CONTENTS. Chairman s Foreword 4. Chief Executive s Report 6. Industry Development 8. Technical Innovation & Collaboration 12

Transcription

1 SCOTTISH SALMON FARMING ANNUAL REPORT 2014

2 CONTENTS Chairman s Foreword 4 Chief Executive s Report 6 Industry Development 8 Technical Innovation & Collaboration 12 Code of Good Practice Report 14 Markets 16 Industry Voice 18

3 Scottish farmed salmon continued to grow its export value, to the extent that it remains Scotland s - and indeed the United Kingdom s - number one food export SCOTTISH SALMON FARMING ANNUAL REPORT 2014

4 Professor Phil Thomas Chairman CHAIRMAN S FOREWORD In retrospect, 2014 seems in many ways to be a year of steady progress in the salmon industry. Globally, there is beginning to be a genuine recognition of the importance of salmon farming and of what it can provide. Figures from the International Salmon Farmers Association (ISFA) indicate that the industry globally produced 14.8 billion meals per annum, employed 121,000 people and that farm gate prices grew to a value of 6.72 billion. Scotland, with a production of 163,234 tonnes and a farm gate value of 677m in 2013, remained third largest producer in the world but largest EU producer of salmon. However, not only quantity counts and it s satisfying to report that once again in Scottish farmed salmon was voted by international buyers to be the best farmed salmon in the world! The year also saw further development in the industry s science and technology. Organisationally, the foundation of the Scottish Aquaculture Innovation Centre (SAIC) was immensely important. Fish farming in Scotland is moving into another important phase of its development. It has now become a recognised and established part of the Scottish food-economy; socially and economically hugely important in Scotland s remote western highlands and in the islands; also nationally important as Scotland s single largest food export by value. SCOTTISH SALMON PRODUCERS ORGANISATION 4

5 Scottish farmed salmon was voted by international buyers to be the best farmed salmon in the world! Interestingly, figures from the FDEA/FDF Exports Snapshot show that salmon was the top food category export for the whole of the UK and survey figures show that Scottish farmed salmon is the largest goods category travelling as cargo in passenger planes leaving London s Heathrow. Speed to market is a key consideration in delivering fresh products all over the world. In the industry itself, production technology continues to develop both incrementally and through the introduction of new technologies. Improvements in pen design and equipment are always on-going and the Scottish Technical Standard (which will cover both pen design and training requirements) was developed for publication in Well-boat technology has likewise been improved and new standards and operating procedures were developed in 2014 and are to be rolled out across the industry. However, most significant of all, 2014 saw a major Scottish aquaculture initiative for the production of farmed cleaner fish (wrasse and lump fish) and the first full scale farm trials with wrasse in the biological control of sea lice. Early results were really impressive. Whilst no one anticipates a single silver bullet for sea lice control, cleaner fish will play an important role in sea lice management programmes in Scotland in the future. As always, I hope you find this Annual Report useful and informative and that it provides helpful insights into SSPO s role and activities. 5 SCOTTISH SALMON FARMING ANNUAL REPORT 2014

6 Scott Landsburgh Chief Executive CHIEF EXECUTIVE S REPORT 2014 was a significant year, not only for Scotland s governance, but also for its trading relations with the rest of the world. The Scottish Government, through Scottish Development International (SDI) and Scotland Food & Drink, has supported an ambitious export plan that aspires to see our food and drink exports hit 7.1 billion by Whilst some sectors have recently stalled in their growth plans, I am pleased to report that in 2014 Scottish farmed salmon continued to grow its export value, to the extent that it remains Scotland s and indeed the United Kingdom s number one food export. SSPO has played a significant role in the development of the collaborative Emerging Markets Raising Awareness Programme in conjunction with other key Scottish food sectors, Scotland Food & Drink and SDI. This is a five year commitment, which the Board of SSPO has had the foresight to support. In order to maintain this good performance, total farmed salmon production needs to increase at an annual rate of 10,000 tonnes between now and This is in line with our production aspiration for that year and is supported by the Scottish Government and the Local Authorities. SCOTTISH SALMON PRODUCERS ORGANISATION 6

7 Scottish farmed salmon continued to grow its export value, to the extent that it remains Scotland s - and indeed the United Kingdom s - number one food export SSPO initiated round-table discussions in the five key regions where salmon farming is established to discuss the importance of the food industry to the local and national economy. During these events issues such as recruitment, training and career opportunities for local people, the need for more housing and effective internet provision were raised. The industry articulated its on-going commitment to the areas where it operates, highlighting the provision of Modern Apprenticeships, SVQ qualifications and distance learning, along with a continuing undertaking from our member companies to source products and services locally, making a significant contribution to both the local and the Scottish economy. The industry donates around 1m annually to community projects, sponsorships and local charities. We recognise that quality and provenance are key drivers to our market success. SSPO produced a suite of booklets and short films to demonstrate how carefully and sustainably salmon is farmed in Scotland. Together with a recipe booklet promoting the health benefits of Omega 3, a second booklet on the industry s sustainable operations and a guide to the refreshed version of our Code of Good Practice were produced, along with some short films on how we farm. All can be consulted on our updated website at scottishsalmon.co.uk/publications We continue to report quarterly on our fish health management. This has led to numerous meetings with members of the Scottish Parliament s Rural Affairs, Climate Change and Environment Committee and has also informed the Ministerial Group for Sustainable Aquaculture. I firmly believe that this disclosure of our performance, along with the compliance statistics for our Code of Good Practice (CoGP), published in this report, is beneficial in developing a better understanding of this complex industry by all our stakeholders. On a lighter note, it was pleasing to see Scotland s swimming team perform so well at Glasgow s Commonwealth Games. Perhaps the support, encouragement and sponsorship from SSPO helped them to the winning touch! 7 SCOTTISH SALMON FARMING ANNUAL REPORT 2014

8 INDUSTRY DEVELOPMENT SCOTTISH SALMON PRODUCERS ORGANISATION 8

9 SSPO met regularly with MSPs, MEPs and Local Authorities throughout the year to provide briefings on local and national performance SSPO represents industry in the development of Scottish, UK and EU legislation as well as in Local Authority planning and economic development departments. In 2014, this included responding to consultations, participating in the Ministerial Group for Sustainable Aquaculture and submitting views to The Smith Commission. Planning SSPO continued its regular representation through meetings with SNH and SEPA, the Capacity Working Group Planning Workshop and the Islands Leadership group. Aquaculture Planning Liaison meetings presented opportunities for open discussion of planning issues between member company representatives, council planning officers, policy officers and the Heads of Planning in Highland, Orkney, Shetland, Argyll and Bute and Western Isles. These meetings are unique to the Scottish salmon farming industry and deliver a direct link to fish farm companies active in the areas. SSPO provided advice to companies, both individually and collectively, on a variety of topics including Audit and Review, industry protocol, alterations and modifications to existing fish farms, the Environmental Impact Assessment Regulations and Permitted Development Rights. In support of new fish farm developments, SSPO led a series of planning workshops to better equip environmental staff from member organisations to engage with consultants, Statutory Agencies and Council planners. Local and National Liaison SSPO met regularly with MSPs, MEPs and Local Authorities throughout the year to provide briefings on local and national performance. A series of round table events was convened in each of the key Local Authority areas to discuss the importance of the food industry, locally and nationally. The events provided a useful forum to highlight the industry s contribution to local communities. SSPO responded to several planning, and planning related consultations, during the year, including the Pentland Firth and Orkney Waters Pilot Marine Spatial Plan, the National Marine Plan, the National Planning Framework, the Scottish Planning Policy, the Aquaculture Development Concordat, and the Draft Shetland Marine Spatial Plan. 9 SCOTTISH SALMON FARMING ANNUAL REPORT 2014

10 Training SSPO members are committed to investing in training and skills development for employees. In particular, uptake of the Modern Apprenticeship has been strong, with over 90 people signed up across Scotland. In addition, a wide range of essential short course training is delivered, via a diverse range of training bodies in the remotest parts of the country. SSPO has engaged directly with key organisations: Skills Development Scotland, Scotland Food and Drink Skills Academy, individual Colleges and training providers, and the sector skills body LANTRA. There are ongoing initiatives to develop a Level 4 Modern Apprenticeship for staff moving into supervisory or management roles. Scottish Rural Parliament SSPO took part in the first ever Scottish Rural Parliament event. This drew on the experiences of individuals working in rural Scotland to identify the key challenges facing rural communities and to seek solutions. International Liaison SSPO participates in the Federation of European Aquaculture Producers (FEAP), which is the united voice of professional fish farming in Europe. Discussions included the formation of the Aquaculture Advisory Council which advises EU institutions on aquaculture, the national strategic plans for aquaculture, fish health, state of fish farming in Europe and the Water Framework Directive. SSPO joined over 90 participants from 18 European countries at the Aquaculture in Motion, Confidence in Culture event. The event was co-organised by the FEAP and the European Feed Manufacturers Federation (FEFAC) to demonstrate how European aquaculture is adapting to change through investing in new technologies, management and innovation. The Nova Scotia Aquaculture Association invited SSPO to present the achievements of the CoGP in developing best practice with a view to replicating a similar production standard. SSPO contributed to an aquaculture workshop for the EU funded project known as SENSE to establish a methodology to benchmark different foods using a simplified Life Cycle Analysis system. SCOTTISH SALMON PRODUCERS ORGANISATION 10

11 Uptake of the Modern Apprenticeship has been strong, with over 90 people signed up across Scotland 11 SCOTTISH SALMON FARMING ANNUAL REPORT 2014

12 TECHNICAL INNOVATION & COLLABORATION Research and Development Scotland continues to embrace new techniques to tackle sea lice. Many of these are still at an early stage of development, but barrier technology, functional feeds, and advances in medicines are all being explored alongside the use of cleaner fish like wrasse and lump suckers. SSPO attended an international conference in Maine, USA to discuss the research and industry application of sea lice management techniques. The new Scottish Aquaculture Innovation Centre was formally launched in June by Mr Paul Wheelhouse MSP, Minister for Environment and Climate Change. The SAIC is an industry led and demand driven initiative with a business plan that focuses strongly on problem solving research, knowledge exchange and training. At the heart of the SAIC s activities are four Priority Innovation Actions that have been defined by industry itself - Improved Sea Lice Control, Alternative Sustainable Feed for Finfish, Rapid Detection of Viral Pathogens and Disease, and Development of Secure, Health Certified Mollusc Spat Production Systems. A series of cleaner fish working groups was held to encourage information exchange amongst those involved with the cultivation of cleaner fish and farming companies. In December, SSPO, along with the SAIC, held a joint industry/academic workshop to discuss industry requirements and research gaps concerning cleaner fish. This led to the submission of funding proposals to the SAIC. SCOTTISH SALMON PRODUCERS ORGANISATION 12

13 Reporting SSPO has continued to publish quarterly reports detailing fish health management in each of the 30 reporting regions across Scotland. In addition, an annual report was published showing the year s performance and highlighting the strategic and tactical work undertaken by fish farmers to maintain high health status on farms. Other countries where aquaculture is developing are now looking at the Scottish Code as a model for their farming sectors Maintaining High Standards SSPO refreshed the industry s voluntary CoGP to reflect the latest developments in production standards in all aspects of the fish farming process. Other countries where aquaculture is developing are now looking at the Scottish Code as a model for their farming sectors. Work on the revision of the Scottish Label Rouge standard for fresh salmon was approved in September The revision was initiated to respond to global marine sustainability concerns and to changes in market expectations, while still meeting the prime criteria for Label Rouge accreditation superior quality, taste and sensory characteristics to those of similar available products. Resource Efficiencies SSPO, academics and representatives from aquaculture, agriculture and the renewables sectors contributed to an EU-funded trial (known as BiFFiO) to test the feasibility of producing renewable energy from aquaculture and agriculture waste. Drawing on the skills and experience of individuals from other industries, the project assesses whether small-scale anaerobic digesters can be efficient in turning fish and cattle waste into biogas and fertiliser for use in the agriculture sector. It is being led by University of Liverpool and runs till the end of SSPO also participated in Scotland Food and Drink Sustainability Group to share information, develop industry strategies and find solutions to common cross-industry issues. Regular meetings were also held with Resource Efficient Scotland. 13 SCOTTISH SALMON FARMING ANNUAL REPORT 2014

14 CODE OF GOOD PRACTICE REPORT The Code provides a world-leading blueprint for fish farming which is recognised internationally SCOTTISH SALMON PRODUCERS ORGANISATION 14

15 Average percentage (%) compliance at audit for freshwater and marine sites Section of Code Introduction Consumer Assurance Fish Health Environment Welfare & Husbandry Feed Freshwater Sites Marine Sites All SSPO member companies are required to adopt the CoGP for Scottish Finfish Aquaculture (the Code) which covers all stages of salmon farming from eggs in hatcheries to fully-grown harvested fish. The Code provides a world-leading blueprint for fish farming which is recognised internationally. The Code is designed to be best practice in action and is regularly updated to incorporate the latest developments in technology and husbandry methods. It builds on the base of statutory and regulatory requirements but is designed to provide a higher than statutory level of farm and processing quality. Application of the Code is audited by Acoura (Marine) (formerly Food Certification International). Any points of non-compliance identified at audit must be responded to within 28 days. In 2014, 112 Code audits were undertaken on Freshwater Units, Marine Farms and Packing Stations. These covered a total of 37,288 individual compliance points. Recorded compliances were 37,106 - indicating an average overall compliance rate of 99.5%. Correspondingly, figures for freshwater and marine farming sites covering the major subject sections in the Code (see Table) show high levels of compliance at audit in all categories. 15 SCOTTISH SALMON FARMING ANNUAL REPORT 2014

16 MARKETS Exports rose by almost 10% in 2014, to a value of close to 500 million. The USA remained the top export destination with almost 215 million worth of sales, followed by France which grew to almost 110 million. Exports continued to rise in Far East destinations with significant opportunities from Malaysia and Singapore. Sales to China proved most impressive, growing from virtually nothing in 2010 to almost 65 million. SSPO represented the industry at Seafood Expo Global, in Brussels, the world s biggest seafood trade event, and at Seafood Expo North America, Boston was the third year of the Scottish Seafood Collaborative Group (SSCG), a joint project between SSPO, Scottish Quality Salmon, Seafood Scotland and Scottish Development International (SDI), match funded by European Fisheries Fund (EFF). The main aim is to raise awareness of Scottish seafood in key target markets by promoting provenance and quality. The programme supports industry participation to host and attend international events to promote Scottish salmon and meet key buyers and suppliers. Key activities for 2014 included exhibiting at Singapore s Food Hotel Asia, the Japanese Seafood Show and the World Gourmet Summit, Singapore. SCOTTISH SALMON PRODUCERS ORGANISATION 16

17 USA 215 MILLION CHINA 65 MILLION FRANCE 110 MILLION The main aim is to raise awareness of Scottish seafood in key target markets by promoting provenance and quality A recipe competition was held in Asia in partnership with the World Association of Chefs Societies. The winner will accompany his country s association president to Scotland in 2015 to learn about Scottish seafood. The Master Chefs of France continue to select Label Rouge Scottish salmon as their salmon of choice. It featured on menus at several high profile events including the annual Red Cross Dinner in Paris to celebrate its 150th anniversary. 17 SCOTTISH SALMON FARMING ANNUAL REPORT 2014

18 INDUSTRY VOICE SSPO participated in several trade missions overseas and hosted international buyer and fact-finding delegations in Scotland from Singapore, Thailand and Canada as part of its work to consolidate salmon s position as number one food export SCOTTISH SALMON PRODUCERS ORGANISATION 18

19 Throughout 2014, SSPO responded to enquiries from print and broadcast media on behalf of the industry on a range of topics including production, investment, exports and fish health. Social media engagement with industry employees, bloggers, politicians, consumers and other stakeholders continued to grow with a number of awareness-raising initiatives with key Scottish food bloggers. These included recipe design and photography and farm visits. Food bloggers also undertook recipe demonstrations on the SSPO stand at Scottish food event, Eat, Drink, Discover, Scotland in September. A monthly newsletter was launched to inform politicians and stakeholders of industry contribution to local and national economies. SSPO also launched an updated website, featuring its new publications and films. Visits SSPO hosted inward trade and journalist visits including the winners of a Label Rouge competition for fishmongers and a top journalist from key French seafood magazine, Produits de la Mer. SSPO participated in several trade missions overseas and hosted international buyer and fact-finding delegations in Scotland from Singapore, Thailand and Canada as part of its work to consolidate salmon s position as number one food export. Sponsorship SSPO s support for Scottish Swimming s Early Years Swimming Programme saw Orcadians receive quality teaching covering the age range from 0-5, including adult, child and preschool swimming lessons. SSPO sponsorship also provided more opportunities for parents with young children to take part in swimming for health, fitness and fun across Scotland. SSPO entered its third year of sponsorship of the popular Seafood in Schools project run in conjunction with Scottish Government, Seafood Scotland and other seafood partners. Twenty Seafood in School workshops took place in 2014 with an additional twenty health and wellbeing days held with individual schools in the same period. In total, the programme reached out to 135 primary schools, one special needs school and 20 High Schools. A series of workshops delivered through the Royal Highland Educational Trust were held over a four day period. SSPO continued its sponsorship of the LANTRA Aquaculture Learner of the Year Awards 2013 which celebrate the achievements of young people and new entrants within Scotland s land-based and aquaculture industries. The organisation promoted roles within the industry throughout apprenticeship week. Support of traditional skills continued through sponsorship of the Scottish Chefs Conference and the Scottish salmon trophy at the British Fish Craft Championships. In conjunction with the SSCG, SSPO signed a further two year sponsorship agreement with the World Association of Chefs Societies which will see Scottish salmon used as a key ingredient in the Global Chefs Challenge until SCOTTISH SALMON FARMING ANNUAL REPORT 2014

20 Scottish Salmon Producers Organisation Limited, Durn, Isla Road, Perth PH2 7HG T F enquiries@scottishsalmon.co.uk scottishsalmon.co.uk SCOTTISH SALMON PRODUCERS ORGANISATION 1