Industry Research Report - Scottish Salmon Producers' Organisation

Contents
Chairman’s
Foreword
Chairman’s Foreword 1
Chief Executive’s Overview 2
Health & Welfare View 3
Background and Objective 4
Case Study: Argyll & Bute 5
Methodology and Sample 6
Case Study: Highland 7
Main Findings: Salmon Business Confidence Survey 8
Main Findings: Employment by SSPO Member Companies 10
Main Findings: Travel to Work 11
Main Findings: Average Years with Companies 11
Main Findings: Origin of Workforce 11
Main Findings: Financial Contribution to Communities 12
Main Findings: Levels of Capital Investment 14
Main Findings: Expenditure on Suppliers and Services 16
Case Study: Orkney 17
Case Study: Shetland 18
Overseas Development View 19
Case Study: Western Isles 20
Scottish farmed
salmon and
salmon products
are internationally
recognised as the
premium product
in their class
As Scotland deals with the realities of the global economic downturn, erudite
economists – always men with perfect hindsight – have a new mantra of
‘a balanced economy’. In plain man’s terms this means creating the essential mix
of primary production, manufacturing and service industries that will provide for
economic stability even in difficult times.
Scotland has relatively few world class industries, but its salmon farming is in that
category. We will never be the largest salmon producer or the lowest cost. Norway
and Chile are ahead of us in scale; and by international standards our farm sizes
are small and our commitment to high standards of husbandry and management
incurs added costs. But Scotland seeks to produce the best and we are immensely
proud of our history and tradition. Scottish farmed salmon and salmon products
are internationally recognised as the premium product in their class; they are
always in-demand at home, and in countries across the world.
Again this year, in this report, we have provided key facts about our industry, both
for the interest of the communities in which we farm and for a wider audience.
The figures will speak for themselves; but the creation of 506 jobs over the last
three years and the capital investment of £205 million in farms and processing
are points of note. The vast majority of capital investment has been in the
Highlands and Islands: Shetland (33.5%), Argyll & Bute (17%), Highland (23%),
Western Isles (15%) and Orkney (4.5%). However, with recent new planning
applications and permissions in Orkney, investment there is set to rise.
Under Scotland’s National Marine Plan, farmed fish production will increase
steadily year on year, to give an overall increase of 50% by 2020. This plan is
fully achievable subject only to continued careful planning and to investors’
confidence in Scotland. The first of these can be virtually assured. But, with a
major Aquaculture and Fisheries Bill proposed for later this year, we trust policy
makers will avoid measures, which may threaten our competitive position in the
investment market. As part of a ‘balanced economy’ there’s nothing better or
more future-looking than Scottish salmon farming!
Professor Phil Thomas
Chairman, Scottish Salmon Producers’ Organisation
1