A study of the prospects and opportunities for shellfish farming in Scotland Final report: May 2010 Prepared by: David Scott, Douglas McLeod, James Young, Janet Brown, Anton Immink, John Bostock Study funded by Marine Scotland and undertaken by Stirling Aquaculture Stirling Aquaculture Institute of Aquaculture University of Stirling Stirling FK9 4LA Tel: 01786 467900 Fax: 01786 451462 E-mail: [email protected] Web: www.stirlingaqua.com Table of Contents Page Executive summary ....................................................................................................................................................................................... 5 1 Introduction ........................................................................................................................................................................................ 12 1.1 Background and objectives....................................................................................................................................................... 12 1.2 Approach to the study .............................................................................................................................................................. 12 2 Methodology ....................................................................................................................................................................................... 14 2.1 Steering group ............................................................................................................................................................................. 14 2.2 Study team .................................................................................................................................................................................... 14 2.3 Identification of key industry issues ....................................................................................................................................... 14 2.4 Secondary data analysis ............................................................................................................................................................. 14 2.5 Stakeholder consultations ........................................................................................................................................................ 15 2.6 Shellfish Forum ............................................................................................................................................................................ 15 2.7 Reporting ...................................................................................................................................................................................... 15 3 National policy context .................................................................................................................................................................... 16 3.1 Strategic Framework for Scottish Aquaculture .................................................................................................................. 16 3.2 National Food and Drink Policy ............................................................................................................................................. 18 3.3 Shellfish Industry Development Strategy (SIDS) ................................................................................................................. 18 3.4 Linkages between policy context and opportunities for the Scottish industry .......................................................... 19 4 Initial analysis of the Scottish shellfish industry .......................................................................................................................... 20 4.1 Characterising the Scottish shellfish sector ......................................................................................................................... 20 4.1.1 Production performance ............................................................................................................................................... 20 4.1.2 Industry structure ........................................................................................................................................................... 21 4.1.3 Technology employed .................................................................................................................................................... 21 4.2 SWOT and PESTLE analysis..................................................................................................................................................... 22 5 International context ........................................................................................................................................................................ 28 5.1 Introduction ................................................................................................................................................................................. 28 5.2 Global production context ...................................................................................................................................................... 28 5.3 International trade ...................................................................................................................................................................... 29 5.4 EU context ................................................................................................................................................................................... 30 5.5 Conclusion ................................................................................................................................................................................... 35 6 The market for Scottish farmed shellfish ..................................................................................................................................... 36 6.1 Introduction ................................................................................................................................................................................. 36 6.2 The UK market for Scottish mussels .................................................................................................................................... 36 6.2.1 UK supply of mussels ..................................................................................................................................................... 36 6.2.2 UK trade in mussels ........................................................................................................................................................ 36 6.2.3 Size of the UK market for mussels ............................................................................................................................. 37 6.2.4 Channels to market for Scottish mussels.................................................................................................................. 37 6.2.5 Retail markets................................................................................................................................................................... 37 6.2.6 Wholesale markets ......................................................................................................................................................... 38 6.2.7 Foodservice markets ...................................................................................................................................................... 38 6.2.8 Consumption trends and consumer profiles for mussels ..................................................................................... 39 6.2.9 Sources of supply of Scottish farmed mussels ......................................................................................................... 39 6.2.10 Product characteristics and regional differences ..................................................................................................... 40 6.2.11 Processing of raw material (facilities, location, processes) ................................................................................... 41 6.2.12 Product forms and packaging ....................................................................................................................................... 41 6.2.13 Distribution logistics and costs .................................................................................................................................... 42 6.2.14 Pricing ................................................................................................................................................................................. 43 6.2.15 Mussel marketing difficulties ......................................................................................................................................... 43 6.2.16 Competitive market pressures for Scottish farmed mussels ............................................................................... 44 6.3 The European market for Scottish mussels ......................................................................................................................... 45 6.4 The market for Scottish oysters ............................................................................................................................................. 46 6.4.1 UK supply of oysters .....................................................................................................................................................