UK expands financial support for seafood, fishing and aquaculture sectors hit by export troubles and COVID-19

22 Feb 2021 --- The UK government plans to enhance financial support for the nation’s seafood industry with cash grants for seafood and aquaculture businesses across Britain. It comes as the COVID-19 pandemic has led to the closure of critical markets, and this has been exacerbated by issues faced by exporters at the UK-Europe border. 

The expanded cash injection, as part of the Seafood Disruption Support Scheme, closely follows the Government making £23 million (US$32.2 million) available for seafood exporters that suffered financial losses because of delays related to the export of fresh or live fish and shellfish to the EU during January. 

The Department for Environment, Food & Rural Affairs (Defra) is expanding the eligibility criteria to target catching and shellfish aquaculture businesses that have been affected by a reduction in demand from the hospitality sector in the UK and abroad as disruption of exports to the EU.

Grants to ease financial burden
This extension comes after industry expressed its concerns to Defra, which says that these expanded criteria will mean more businesses can get the financial support they need.

The lack of demand in the hospitality trade in the UK has had a significant impact on seafood market prices.The scheme will open in early March and provide a grant payment to cover up to three months of average business fixed costs incurred between January and March 2021. It will help catching and shellfish aquaculture businesses with costs such as insurance, equipment hire and port fees.

“Our fishermen are at the heart of many of our coastal communities and we recognize the impact of coronavirus and the end of the transition period on them. This expansion of our £23 million support package will ensure many more businesses can benefit from government support,” says Environment Secretary George Eustice.

“We will continue to ensure we are listening to our fishing and seafood industry as we work to resolve these issues and work with them to build up the industry in the months and years ahead.

Pandemic and export disruptions
“Over the last few months, we have been listening to the seafood industry and have continued to monitor the impacts that the pandemic and export disruption has played on prices, exports and the market,” adds UK Government Minister for Scotland, David Duguid.

“I am confident in the quality of Scottish fish and seafood, but for many fishing businesses, the lack of demand in the hospitality trade in the UK and further afield has had a real impact on market prices.”

“While we continue to take steps to beat this virus and work with the sector to resolve export issues – this expanded support scheme will help the many small and medium-sized fishing businesses that support so many of our coastal communities.”

The main features of the Seafood Disruption Support Schemes are:

• For the UK catching sector, the fund will be open to under 40 m vessel owners with fishing licenses and who have a track record of fishing in the winter months.
• The scheme will offer support to UK shellfish aquaculture businesses, which will be provided on average ongoing costs based on Full-time equivalent (FTE) employees per business. Businesses who have received a grant under the recent Seafood Producers Resilience Fund in Scotland will not be eligible for the UK scheme.
• The Marine Management Organisation will administer the fund across the UK on behalf of Defra, contacting eligible registered owners and license holders directly with details of how to apply, starting in early March.
• A single payment will be made to cover a proportion of fixed costs over a three-month period from January to March 2021.

The UK fishing and seafood sector is also set to benefit from significant government investment with a £100 million (US$140 million) fund to help modernize fishing fleets, the fish processing industry, and rejuvenate the industry in the UK, on top of the £32 million (US$45 million) that will replace EU funding this year.

The government also continues to seek urgent resolution to export issues, including the EU ban on importing class B live bivalve mollusks and exploring further ways producers can continue to export this valuable seafood.

UK mussels and oysters are highly sought after, at home and abroad. The sector has been highly impacted by COVID-19 restrictions and now barriers to trade imposed by the EU.

Edited by Gaynor Selby