PROFITS dived by one-third at a leading Scottish fish farming business last year when the price of salmon fell on global markets but feed costs increased.
The Scottish Salmon Company announced that trading profit before interest and tax fell to £14.4 million in 2011 from £22.5m, "against a backdrop of higher feed prices and the world-wide decrease in salmon prices due to increased supply".
Turnover at the Edinburgh-based company fell to £90.2m in 2011 from £92.4m in 2010. Listed on the Oslo stock exchange, the company operates more than 50 fish farms on the Hebrides and west coast of Scotland. It sold 22,962 tonnes of fish in 2011, in line with targets, compared with 24,516 tonnes in 2010.
However, its chief executive Dr Stewart McLelland said: "The demand for premium Scottish salmon globally remains strong and the long-term outlook is extremely positive as we open up new markets."
He added: "Our long-term plans are to grow the business sustainably and we are investing locally to achieve the extra volumes needed to create the necessary synergies in the production process."
Earlier this month the company said it expects to create 100 new jobs on 10 new fish farming sites in the next five years as it raises production of farmed fish to keep pace with demand.
On Monday, a joint venture between Scottish Salmon Company and the Northern Link private equity operation bought the Loch Fyne Oysters oyster farming business from its employee owners.
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