A Fresh Start: The Strategic Framework for Scottish Aquaculture
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Transcript of A Fresh Start: The Strategic Framework for Scottish Aquaculture
A Fresh Start: The Strategic Framework for Scottish Aquaculture
Improved Access to Finance Working Group (FWG)
Presentation to the Ministerial Group on Aquaculture
22 June 2010
Desired Outcomes
Competitiveness of Scottish Aquaculture
Long-term Investor Confidence Development of robust data
and information highlighting value, importance and prospects of aquaculture
Lack of Public Sector Funding Lack of Private Sector Funding Support for Innovation and
New Technologies More efficient use of facilities
FWG: Composition & Methodology
Industry – Salmon, Shellfish, other speciesAssociated Industry (Feed)Scottish Govt. (Marine Scotland, Statistical Analysis)HIESDICrown Estate Insurance IndustryWider Financial Representation (Investment, HP, Venture
Capital, Chartered Accountancy)Corresponding Membership (to date) CSCB
Working methodology to research, analyse and educate those involved in aquaculture in better accessing finance and the finance sector in the value of aquaculture
FWG: Bad News…
Review of Scottish Government economic statistics proved “unhelpful”
Paucity of information and of poor qualityNo further work undertaken
But:Underlying message that aquaculture is wealth
creating and net contributorShortcomings of SG data review being
addressed and scope for improvement
Current Work Programme
“It was the best of times, it was the worst of times…
it was the spring of hope, it was the winter of despair…”
Dichotomy within aquaculture: record salmon prices vs. lack of profitability in other
sectors Implication for financing – the haves and have notsPriority to help the have notsEFF application for two phase programme to address
SME (all species) market positioning and business development
Market Analysis and Business Development Review the size, value and positioning of different sectors within
Scottish Aquaculture (SME) Review of scope for potential expansion and increased market
penetration for individual business Targeted business coaching and development opportunity (SME) Proven track record in devolved areas (WAG, Scotland Food and
Drink) Proven increases in sales and turnover where applied elsewhere
Complementary to work of Marketing Group and other EFF projects (Buyers)
Scope for longer term role out / policy application?
Longer Term Business Support?
Comparable schemes in terrestrial farming (FarmBASS)
Clearing Bank Sponsorship / SG endorsed
Economic development not subsidy and grant
Putting aquaculture on a comparable platform with other food producers and capture fisheries
Putting “Strategic” into the Framework
Longstanding problem aquaculture producers have faced – to achieve an industry that is market led and not production led. Poor profitability profile and margin of return.
2010? Market led, production inhibited.
A better understanding of cost of production, market position, market potential and business development will allow for market led growth, at any scale of production
Allow for improved access to finance based on proven business planning and accurate costing
FWG: Additional Workstreams
Finance Bilateral (Scotland / Norway)Proposed to be held November 2010 in conjunction with first MoU meeting. Pre-meetings underway.
Marks the beginning of a finance sector specific aquaculture outreach programme, commencing 3rd quarter 2010
Public Sector Funding ReviewA desk top review is currently underway, to be reported on by the end of the summer and circulated to industry.
Similar review to be undertaken with SG Agriculture / Rural Development programme for comparative purposes
Scope for tuning of EFFClear problems wrt. accessing non convergence funding (parallel across the EU). Flexibility in company provision of matched funding (government supported loans). Currently being considered by the PMC and EU authorities in relation to state aid regulations
Scottish Aquaculture Fast Facts
Purpose? A concise summary of production statistics and value for Scottish Aquaculture
Form? Annual publication promoting economic importance of Scottish produce.
Progress? Production figures “easy”
(thanks to MSS/FHI) EC Data Regulation
requirements for value proving more contentious
Disagreement over provision of economic value statistics viz. industry data or SG data
To be amicably resolved and production by end 2010
Take away messages
Identified the knowledge gaps and weaknesses
Identified required economic/market analysis and business support
Various projects now /shortly underway to address this
Opportunities for potential longer term sector support emerging
Applicable to all species and sectors, regardless of size and comparative values
Research, analysis and education programme continues