Brexit impacts on Alaska seafood
June 28, 2016
This is Fish Radio. I’m Laine Welch – How Brexit might bite into Alaska seafood sales. More after this –
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The UK’s exit from the European Union last week has turned world trade on its head. For 43 years the United Kingdom has been a major part of the 28 country EU, and what the pull out will mean for longstanding business arrangements is anyone’s guess. Last year the UK imported over $90 million dollars of Alaska seafood.
It’s all kind of speculative but I can say that anything that has a negative effect on currency values relative to the dollar hurts exports.
Tyson Fick is Communications Director with the Alaska Seafood Marketing Institute.
Particularly canned salmon, frozen salmon, our largest traditional salmon market is in the UK so we’ll have to see how this all shakes down. I do expect we will be strong trading partners both with the UK and the EU, I guess separately now.
Canned salmon makes up about 70% of Alaska exports to the UK valued last year at $23 million worth of canned sockeyes and nearly $9 million for canned pinks. Alaska also saw big increases in sales of frozen pink and other salmon and. The pull out also affects other seafoods.
Just the EU alone represents about 25 percent of our export market so that really all affects all species. That means pollock and cod , all salmon species. It’s pretty concerning.
The exit has caused some of the biggest currency moves in decades and causes problems with credit.
We’ve seen the Dow Jones go down, European market is down. That really makes for potential liquidity problems so the loans aren’t available to finance the business. That makes it additionally difficult for people in the seafood industry.
Fick says ASMI is active in 27 different countries today and continues to expand markets, most recently in Brazil, Soviet satellite states and Southeast Asia. And the U.S. market continues to be a bright spot.
We feel really good about the domestic outlook going into this year. One of the bright spots of unfortunately having lower prices last year was that we were able to run specials at retail that have turned a lot of people on to Alaska salmon and we hope to continue that momentum throughout this year.
Learn more about the UK exit fallout at our website www.alaskafishradio.com
Fish Radio is also brought to you by Ocean Beauty Seafoods. Ocean Beauty has contributed over 10 million meals to the U.S. Food Bank network, and is committed to ending hunger in America. www.oceanbeauty.com In Kodiak, I’m Laine Welch.