• Text size      
  • Send this article to a friend
  • Print this article

Scottish Salmon profits are hit by disease outbreak

Scottish Salmon Company (SSC), the Edinburgh-based group quoted on the Oslo stock exchange, has reported a third-quarter rise in revenues of 21% to £21.5 million but said profits were being impacted by "biological issues".

Experts have warned that the salmon industry stands to lose millions from a parasitic disease outbreak, with SSC estimating it could lose 1000 tons of fish, or 4% of its annual production, though it said customer demand could be met.

The company yesterday reported a fall in net earnings in the quarter from £690,000 to £130,000, impacted by disease costs as well as a weaker spot price of salmon, trends which it saw continuing during the rest of the year.

Harvested volume of fish rose from 4686 tonnes to 6607 tonnes, a rise of 41% on the same quarter last year.

SSC said: "The incidence of Amoebic Gill Disease and other biological challenges, partly due to higher water temperatures and high levels of salinity prevalent across Scottish salmon farming industry, has led to increased mortalities, lower growth and increased production costs."

It expected a "more normal biological performance" in the next generation of salmon to be harvested in the first half of next year from Loch Fyne.

The group reported "strong interest from top UK retailers" as a result of Freedom Foods accreditation, increased volumes to French smokers, expanded distribution in Japan and China, and a strengthening of domestic customer relationships.

SSC said a new license granted near Mull would add up to 2500 tonnes of additional volume, putting it on course to deliver 29,000 tonnes in 2014.

The licence at Gometra, close to Fingal's Cave and nine miles from Iona, was opposed by the Mull and Iona community councils but SSC claimed "overwhelming support" in the area.

The company said the global market outlook was "low supply growth and strong demand, leading to expectations of improving salmon prices going forward".

Contextual targeting label: 
Pets

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

128245