£5m deal to put Scots salmon on Moscow menus

Stewart McLelland

As part of a deal expected to be worth at least 5 million, the firm has sent an initial shipment of 20 tonnes from its Loch Fyne farm, destined for Moscow's top restaurants. The next delivery will be sourced from the Hebrides.

The company, which is one of Scotland's biggest salmon suppliers, sees this agreement as a milestone in opening up business in Russia, which has been identified as an emerging market.

Though the country has significant domestic salmon production, plus established import links from Norway, growth in the middle classes is driving demand for high-quality cuisine.

"This is a very exciting deal for us as a company, expanding our export market into this previously untapped region," chief operating officer Stewart McLelland said.

"Russia has one of the fastest-growing demands for salmon, so introducing it to a prime Scottish product now is very timely."

The Scottish Salmon Company hopes that Russian shipments will account for 5 per cent of sales within the next three to four years.

In its last financial year, exports to all destinations accounted for about 20 per cent of the firm's 92.4m turnover.

"Our focus is very much to drive this percentage up so we have a balance between domestic sales and exports," said Su Cox, director of sales and marketing.

The deal was brokered over several months with assistance from Scottish Development International.

Cox said ironing out the logistics and licensing required for the delivery of fresh whole fish was one of the main difficulties in sealing the agreement.

According to HM Revenue & Customs, UK exports of fresh salmon to Russia amounted to just 1.75 tonnes between 2009 and 2011. By contrast, frozen exports reached 1,372 tonnes in 2009 alone.

However, total sales of fresh Scottish salmon abroad are continuing to rise, reaching a record 78,611 tonnes in 2010 - 20 per cent higher than in the previous year.