The Scottish Government

A STATUTORY INSTRUMENT FOR THE COMMON MARKETING STANDARDS FOR FISHERY PRODUCTS

1. The Scottish Executive is writing to processors, vessel owners, POs and other interested parties to seek views on the introduction of a Statutory Instrument that will ensure that fish products sold on Scottish markets meet the common marketing standards set out in Council Regulation (EC) 2406/96. Similar exercises will be conducted in England, Wales and Northern Ireland.

2. A draft Statutory Instrument (SI) is attached and is subject to change pending the outcome of the consultation. It will replace the UK SI that is currently in force and includes provisions for sale by kilogram and a 'standard box' weight.

3. The Executive seeks your views on:

(i) whether a 'standard box' weight is necessary, and if so, what the weight of a 'standard box' should be

(ii) the implications of these proposals for you

(iii) for the purposes of completing a Compliance Cost Assessment, what implementation will mean for you in terms of costs and/or benefits, and what these particular costs and/or benefits will be.

4. Any comments on this letter should be sent to Susan Ewart at the above address (or e-mail Susan.Ewart@scotland.gsi.gov.uk ) to arrive no later than 6 June 2002.

5. Background

5.1 The common organisation of the market in fishery products is an integral part of the Common Fisheries Policy. This means that fish destined for human consumption should be uniformly graded in all Member States according to common marketing standards that apply at the point of first sale. The intention is that fish graded to the common standards will facilitate trade such that buyers can be confident that, for example, a size 1 haddock with freshness category A is the same throughout the European Union (EU). Responsibility for grading rests with the industry.

5.2 In the UK, the Sea Fish (Marketing Standards) Regulations 1986, as amended in 1989 and 1994, make provision for the enforcement throughout the UK of the Community obligation on the industry to grade fish at the first point of sale. This UK Statutory Instrument referred to Council regulations (EC) 103/76 and 104/76 which have since been repealed and replaced by Council Regulation (EC) 2406/96. Council Regulation (EC) 2406/96 has been amended since it came into force. Commission Regulation (EC) 323/97 introduced a new scale of size categories for herring, and Council Regulation (EC) 2578/2000 introduced an additional five species to the list of products eligible for intervention mechanisms. The most recent amendment came in to force at the end of 2001. Commission Regulation (EC) 2495/2001 of 19 December 2001 sets out the new marketing requirements for herring. Commission Regulation 3703/85 sets out the weighing sample rates and tolerances that would apply to standard boxes for enforcement purposes.

5.3 These regulations lay down, for certain fishery products, the common marketing standards under which fishery products may be marketed. However, these marketing standards do not apply to quantities of less than 100kg disposed of directly to retailers or consumers by inshore fishermen.

5.4 In Scotland, there are a number of 'standard' boxes in operation with the weight varying between markets and also between species.

5.5 The proposed new Scottish Statutory Instrument will:

a) replace and update the 1986 UK SI and its amendments

b) enforce industry compliance with the marketing standards regulations in Scotland

c) make provision for a 'standard box' in Scotland, if the consensus is that a 'standard' box is necessary

6. Marketing Standards

6.1 With the advent of e-commerce, common marketing standards are becoming more important in order that remote buyers can purchase with confidence. Furthermore, reductions in quotas mean that we need to achieve better prices for what is landed in order to maintain income. One way to achieve this is to ensure quality improvements through common marketing standards.

6.2 Common marketing standards exist for certain species of sea fish and shellfish and are laid down in Article 3 of Council Regulation 2406/96 (as amended). These are attached at Annex 1. Grading to these EC standards for size and freshness must be carried out within a reasonable time and before the products are offered for first sale. Inspections to ensure that these marketing standards are met may take place during any marketing stage or when the products are being transported.

6.3 Fish intended for human consumption must be marketed at first sale in 'lots' containing fish of the same species of uniform grade of freshness, size and presentation. A 'lot' is defined under Council Regulation 2406/96 as a quantity of fishery products of a given species, which has been subject to the same treatment, and may have come from the same fishing grounds and the same vessel. A lot is considered to be 'uniform' if not more than 10% of the total quantity in the lot falls within the freshness or size category immediately below and/or above that stated for the box or lot in question.

6.4 Different rules apply to the grading of bulk landings of pelagic species such as herring and mackerel. Grading in this instance is based on the sampling procedure laid down in Commission Regulations (EC) 3703/85 and 3506/89. Representative samples are taken from the quantity to be offered for sale and graded according to the appropriate freshness and size categories. The weight of bulk quantities of pelagic species put up for sale can be determined by weighing at the point of landing.

6.5 Fishery products must be marketed in metric units as specified by Council Regulation (EC) 2406/96 and in accordance with the Weights and Measures Act 1985.

6.6 Freshness Categories

6.6.1 Freshness categories are determined on the basis of ratings for different type of products set out in Annex 2. There are 4 freshness categories of which E applies to live Norway Lobsters ( Nephrops norvegicus) only. The 3 other freshness categories, i.e. Extra, A and B apply in the case of fish, selachii (dogfish, skate), cephalopods (cuttlefish) and Norway lobsters. Edible crabs, common scallops and common whelks are not subject to specific freshness standards. However, only whole crabs, excluding berried females or soft shelled crabs, may be marketed.

6.6.2 The freshness category must be the same throughout each lot. For example 20 boxes of size 3 cod could not be marked as 'Extra' if three boxes were found to be of freshness category 'B'. If the lot is less than 100kg and if the products are not of uniform freshness they will be graded at the lowest freshness category.

6.6.3 The freshness category must be clearly and indelibly marked, in characters at least 5cm high, on labels affixed to each lot.

6.7 Size Categories

6.7.1 Grading of fish must be carried out on a size basis. Various size ranges are defined in the marketing regulations. These are attached at Annex 3. Shrimps, crabs, scallops and whelks are graded by width of shell. For other fishery products, the enforcement authorities currently assess size grading standards by converting the size ranges in kg/fish (as set by the Commission) into a length equivalent.

6.7.2 The size category and presentation must be clearly and indelibly marked, in characters which are at least 5cm high, on labels affixed to each lot.

6.8 Box weights and Sale by the Kilo

6.8.1 In accordance with the regulations, the weight of fishery products in a lot need not be displayed if the fish is put up for sale in a "standard box". However, in Scotland various 'standard' boxes are in use largely based on historical marketing practices.

6.8.2 If consensus can be reached on what the standard box weight should be, we propose to introduce a uniform standard box weight for use in all Scottish ports.

6.8.3 Where fishery products are not presented in a 'standard box', the net weight of the fishery products in the box must be clearly shown in kilograms.

6.8.4 The detailed rules for the application of the common marketing standards set out in Commission Regulation (EC) 3703/85, allow the net weight to vary by 5% above or below the weight stated or presumed. This allowance should cover, for example, drip loss.

7. COSTS AND BENEFITS

7.1 Seafood is widely regarded as a highly valued consumer product, and reductions in quota emphasises the need for the fishing industry to maximise the value rather than the volume of the catch The future of the industry therefore depends on adopting a quality-based approach.

7.2 Studies have shown that better financial returns can be achieved by vessels which work towards improving the quality of their catch. In order to achieve this, additional costs may be incurred in terms of handling the catch and presenting it on the market to the required standards. These costs may be less for vessels with weighing at sea equipment already installed. There may also be time and financial costs for training crew members to comply with these standards. That said, any costs may be offset by improved returns arising from a better quality product.

7.3 The overfilling of boxes often has a detrimental effect on quality. This means that buyers can be reluctant to purchase unless they can see the product first hand. Common marketing standards allied with a robust enforcement regime can help address this and may open up our markets to remote buyers.

7.4 The new SI will also eradicate the use of different 'standard' boxes throughout Scotland. Products will have to be sold on a per kilo basis or at an agreed 'standard' box weight and this should result in more transparent marketing practices, improved quality and consequently better prices.

7.5 The Executive would be grateful for your views on what this will mean for you in terms of costs and/or benefits.

8 Conclusion

8.1 Comments concerning this letter should be sent to Susan Ewart. Details of any other individuals or organisations that you feel should be involved in this consultation are also welcome. Normal practice is that responses are made publicly available through the main Scottish Executive library in Edinburgh. Unless you state clearly that you wish your response to be excluded from this arrangement, it will be assumed that it can be made public. The Library will supply copies on request to personal callers or telephone enquirers on 0131 224 4552. An administrative charge to cover the cost of photocopying and posting will be made.

8.2 If you have any queries on this letter or would like further clarification, please do not hesitate to contact Wendy Taylor (Ext 6444) at the above address and telephone number.