Scotland's salmon sector is not being held back by demand, environmental limits, or a lack of innovation but by complex regulations and slow-moving bureaucratic processes, according to a new paper published by Prosper, the trading name of the Scottish Council for Development and Industry (SCDI).
The paper, titled “Net Gains: Supporting Scotland’s Salmon Farming Sector,” highlighted that Scottish salmon farming has delivered more than GBP 6 billion (USD 8.1 billion, EUR 7 billion) in international sales over the past decade and is also a major contributor to the nation’s rural communities, food security, and innovation ecosystem; therefore, it contends it should be treated as a strategic national industry and given greater political and regulatory support to enable sustainable expansion.
The report also argues that amid soaring global demand for salmon, Scotland has an opportunity to increase production, which is currently being hindered by the regulatory landscape and, in particular, its slow consenting processes.
“Despite the success of the Scottish salmon sector and high demand, production has increased by just 1.8 percent per year in the past decade behind growth in competitor countries,” it said.
Prosper, which is a non-governmental membership organization and economic think tank, said that a new phase of sustainable growth may be around the corner, as Scotland voted in a new government in May, led by re-elected First Minister John Swinney.
Prosper called on the new Scottish government to implement more efficient and predictable planning; clearer regulatory responsibilities; and a faster, more predictable consenting process that would help secure further investment, production, and rural economic benefits to make sustainable growth in salmon farming a “national economic priority.”
It also wants the Scottish and U.K. governments to give stronger support to skills and innovation and for both to more strongly back the promotion of exports and international trade.
Welcoming the paper’s calls for growth, Salmon Scotland CEO Tavish Scott said in a statement that Prosper had “added an important voice” to the growing consensus that Scotland should back the responsible growth of salmon farming.
“This is a sector that supports jobs, investment, and economic activity in some of Scotland's most fragile communities while producing one of Scotland's greatest export success stories,” Scott said. “As the paper highlights, Scotland has an opportunity to build on that success. If we want to attract investment, support innovation, and deliver sustainable growth, we need a regulatory system that is efficient, predictable, and fit for purpose. That would benefit communities, businesses, and the wider Scottish economy.”
Elsewhere in the paper, it cited a recent report by consultancy BiGGAR Economics that estimated the Scottish salmon-farming sector now has an economic impact of nearly GBP 1 billion (USD 1.3 billion, EUR 1.2 billion) annually, an increase of around 25 percent over four years. This total includes a direct economic contribution to the Scottish economy of GBP 231.2 million (USD 310.3 million, EUR 267.8 million), generation of GBP 589.9 million (USD 791.6 million, EUR 683.3 million) through its supply chain, and investment activities of GBP 66.5 million (USD 89.2 million, EUR 77 million).
Meanwhile, sales of salmon in the U.K. have risen to GBP 1.5 billion (USD 2 billion, EUR 1.7 billion), and international sales of Scottish salmon are now valued at more than GBP 800 million (USD 1.1 billion, EUR 926.7 million) – making it the U.K.’s most valuable food export.
The report also found the sector directly employs around 2,500 people in coastal communities, with a further 8,500 jobs supported across feed production, logistics, processing, and equipment supply. Reflecting the skilled nature of the workforce, average salaries are approximately GBP 45,000 (USD 60,376, EUR 52,128).
“The availability of this employment is particularly important in rural, coastal, and island areas,” it said.