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Publication - Research and analysis

The Importance for the Fish Processing and Merchanting Sector of Landinsg of Fish from the Waters of Pentland Firth and Orkney to the Local and Scottish Economies

Published
12 December 2014
Part of
Marine and fisheries
ISBN
9781784129637

The objective of this study is to assist ongoing work at Marine Scotland. The specific objective is to estimate the contribution of the fish and shellfish processing industry and the fish merchants in providing returns on landings from the waters of the P

View supporting documents Supporting documents

5. Inferences and Conclusions Concerning the Importance of Processing Landings from Pentland Firth and Orkneys Waters for the Scottish Economy

The estimations have offered plausible results, though again this may in part be due to the fact that some view has had to be taken of income levels in the sector, especially for the merchants. As with the development of the Consolidated Transactions Matrix for the North Highland and Orkney local economy these can be directly compared with those for the processors from whom it has been possible to obtain reliable figures.

The results found here show that the wage levels are generally lower than those found throughout Scotland, a conclusion to be expected for a peripheral area of the UK dependent on primary production.

The Type II multipliers vary around those for other businesses in Scotland. Less of the output is exported from the Scottish economy, 56% from Scotland compared to 89% from the locality. This is because the merchants tend to supply processors in Peterhead, especially with demersal fish.

The higher values of the multipliers indicate that the sector has high labour productivity levels but that the mark-up is lower especially for crab processing.

The Impact of a 10% Decline in Supply on the Scottish Economy

Table 11 below sets out the losses to the Scottish economy that might be expected to occur should there be a 10% reduction in the value of landings from the waters of the Pentland Firth and Orkney area.

Table 11: The Impact of a 10% Decline in Supply on the Scottish Economy

Type II Processors and
Merchants:
Orkney Landings
of
Non-Crustaceans		 Processors and
Merchants:
Orkney Landings
of
Crustaceans		 Processors and
Merchants:
North Highland Landings
of
Non-Crustaceans		 Processors and
Merchants:
North Highland Landings
of
Crustaceans
Output (£m) £0.07 £1.38 £0.16 £0.39
Income (£m) £0.02 £0.44 £0.04 £0.12
Employment (Units) 0.9 18.3 1.8 5.1

It is estimated that a 10% decline in the value (and volume) of landings would result in a fall in output of £2m, of £0.63m of income, and 26 jobs in the Scottish economy.

Since the model is linear the impact of other percentage changes may be calculated as simple multiples of 10%, but because of the linearity the reader should be aware that the reliability of such estimates declines as the percentage change considered increases.

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