| 2012 | 2018 | |
|---|---|---|
| Landings (million tonnes) | 4.9 | 5.2 |
| Active vessels (thousands) | 82 | 74 |
Source: Eurofish statistics 2019
| Year | Landings (thousand tonnes) |
|---|---|
| 2000 | 740 |
| 2001 | 710 |
| 2002 | 690 |
| 2003 | 640 |
| 2004 | 650 |
| 2005 | 660 |
| 2006 | 620 |
| 2007 | 610 |
| 2008 | 590 |
| 2009 | 580 |
| 2010 | 600 |
| 2011 | 600 |
| 2012 | 620 |
| 2013 | 630 |
| 2014 | 750 |
| 2015 | 710 |
| 2016 | 700 |
| 2017 | 720 |
| 2018 | 690 |
Source: Marine Management Organisation (MMO) 2019
Marine fishing and aquaculture contribute significantly to the coastal economies of the United Kingdom. However, the supply chain is highly consolidated. The vast majority of landed fish in key UK ports is purchased by just half a dozen major processing firms. These processors, operating in an oligopsonistic position, subsequently sell processed seafood to a domestic retail market dominated by five or six large supermarket chains. UK fishermen frequently point out that while they operate in highly competitive coastal markets as price-takers, they are squeezed by the market power of the processors and major supermarkets on whom they depend.
Supermarkets argue that British fish must compete against cheap seafood imports, such as whitefish from non-EU nations or intensive Norwegian aquaculture products. Representatives of the domestic fleet counter that if local independent vessels are driven out of business by unsustainable prices, consumers will ultimately face higher prices and lower food security once domestic competition has eroded.
Furthermore, recent shifts in supply chain routes have exposed vulnerabilities in traceability and product standards across European borders. If domestic fleets collapse, maintaining quality standards and ensuring sustainable sourcing policies may become increasingly difficult.
Source: industry reports and investigative journalism, 2019
For many years, the marine fishing sector across Europe has been heavily managed. Under regional agreements like the Common Fisheries Policy (CFP), fishing effort has been restricted through Total Allowable Catches (TACs) and quota systems to prevent economic overexploitation. In addition, governments have subsidised vessel upgrades, fuel, and port infrastructure to secure employment in isolated coastal regions.
However, regulatory intervention has often led to government failure. The quota allocation system historically forced fishermen to 'discard' (throw back dead into the sea) perfectly marketable fish caught in excess of specific species-quotas, a practice widely criticised as economically wasteful and destructive.
In recent years, policymakers have argued that the marine fishing sector must become "more responsive to market forces" (Extract F, line 5). Transitioning to market-based systems, such as Individual Transferable Quotas (ITQs) where quota rights can be traded, is being explored. As subsidies are phased out and market forces play a larger role, the industry is expected to undergo consolidation, leading to fewer, larger, and highly capital-intensive vessels. While this can increase productivity and resource efficiency, local regulators have intervened to protect small-scale coastal fleets from being completely bought out by large corporate conglomerates. This tension between protectionist intervention and market efficiency remains a central debate in resource economics.
Source: economic research and policy documents, 2020
Using the data and your economic knowledge, discuss whether the UK fishing industry would benefit from greater responsiveness to market forces and less intervention by the UK government and external regulatory frameworks [25].
