The Courier & Advertiser (Perth and Perthshire Edition)
Salmon producer says size matters
Smaller fish shrank the performance of the Scottish Salmon Company in the last quarter.
The producer of premium salmon, with operations only in Scotland, reported an 8.65% fall in net operating revenues at £28.5 million on harvested volumes, down 34% at 6,382 tonnes.
Operating profit was up 14% at £4.9m, bringing stability to the operations of the company. These range from smolt production through freshwater and marine farming to harvesting and processing as well as sales and marketing.
Scottish Salmon employs more than 450 people, approximately 230 of whom are in the Hebrides.
It said the reduced volumes were as a result of smaller fish being harvested.
Market conditions continue to thrive, with industry prices reaching unprecedented levels, but biological and operational challenges impacted on harvest volumes at some sites.
The company said measures are in place to address the challenges, and work is progressing on a new site at Benbecula to produce an additional 2,000 tonnes of harvested volume.
In June, Scottish Salmon announced a £55m refinancing arrangement with Bank of Scotland which it said was a major milestone in its growth strategy.
The company was continuing to expand its export business, securing new customers in key markets including the Far East.
It exports to 25 countries, accounting for 42% of revenues in the quarter.
Managing director Craig Anderson said: “To date 2016 has presented some challenges and, despite this, our earnings have remained steady.
“We are making good headway in developing our new site in the Hebrides, increasing harvest volumes to allow balanced year-round production is at the heart of our growth strategy.
“Our new financing arrangement with Bank of Scotland will be key to achieving this.
“Biological challenges remain an industry-wide issue for salmon farmers,” he said.
“We have continued to invest in collaborative solutions and have a longterm project in place for including cleaner fish as part of our farming programme.”