Scots salmon farmers give £500m boost to economy, finds survey

Published on Wednesday 20 May 2009 22:04

SCOTLAND'S salmon farmers injected £500 million into the economy in 2008, according to a new survey of producers.

The research was completed by the Scottish Salmon Producers' Organisation (SSPO) in April with 95 per cent of salmon farmers completing the survey.

It showed that spending on suppliers and services has increased from 253 million in 2006 to 304m in 2008.

The bulk of this – 143m – was spent in the Highlands and Islands, with 80m going to businesses elsewhere in Scotland, 66m in the rest of the UK and 14m to overseas firms.

Primary salmon production led to local gross wages payments of 36m in 2008, which translates to an injection of 165m into the rural economy – with 89 per cent going to the Highlands and Islands.

SSPO members also employed a total of 1,579 people last year in 2008, higher than official estimates for the sector.

Scott Landsburgh, chief executive of the SSPO, said: "The findings highlight the far-reaching and vital benefits of salmon farming. Our industry continues to play a major role in the economic sustainability of the Highlands and Islands."

David Primrose, director of independent market research company George Street Research, who analysed the industry-wide figures, said: "What is striking is the increase in investment and expenditure at a time when many other sectors have seen cutbacks. The industry is characterised by the amount of income retained locally."

The release of the figures coincides with a debate in the Scottish Parliament today to discuss the aquaculture industry.

Mr Landsburgh added: "The prospects for future development of our sector are encouraging. However, the development of policy that supports both further capital investment and expenditure in the supply chain is crucial."