Economics of the UK Fishing Fleet 2017 · Economics of the UK Fishing Fleet 2017. 03 • Overall, the performance of the UK fishing fleet in 2017 was largely similar to that of 2016

Economics of the UK Fishing Fleet 2017

The authors would like to thank the many people who contributed to this study and report. We are especially grateful to: • The several hundred UK vessel owners and skippers who contributed

their vessel accounts, completed questionnaires and participated in interviews.

• The national fishermen’s organisations for their support and the producer organisations, vessel agents and fishermen’s associations throughout the UK who assisted.

• The UK government fisheries departments, and the Marine Management Organisation, particularly Kevin Williamson, Matt Elliott and their team.

• The many firms of accountants who supplied accounts on behalf of vessel owners.

• Euan Mackenzie, Kelly Beatson, Richard Lilley and Sienna Gray who contributed to the data collection phase of the research.

• The authors would also like to thank Hazel Curtis, Sébastien Metz, Kirsten Milliken, Sadia Ali and Kelly Beatson who helped to create the data set for this report.

November 2018 Seafish Report No. SR728

ISBN No. 978-1-911073-34-5

© Copyright Seafish 2018

Seafish Economics Seafish 18 Logie Mill Logie Green Road Edinburgh EH7 4HS

Authors: Steve Lawrence Marta Moran Quintana Arina Motova

01


Contents

Executive summary 04Introduction 05The UK fishing fleet in 2017 06– Fleet 07

– Landings 08

– Employment and GVA 10

– Financial performance in 2017 1 1

Home nations analysis 12– Fleet 12

– Landings 14

– Employment and GVA 16

Fleet size and activity 18Fleet landings 22Fish prices 23Fishing efficiency 24Annual operating costs 26Economic performance of the fleet 32Methods 36Glossary and list of acronyms 40Further reading 41

02


03

• Overall, the performance of the UK fishing fleet in 2017 was largely similar to that of 2016. Particular changes in average prices, income and costs are discussed in the following points.

• The total number of active fishing vessels increased from 4,637 in 2016 to 4,701 in 2017. Of these active vessels, around 1,500 were classed by Seafish as low activity vessels with a fishing income of less than £10,000.

• Total fishing income for UK vessels increased from £946million in 2016 to £984million in 2017 (nominal figures). The increase in fishing income was mostly due to higher average prices of shellfish species in 2017, therefore vessels relying on shellfish for income benefitted most.

• The total operating profit of the UK fishing fleet in 2017 was an estimated £254million. This is a 4% decrease (in nominal terms) from 2016, when it reached £265million. The average operating profit margin of the fleet decreased from 22% in 2016 to 19% in 2017.

• The decrease in operating profit was largely driven by an increase in the fleet operating costs, which was mainly due to a higher annual average price of fuel in 2017. In nominal terms, the average price of fuel increased by 73% between January 2016 and December 2017. Total spend on fuel of the fleet increased by 26% (in nominal terms) in 2017 to an estimated £119million compared to 2016. Operating costs increased from 78% of total income in 2016 to 81% of total income in 2017.

• Seafish researchers interviewed around 400 skippers and vessel owners during the summer of 2017. These interviews highlighted issues such as the abundance of fish, access to quota, fuel price, weather and other issues as the main factors impacting the financial performance of businesses. Seafish’s Quay Issues magazine investigates these concerns in more detail, looking at innovative approaches to tackle the challenges faced by the industry.

• Interviewees reported a mixture of ambitions for the next few years. Vessel owners and skippers mentioned several factors when discussing business limitations and uncertainty including the future political and trade landscape, abundance of fish, oil price, quota access and the weather.

NB: All financial estimates for 2017 will be revised when vessel accounts for that year are available in early 2019. A new annual report will be published based on updated estimates.

Executive summaryEconomics of the UK Fishing Fleet 2017

04

This report provides a detailed insight into the financial and operational performance of the UK fishing fleet in 2016 and 2017. This is the twelfth edition of this annual report. We hope that accurate fleet economic data and analyses will help inform decisions and help to enhance fisheries management and benefit the UK fleet in the long-run.The report presents economic estimates at UK, home nation and fleet segment level for the years 2016 and 2017. The estimates are calculated based on samples of fishing costs and earnings gathered by Seafish as part of the 2016 Annual Fleet Economic Survey. The data does not include or reveal any individual vessel data, only segment totals and averages.

Estimates for 2016 are based on same year costs and earnings samples, official statistics on landings, capacity and effort, and fuel price. Estimates for 2017 are based on same year landings and effort data, fuel prices and 2016 cost and earning samples. The different estimation methods are due to a time lag in the availability of company accounts. 2017 estimates should therefore be considered early estimates. Seafish will revise those estimates when 2017 vessel accounts become available in early 2019.

The dataset presented in this report is downloadable as an Excel file from the Seafish website. The website also offers access to our full suite of publications covering the economic performance of the UK seafood catching and processing sectors. Bespoke analyses are available upon request and depending on sufficient data being available.

If you have any comments about this report, would like to suggest improvements or would like more detailed information, please contact us at:


Telephone: 0131 524 8663 E-mail: [email protected]

Production of this report is only possible with the goodwill of vessel owners (and their accountants) who participated in the survey.

IntroductionEconomics of the UK Fishing Fleet 2017

05

06

Total UK Fleet Fishing income

Total UK Fleet Operating cost

Total UK Fleet Turnover

2016

2016

2016

£946 million

£981 million

£716 million

2017

2017

£1 billion

£771 million

2017 £984 million


The UK fishing fleet in 2017Summary

Total UK Fleet GVA

Total UK Fleet Operating profit2016

2016

£265 million

£504 million

2017

2017

£254 million

£497 million

07


4,701 Active VesselsIn 2017 there were 4,701 active registered vessels in the UK fishing fleet. In addition there were 1,565 inactive vessels, most of which were small scale vessels under 10m in length.

74% Of all active vessels are under-10mThe UK fishing fleet is highly diverse in terms of types of vessels and species targeted. In 2017 three quarters of active vessels (74%) were under 10m in length. These vessels operate mostly in the inshore areas around the UK, while larger vessels tend to operate further from the shore.

40%Use static or passive gearUK fishing vessels also vary in the types of gears used. Approximately 40% of active vessels (excluding low activity vessels) used mainly static or passive gear (pots, hooks, drift and fixed nets). Vessels using mobile (or towed) gears include dredgers, trawlers or seiners.

36% Low activity vesselsApproximately a third (36%) of registered vessels active in 2017 were classed by Seafish as “low activity”. Low activity vessels are defined as those with annual fishing income under £10,000.

¢ Active vessels (Fishing income >£10,000 per vessel)

¢ Inactive vessels (Fishing income £0 per vessel)

¢ Low Activity vessels (Fishing income <£10,000 per vessel)

Fleet

Map of weight of landings by portThe UK fishing fleet landed nearly 719,000 tonnes of fish and shellfish in 2017. Most landings were made in UK, with Peterhead, Lerwick and Fraserburgh being the main UK landing ports by weight. Landings abroad were mainly in Norway, Denmark, the Netherlands and Ireland.

08

Over 30% of total landings by weight

is made up by Mackerel alone.

UK fleet landings By weight


Landings

Total UK Fleet Landing locationUK 60% Abroad40%

£984m Value of landingsThe total fishing income of the UK fleet was £984million in 2017. This represents a 4% increase (in nominal terms) from 2016. This increase was mostly due to an increase in the value of shellfish landings, which in turn was due to an increase in average prices.

Top species landed in 2017 by weight and value

Average first sale price by species group

¢ Demersal ¢ Pelagic ¢ Shellfish ¢ Average

2500

£ / t

onne

2000

1500

1000

500

02009 2010 2011 2012 2013 2014

Mackerel

Mackerel

Herring

Nephrops

Blue Whiting

Cod

Cod

Scallops

Crab

Crab

0

0

50

50

100

100

150

150

200

200

Wei

ght l

ande

d (t

hous

and

tonn

es)

Valu

e la

nded

(mill

ion

£)

09


2015 2016 2017

250

250

£203.4 m

£99.2 m£77.9 m £74.3 m

£62.1 m

226,900 t

84,100 t66,400 t

38,400 t 36,000 t

Employment by home nationAccording to the UK Sea Fisheries Statistics 2017 there were an estimated 9,710 full time fishermen working on UK registered vessels in 2017, a 3% increase compared to 2016.

There was also an estimated 1,982 part-time fishermen.

929FTEs on under 10m pots and traps vesselsThe segment with most FTE jobs was the UK under 10m pots and traps segment, which had 929 FTEs spread across 1,156 vessels in 2017. This means less than one full time equivalent job per vessel, reflecting the fact that many of these small vessels do not operate at sea all year round.

10


Employment and GVA

Overall

Fulll-Time: 9,710

Part-Time: 1,982

Total: 11,692

Scotland

Fulll-Time: 3,932

Part-Time: 867

Total: 4,799

England

Fulll-Time: 4,657

Part-Time: 642

Total: 5,299

Northern Ireland

Fulll-Time: 686

Part-Time: 152

Total: 838

Wales

Fulll-Time: 435

Part-Time: 321

Total: 756£497mGross Value Added (GVA) Gross Value Added (GVA) is used as a measure of the contribution to the economy of an individual industry in the United Kingdom. It is also used for estimating Gross Domestic Product (GDP), a key indicator of the state of the whole economy.

The Gross Value Added (GVA) of the UK fleet in 2017 is estimated at £497million (nominal figures), a 1% decrease compared to 2016. The largest share of GVA corresponded to vessels over 24m length.

Financial performance in 2017

£1 billionTotal UK Fleet TurnoverTurnover is the sum of fishing income and non-fishing income and can include fees for guard duties of oil facilities, use of vessel for research operations, etc.

When adjusted for inflation, turnover has risen 3% since 2016 mainly as a result of increased fishing income.

4%Non-fishing incomeAn estimated 4% of total UK fleet turnover was non-fishing income in 2017. This figure includes income for leasing out quota as well as activities such as guard duty and tourist trips.

11


42pAverage fuel price per litreAverage annual price per litre increased from 34p per litre in 2016 to 42p per litre in 2017.

The total fuel expenditure of the fleet as estimated by Seafish increased by 26% from £95million in 2016 to £119million in 2017.

£254mOperating ProfitThe total operating profit of the UK fleet decreased by 4%, from £265million in 2016 to £254million in 2017. This decrease reflects the increase in operating costs as a proportion of income in 2017, due to higher fuel costs not completely compensated by a higher fishing income.

Vessel length

Under 10m10m to 24mOver 24m

UK Fleet Active vessels

England had the most active vessels

in 2017.

Of the four home nations, England had the most active vessels in 2017 with 2,300 active fishing vessels (including low activity vessels). English-registered vessels represented nearly half (49%) of all active vessels in the UK fleet. Scotland had the second largest number of active vessels with 1,713 active vessels (37% of UK active

vessels). Wales and Northern Ireland had a total of 315 and 266 active vessels in 2017 respectively.

Scotland had the largest number of over 10m active vessels in 2017 (564, or 46% of the total number of over 10m active vessels in the UK).

Fleet size and activity

Figure 1a. Number of active fishing vessels by registered home nation of vessels in 2017

Home nations analysis Fleet

1,175439

125

1,833391

76

134124

8

288


243

12

Vessel length


UK Fleet Days at sea

Over 10m vessels

represented half of total days

at sea.

Nearly three quarters (74%) of UK active vessels were under 10m in length. Larger vessels, over 10m in length, represented a quarter of the active fishing vessels but half of the total days at sea. This imbalance is because many vessels under 10m have low levels of activity.

Figure 1 shows the composition of the fleet and days at sea by home nation and size category.

Figure 1b. Days at sea by registered home nation of vessels in 2017

13

81,23674,416

24,100

91,83453,315

17,554

11,71116,357

762

7,0232,824

673


Of the four home nations, vessels registered in Scotland landed the highest total weight of fish compared to the rest of the UK in 2017 with nearly 462,000 tonnes. This figure represents 64% of the total landings of the UK fleet by weight. Vessels registered in England landed nearly 199,000 tonnes, while vessels registered in Northern Ireland and Wales landed just over 43,000 and 10,000 tonnes respectively.

Total fishing income by vessels registered in Scotland was the highest of the four home nations. Vessels registered in Scotland had a total fishing income of nearly £561million in 2017, representing 58% of UK fishing income. Vessels registered in England had a fishing income of nearly £332million, or 34% of the UK total.

Figure 2a. Weight of landings by registered home nation of vessels in 2017.

14

Vessel length


UK Fleet Weight of landings

Over 24m vessels generated the largest share of the total weight

of landings.

13,47567,853

380,277

22,95853,958

121,532

2,97013,275

26,933

3,0683,4774,091


Landings

In each of the four home nations, over 24m vessels generated the largest share of the total weight of landings in 2017. The proportion of total landings by vessels over 24m varied between 38% of all landings by Welsh-registered vessels and 82% of all landings by Scottish-registered vessels.

Over 24m vessels generated the largest share of fishing income for vessels registered in England, Scotland and Wales in 2017. Over 24m vessels landed between 51%

and 63% of total fishing income in these three home nations. In Northern Ireland, vessels 10-24m vessels generated the largest share of fishing income, 50% of total fishing income by Northern Ireland-registered vessels.

Figure 2 shows the weight and value of landings by home nation and vessel size.

Figure 2b. Value of landings by registered home nation of fishing vessels in 2017.

15

Vessel length


UK Fleet Value of landings

Landings from Scottish registered vessels represented 58% of UK fishing

income.

45,989161,108

353,717

53,381108,079

170,385

4,91228,66523,235

5,6405,560

13,952


Scottish-registered vessels had the highest number of FTEs in 2017 with 4,300 FTEs. This represented half of the total number of FTEs in the UK fishing fleet. English-registered vessels had 3,240 FTEs or 38% of the total number of FTEs.

Northern Irish- and Welsh-registered vessels represented 9% and 2% of total FTEs respectively. The majority of the FTEs across all home nations were on vessels between 10m and 24m in length.

Figure 3a. FTEs by registered home nation of vessels in 2017.

16

Vessel length


UK Fleet FTEs

The majority of FTEs were on vessels between

10 and 24m in length.

6092,143

1,475

7081,407

1,003

94601

35

356822


Employment and GVA

Scottish-registered vessels had the highest GVA in 2017 at nearly £292million. English-registered vessels had a GVA of £157million, while Northern Irish- and Welsh-registered vessels had a GVA of £31million and £12million respectively.

Vessels over 24m contributed the largest share to total GVA in England, Scotland and Wales. In Northern Ireland 10-24m vessels and over 24m vessels represented the same proportion of total GVA (46% each).

Figure 3 shows FTEs and GVA by home nation and vessel size.

Figure 3b. GVA by registered home nation of vessels in 2017.

17

Vessel length


UK Fleet GVA

Scottish registered vessels

had the highest GVA in 2017 at nearly

£292 million.

27,02769,783

195,155

30,95653,031

73,475

2,52214,29114,233

3,6202,9975,815


There were 4,701 active registered vessels in the UK fishing fleet in 2017. This is a 1.5% increase from 2016, when there were 4,637 active vessels in the fleet. In both 2016 and 2017, around a third of the active fleet were classed by Seafish as low activity vessels.

The 32 Seafish-defined fleet segments varied greatly in size. Segments comprising under 10m vessels accounted for 58% of active vessels in 2017 (excluding low activity vessels). The largest segment by a wide margin was the under 10m pots and traps fleet with over 1,150 vessels (38% of active vessels excluding low activity). Other segments ranged from nine vessels in the North Sea beam trawl over 300kW segment to 235 vessels in the under 10m using hooks segment. Defined Seafish segments do not include vessels classed as “low activity”, which are counted in two separate segments for over 10m and under 10m low activity vessels.

The greatest change in numbers of vessels from 2016 to 2017 occurred in the small scale fleet. The number of under 10m vessels using static gear (pots and hooks) increased by 138 vessels. The number of under 15m scallop dredgers increased by 28. It is possible that the higher prices of shellfish in 2017 encouraged some owners to switch activity, which lead to them being counted in these segments. The number of under 10m demersal trawl vessels and under 10m drift and/or fixed net vessels decreased by 57 in 2017 relative to 2016.

Average days at sea per active vessel in 2017 ranged from 62 days at sea for under 10m vessels using hooks to 251 days at sea for Area VIIB-K trawlers between 24 and 40m. In 2017 average days at sea per vessel decreased for around half of the segments (17), particularly North Sea beam trawlers over 300kW, Area 7B-K trawlers between 24-40m and under 10m vessels.

Average fishing income per vessel varied greatly across different fleet segments. There is also variation among vessels within the same fleet segment. Average fishing income per vessel increased in 2016 for most fleet segments compared to 2015, but trends in 2017 were mixed. Twelve segments saw an increase in average fishing income per vessel, while for 16 segments it remained the same or decreased. North Sea beam trawlers over 300kW and longline vessels had a 35% decrease in average fishing income per vessel in 2017; while Area 7A demersal trawlers had a 62% increase.

Changes in fishing income are related to effort, weight of landings, prices, fishing opportunities and abundance or stock size. The increase in average fishing income per vessel for Area 7A demersal trawlers is related to a 58% increase in the TAC of their main stock (Haddock 7A) and an increase in fishing effort (days at sea), which resulted in an increase in weight landed per day at sea (see Table 2). The decrease in fishing income for North Sea beam trawlers over 300kW and longliners is related to a decrease in fishing effort (NS beam trawlers over 300kW) and weight landed per day at sea (NS beam trawlers over 300kW and longliners) (see Table 1 and 2).

During our 2017 survey the availability and cost of quota was an issue often noted as impacting on the financial performance of businesses. A few participants were concerned with the methods of distributing the quota, which they felt led to lost fishing opportunities for some vessels.

18



19

Segment Number of vessels Average days at sea Average fishing income (£’000)

Main stock by % of total annual fishing income

Stock status

Stock dependency

% of fleet segment revenues

Fleet significance % of stock landings

caught by this fleet

2nd main stock by % of total annual

fishing income

Stock status

Stock dependency




2016 2017 2016 2017 2016 2017 2017 2017 2017 2017 2017 2017 2017 2017

Area VIIA demersal trawl 15 á 13 â 128 á 144 á 200 á 325 á Haddock VIIa 31% 63% Nephrops VII 17% 4%

Area VIIA nephrops over 250kW 32 â 30 â 140 â 137 276 294 á Nephrops VII 83% 44% WC Nephrops 5% 2%

Area VIIA nephrops under 250kW 42 37 â 136 á 124 â 160 á 158 Nephrops VII 69% 26% WC Nephrops 12% 3%

Area VIIBCDEFGHK 24-40m 11 â 13 á 289 251 â 1,824 á 1,501 â Anglers VII 42% 37% Megrim VII 30% 69%

Area VIIBCDEFGHK trawlers 10-24m 63 â 61 170 á 162 251 á 290 á Cuttlefish 34% 23% Lemon Sole 11% 42%

North Sea beam trawl over 300kW 9 â 9 247 á 191 â 2,267 á 1,458 â North Sea Plaice 64% 41% North Sea Sole 19% 55%

North Sea beam trawl under 300kW 22 á 20 â 86 â 104 á 108 á 96 â Brown Shrimps 98% 79% Scallops 2% 0%

North Sea nephrops over 300kW 48 á 55 á 203 á 218 á 591 á 691 á North Sea Nephrops 55% 49% NS Anglers IIa(EC),IV(EC) 14% 16%

North Sea nephrops under 300kW 64 á 69 á 136 á 131 190 á 184 North Sea Nephrops 71% 25% WC Nephrops 9% 3%

NSWOS demersal over 24m 44 43 206 213 1,942 á 2,047 á North Sea Cod 14% 29% North Sea Haddock 13% 28%

NSWOS demersal pair trawl seine 25 25 200 212 á 1,737 á 1,980 á North Sea Haddock 31% 38% North Sea Cod 30% 35%

NSWOS demersal seiners 16 17 á 158 á 181 á 1,123 á 1,393 á North Sea Haddock 24% 17% North Sea Cod 20% 12%

NSWOS demersal under 24m over 300kW 33 â 37 á 191 200 á 955 á 1,101 á NS Anglers IIa(EC),IV(EC) 23% 30% North Sea Cod 16% 16%

NSWOS demersal under 24m under 300kW 13 â 19 á 124 á 97 â 304 á 240 â Squid 27% 8% NS Anglers IIa(EC),IV(EC) 14% 2%

South West beamers over 250kW 23 26 á 209 226 á 833 á 991 á Cuttlefish 34% 34% Anglers VII 15% 19%

South West beamers under 250kW 23 22 233 á 227 651 á 742 á Cuttlefish 32% 20% Sole VIIe 20% 41%

UK scallop dredge over 15m 92 89 184 á 176 518 á 498 â Scallops 88% 58% Queen Scallops 10% 80%

UK scallop dredge under 15m 180 â 208 á 112 á 95 â 157 á 145 Scallops 71% 32% Cockles 14% 95%

Under 10m demersal trawl/seine 192 174 â 109 95 â 72 á 78 á North Sea Nephrops 27% 8% WC Nephrops 17% 6%

Under 10m drift and/or fixed nets 223 184 â 83 82 43 á 43 Sole VIId 18% 53% Pollack VII 12% 28%

Under 10m pots and traps 1,086 á 1,156 á 125 â 95 â 62 á 60 Lobsters 39% 61% Crabs (C.P.Mixed Sexes) 24% 31%

Under 10m using hooks 167 á 235 á 72 â 62 â 40 36 â Razor Clam 27% 64% Bass 22% 40%

WOS nephrops over 250kW 51 á 41 â 185 á 185 362 á 344 WC Nephrops 79% 31% North Sea Nephrops 7% 3%

WOS nephrops under 250kW 82 â 77 â 158 á 151 183 á 171 â WC Nephrops 92% 38% North Sea Nephrops 5% 2%

Gill netters 30 30 175 159 â 598 á 474 â WS Hake incl VII 27% 24% Anglers VII 24% 22%

Longliners 27 á 30 á 186 187 954 620 â WS Hake incl VII 42% 56% NS Hake 37% 47%

Pots and traps 10-12m 175 á 175 160 154 141 á 145 Crabs (C.P.Mixed Sexes) 31% 14% Lobsters 30% 17%

Pots and traps over 12m 93 92 183 á 192 438 á 495 á Crabs (C.P.Mixed Sexes) 67% 52% Whelks 16% 32%

Miscellaneous 17 á 19 á 146 á 155 á 2,417 á 2,881 á Cod IIb Spitzbergen 27% 99% Patagonian squid 21% 100%

Low activity over 10m 53 á 44 â 21 à 24 á 4 â 4 Crabs (C.P.Mixed Sexes) 65% 0% Lobsters 18% 0%

Low activity under 10m 1,659 1,625 25 â 19 â 3 á 3 Lobsters 32% 4% Bass 13% 18%

Pelagic over 40m 27 26 69 â 76 á 9,244 á 9,537 WC Mackerel 40% 97% Mackerel IVa (flex box) 37% 98%


Table 1. Fleet size, activity, fishing income (nominal figures) and main stocks, 2016-2017

20

Trend:â Indicates a decrease of >5% compared to previous year Indicates a change in the range of +/-5% compared to previous yearáIndicates a increase of >5% compared to previous year


Segment Number of vessels Average days at sea Average fishing income (£’000)

Main stock by % of total annual fishing income

Stock status

Stock dependency




2nd main stock by % of total annual

fishing income

Stock status

Stock dependency




2016 2017 2016 2017 2016 2017 2017 2017 2017 2017 2017 2017 2017 2017

Area VIIA demersal trawl 15 á 13 â 128 á 144 á 200 á 325 á Haddock VIIa 31% 63% Nephrops VII 17% 4%

Area VIIA nephrops over 250kW 32 â 30 â 140 â 137 276 294 á Nephrops VII 83% 44% WC Nephrops 5% 2%

Area VIIA nephrops under 250kW 42 37 â 136 á 124 â 160 á 158 Nephrops VII 69% 26% WC Nephrops 12% 3%

Area VIIBCDEFGHK 24-40m 11 â 13 á 289 251 â 1,824 á 1,501 â Anglers VII 42% 37% Megrim VII 30% 69%

Area VIIBCDEFGHK trawlers 10-24m 63 â 61 170 á 162 251 á 290 á Cuttlefish 34% 23% Lemon Sole 11% 42%

North Sea beam trawl over 300kW 9 â 9 247 á 191 â 2,267 á 1,458 â North Sea Plaice 64% 41% North Sea Sole 19% 55%

North Sea beam trawl under 300kW 22 á 20 â 86 â 104 á 108 á 96 â Brown Shrimps 98% 79% Scallops 2% 0%

North Sea nephrops over 300kW 48 á 55 á 203 á 218 á 591 á 691 á North Sea Nephrops 55% 49% NS Anglers IIa(EC),IV(EC) 14% 16%

North Sea nephrops under 300kW 64 á 69 á 136 á 131 190 á 184 North Sea Nephrops 71% 25% WC Nephrops 9% 3%

NSWOS demersal over 24m 44 43 206 213 1,942 á 2,047 á North Sea Cod 14% 29% North Sea Haddock 13% 28%

NSWOS demersal pair trawl seine 25 25 200 212 á 1,737 á 1,980 á North Sea Haddock 31% 38% North Sea Cod 30% 35%

NSWOS demersal seiners 16 17 á 158 á 181 á 1,123 á 1,393 á North Sea Haddock 24% 17% North Sea Cod 20% 12%

NSWOS demersal under 24m over 300kW 33 â 37 á 191 200 á 955 á 1,101 á NS Anglers IIa(EC),IV(EC) 23% 30% North Sea Cod 16% 16%

NSWOS demersal under 24m under 300kW 13 â 19 á 124 á 97 â 304 á 240 â Squid 27% 8% NS Anglers IIa(EC),IV(EC) 14% 2%

South West beamers over 250kW 23 26 á 209 226 á 833 á 991 á Cuttlefish 34% 34% Anglers VII 15% 19%

South West beamers under 250kW 23 22 233 á 227 651 á 742 á Cuttlefish 32% 20% Sole VIIe 20% 41%

UK scallop dredge over 15m 92 89 184 á 176 518 á 498 â Scallops 88% 58% Queen Scallops 10% 80%

UK scallop dredge under 15m 180 â 208 á 112 á 95 â 157 á 145 Scallops 71% 32% Cockles 14% 95%

Under 10m demersal trawl/seine 192 174 â 109 95 â 72 á 78 á North Sea Nephrops 27% 8% WC Nephrops 17% 6%

Under 10m drift and/or fixed nets 223 184 â 83 82 43 á 43 Sole VIId 18% 53% Pollack VII 12% 28%

Under 10m pots and traps 1,086 á 1,156 á 125 â 95 â 62 á 60 Lobsters 39% 61% Crabs (C.P.Mixed Sexes) 24% 31%

Under 10m using hooks 167 á 235 á 72 â 62 â 40 36 â Razor Clam 27% 64% Bass 22% 40%

WOS nephrops over 250kW 51 á 41 â 185 á 185 362 á 344 WC Nephrops 79% 31% North Sea Nephrops 7% 3%

WOS nephrops under 250kW 82 â 77 â 158 á 151 183 á 171 â WC Nephrops 92% 38% North Sea Nephrops 5% 2%

Gill netters 30 30 175 159 â 598 á 474 â WS Hake incl VII 27% 24% Anglers VII 24% 22%

Longliners 27 á 30 á 186 187 954 620 â WS Hake incl VII 42% 56% NS Hake 37% 47%

Pots and traps 10-12m 175 á 175 160 154 141 á 145 Crabs (C.P.Mixed Sexes) 31% 14% Lobsters 30% 17%

Pots and traps over 12m 93 92 183 á 192 438 á 495 á Crabs (C.P.Mixed Sexes) 67% 52% Whelks 16% 32%

Miscellaneous 17 á 19 á 146 á 155 á 2,417 á 2,881 á Cod IIb Spitzbergen 27% 99% Patagonian squid 21% 100%

Low activity over 10m 53 á 44 â 21 à 24 á 4 â 4 Crabs (C.P.Mixed Sexes) 65% 0% Lobsters 18% 0%

Low activity under 10m 1,659 1,625 25 â 19 â 3 á 3 Lobsters 32% 4% Bass 13% 18%

Pelagic over 40m 27 26 69 â 76 á 9,244 á 9,537 WC Mackerel 40% 97% Mackerel IVa (flex box) 37% 98%

21


Stock status (ICES advice): UnknownAbove MSY Btrigger

Below MSY Btrigger Not assessed by ICES

UK vessels landed 719,000 tonnes of fish and shellfish in 2017. This figure represents a 3% increase from 2016, when landings were 699,000 tonnes. Pelagic species represent just over half of the total weight of landings by UK vessels (54% in 2017).

Total fishing income of UK vessels was £984million in 2017, a 2% increase from 2016. This was largely due to an increase in the value of shellfish landings, even though weight of shellfish landings decreased slightly in 2017. Both demersal and pelagic species represented approximately 37% of total fishing income each in 2017.

Fleet landings

Figure 4. Weight and value of landings by the UK fishing fleet in the UK and abroad by species type, 2009-2017

¢ Demersal ¢ Pelagic ¢ Shellfish

800

Thou

sand

tonn

es

700

600

500

400

300

200

100

2009 2010 2011 2012 2013 2014 2015 2016 20170


1200

Mill

ion

poun

ds (n

omin

al)

1000

800

600

400

200

2009 2010 2011 2012 2013 2014 2015 2016 20170

22


Fish prices

Shellfish and demersal species are the most valuable species, reaching average prices approximately three times higher than pelagic species.

Average nominal (not adjusted for inflation) prices of shellfish species increased between 2015 and 2017. In 2017 the average first sale price of shellfish species increased by 14% compared to 2016 reaching £2,540

per tonne. The average price of demersal species has increased from 2013. In 2017 it was £1,966 per tonne, a 2% increase from 2016. The average price of pelagic species peaked in 2011 at £885, and was £651 in 2017 (an 8% decrease from 2016).

Figure 5. Average price of landings in the UK and abroad by species type, 2009-2017 (not adjusted for inflation)


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23


Fishing efficiency refers to the average weight and value of landings and average fishing costs per vessel per day spent at sea.

Weight of landings per day at sea varied significantly depending on the vessel’s carrying capacity and type of fishing. On average, under 10m vessels using hooks landed around 0.2 tonnes per day at sea in 2017, while NSWoS demersal vessels over 24m landed an average of 5.2 tonnes per day at sea.

Weight of landings per day at sea decreased in 2017 by an average of 2% across the whole fleet compared to 2016. Landings per day at sea increased in just seven segments in 2017 with a wide range of variation between fleet segments. Weight of landings per day at sea for North Sea beam trawlers under 300kW declined by 47% while for Area 7A beam trawlers it increased by 39%. Area 7A beam trawlers benefitted in 2017 from a quota increase and a higher number of days at sea, see Table 1.

Average fishing income per vessel per day at sea increased for all segments in 2016. This was a result of the higher average prices for all species types in 2016, as seen in Figure 5. Prices increased again in 2017, but not to the same extent. Overall, in 2017, average fishing income per day increased by 5% and most fleet segments saw their average fishing income per day at sea increase or remain the same as in 2016.

The average price of shellfish species increased by 14% (in nominal terms) in 2017, see Figure 5. Segments more reliant on shellfish species for income saw the higher annual increases in fishing income per day: Area 7B-K trawlers 10-24m (heavily reliant on cuttlefish), South West beamers (cuttlefish) or under 10m pots and traps (lobsters). By contrast, the average income per day at sea for gill netters, longline vessels and North Sea beam trawlers decreased by between 13% and 36%.

Fishing expenditure per day at sea also varied greatly between segments. Under 10m vessels using drift and/or fixed nets had the lowest average expenditure estimated at £269 per day at sea in 2017, while NS beam trawlers over 300kW had the highest, at £7,025 per day at sea. Trends in fishing expenditure per day at sea largely mirror trends in fishing income per day. In 2017 fishing expenditure per day at sea increased on average by 6% across all segments.

Fishing efficiency

2424


Table 2. Landings per day at sea, fishing income and expenditure per day at sea (nominal figures), 2016-2017

Segment Landings per day (tonnes)

Fishing income per day (£)

Fishing expenditure per day (£)

2016 2017 2016 2017 2016 2017

Area VIIA demersal trawl 0.78 á 1.08 â 1,561 á 2,262 á 641 á 1,087 á

Area VIIA nephrops over 250kW 0.93 â 0.96 â 1,970 â 2,147 1,090 1,217 á

Area VIIA nephrops under 250kW 0.57 0.62 â 1,171 á 1,277 â 626 á 696

Area VIIBCDEFGHK 24-40m 1.99 â 1.99 á 6,311 5,987 â 3,338 á 4,465 â

Area VIIBCDEFGHK trawlers 10-24m 0.90 â 0.85 1,476 á 1,788 778 á 944 á

North Sea beam trawl over 300kW 4.86 â 4.18 9,196 á 7,618 â 6,933 á 7,025 â

North Sea beam trawl under 300kW 0.43 á 0.23 â 1,255 â 924 á 1,092 á 882 â

North Sea nephrops over 300kW 1.12 á 1.21 á 2,906 á 3,163 á 1,956 á 2,179 á

North Sea nephrops under 300kW 0.54 á 0.52 á 1,399 á 1,407 950 á 980

NSWOS demersal over 24m 5.48 5.15 9,411 9,630 6,353 á 6,633 á

NSWOS demersal pair trawl seine 5.44 5.20 8,691 9,338 á 5,849 á 6,333 á

NSWOS demersal seiners 4.57 4.60 á 7,107 á 7,676 á 4,560 á 4,980 á

NSWOS demersal under 24m over 300kW 2.41 â 2.44 á 5,008 5,494 á 3,352 á 3,747 á

NSWOS demersal under 24m under 300kW 1.05 â 0.88 á 2,444 á 2,468 â 1,507 á 1,541 â

WOS nephrops over 250kW 0.92 0.83 á 1,957 1,863 á 1,184 á 1,168 á

WOS nephrops under 250kW 0.45 0.43 1,156 á 1,135 659 á 668 á

South West beamers over 250kW 1.35 1.32 3,985 á 4,391 2,416 á 2,734 â

South West beamers under 250kW 0.90 â 0.91 á 2,790 á 3,265 â 1,571 á 1,862

UK scallop dredge over 15m 1.57 1.30 â 2,816 2,833 â 1,560 á 1,618 á

UK scallop dredge under 15m 0.80 0.84 â 1,395 1,533 821 á 915

Under 10m demersal trawl/seine 0.27 á 0.31 á 659 â 826 â 324 á 405

Under 10m drift and/or fixed nets 0.22 á 0.19 á 515 â 521 â 262 269 â

Under 10m pots and traps 0.20 á 0.24 â 497 á 637 265 á 338

Under 10m using hooks 0.18 â 0.19 â 553 á 578 277 á 289 â

Gill netters 1.53 1.66 3,415 2,984 â 1,963 á 1,751 â

Longliners 1.93 á 1.56 á 5,144 3,316 3,079 2,195 â

Pots and traps 10-12m 0.41 á 0.40 880 943 469 á 508

Pots and traps over 12m 1.46 1.39 2,389 á 2,580 1,367 á 1,495 á

25



DefinitionsFishing vessels incur a range of operating costs which are split into two groups: fishing costs and vessel costs.

Fishing costs vary depending on the amount of vessel activity and the value and weight of landings. Fishing costs cover several elements, of which crew share (wages), and fuel and oil are the most significant. Other items listed under fishing costs include boxes, ice, food and stores, sales commissions, harbour dues, subscriptions and levies, shore labour, travel costs and quota leasing.

Vessel costs are independent of, or not directly related to, the level of vessel activity during the year. These vessel costs include gear and vessel repairs, insurance, administration and the purchase, hire and maintenance of electronic equipment.

Operating costsAverage annual operating costs per vessel vary widely between fleet segments depending on vessel size and level of activity among other factors. Average annual operating costs in 2017 ranged from approximately £23,700 for under 10m vessels using hooks to £1.8million for NSWoS demersal vessels over 24m. In 2017 average annual operating costs per vessel increased or remained stable for all segments but six, compared to 2016, see Table 3.

Operating costs represented a higher percentage of total income in 2017 than in 2016. In 2017 operating costs represented on average 81% of total income across all segments. This higher percentage was a result of a less pronounced increase in fishing income and an increase in average fishing expenditure as seen in Table 2. In 2016 operating costs represented on average 78% of total income across all segments. This percentage was a decrease from the previous year, thanks to the increase in fishing income across the majority of segments seen in Table 1.

Two segments, North Sea beam trawlers under and over 300kW, made a loss in 2017 as their operating costs were 106% of total income.

Fuel is a significant part of operating costs. Fuel costs expressed as a percentage of total income1 increased in 2017 across nearly all segments. Across the whole UK fleet, fuel costs represented 12% of total income in 2016 but 15% in 2017. The increase in fuel costs as a percentage of income was particularly high for North Sea beam trawlers with engine power over and under 300kW, with increases of 12 and 17 percentage points respectively. These two segments also experienced a decline in average fishing income per vessel.

In responses to the annual fleet economic survey, vessel owners highlighted fluctuations in the price of fuel as one of the factors that made forward planning difficult for them. Vessel owners also mentioned the costs of purchasing quota and of vessel maintenance as important costs.

1. Total income is the sum of fishing income and non-fishing income. Non-fishing income can include fees for guard duties of oil facilities, use of vessel for research operations, etc.

Annual operating costs

26


27

Table 3. Average annual operating costs, 2016-2017 (nominal figures)

Segment Average annual operating costs (£)

Operating costs as % of income

Fuel costs as % of income

2016 2017 2016 2017 2016 2017

Area VIIA demersal trawl 151,150 á 255,127 á 75% â 79% 14% â 14% á

Area VIIA nephrops over 250kW 193,688 â 210,747 á 70% 71% 13% â 16% á

Area VIIA nephrops under 250kW 123,794 á 124,362 78% 79% 10% â 11% á

Area VIIBCDEFGHK 24-40m 1,222,277 â 1,437,784 á 67% â 96% á 13% â 16% á

Area VIIBCDEFGHK trawlers 10-24m 170,859 197,738 á 67% â 67% 10% â 10% á

North Sea beam trawl over 300kW 2,023,387 1,549,901 â 89% â 106% á 24% â 35% á

North Sea beam trawl under 300kW 118,831 á 113,729 99% 106% á 27% â 44% á

North Sea nephrops over 300kW 542,447 á 645,391 á 86% 88% 18% â 20% á

North Sea nephrops under 300kW 170,719 á 168,490 84% â 86% 17% â 20% á

NSWOS demersal over 24m 1,661,627 á 1,778,991 á 82% â 83% 13% â 16% á

NSWOS demersal pair trawl seine 1,442,031 á 1,654,635 á 77% â 78% 6% â 7% á

NSWOS demersal seiners 938,232 á 1,173,830 á 78% 79% 6% 7% á

NSWOS demersal under 24m over 300kW 813,754 á 951,566 á 82% 83% 12% â 14% á

NSWOS demersal under 24m under 300kW 255,953 á 203,826 â 84% 85% 10% â 11% á

WOS nephrops over 250kW 299,977 á 292,989 81% 83% 13% â 17% á

WOS nephrops under 250kW 151,042 á 144,447 80% 81% 11% â 14% á

South West beamers over 250kW 695,335 â 843,300 á 84% â 85% 22% 25% á

South West beamers under 250kW 494,320 568,911 á 76% â 77% 14% â 15% á

UK scallop dredge over 15m 455,393 á 446,622 88% á 90% 13% â 16% á

UK scallop dredge under 15m 134,467 á 125,750 â 82% á 83% 12% â 14% á

Under 10m demersal trawl/seine 52,100 á 56,857 á 71% â 71% 10% â 10%

Under 10m drift and/or fixed nets 29,931 30,336 69% â 70% 7% â 8% á

Under 10m pots and traps 45,025 á 43,706 69% â 69% 9% â 9%

Under 10m using hooks 25,398 23,174 â 64% 64% 5% â 5%

Gill netters 475,222 á 382,197 â 80% á 81% 5% â 7% á

Longliners 674,635 477,684 â 71% 77% á 9% 17% á

Pots and traps 10-12m 97,383 á 101,304 67% 67% 6% â 6% á

Pots and traps over 12m 348,146 á 396,898 á 78% 78% 9% â 10% á

27



The prices of Brent crude oil and marine diesel have varied substantially over the last 10 years, as seen in Figure 6.

The price of Brent crude oil decreased between late 2013 and early 2016, when it fell to $26 per barrel (a 76% decrease).

This large drop led to the price of marine diesel halving in the same period, falling to 26p per litre in January 2016. The price of Brent crude increased again in mid to late 2016 and 2017 reaching $67 by December 2017. The price of marine diesel subsequently increased in the same period to 45p per litre.

The fuel costs of the UK fishing fleet reflected the development in Brent crude prices. Total fuel expenditure of the fleet as estimated by Seafish increased by 26% from £95million in 2016 to £119million in 2017. Annual average fuel costs per day at sea increased by 18% across all segments in 2017 compared to 2016.

The average amount of fuel consumed per vessel varied greatly between segments due to their different characteristics and activities. Fuel consumption in 2017 ranged from 75 litres per day for under 10m vessels using hooks to 6,500 litres per day at sea for North Sea beam trawlers over 300kW.

Figure 6: Oil price and marine fuel price (source: Seafish, U.S. Energy Information Administration)

¢ Crude oil – Brent ¢ Seafish UK Average

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2006 2007 2008 2009 2010 2012 2013 20142011 2015 2016 20170 0

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Fuel



29

Table 4. Average annual and daily fuel costs per vessel (nominal figures), 2016-2017

Segment Average annual fuel costs (£) Average fuel cost per day at sea (£)

Litres per day

2016 2017 2016 2017 2016 2017

Area VIIA demersal trawl 27,006 á 45,911 á 210 320 á 629 á 769 á

Area VIIA nephrops over 250kW 36,776 â 46,239 á 263 â 337 á 798 817

Area VIIA nephrops under 250kW 15,302 17,904 á 112 â 145 á 337 351

Area VIIBCDEFGHK 24-40m 236,137 242,947 817 969 á 2,439 2,328

Area VIIBCDEFGHK trawlers 10-24m 25,778 á 30,298 á 152 â 187 á 450 449

North Sea beam trawl over 300kW 537,577 517,024 2,180 2,701 á 6,500 6,500

North Sea beam trawl under 300kW 32,497 â 46,964 á 377 451 á 1,067 â 1,065

North Sea nephrops over 300kW 110,314 á 148,391 á 543 680 á 1,609 á 1,635

North Sea nephrops under 300kW 34,848 á 39,584 á 257 303 á 761 727

NSWOS demersal over 24m 271,109 336,737 á 1,314 1,584 á 3,897 3,805

NSWOS demersal pair trawl seine 104,266 137,389 á 522 648 á 1,542 1,557

NSWOS demersal seiners 75,656 á 111,109 á 479 612 á 1,425 1,468

NSWOS demersal under 24m over 300kW 122,305 165,419 á 641 â 826 á 1,916 1,984

NSWOS demersal under 24m under 300kW 29,013 á 26,139 â 233 â 269 á 689 649 â

WOS nephrops over 250kW 48,504 59,569 á 262 322 á 781 778

WOS nephrops under 250kW 21,594 25,560 á 137 170 á 407 410

South West beamers over 250kW 183,176 246,080 á 876 1,091 á 2,617 2,619

South West beamers under 250kW 88,937 110,067 á 381 â 484 á 1,132 1,159

UK scallop dredge over 15m 66,482 78,582 á 361 â 447 á 1,073 1,074

UK scallop dredge under 15m 20,227 á 20,750 180 219 á 533 527

Under 10m demersal trawl/seine 7,194 7,756 á 66 82 á 197 197

Under 10m drift and/or fixed nets 3,026 3,525 á 36 43 á 107 103

Under 10m pots and traps 5,864 â 5,487 â 47 58 á 139 140

Under 10m using hooks 2,135 â 1,936 â 30 â 31 87 â 75 â

Gill netters 30,218 â 33,931 á 173 â 214 á 520 514

Longliners 82,858 104,312 á 447 558 á 1,309 1,341

Pots and traps 10-12m 8,152 9,635 á 51 63 á 151 151

Pots and traps over 12m 39,683 51,146 á 216 267 á 638 642



An estimated 11,757 people were employed on board vessels in the UK fishing fleet in 2016. Of these, 2,361 were engaged in the low activity segments. Another 3,101 people worked in the fully active under 10m segments, the majority of these (2,025) in the under 10m pots and traps segment.

In 2017 the UK fishing fleet had a total estimated 8,851 FTEs on board vessels. The number of FTEs per fleet segment varied depending on vessel size and vessel numbers. The segment with the most FTE jobs was the UK under 10m pots and traps segment, which had 929 FTEs spread across 1,156 vessels in 2017. This means less than one full time equivalent job per vessel, reflecting the fact that many of these small vessels do not operate at sea all year round. The average effort of vessels in this fleet segment in 2017 was 95 days at sea. As an example of jobs on larger vessels with similar effort, the NSWoS demersal trawlers under 24m under 300kW segment generated 45 FTEs across 19 vessels.

There was a wide range of fleet segment change in FTEs from 2016 to 2017. Roughly half of fleet segments increased the number of FTEs and half had fewer FTEs. The greatest change occurred in the NSWoS demersal seine trawl segment, which saw a 38% increase in FTEs from 2016 to 2017. The North Sea beam trawl over 300kW segment, on the other hand, had 24% fewer FTEs (from 230 in 2016 to 175 in 2017). FTEs in under 10m vessels decreased on average by 18%. These changes from one year to the next can arise if there is a difference in estimated number of hours worked, and do not necessarily imply that jobs were created or lost. For example, days at sea in under 10m vessels decreased by 13% on average from 2016 to 2017, which could explain the decrease in FTEs.

Crew share is strongly linked with fishing income as many fishermen are paid a share of the value landed. Crew costs (i.e., the total expenditure in crew, including crew shares, salaries and agency payments of all crew) across segments therefore reflect the variability in fishing income. Crew costs increased across most segments in 2016 as fishing income increased that year. Crew costs increased again in 2017 albeit in a smaller magnitude (4% on average). Segments that experienced significant increases in fishing income in 2017 saw corresponding increases in crew costs (area 7A demersal trawlers increased their average crew costs by 251% in 2017). On the other hand, segments for which fishing income decreased in 2017 (longliners, gillnetters, North Sea beam trawlers) saw their crew costs decrease as well.

Employment is typically a main topic of discussion during the interview stage of the survey, with many participants concerned about the lack of young people entering the industry. From 2018, Seafish is carrying out surveys of employment in the UK fishing fleet with results published annually.

Employment and crew costs

30



31

Table 5. Average annual crew costs (nominal figures) and FTEs, 2016-2017

Segment Average crew cost per vessel (£) FTE (total) Crew cost per FTE (£)

2016 2017 2016 2017 2016 2017

Area VIIA demersal trawl 21,801 â 76,485 á 63 á 71 á 5,162 â 14,095 á

Area VIIA nephrops over 250kW 89,020 á 92,060 214 â 198 â 13,336 á 13,952 á

Area VIIA nephrops under 250kW 50,010 á 48,480 189 á 153 â 11,112 á 11,736 á

Area VIIBCDEFGHK 24-40m 293,353 â 339,381 á 162 â 150 â 19,917 â 29,386 á

Area VIIBCDEFGHK trawlers 10-24m 52,914 á 60,967 á 224 á 201 â 14,886 â 18,513 á

North Sea beam trawl over 300kW 627,072 á 276,548 â 230 175 â 24,571 á 14,214

North Sea beam trawl under 300kW 17,248 á 5,350 â 50 á 56 á 7,664 á 1,927

North Sea nephrops over 300kW 145,584 á 161,912 á 393 á 493 á 17,772 â 18,060

North Sea nephrops under 300kW 48,103 á 43,969 â 183 á 184 16,833 á 16,453

NSWOS demersal over 24m 517,966 á 522,796 643 á 649 35,425 á 34,625

NSWOS demersal pair trawl seine 451,561 á 506,718 á 322 á 358 á 35,011 á 35,426

NSWOS demersal seiners 299,224 á 363,848 á 91 â 126 á 52,517 á 49,276 â

NSWOS demersal under 24m over 300kW 241,340 á 267,488 á 243 â 306 á 32,774 á 32,371

NSWOS demersal under 24m under 300kW 79,579 á 61,451 â 42 â 45 á 24,618 á 26,009 á

WOS nephrops over 250kW 114,485 á 103,019 â 320 253 â 18,264 á 16,685 â

WOS nephrops under 250kW 57,278 á 51,347 â 310 â 278 â 15,157 á 14,202 â

South West beamers over 250kW 246,312 á 280,949 á 155 á 190 á 36,535 á 38,510 á

South West beamers under 250kW 178,539 á 200,215 á 112 â 106 36,794 á 41,510 á

UK scallop dredge over 15m 161,460 á 149,275 â 608 558 â 24,430 á 23,800

UK scallop dredge under 15m 38,461 á 34,849 â 462 á 440 14,988 â 16,461 á

Under 10m demersal trawl/seine 14,941 16,357 á 348 á 278 â 8,253 â 10,232 á

Under 10m drift and/or fixed nets 12,383 á 12,242 164 á 133 â 16,873 16,951

Under 10m pots and traps 17,649 á 17,271 1,123 á 929 â 17,075 á 21,488 á

Under 10m using hooks 7,409 6,766 â 81 â 86 á 15,361 á 18,535 á

Gill netters 191,768 á 147,635 â 349 304 â 16,492 á 14,591 â

Longliners 108,416 â 59,310 â 283 309 á 10,341 5,752 â

Pots and traps 10-12m 35,190 35,894 436 á 424 14,109 14,830 á

Pots and traps over 12m 135,216 á 150,074 á 673 á 707 á 18,680 â 19,542 á



Gross Value Added (GVA)Average GVA per vessel increased among most fleet segments in 2016, reflecting the low fuel prices and higher fish prices experienced that year. GVA per vessel in 2017 then decreased on average by 7% across all segments. This change is primarily due to the increase in fuel costs and the smaller increase in fishing income that occurred in 2017.

Average GVA per vessel varied between -£1,323 for North Sea beam trawlers under 300kW to around £982,000 for North Sea and West of Scotland demersal pair trawl seiners in 2017.

Average GVA expressed as a percentage of total income decreased from 47% in 2016 to 43% in 2017.

GVA per FTE is a measure of labour productivity, an indicator of how efficiently labour is used in the production process. GVA per FTE in 2017 ranged from -£476 per FTE for North Sea beam trawlers under 300kW to £93,000 per FTE for North Sea and West of Scotland demersal seiners.

Overall, estimates of GVA per FTE for the entire fleet decreased by 4% from 2016 to 2017.

Economic performance of the fleet

32


33

Table 6. Average annual GVA per vessel and GVA per FTE (nominal figures), 2016-2017

Segment Gross value added (£) GVA as % of total income GVA per FTE (£ per FTE)

2016 2017 2016 2017 2016 2017

Area VIIA demersal trawl 71,007 á 146,064 á 35% â 45% á 16,812 â 26,917 á

Area VIIA nephrops over 250kW 172,650 á 177,240 62% á 60% 25,865 á 26,860

Area VIIA nephrops under 250kW 85,756 á 82,285 54% á 52% 19,055 á 19,919 á

Area VIIBCDEFGHK 24-40m 900,001 á 407,172 â 49% á 27% â 61,104 á 35,256 â

Area VIIBCDEFGHK trawlers 10-24m 136,279 á 156,914 á 54% á 53% 38,340 á 47,649 á

North Sea beam trawl over 300kW 871,459 á 185,510 â 38% á 13% â 34,147 á 9,534 â

North Sea beam trawl under 300kW 18,845 á -1,323 â 16% á -1% â 8,374 á -476 â

North Sea nephrops over 300kW 232,072 á 251,993 á 37% á 34% â 28,329 á 28,107

North Sea nephrops under 300kW 79,809 á 71,376 â 39% á 36% â 27,928 á 26,708

NSWOS demersal over 24m 880,583 á 876,864 44% á 41% â 60,226 á 58,075

NSWOS demersal pair trawl seine 877,328 á 981,912 á 47% á 46% 68,023 á 68,648

NSWOS demersal seiners 565,175 á 683,881 á 47% á 46% 99,194 á 92,618 â

NSWOS demersal under 24m over 300kW 422,833 á 462,742 á 43% á 40% 57,420 á 56,000

NSWOS demersal under 24m under 300kW 128,875 á 98,401 â 42% á 41% 39,868 á 41,648

WOS nephrops over 250kW 183,465 á 161,244 â 50% á 46% â 29,268 á 26,115 â

WOS nephrops under 250kW 96,189 á 84,666 â 51% á 48% â 25,454 á 23,418 â

South West beamers over 250kW 383,795 á 428,428 á 46% á 43% â 56,928 á 58,726

South West beamers under 250kW 335,333 á 373,651 á 52% á 50% 69,107 á 77,467 á

UK scallop dredge over 15m 224,924 201,696 â 43% â 40% â 34,033 32,158 â

UK scallop dredge under 15m 67,136 á 60,125 â 41% 40% 26,163 á 28,401 á

Under 10m demersal trawl/seine 36,575 á 40,072 á 50% á 50% 20,203 á 25,068 á

Under 10m drift and/or fixed nets 25,981 á 25,578 60% á 59% 35,403 á 35,417

Under 10m pots and traps 38,124 á 37,347 58% á 59% 36,884 á 46,467 á

Under 10m using hooks 21,896 á 20,000 â 55% á 55% 45,398 á 54,786 á

Gill netters 314,297 â 239,016 â 53% â 51% 27,029 â 23,623 â

Longliners 390,619 203,328 â 41% 33% â 37,260 á 19,718 â

Pots and traps 10-12m 83,721 á 85,188 57% â 57% 33,567 35,197 á

Pots and traps over 12m 236,249 á 260,512 á 53% 51% 32,638 â 33,923



The total operating profit2 of the UK fleet decreased by 4%, from £265million in 2016 to £254million in 2017. This decrease reflects the increase in operating costs as a proportion of income in 2017, due to higher fuel costs not completely compensated by a higher fishing income.

The majority of segments had a lower or similar average operating profit per vessel in 2017 than in 2016. Two segments (North Sea beam trawlers over and under 300kW) made a loss in 2017, with negative operating profits. These segments experienced significant declines in landings per day at sea in 2017 (Table 2), with subsequent declines in fishing income. Some individual vessels within other segments may also have made a loss, even if the overall segment has made a profit on average.

Across the fleet, operating profit margins (operating profit as percent of total income) decreased from an average 22% in 2016 to 19% in 2017, see Table 7.

Net profit is an estimate of profit remaining after deducing cost of finance from operating profit. Net profit is the amount that would be subject to taxation and profits after tax would be the amount that could be retained by the company and / or distributed as dividends to shareholders in the company. For smaller businesses that operate as sole traders, owner’s drawings often reflect a combination of wages for their labour and return on their capital invested in the business, with no formal difference between these two returns noted.

Attitudes of skippers and vessel owners toward business success in the future were strongly influenced by the current performance of their business. Business owners who had experienced a strong performance in recent years were generally optimistic, whereas owners who had struggled in recent years tended to be more pessimistic. There is continued uncertainty about regulation and political developments, combined with issues around quota availability and affordability, market prices, fish abundance, crew recruitment and the weather. In general terms, younger skippers and owners tended to be more optimistic about the future.

Economic performance of the fleet

Profit

2. Operating profit is calculated as total income minus total operating costs.

34


35

Table 7. Average annual operating profit per vessel and net profit margin (nominal figures), 2016-2017

Segment Operating profit (£) Operating profit margin Net profit margin

2016 2017 2016 2017 2016

Area VIIA demersal trawl 49,207 á 69,579 á 25% á 21% â 19% á

Area VIIA nephrops over 250kW 83,630 á 85,180 30% á 29% â 26% á

Area VIIA nephrops under 250kW 35,745 á 33,805 22% á 21% â 17% â

Area VIIBCDEFGHK 24-40m 606,648 á 67,792 â 33% á 5% â 32% á

Area VIIBCDEFGHK trawlers 10-24m 83,366 á 95,947 á 33% á 33% â 30% á

North Sea beam trawl over 300kW 244,388 á -91,039 â 11% á -6% â 4% á

North Sea beam trawl under 300kW 1,598 á -6,673 â 1% á -6% â -1% á

North Sea nephrops over 300kW 86,488 á 90,081 14% á 12% â 8% á

North Sea nephrops under 300kW 31,706 á 27,407 â 16% á 14% â 11% á

NSWOS demersal over 24m 362,617 á 354,068 18% á 17% â 15% á

NSWOS demersal pair trawl seine 425,767 á 475,194 á 23% á 22% â 21% á

NSWOS demersal seiners 265,951 á 320,033 á 22% á 21% â 18% á

NSWOS demersal under 24m over 300kW 181,493 á 195,254 á 18% á 17% â 15% á

NSWOS demersal under 24m under 300kW 49,296 á 36,950 â 16% á 15% â 12% á

WOS nephrops over 250kW 68,980 á 58,225 â 19% á 17% â 13% á

WOS nephrops under 250kW 38,911 á 33,320 â 21% á 19% â 15% á

South West beamers over 250kW 137,483 á 147,480 á 17% á 15% â 13% á

South West beamers under 250kW 156,793 á 173,437 á 24% á 23% â 18% á

UK scallop dredge over 15m 63,464 â 52,421 â 12% â 11% â 6% â

UK scallop dredge under 15m 28,674 á 25,276 â 18% â 17% â 9% â

Under 10m demersal trawl/seine 21,634 á 23,715 á 29% á 29% á 24% á

Under 10m drift and/or fixed nets 13,598 á 13,336 31% á 31% â 22% á

Under 10m pots and traps 20,475 á 20,077 31% á 32% á 27% á

Under 10m using hooks 14,488 á 13,234 â 36% á 36% 33% á

Gill netters 122,530 â 91,381 â 21% â 19% â 11% â

Longliners 282,203 144,018 â 30% á 23% â 28% á

Pots and traps 10-12m 48,532 á 49,294 33% â 33% â 29% á

Pots and traps over 12m 101,033 á 110,439 á 23% á 22% â 18% á



The collection of economic data on the UK fishing fleet is a staged process involving government administrations, vessel owners, accountancy firms and Seafish field researchers, data analysts and economists.

Government administrations data collection Government administrations gather data on vessel numbers and characteristics, catch, landings, sales, gear type and fishing effort (days at sea). This information is transmitted to a central UK database which keeps logbook, sales note and fleet register data.

Field researchEvery year Seafish researchers visit ports around the UK, interviewing fishing business owners about their fishing businesses and obtaining their permission to get copies of their financial data. Although we have fishing income data for every UK vessel, we also gather a sample of other financial data for each fleet segment. To ensure an adequate sample size for other financial data we use a self-selecting stratified sampling approach, i.e., we interview a sufficient number of vessel owners from each segment who choose to participate in the survey when our researchers visit the ports. During this stage, researchers collect data on employment, fuel use and capital value indicators as well as the contact details of vessel owners’ accountancy firms. In addition, researchers gather qualitative data on matters relating to fishing businesses.

We collect financial data from accountants and owners after the interview phase, with the objective of gathering a large sample of vessel accounts. In late 2017 and early 2018, Seafish Economics collected 528 sets of 2016 financial accounts (11% of the active UK fleet). It is not possible to collect an adequate sample for 2016 any earlier than this because vessel owners do not finish their annual accounts until around 10 months after the end of year being reported.

Fleet segmentationThe Seafish economic database includes all vessels recorded in the UK fishing fleet register that are active during the year considered. This includes all vessel types, gear types and activity levels. Therefore, we define groups or fleet segments of relatively similar vessels so we can provide information on the operational and financial performance of groups of comparable vessels.

Each fleet segment has a set of mutually exclusive criteria that define which vessels are included in it for each year. Every single active vessel will fit into only one segment each year. Criteria are based on the physical characteristics of the vessels, activity level, the gear used, species targeted and areas fished. For this report we have defined 32 Seafish segments to categorise the UK fleet as shown in the Segmentation Criteria table. Some segments have a large number of vessels, such as the under 10m pots and traps segment (approximately 1,150 vessels), while others have very few, such as North Sea beam trawl over 300kW (9 vessels in 2017). Individual vessels may be included in different segments in different years depending on their activity and gear use. Segments must contain at least five vessels so that reliable data can be collected, robust estimates of costs and profits can be produced, and confidentiality is protected. If fewer than five vessels fit into one segment in a given year, they are instead included in the ‘Miscellaneous’ fleet segment.

Costs and earnings estimationDeclared fishing income is available from the government data set for every active vessel in the fleet, so fishing income is the most reliable financial figure we produce.

We allocate costs structure and non-fishing income data from the sampled vessel accounts to particular fleet segments. We then extrapolate costs and non-fishing income to all vessels in the segment using official statistics on effort and fishing income covering every vessel in the fleet.

Methods

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Within each fleet segment we add together the individual costs items from the collected vessel financial accounts (the segment sample) to create a ‘combined segment sample cost structure’.

We then calculate, for all vessels in a segment, the sum of each cost item in the ‘combined segment sample cost structure’ as a proportion of the sum of fishing income. For example:

a) The sum of gear costs is 10% of the sum of fishing income for this group of vessels;

b) The sum of sales commission is 3% of the sum of fishing income, etc.

Fuel costs and crew share costs are calculated differently from other costs. To calculate fuel costs, we use the vessel capacity (VCUs) and days at sea for the year of each vessel to estimate its fuel consumption in litres, which is then multiplied by the average annual red diesel price (excluding duty) to estimate total annual fuel cost for each vessel. To calculate crew share costs, we use a system similar to how crew share is estimated in practice, where fishing costs are deducted from fishing income and then the remainder is split between the crew and the vessel business. We allocate a minimum of £100 per day in instances where the actual observed amount within the ‘combined segment sample cost structure’ is lower, in order to reflect the market value of the labour.

Following the calculation of fuel cost and crew share, we apply the proportions from all the other costs within the ‘combined segment sample cost structure’ to the official declared fishing income for each vessel within each fleet segment. This enables us to calculate Gross Value Added, operating profit and net profit for all vessels in each fleet segment.

Employment dataThe estimation of employment is based on the survey data collected from vessel owners during the first stage of data collection, combined with MMO employment data. This process provides details of the number of engaged crew, both full-time and part-time. With this sample information we then estimate total engaged crew based on the physical characteristics of each individual vessel and the vessel’s level of activity. Once the total engaged crew is estimated for all types of vessel in the UK fleet, we estimate Full Time Equivalent (FTE) jobs based on hours worked by crew as reported by skippers (one full time job is assumed to be 2,000 hours worked a year).

2017 estimatesFigures presented for the years 2008-2016 are estimates based on Government data and data collected by Seafish. Figures for 2017 are estimates using provisional official statistics on landings, numbers of vessels and effort, along with actual annual average 2017 fuel prices and previous years’ cost structures. Therefore, the 2017 values should be considered robust preliminary estimates. Seafish will revise these estimates when final government data and 2017 vessel accounts are available.

37


Seafish Segments Main Area

Main DAS Gear Main Species by

value

Main Gear Type

Power Main Engine

Vessel Length

Value of landings

Area VIIA demersal trawl over 10m VIIA Demersal trawls and seines

>= 10m

Area VIIA nephrops over 250kW VIIA Demersal trawls and seines

Nephrops >= 250 kW >= 10m

Area VIIA nephrops under 250kW VIIA Demersal trawls and seines

Nephrops <250 kW >= 10m

Area VIIb-k trawlers 10-24m VIIDE, VIIFG, VII other

Demersal trawls and seines

Not Nephrops

>= 10m & <24m

Area VIIb-k trawlers 24-40m VIIDE, VIIFG, VII other

Demersal trawls and seines

Not Nephrops

>= 24m & <40m

UK Gill netters over 10m Drift Nets and Fixed Nets

Not Nephrops

>= 10m

UK Longliners over 10m Gears using hooks

Not Nephrops

>= 10m

Low activity vessels over 10m >= 10m < £10,000

Low activity vessels under 10m < 10m < £10,000

Miscellaneous vessels over 10m >= 10m

North Sea beam trawl over 300kW NS Beam Trawl Not Nephrops

>= 300 kW

>= 10m

North Sea beam trawl under 300kW NS Beam Trawl Not Nephrops

< 300 kW >= 10m

North Sea nephrops trawl over 300kW NS Demersal trawls and seines

Nephrops >= 300 kW

>= 10m

North Sea nephrops trawl under 300kW NS Demersal trawls and seines

Nephrops < 300 kW >= 10m

North Sea and West of Scotland demersal trawl over 24m

NS, WoS Not Nephrops

>= 24m

North Sea and West of Scotland demersal pair trawls and seines

NS, WoS Demersal trawls and seines

Not Nephrops

Paired Trawl

>= 10m

North Sea and West of Scotland demersal seiners


Not Nephrops

Scottish Seiner

>= 10m

North Sea and West of Scotland demersal trawl under 24m, over 300kW


Not Nephrops

>= 300 kW

>= 10m & <24m

North Sea and West of Scotland demersal trawl under 24m, under 300kW


Not Nephrops

< 300 kW >= 10m & <24m

UK pelagic trawl over 40m Pelagic: Trawl, Seiner / Purse Seiner

Mackerel >= 40m

Table 7. Segmentation Criteria Table

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Methods


Seafish Segments Main Area

Main DAS Gear Main Species by

value

Main Gear Type

Power Main Engine

Vessel Length

Value of landings

South West beam trawl under 250kW VIIDE, VIIFG, VII other

Beam Trawl < 250 kW >= 10m

South West beam trawl over 250kW VIIDE, VIIFG, VII other

Beam Trawl >= 250 kW >= 10m

UK demersal trawls and seines under 10m Demersal trawls and seines

< 10m

UK drift and fixed nets under 10m Drift Nets and Fixed Nets

< 10m

UK hooks under 10m Gears using hooks

< 10m

UK pots and traps under 10m Pots and Traps < 10m

UK pots and traps 10m-12m Pots and Traps >= 10m & <12m

UK Pots and traps over 12m Pots and Traps >= 12m

West of Scotland nephrops trawl over 250kW WoS Demersal trawls and seines

Nephrops >= 250 kW >= 10m

West of Scotland nephrops trawl under 250kW

WoS Demersal trawls and seines

Nephrops < 250 kW >= 10m

UK scallop dredge over 15m Dredges Scallops, queen scallops, cockles

>= 15m

UK scallop dredge under 15m Dredges Scallops, queen scallops, cockles

<= 15m

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GlossaryActive vessel. Any UK registered fishing vessel that recorded any amount of landings in the year considered.

Fishing costs. Costs incurred by vessel owners as a result of their fishing activity. Fishing costs include fuel costs, crew shares, ice and boxes, sales commissions, harbour dues, subscriptions and levies, quota leasing, days at sea purchases, food and stores, travel costs and shore labour.

Fleet segment. A group comprising vessels of similar characteristics in terms of level of activity, main gear used and/or area of operation.

FTE (Full-Time Equivalent). A standardised measure of employment, based on an employee working 37 hours per week, 52 weeks a year.

GDP (Gross Domestic Product). An indicator of the economic performance of a country.

GVA (Gross Value Added). A measure of the value of goods and services produced by an industry. In this report, GVA is calculated as the sum of operating profit and crew share.

Low activity vessel. Any vessel that recorded a total value of landings under £10,000 in the year considered.

Net profit. The result of subtracting finance costs, depreciation and interest costs from operating profit.

Operating costs. Costs incurred by vessel owners. Operating costs comprise fishing costs, which are dependent on the level of fishing activity; and vessel costs, which tend to be fixed regardless of the level of activity.

Operating profit. The difference between total income and operating costs.

Vessel costs. Costs incurred by vessel owners regardless of the level of fishing activity. Vessel costs include gear and vessel repairs, insurance, electronic equipment and administration costs.

Acronyms FTE. Full-Time Equivalent

GDP. Gross Domestic Product

GVA. Gross Value Added

MMO. Marine Management Organisation

NS. North Sea

NSWoS. North Sea and West of Scotland

TAC. Total Allowable Catch

VCU. Vessel Capacity Unit

WC. Western Channel

WoS. West of Scotland

Glossary and list of acronyms

40


Further reading

41

Fisheries statisticsMarine Management Organisation – UK Sea Fisheries Statistics 2017UK Sea Fisheries Statistics 2017 provides a broad picture of the UK fishing industry. This publication includes data on the structure, activity and landings of the UK fleet along with additional information on overseas trade, exploitation of stocks and the world’s fishing industry. This report uses the same underlying dataset.

Marine Scotland Scottish Sea Fisheries Statistics 2017A detailed overview of landings of sea fish, the Scottish fishing fleet and the number of fishermen employed in 2017.

EmploymentQuay Issues – 2017 Pilot Survey of Employment in the UK Fishing FleetThis report summarises the findings of the 2017 pilot survey of employment in the UK fishing fleet carried out by Seafish: gender, age, nationality and remuneration of workers among other factors.

Fish priceQuay Issues (Vol. 4) pp. 14-20, ‘Fish size and sales price’

Fish price is a significant factor influencing the financial performance of UK fishing businesses. This article looks at the effect of increasing gear selectivity on fish price and analyses the links between vessel reputation and price.

UK Sea Fisheries Statistics 2017

Scottish Sea Fisheries Statistics 2017


November 2018 Seafish Report No. SR728

ISBN No. 978-1-911073-34-5

© Copyright Seafish 2018


Documents

Economics of the UK Fishing Fleet 2017 · Economics of the UK Fishing Fleet 2017. 03 • Overall, the performance of the UK fishing fleet in 2017 was largely similar to that of 2016