The UK imports most of its fish, and the Brexit’s economic beating is raising prices.
Prices of salmon and squid have soared as disease and weather hurt global supplies, and British fish sellers say the Brexit-related drop in its currency may be the next scourge.
The British pound has fallen to a 31-year low on fears about the effect of the June 23 vote to leave the European Union, leaving it 13% weaker against the dollar.
That may make imports pricier, including the cod and haddock used by roughly 10,500 fish and chip shops in the 380 million meals they serve up each year.
Large retailers like Tesco and Asda have long-term supply contracts and hedges that shield them from near-term volatility. But independent playerswhich also include roughly 950 fishmongers, according to estimates by research firm Seafishare more exposed.
We tried to buy some shellfish this morning and our suppliers advised us to buy now because the price is going to go up, Gary Hooper, owner of GCH Fishmongers in Bedford, England, said. If I had a big freezer I’d buy it now.
Hooper spends at least 3,000 pounds a week on fish, including bass and bream from Turkey and Greece, tuna from Sri Lanka and swordfish from Brazil. He reckons shellfish costs could rise 20%, but knows he would lose customers if he tried to pass that on.
What we have to try and do is switch the consumer into local fish, he said.
The vast majority of the fish Britons eat is imported, mostly from Norway and Iceland, while much of the domestic catch is exported. Many UK fishermen hoped a Brexit would free them from EU fishing quotas, but the impact on the sector, which has a large showing in pro-EU Scotland, is unclear.
Norway, the world’s top salmon exporter, is benefiting from salmon prices that are 60% higher than a year ago, due to disease and a prevalence of sea lice in south America.
Supermarket chain Wm Morrisons raised its salmon filet prices months ago, and Tesco followed suit recently, increasing the price of 2 filets to 3.50 pounds from 3 pounds.
Martyn Boyers, chief executive of the fish market in the northern port town of Grimsby, says the pound’s weakness, which is also down about 10% against the Norwegian crown, could reduce Britain’s lure as a market, even for cod and haddock.
In the end, if the Icelandics and Norwegians who send white fish don’t think the price they’re getting is good enough, it won’t come here at all, Boyers said.
Britain is Norway’s third-biggest market for seafood, worth seven percent of total sales in 2015, with a value of about 5 billion Norwegian crowns ($591.90 million). Norway sells mostly salmon to Britain (3.4 billion crowns), followed by cod (600 million crowns) and haddock (450 million crowns).