Dramatic quota reductions and the weakness of sterling will lead to shortages and soaring prices for the UK's favourite fish in the year ahead, fishermen have warned.

North Sea fishing quotas on cod and haddock will be cut by up to 25% in the next 12 months, with the toughest cuts on the west coast of Scotland, if the European Commission recommendations released last week are accepted by ministers, as is widely expected.

The proposals also contain a recommendation to cut the number of fishing days by up to 25%, which experts warn will lead to shortages later in the year.

"This issue is definitely affecting the supply of fish into UK processing," said Jon Harman, development director for industry authority Seafish. "Towards the latter end of the year, many domestic fishermen have used up their quotas and can no longer catch cod. The consequence of this is higher prices, more imports and frequently means UK fishermen miss the optimal catching season."

The UK was already heavily reliant on imports for much of its seafood, Harman added. Despite the UK exporting about 60% of fish it caught, we import about 80% of the fish we eat including 90% of cod. Haddock is largely served by domestic supply.

Now, however, the weak pound once again more or less at parity with the euro is encouraging some fishermen to abandon the UK, and is making imports of cod from major catch areas such as the Barents more expensive.

"We are seeing some of our domestic fleet landing in the Netherlands, as they have a quicker turnaround and can probably secure a better price," said Steve Norton of the Grimsby Fish Market Merchants Association. "We also hear that Iceland, which is where most of the fish we sell in Grimsby comes from, is now selling more fish to America. Not only do they get a better price there, but it provides jobs for Icelandic processors."

The low exchange rate and competitive international market are likely to force UK buyers to raise their prices in the new year, which will quickly impact on shelf prices. Fishermen said higher prices were needed to offset the damaging effect of quota cuts.

"The year ahead looks bleak," said Scottish Fishermen's Federation CEO Bertie Armstrong. "However, despite the picture painted in the film End of the Line, we're not on the brink of destruction. We've been taking steps for quite some time, and fish stocks in the North Sea are in recovery but as the survey data takes so long to show this, quotas are still being cut. It's a curse of abundance."

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