« Previous | Contents | Next »
Listen
3.9. Aquaculture
The organic aquaculture industry is focused around Scotland's islands, with the majority of produce originating from the Western and Orkney Isles. The small volume of production in the Shetlands is expected to increase in the near future as newly certified salmon farms become fully operational, and with the production of new species such as cod and shellfish. There is currently only a small amount of organic trout being produced on the Scottish mainland.
3.9.1. Survey results - volumes and markets
Currently, all organic salmon produced in the UK is grown in Scotland and it accounts for the vast majority of organic salmon sold in the U.K.
Production in 2004/05 dropped to approximately 2,500 tonnes, compared to 3,117 tonnes in 2003/2004. The farm gate value in 2004/2005 was £6.8 million. With the fall in production the average price of salmon per kilogram increased from around £2.40 to around £3. It has been suggested that the small fall in supply was due to wariness of market trends and changes in husbandry practices. The first certified Scottish trout farm began production in 2005. It is currently producing approximately 60 tonnes per year in its start up phase, but plans to double production early next year.
3.9.2 Processing
The supply network for organic Scottish salmon is often complex and follows a number of different routes through primary processors, fish wholesalers and smokers before going to the consumers via supermarkets and other retail outlets. Some salmon is also sold direct at farmers' markets, and some is exported whole. Initial sales of farm gate salmon are typically to primary processors, wholesalers or secondary processors such as smoke houses.
The small volume of trout is currently handled by one processor, and sold whole (gutted) in controlled atmosphere packaging.
Approximately 60 per cent of farmed salmon are sold fresh, mainly within the UK, with the balance going for smoking and other forms of processing usually within Scotland.
3.9.3. Penetration
Of the organic salmon produced in Scotland, 60 per cent was sold to the multiple retailers, predominantly Waitrose, 12 per cent was exported, 10 per cent sold to independent retailers and the remainder through direct sales and the food service industry. Currently all of the organic trout produced in Scotland is sold to the multiple retailers.
A TNS Superpanel survey showed that around 10% of the Scottish population have bought or tried organic fish in the last year. However the South of England is the region that spends the most on chilled organic fish, with sales accounting for more than 70% of total UK expenditure, indicating that the vast majority of Scottish organic salmon is exported.
The low demand but high level of production of organic salmon in Scotland, suggests that market penetration of close to 100% should be easily achievable. However, at least one major multiple retailer in Scotland often stocks organic salmon of Irish origin, thus reducing the overall penetration level to approximately 90%.
Overall, demand for organic salmon is currently very high, and farm gate prices have increased over the past 12 months. Lack of public awareness and knowledge appear to be holding back growth in this sector. However, the organic fish farming industry is confident volumes will resume strong growth in the coming year.
3.9.4. Summary
- Organic fish production in Scotland is predicted to increase and diversify into other species ;
- Organic salmon is a high value, niche market;
- Overall, demand for organic salmon is high and is expected to increase in the coming years;
- The South of England spends the most on organic fish - over 70% of the total expenditure. Scotland's share is less than 10%;
- Organic salmon penetration is approximately 90%.
« Previous | Contents | Next »