Scottish Salmon says market improving

“The market outlook for Scottish farmed salmon is improving”, according to Sid Patten, Chief Executive of representative body Scottish Salmon Producers’ Organisation (SSPO).

As the industry continues to recover from the effects of worldwide low prices in previous years that has resulted in a substantial reduction in Scottish production, SSPO reports that over 1 million fresh salmon meals are now enjoyed every day in the UK, there has been a recent long overdue price correction for the farmer and production is expected to grow again from 2007.

Commenting on the improving outlook, Sid Patten said:  “Production of Scottish farmed salmon started to decline in 2004, but UK demand for salmon has continued to enjoy an unprecedented increase.  With a fair price for the farmer now and a forecasted steady increase in production from 2007, this is good news for the farmer and the west coast and islands of Scotland.

“The future prosperity of many businesses depend on the continuation of solid investment in salmon farming, which sequentially maintains supporting businesses throughout the rest of Scotland and further afield,” he added.

Welcoming the news, Tony Wall, Veterinary Director, Fish Vet Group remarked:  “Salmon farming is extremely important to us because it is our main income stream.  During the last eleven years, we have invested over £2million pounds into our business.  Our staffing levels have grown from two employees eleven years ago to 10 full-time and 4-6 part-time employees, all of whom are reliant on a successful salmon industry.”

David Goodlad, Managing Director, Net Services (Shetland) Ltd, noted:  “Our business has changed from being 100% reliant on the fish catching sector, to now being 100% reliant on the fish farming sector.  In 1998 there were three employees, now there are 18.  This increase in staff is purely as a result of fish farming and in particular salmon farming, as it currently represents approximately 75 per cent of our business.”

David Jess, Managing Director, Rossyew Ltd added:  “We started the business with four employees, but as turnover has grown we have expanded and we now employ a total of 12 people.  We have injected over £1 million pounds into our business and we are 100% reliant on the Scottish salmon farming industry for the supply of high quality salmon by-products.”

Despite the recent downturn in Scottish production, new salmon consumption figures (data is up to and including the end of May 06) reveal the unprecedented increase in UK demand:

• fresh salmon meals have increased from 314 million in 2004 to 357 million in 2006 – an increase of 13.8%
• smoked salmon portions have increased from 42.8 million in 2004 to 59.4 million in 2006 – an increase of 38.7%

Commenting on the UK consumer demand, Sid Patten noted:  “Over 1 million fresh salmon meals are enjoyed every day in the UK.  Similarly, over 1 million portions of smoked salmon are enjoyed every week.  Salmon farming is a young, dynamic industry which brings huge benefits to Scotland’s rural economies.” 

Notes:

1. Case studies of businesses reliant on salmon farming are available.
2. High-resolution photography is available.
3. The Fish Vet Group in Inverness provides veterinary services for the salmon farming industry all year-round to assist in the keeping and production of healthy fish in a cost effective manner, with regard for fish welfare, environmental considerations, production constraints and consumer safety.
4. Net Services (Shetland) Ltd (NSS Ltd) is a company that manufactures cage nets, top nets, sweep nets and anti-predator nets, as well as wash, repair and anti-foul nets for the fish farming industry.
5. Based in Greenock Rossyew Ltd was established in 2000 to process Scottish salmon by-products into oil and protein for the pet-food and animal feed industries. 
6. The total production of Atlantic salmon in Scotland peaked at 169,736 tonnes in 2003. It declined to 158,099 tonnes during 2004.  In 2005 it is forecast to decline from 158,099 tonnes to an estimated 136,000 tonnes. This represents an annual decrease of circa. 14% and a decrease of approximately 20% from its high of 169,736 tonnes in 2003.  The estimated 2006 production of Scottish farmed salmon is forecast to be comparatively level with that of 2005.  Production is forecast to increase from 2007. 
7. The salmon consumption data is up to and including the end of May 06. Leading market researcher TNS Worldpanel is the source of the data.
8. Scottish Salmon Producers’ Organisation is a newly expanded trade association for the Scottish salmon farming industry. For the first time, industry members from mainland Scotland, Western Isles, Orkney and Shetland have joined together to ensure that the industry’s contribution to Scotland’s social, economic and commercial landscape is promoted, recognised and rewarded by its stakeholders.

END 

For further information, case studies or photography contact either:

Ken Hughes, Scottish Salmon Producers’ Organisation, 01738 587006 / 07974 173 739

Julie Edgar, Scottish Salmon Producers’ Organisation, 01738 587010 / 0789 987 5151

SSPO main office 01738 587 000

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