              0          1100              (MT)

  TOTAL          27950           29350             27300      27900             0          27000             (MT)
  DISTRIBUTION                                                                                               
  -------------- --------------- ----------------- ---------- ----------------- ---------- ----------------- ---------

## 

##  

## Table 7 - Salmon Canned, Import Matrix

  -------------------- ----------------- ----------------- ---------------
  Country              United Kingdom                      

  Commodity            Salmon, Canned                      

  Time Period          CY                Units:            MT

  Imports for:         2003                                2004

  U.S.                 13834             U.S.              18901

  Others                                 Others            

  Canada               6644              Canada            6351

  Chile                748               Chile             610

  Ireland              407               Germany           395

  Germany              326               Thailand          394

  Thailand             233               France            74

  Netherlands          177               South Korea       58

  France               131               Netherlands       42

  South Korea          101               Spain             26

  Spain                40                China             16

  Norway               17                Indonesia         15

  Total for Others     8824                                7981

  Others not Listed    18                                  23

  Grand Total          22676                               26905
  -------------------- ----------------- ----------------- ---------------

## Table 8 - Salmon Canned, Export Matrix

  -------------------- ----------------- ----------------- ---------------
  Country              United Kingdom                      

  Commodity            Salmon, Canned                      

  Time Period          CY                Units:            MT

  Exports for:         2003                                2004

  U.S.                 22                U.S.              56

  Others                                 Others            

  Ireland              420               Ireland           494

  Germany              81                Canada            36

  France               53                Netherlands       33

  Netherlands          28                Hong Kong         33

  Spain                18                Norway            22

  Hong Kong            14                France            18

  Malta                13                Chile             18

  Singapore            12                Germany           12

  Thailand             11                Thailand          12

  Bermuda              11                Malta             11

  Total for Others     661                                 689

  Others not Listed    70                                  96

  Grand Total          753                                 841
  -------------------- ----------------- ----------------- ---------------

## Table 9 - Groundfish Whole/Eviscerated, PS&D 

  --------------- --------------------- ----------------- ---------- ----------------- ---------- ----------------- ---------
  **PSD Table**                                                                                                     

  **Country**     **United Kingdom**                                                                                

  **Commodity**   **Groundfish,                                                        (MT)                         
                  Whole/Eviscerated**                                                                               

                  2004                  Revised           2005       Estimate          2006       Forecast          UOM

                  USDA Official \[Old\] Post              USDA       Post              USDA       Post              
                                        Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]   
                                                          \[Old\]                      \[Old\]                      

  **Market Year                         01/2004                      01/2005                      01/2006           MM/YYYY
  Begin**                                                                                                           

  Beginning       4300                  4300              3800       4200              3600       3500              (MT)
  Stocks                                                                                                            

  Total           61000                 70650             57200      70550             0          68500             (MT)
  Production                                                                                                        

  Intra-EC        8200                  7050              9600       4600              0          5800              (MT)
  Imports                                                                                                           

  Other Imports   81200                 82600             76200      86900             0          85400             (MT)

  TOTAL Imports   89400                 89650             85800      91500             0          91200             (MT)

  TOTAL SUPPLY    154700                164600            146800     166250            3600       163200            (MT)

  Intra-EC        15600                 15550             14650      15500             0          15800             (MT)
  Exports                                                                                                           

  Other Exports   13700                 14000             12400      19600             0          17500             (MT)

  TOTAL Exports   29300                 29550             27050      35100             0          33300             (MT)

  Domestic        8900                  9450              8900       9500              0          9200              (MT)
  Consumption                                                                                                       

  Other Use/Loss  112700                121400            107250     118150            0          118500            (MT)

  TOTAL           121600                130850            116150     127650            0          127700            (MT)
  Utilization                                                                                                       

  Ending Stocks   3800                  4200              3600       3500              0          2200              (MT)

  TOTAL           154700                164600            146800     166250            0          163200            (MT)
  DISTRIBUTION                                                                                                      
  --------------- --------------------- ----------------- ---------- ----------------- ---------- ----------------- ---------

## Table 10 - Groundfish Whole/Eviscerated, Prices Table

  --------------- ---------------------------- ------------------ ---------
  **Country**     United Kingdom                                  

  **Commodity**   Groundfish,                                     
                  Whole/Eviscerated                               

  Prices in       pence                        per uom            kg

                                                                  

  Year            2004                         2005               \% Change

  Jan             420                          551                31%

  Feb             420                          480                14%

  Mar             425                          480                13%

  Apr             440                          525                19%

  May             420                          480                14%

  Jun             464                          500                8%

  Jul             464                          500                8%

  Aug             441                          550                25%

  Sep             464                          550                19%

  Oct             464                                             -100%

  Nov             464                                             -100%

  Dec             551                                             -100%

                                                                  

  Exchange Rate   0.54                         Local Currency/US  
                                               \$                 

  Date of Quote   8/1/2005                     MM/DD/YYYY         
  --------------- ---------------------------- ------------------ ---------

## Table 11 - Groundfish Whole/Eviscerated, Import Matrix

  -------------------- ------------------- ----------------- ---------------
  **Country**          United Kingdom                        

  **Commodity**        Groundfish,                           
                       Whole/Eviscerated                     

  Time Period          CY                  Units:            MT

  Imports for:         2003                                  **2004**

  U.S.                 23                  U.S.              41

  Others                                   Others            

  Faroe Islands        26265               Faroe Islands     25706

  Russia               24520               Russia            25368

  Norway               14462               Iceland           24826

  Iceland              5595                Norway            6577

  Ireland              3448                Ireland           2290

  Denmark              3089                Denmark           1862

  Germany              2090                Germany           1024

  France               1741                France            861

  Portugal             334                 Sweden            524

  South Africa         128                 Belgium           160

  Total for Others     81672                                 89198

  Others not Listed    363                                   417

  Grand Total          82058                                 89656
  -------------------- ------------------- ----------------- ---------------

## Table 12 - Groundfish Whole/Eviscerated, Export Matrix

  -------------------- ------------------- ----------------- ---------------
  **Country**          United Kingdom                        

  **Commodity**        Groundfish,                           
                       Whole/Eviscerated                     

  Time Period          CY                  Units:            MT

  Exports for:         2003                                  **2004**

  U.S.                 436                 U.S.              282

  Others                                   Others            

  China                8335                China             11296

  France               6142                France            7853

  Spain                3529                Portugal          3004

  Portugal             2680                Spain             2919

  Canada               949                 Norway            1358

  Norway               430                 Denmark           899

  Ireland              407                 Hong Kong         453

  Denmark              322                 Ireland           403

  Netherlands          277                 Netherlands       356

  Thailand             184                 Canada            332

  Total for Others     23255                                 28873

  Others not Listed    1061                                  385

  Grand Total          24752                                 29540
  -------------------- ------------------- ----------------- ---------------

## 

## Table 13 - Groundfish Fillets, PS&D Table

  --------------- --------------- ----------------- ---------- ----------------- ---------- ----------------- ---------
  **PSD Table**                                                                                               

  **Country**     **United                                                                                    
                  Kingdom**                                                                                   

  **Commodity**   **Groundfish,                                                  (MT)                         
                  Fillets**                                                                                   

                  2004            Revised           2005       Estimate          2006       Forecast          UOM

                  USDA Official   Post              USDA       Post              USDA       Post              
                  \[Old\]         Estimate\[New\]   Official   Estimate\[New\]   Official   Estimate\[New\]   
                                                    \[Old\]                      \[Old\]                      

  **Market Year                   01/2004                      01/2005                      01/2006           MM/YYYY
  Begin**                                                                                                     

  Beginning       1600            1600              1500       900               1200       1400              (MT)
  Stocks                                                                                                      

  Total           36500           40500             35500      38500             0          37500             (MT)
  Production                                                                                                  

  Intra-EC        29600           32800             30500      27800             0          30400             (MT)
  Imports                                                                                                     

  Other Imports   103600          97400             103100     101300            0          100500            (MT)

  TOTAL Imports   133200          130200            133600     129100            0          130900            (MT)

  TOTAL SUPPLY    171300          172300            170600     168500            1200       169800            (MT)

  Intra-EC        22600           24600             23000      18400             0          21500             (MT)
  Exports                                                                                                     

  Other Exports   2200            2500              1800       1400              0          1950              (MT)

  TOTAL Exports   24800           27100             24800      19800             0          23450             (MT)

  Domestic        145000          144300            144600     147300            0          145550            (MT)
  Consumption                                                                                                 

  Other Use/Loss  0               0                 0          0                 0          0                 (MT)

  TOTAL           145000          144300            144600     147300            0          145550            (MT)
  Utilization                                                                                                 

  Ending Stocks   1500            900               1200       1400              0          800               (MT)

  TOTAL           171300          172300            170600     168500            0          169800            (MT)
  DISTRIBUTION                                                                                                
  --------------- --------------- ----------------- ---------- ----------------- ---------- ----------------- ---------

## 

##  

## Table 14 - Groundfish Fillets, Prices Table

  ---------------- -------------------- ---------------------- -----------
  **Country**      United Kingdom                              

  **Commodity**    Groundfish, Fillets                         

  Prices in        pence                per uom                kg

                                                               

  Year             2004                 2005                   \% Change

  Jan              525                  600                    14%

  Feb              525                  480                    -9%

  Mar              551                  550                    0%

  Apr              551                  550                    0%

  May              488                  480                    -2%

  Jun              488                  600                    23%

  Jul              488                  550                    13%

  Aug              535                  565                    6%

  Sep              410                  550                    34%

  Oct              375                                         -100%

  Nov              375                                         -100%

  Dec              450                                         -100%

                                                               

  Exchange Rate    0.54                 Local Currency/US \$   

  Date of Quote    8/1/2005             MM/DD/YYYY             
  ---------------- -------------------- ---------------------- -----------

## Table 15 - Groundfish Fillets, Import Matrix

  -------------------- ----------------- ----------------- ---------------
  **Country**          United Kingdom                      

  **Commodity**        Groundfish,                         
                       Fillets                             

  Time Period          CY                Units:            MT

  Imports for:         2003                                **2004**

  U.S.                 7428              U.S.              7751

  Others                                 Others            

  Iceland              26703             Iceland           32040

  China                22689             China             22273

  Denmark              21004             Denmark           20652

  Russia               15037             Norway            14506

  Norway               14035             Faroe Islands     10849

  Faroe Islands        7502              Russia            7992

  Germany              5319              Germany           7055

  Poland               3007              Poland            1686

  Spain                1086              Spain             1172

  Greenland            957               Canada            929

  Total for Others     117339                              119154

  Others not Listed    2818                                3259

  Grand Total          127585                              130164
  -------------------- ----------------- ----------------- ---------------

## Table 16 - Groundfish Fillets, Export Matrix

  -------------------- ----------------- ----------------- ---------------
  **Country**          United Kingdom                      

  **Commodity**        Groundfish,                         
                       Fillets                             

  Time Period          CY                Units:            MT

  Exports for:         2003                                **2004**

  U.S.                 419               U.S.              629

  Others                                 Others            

  Germany              12509             Germany           11164

  France               5498              Ireland           6939

  Ireland              2243              France            3945

  Spain                1179              Spain             1018

  Sweden               1002              Thailand          714

  Denmark              964               Norway            492

  Netherlands          598               Netherlands       439

  China                501               Belgium           405

  Norway               344               China             291

  Belgium              259               Denmark           273

  Total for Others     25097                               25680

  Others not Listed    600                                 757

  Grand Total          26116                               27066
  -------------------- ----------------- ----------------- ---------------