Roaring forties
Salmon farmer marks significant birthday with new farm and SSPO role
SCOTLAND’S oldest indigenous salmon farmer, Wester Ross Fisheries, has just announced plans to buy a neighbouring farm and expand capacity by 30 per cent. The move will enable the company to create more jobs in Rossshire, help secure its long term ambitions for growth and meet booming export demand.
And in a further boost for the independent business, it received almost £1 million in EU and Scottish government funding last month for the modernisation of its facilities.
It certainly seems that 2017 is shaping up to be Wester Ross’s year, not least because this is also the company’s 40th anniversary. But suggest that to modest managing director, and majority shareholder, Gilpin Bradley and he says ‘don’t go overboard!’
Bradley has another reason to blow his own trumpet, having been appointed interim chairman of the Scottish Salmon Producers’ Organisation last month, but he chooses to keep a low profile though that may now become di cult.
Wester Ross farms on Loch Kannaird as well as Loch Broom, has a processing plant in Dingwall and employs around 60 people in total.
The new farm, at Ardessie in Little Loch Broom, is in fact a site Wester Ross has been operating for several years on a lease from farmers Johnnie and Clare Parry.
Having finally purchased it, we’re able to expand our activity there and that’s the key thing for us. It gives us security to invest,’ said
I think the trade association plays a really key role and it’s very important that it re ects the membership” range of views within the
Bradley. We’re planning to upgrade equipment and utilise more of the capacity.’
Funding came from the Bank of Scotland, which last year indicated its intention to strengthen its aquaculture involvement, having funded the Scottish Salmon Company (SSC) for the first time.
The bank said the development of Wester Ross is a strong signal of sector confidence and highlights the importance of the Scottish salm- on farming industry to the local economy’.
Wester Ross is on a far smaller scale to the SSC but Bradley said they have been with the Bank of Scotland since 2006, when a management buyout took place, and their support has been crucial we’re very grateful for it’.
He is also obviously delighted with the EMFF and Scottish government decision to hand out £951,309 to Wester Ross, part of which will pay for the Ardessie expansion- we will spend it very wisely and create more jobs.’
Although he acknowledges that the regulatory regime is the number one constraint to expansion’ in the industry, for the smaller players, working capital finance is as great a hurdle. The Ardessie site already has full planning consent but funding has been the obstacle.
We would wish to expand further but the challenges that face the privately owned independent farmer have not changed.
If you’re listed on the Oslo stock exchange raising new capital is significantly cheaper than if you’re privately owned and rely on internal resources or external debt funding.’
Apart from opening the new farm, Bradley said any celebrations for their landmark 40 years in the industry will be held with those who matter most, their customers.
We put a lot of effort into customer relations. The strength of our customer base and the support that we’ve got is a big factor in allowing us to reach 40 years, so that’s what we prioritise.’
About 70 per cent of these customers are overseas all over the world ’, said Bradley. We’re shipping to the US, Dubai, Japan, China, Singapore, Lebanon, Swit erland.’
This month he will be at the Boston seafood expo, and in April he’s off to Brussels. Both shows yield a good dividend’, but America is a particularly important export market, as the US economy grows, and the current weak pound helps
‘The thing about the American market is you’re dealing with a very highly educated consumer. They want a strong story as to why they should buy our salmon. If you can tune into that there is a big potential market.’
Wester Ross has a strong story, with what Bradley calls an ‘all natural’ approach to salmon farming generating global demand.
The fact that we’re selling to the same customers every week is because they like the taste of the product. We’re supplying a product that is noticeably different to the alternatives.
Also, hand feeding is important to them. They like a high level of fish husbandry when we’re growing our salmon, completely all natural, no medicines, and only wrasse being used for sea lice treatments.’
The introduction of cleaner fish at Wester Ross in 2013 has made a significant difference, not just in controlling sea lice but in the way the staff work. They use wrasse exclusively and are now in their third year of not having to use treatments.
The culture within our teams has changed dramatically and I think that’s a key consideration when you move on to using cleaner fish,’ said Bradley.
It’s a different mindset the welfare of cleaner fish, whether wrasse or lumpies, is just as important as the welfare of the salmon. That’s a real challenge for farming companies, changing that culture within their teams.’
But the net result, he said, is ‘zero treatments, zero medicine, and happy fish’.
It didn’t happen overnight. But cleaner fish isn’t quite as hard work as carrying out treatments every month. Our dedicated staff realise it’s in their interests to make this work and all credit to our team who are making the change very successfully. It’s worked well for us and made a big difference.’
It helps perhaps that there is a wealth of experience at Wester Ross, hands-on salmon farmers’ who have worked there for many years.
We now have some third-generation staff, which is quite an achievement. There are not many salmon farmers that can claim that.’
Bradley will not be drawn on how long he will serve as chair of the SSPO but the appointment of a seasoned industry insider has been welcomed.
I think the trade association plays a really key role and it’s very important that it re ects the range of views within the membership. In the SSPO we’ve managed to do that successfully over the years.
We want a really strong Scottish salmon voice and I’m very pleased to be chairing a team that’s going to continue to make that happen.
‘There will always be strong views in salmon farming companies in Scotland. But the important consideration is that the trade association can come to a consensus view which re ects all interests.
‘There are only seven integrated companies le and it’s key that we have one body that can speak for them all.’
Grieg Seafood is the only Scottish firm not involved but maybe Bradley’s leadership will bring them back on board.
A trade association’s preference is always to have full membership so I couldn’t suggest any timing but the preference would always be to have them within the body.’