Concern over festive prawn prices

Shellfish caught in Scotland are sold in Europe.

The credit crunch is having a negative effect on Scotland's prawn fishing industry at a time traditionally known for high prices, it has emerged.

There is uncertainty over sales as households in the UK and Europe spend less. Continental Europe represents more than 80% of the market.

John Hermes, of Mallaig and North West Fishermen's Association, said prices had decreased.

He said processors also had higher than usual amounts of stock in cold storage.

Demand for prawns and other shellfish normally increases in winter because catches are limited by bad weather coupled with customers who want the seafood for the festive season.

We are at a very, very critical stage

John Hermes
Mallaig and North West Fishermen's Association

But Mr Hermes said people were finding they may not be able to afford the high end commodity and the situation was affecting sales in prawns, scallops, crab and lobster.

He said: "We have heard of instances where some of the major processors are relatively full up with prawns in their cold stores and are not too keen on taking much more.

"There is also a process called dumping where stuff is being dumped on the market at a lower price than normal to get cash flow going.

"We are at a very, very critical stage."

SHELLFISH FACT FILE

Between 300-400 boats fish for shellfish off the west coast.

The price for marine diesel on the west coast has dropped from 60p-a-litre at the height of fuel increases to between 37-39p-a-litre.

Prawns kept in cold storage are frozen by nitrogen.

Mr Hermes added: "One of the few good things is that fuel prices have gone down."

Meanwhile, selling agents have found credit companies are reluctant to guarantee funds during the wait for customers to pay bills.

Customers usually have 90 days to settle.

One agent contacted by the BBC Scotland news website said the companies had reduced the amount of money they were willing to assure from as much as �100,000 to �20,000 and in some cases zero.

Fishing is one of several industries encountering difficulties in the Highlands and Islands.

Last week, the construction industry on the Western Isles was found to be in crisis according to the majority of building firms contacted by BBC Alba.

Many firms have shed jobs and expect to have to lose more staff as there was little prospect of any new contracts for the foreseeable future.

John MacIver, a self employed project manager, said the situation was the worst in 30 years.