Farmed salmon is one of Scotland’s main exports, benefitting the national economy and local communities.
This case study draws from the research project costs and opportunities for Scottish products with higher value status, such as salmon. We found that farmed Scottish salmon has attributes that retain good standing with consumers, although evidence from our research interviews suggests that it has lost some of its status as a high-value food. Interviewees also identified challenges facing the sector, which are perceived to be affecting its reputation and ability to invest in innovation.
This case study is one of three linked case studies on different aspects of the high value salmon sector.
Stage
Work CompletedDirectory of Expertise
Purpose
Scottish salmon was the UK’s largest food export in 2022, with a farm gate value of over £1 billion and supporting 12,000 jobs. The sector generated £65.8 million in tax for the Scottish and UK governments in 2018.
This project reviewed the costs and opportunities for higher value Scottish salmon products, such as the protected geographical indication (PGI) Scottish Farmed Salmon (now Scottish Salmon). It had three objectives, on which our three case studies are based.
1. Examine producers’ views on issues affecting Scotland’s higher value salmon sector (the subject of this case study).
2. Analyse consumers’ willingness to pay for higher value Scottish salmon products.
3. Produce a trade-off analysis model for the salmon supply chain in Scotland.
We hope that these case studies will provide ideas and analysis that will be of use to Scottish salmon producers, processors and policymakers, thereby contributing to the resilience of Scotland’s rural economy.
Results
We reviewed 158 studies and reports published between 2016 and 2024 on the farmed salmon sector. Informed by that review, we interviewed, between February and March 2024 producers, processors, others in the supply chain, and sector consultants. We asked them about: assurance labels, such as Scottish Farmed Salmon PGI and organic; the policy and trade environments; and sector networking.
We found that:
- Sector participants believe in the high quality of their product, but think Scotland an expensive place to raise salmon.
- Scottish policy-making and the planning system were viewed as slow and a brake on innovation.
- Critics of the sector’s environmental and welfare performance are perceived as having a significant negative impact on its reputation and as impeding innovation.
- International competitors are seen to be investing in technology and new production sites to improve efficiency and reduce costs, adding to competitive pressures on the Scottish sector.
- Producers’ main benefit from assurance schemes is perceived to be market access; although they incur significant extra costs registering, auditing, and labelling products.
- Even though producers are looking to automate, for example the monitoring of salmon welfare, the skills of experienced employees remain highly valued.
While, consumers are:
- Perceived to be changing the fish attributes they value and how they access assurance of these.
- Moving away from heritage attributes and values linked to protected food names, such as Scottish Farmed Salmon PGI, towards sustainability values, such as Aquaculture Stewardship Council certification.
- Relying increasingly on retailers to ensure production and welfare standards are met.
Finally, processors are thought to be moving to lowest cost suppliers. Being outside the European Union is considered to reduce the ability of the sector to export to its main customers.
Benefits
The benefit of qualitative research is that it encourages participants to say what is important to them. Four key themes emerged from the interview data which are likely to help to frame policy debate and thinking about the future of Scotland’s high-value salmon sector. Salmon aquaculture is a continuing issue for policy debate, with the recent follow-up inquiry into salmon farming in Scotland echoing the discussion in our review on the need for regulation reform and the consideration of science and economic factors around aquaculture sites.
- Ambivalence about the future of Scottish salmon. Participants perceived buoyant demand for, and that consumers still value, Scottish salmon. However, Scotland is considered an expensive place to produce salmon and to have a slow planning system; though the streamlining of the process for sea farm licenses was noted. Participants also thought that there may be additional regulatory de-alignment from the European Union, which would further hamper exports (though this may be less likely since the 2024 general election).
- Environmental changes. Rising water temperature and increased biological pressure have been observed. Partly as a consequence, there is an expectation that smolts may remain on land for longer, that sea-based aquaculture might move further offshore, and that on-land aquaculture may expand.
- Certification schemes can be about more than adding value to Scottish salmon. They were perceived to be useful to combat anti-farming lobbying. This is related to concern that salmon farming is perceived as not valuing fish welfare, whereas this topic generates considerable concern and costs within the sector.
- Trust within the sector. Two companies produced 60% of Scotland’s farmed Atlantic salmon in 2022. This means that “everyone kind of knows each other”, but has not necessarily led to increased trust. Enterprises appear happy to share information on potential risks but can be reluctant to share other data. It was suggested that the different representative organisations could play a greater role in building collaboration and sharing best practice.
Project Partners
This research was done by researchers at the Rowett Institute and SRUC. This research would not have been possible without the help provided by those in the sector who took part in our interviews and helped recruit interviewees. The project is overseen by a Steering Group containing policy and industry specialists.
Lead image: Caroline Attwood (unsplash.com)