Introduction to UK Marketing 
Fish Species Important to Scotland
Of the many sea fish species found in Scottish waters there are 7 species that are considered as being the most commercially important to Scotland (when judged by a combination of volume and value of landings from Scottish vessels). These species are:
- herring and mackerel (pelagic)
- cod, haddock and monkfish (whitefish)
- nephrops and scallops (shellfish)
Herring and mackerel landed in Scotland usually undergo initial processing before being exported overseas in the global pelagic market. In contrast the whitefish species of cod, haddock and monkfish landed in Scotland are primarily destined for the UK domestic market, particularly the retail and foodservice sectors. Of the shellfish species, nephrops (also known as Scottish langoustines) are destined for both domestic and export markets with the live export market being the most lucrative. Scallops, like nephrops, are destined for domestic and overseas markets.
There are 19 fish producer organisations ( POs) in the UK, of which 7 are based in Scotland. Scottish POs are represented by the umbrella organisation, the Scottish Association of Fish Producer Organisations ( SAFPO). While the 7 Scottish POs in membership of SAFPO are involved in sea capture fisheries, there is also a Scottish Salmon PO that focuses on aquaculture.
POs were given a key role when the market in fishery products was organised on a community wide basis in 1981 as part of the Common Fisheries Policy. Most of the Scottish POs were established in the 1980s but two Scottish POs were formed recently. In 1995 and 1999 the West of Scotland PO and Orkney PO were established respectively. Separately the Scottish Salmon PO was established in 1997.
POs in the UK have recently been reviewed for adherence to their quota management and marketing responsibilities as part of the Quota Management Change Programme ( QMCP). Further information on the QMCP can be accessed at the following link:
Fish Processors
The composition of the fish processing sector varies throughout Scotland. Whitefish processing mainly takes place in the north-east of Scotland. Pelagic processing, like whitefish processing centres around the north east but also takes place in Shetland. Shellfish processing takes place across all fishing areas and in the central belt. There are three types of processing activity:
Primary processors are involved in the cutting, filleting, picking, peeling, shelling, washing, chilling, packing, heading and gutting of fish and shellfish. These tend to be small units employing few people.
Secondary processors are involved in brining, smoking, cooking, freezing, canning, deboning, breading, battering, vacuum and controlled packaging and the production of ready-to-eat meals. The facilities tend to be larger with higher employment than the other two categories.
"Mixed" processors carry out both of the above activities. Most fish processing in Scotland is in mixed facilities and they generate significantly higher average sales than the other two categories.
Fish processors in Scotland are represented by the Scottish Seafood Processors Federation ( SSPF) and the Scottish Food and Drink Federation ( SFDF).
Fish Intervention Schemes
The Rural Payments Agency ( RPA) is the government agency charged with various functions concerned with the execution of the obligations of the UK under the Common Agricultural and Common Fisheries Policies.
An integral part of the Common Fisheries Policy for all Member States is the management of certain schemes whose aim is to guarantee, as far as possible, a fair income to producers, to regulate the fish market in order to adjust supply to market requirements and to promote the application of and improve common marketing standards for listed eligible species of fish.
To that end, the RPA administrate schemes whereby compensation is payable to Fish Producer Organisations for fish withdrawn from the market i.e. failed to find a buyer at the minimum price.
Degressive Compensation Scheme
This scheme provides compensation to Fish Producer Organisations for most market support species for fish withdrawn from the market. The scheme works on the basis that the more fish that is withdrawn from the market, the less compensation that is payable to Producer Organisations.
Flat Rate Aid Scheme
Under this scheme Producer Organisations receive flat rate compensation for a limited number of fish species that have been withdrawn from the market.
Carry Over Aid Scheme
Carry-over aid is applied to fish that is subject to withdrawal, which is processed, stored and returned to the human consumption market at a later date.
Private Storage Aid Scheme
Private storage aid is applied to fish that is subject to withdrawal, which is stored for a minimum period of time and returned to the human consumption market at a later date.
Disposal outlets for withdrawn fish
Fish that has been withdrawn from the market has several disposal outlets and they are:
- charitable institutions
- use in fresh or preserved state for animal feed
- use, after processing into meal, for animal feed
- bait
- non-food purposes
In Scotland withdrawn fish is generally processed into fish meal and used in animal feed.
Common Marketing Standards in Scotland
The common organisation of the market in fishery products is important to the European Community and common marketing standards are a means of achieving market stability. Common marketing standards exist for certain species of fish and shellfish and requires them to be marketed at first sale in 'lots' of the same species of uniform grade of freshness, size and presentation. 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).
In accordance with common marketing standards 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.
In 2002 the Executive consulted on a draft marketing standards regulation that would give effect to common marketing standards and if consensus could be reached, would introduce a uniform standard box weight for all Scottish ports.
There was no overall consensus for a standard box weight to apply in Scotland and the Sea Fish (Marketing Standards) (Scotland) Regulations 2004 came into effect in December 2004. The regulations require that the net weight of fishery products in the lot must be clearly shown in kilograms on the lot.
Roles of Seafish and Seafood Scotland
The Sea Fish Industry Authority (Seafish) is a UK non-departmental public body ( NDPB) working with industry to increase consumer awareness, raise standards and improve efficiency towards a sustainable and profitable future for the seafood industry. It provides base data, research services, technical support and funding to allow the delivery of programmes to industry. It also operates an industry supported training network capable of delivering a wide range of training support and bespoke courses.
Seafood Scotland ( SFS) is an independent trade organisation that was established by the main representatives of the Scottish seafood industry to promote, market and develop Scottish seafood with the aim of improving the value return to industry. SFS are involved with all sectors of the Scottish seafood industry throughout the supply chain from catching and processing through to retail, food service and consumption. SFS works with the industry on quality and modernisation, new product development and marketing. Additionally SFS also promote Scottish seafood at trade events and liaise with the media to ensure positive coverage of the Scottish seafood industry and its produce.
Labelling, traceability and hygiene for fish and fishery products
The Food Standards Agency is the government agency responsible for protecting the public's health and consumer interests in relation to food.
Council Regulation No. 104/2000 sets out the framework of the common organisation of the markets in fish and fishery products and requires that for specific categories of fishery products of any origin they must be correctly labelled for marketing. Commission Regulation No. 2065/2001 sets out in detail these labelling requirements in which the commercial designation of the fish species, the production method, the catch area and the scientific name of the fish species must be provided.
Only retail sales to the final consumer are covered by the labelling requirements of Commission Regulation No. 2065/2001. However, all businesses must provide traceability information to facilitate accurate labelling by those who may be required to provide it further along the distribution chain. Regulation ( EC) No. 178/2002 sets an additional traceability requirement that is applicable to all foods and requires businesses to be able to identify their suppliers and business customers and to make such information available to competent authorities on demand.
Regulations ( EC) No. 178/2002, 852/2004 and 853/2004 lay down the general hygiene requirements that apply to fish and fishery products. Regulation ( EC) No. 178/2002 is the overarching regulation of general food law and contains provisions to ensure safe food and feed including traceability and product recall. It also contains general definitions applicable to other legislation. Regulation ( EC) No. 852/2004 contains the basic requirements applicable to all food businesses and requires food business operators to consider the risks in their business and set acceptable limits for any risks. Regulation ( EC) No. 853/2004 contains additional more prescriptive provisions for food considered to be higher risk, which includes food derived from fish.