Sustainable Scottish Salmon

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1 Sustainable Scottish Salmon Scottish Salmon Farming Annual Report 2013

2 Contents Chairman s Introduction 04 Chief Executive s Report 07 Innovation & Collaboration 08 Regulation & Representation 11 Markets & Reputation 15 This Year in Numbers SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

3 Chairman s Introduction When we look back from the future, 2013 will undoubtedly be regarded as a watershed year. After more than a decade of debate and discussion, the EU and its Member States have finally recognised the opportunities offered by the EU s maritime resources. Faced with the challenges of achieving economic prosperity, maintaining food and energy supplies in an increasingly populated world and dealing with the influences of global climate change, attention is at last being focused on the huge and largely untapped potential of the seas and oceans. The emergence of a clear strategy for the Blue Economy, with a new emphasis on key economic sectors such as aquaculture, marine renewable energy, marine biotechnology and coastal tourism, has signalled a fundamental shift in policy thinking. It is estimated that the EU Blue Economy currently underpins 5.4 million jobs and generates a gross added value of about 400 billion per year, but it has been recognised that this is a minute fraction of what can ultimately be achieved with investment and innovation. In the seafood sector, the EU market is some 11.7 million tonnes per annum, of which 64% is derived from imports. Home fishery landings are static so the blue strategy, and the revised common fisheries policy which now underpins it, are designed to increase the present 10% provided from aquaculture production to achieve major import substitution, with commensurate benefits to the EU economy and employment. In aquaculture, and also in the energy and biotechnology sectors, Scotland is well placed to be a leader in the blue revolution. The first sale value of Scottish farmed salmon production is now 630 million, having virtually doubled over the past six years. Recent Scottish Government research has shown that in terms of the Scottish economy Scottish aquaculture now has an impact-turnover of some 1.4 billion and accounts for 8,000 jobs. In research and technology, Scotland is also surging ahead not only in aquaculture but in marine renewable energy and biotechnology. The creation of a soon-to-be-launched Scottish Aquaculture Innovation Centre, embracing all the major research providers in Scotland alongside the aquaculture industry cluster was a hugely important development of Moreover, it is paralleled by a present level of industry innovation and investment that could hardly be bettered. This all bodes well for the continued success and prosperity of the sector as a major pillar in the Scottish rural economy. I hope you will find this Annual Report informative in providing some insights into the 2013 year. But, most of all, I hope you will find it full of hope and expectation for future developments in Scotland which unquestionably will be blue. Scotland is well placed to be a leader in the blue revolution. 04 SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

4 The value of our production rose overall by 18% and, within that, our exports continued to flourish on world markets. Chief Executive s Report 2013 was again a successful year for the Scottish salmon industry. The value of our production rose overall by 18% and, within that, our exports continued to flourish on world markets. It is particularly interesting to note that the world s richest food consumers in the United States chose to grow their appetite for Scottish salmon by nearly 25% and those in the emerging Far East market by 67%. This clearly demonstrates that the quality of our salmon, the first-rate standards in our production and our highly valued provenance deliver the right attributes to the premium markets we wish to serve. A significant part of this success has got to be our commitment to the long-term sustainability of the Scottish salmon industry. For the fourth year in succession, we surveyed our member companies to ascertain their levels of capital investment, spending with suppliers and services and employment levels. All three measurements showed significant increases and the 30% increase in capital investment is a confident message for the future of the industry. I referred last year to the planned voluntary report on fish health which was supported by the Scottish Government. This has now been published for the four quarters of 2013 and provides a comprehensive data picture of fish health performance in the 30 reporting areas across the whole industry. Some of the information has resulted in adjustments to management practices and focused attempts by companies, sometimes acting jointly, to support each other to introduce novel solutions for some of the challenges they face in our natural environment. Above all, this demonstrates our commitment to the enduring sustainability of our industry and the environment in which it operates. In 2013 we also produced An Introduction to a Sustainable Industry brochure highlighting how sustainably we operate. Considering we are the country s largest food export, now totalling around 630 million, it is remarkable that this high value yield is attained from such a small proportion of our natural coastline. The members and Board of SSPO have also demonstrated their support for the export strategies of Scotland Food & Drink and Scottish Development International by committing significant funds to help achieve the food export targets that have been set. Scottish farmed salmon is regarded as the star performer for 2013, when it bucked the trend for overall food exports from Scotland by delivering 36% growth in value. I attended the Hofex food exhibition in Hong Kong in May and was heartened to see our salmon in pride of place and its reputation being extolled by the world s top chefs in the food competitions arranged by the World Association of Chefs. They are on record as saying Scottish salmon is one of the finest seafood products they have worked with. This is no small accolade and proves we are doing things right. 06 SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

5 Innovation & Collaboration Sharing Information Industry success has been supported by a combination of cutting-edge science and a series of very successful collaboration initiatives with stakeholders, academic institutions and industry. This underpins the strategy for growth to work towards the production target of 210,000 tonnes by 2020 set out by the Scottish Government in the Draft National Marine Plan. In collaboration with representatives from Scottish aquaculture businesses and the Scottish research and academic community, the SSPO has headed up the design and delivery of an industry-led, demand driven Scottish Aquaculture Innovation Centre (SAIC). This new resource will provide an opportunity to transform the relationship between the Scottish academic and research community and the Scottish aquaculture industry, enhancing production, profitability and sustainability. It is anticipated that larger initiatives will replace small-scale knowledge exchange projects, offering significant return on investment with the ultimate aim of helping the industry to grow sustainably. As a key member of the Scottish Aquaculture Research Forum (SARF), the SSPO has contributed to a number of research projects throughout 2013, working in close collaboration with stakeholders, regulators, and Government bodies. Key innovation projects include identifying the knowledge gaps prior to the design and implementation of the Scottish Technical Standard for equipment, and projects that investigate integrating micro energy systems that have the potential to power farms. This year saw the first full year of fish health information publicly available from the Fish Health Management System. This web-based database provides salmon farmers with an efficient and effective means of collating and exchanging information, in order to monitor fish health over thirty areas in the northern and western isles and west coast, corresponding to wild salmon and sea trout fishery reporting. Industry success has been supported by a combination of cutting-edge science and a series of very successful collaboration initiatives. International Initiatives There are a number of international initiatives that bring together relevant stakeholders, including researchers and industry to address fish health challenges. The most recent initiative was set up to investigate general gill health of aquaculture species with a strong focus on Atlantic salmon, drawing on skills and resources from stakeholders representing the UK, Ireland, Norway, Tasmania, the USA, Chile and Canada. The first meeting was hosted by SSPO in Scotland and work on this initiative is ongoing. Wrasse Wrasse have now been used to support the management of sea lice on salmon farms for several years. Results of using wrasse continue to impress and they are now seen as a highly effective, long-term addition to the strategies farmers use to manage lice saw the continued and increasing use of wrasse by salmon farmers and the further development of techniques to maximise their effectiveness. Additionally, ongoing research projects into culture of wrasse continued during 2013, with the first deployments of farmed wrasse on to commercial salmon farms. Resource Efficiencies Projects continued with Resource Efficient Scotland, part of Zero Waste Scotland, to create sustainable solutions from industry actions. Individual companies have taken forward key initiatives. For example Marine Harvest has introduced wave power generation on the Isle of Muck and the Scottish Salmon Company has integrated hydropower at Kishorn. 08 SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

6 Regulation & Representation All three stages of the Aquaculture and Fisheries Bill took place this year with the Bill becoming law in June. The SSPO continued its participation in the streamlined Ministerial Group on Sustainable Aquaculture, established to support Scotland s aquaculture industry to achieve sustainable growth targets by The Code of Good Practice for Scottish Finfish Aquaculture (CoGP) was reviewed to incorporate revisions to fish health, predators and containment themes to reflect changing legislation and emerging priorities in environmental management and the sustainable development of the industry. Nationally, SSPO has provided industry responses to the Draft National Marine Plan, the National Planning Framework 3, the Draft Scottish Planning Policy, and the Draft Planning Circular on Marine and Terrestrial Planning amongst others. The SSPO liaised with Scottish Government to resolve challenges arising from the audit and review process. New amendments were subsequently issued by Scottish Government regarding audit and review in an effort to bring to a close the process of transferring pre-2007 existing fish farms into the planning system. SSPO met regularly with MSPs and Local Authorities to provide industry briefings on local and national performance. The SSPO continued its participation in the streamlined Ministerial Group on Sustainable Aquaculture, established to support Scotland s aquaculture industry to achieve sustainable growth targets by Planning Locally, member companies and SSPO organised and participated in a number of Aquaculture Planning Liaison (APL) meetings with local councils representatives from Argyll and Bute, Highland, Orkney, Western Isles and Shetland. These meetings have improved understanding of community benefits to rural communities and engagement between industry and local authorities. 10 SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

7 Regulation & Representation There is now a real drive for the development of aquaculture in the EU and this is being addressed by focused initiatives from the Commission. There was continuing focus on industry sustainability during 2013, summarised in the design and publication of An Introduction to a Sustainable Industry brochure. This latest resource has been shared with stakeholders, and details the positive social and economic impact of salmon farming both locally and nationally. It also highlights how the industry is taking steps to ensure production and quality standards are aligned with environmental requirements. European Affairs There is now a real drive for the development of aquaculture in the EU and this is being addressed by focused initiatives from the Commission. The challenge will be to persuade the UK authorities to carry this focus through into action which will help to achieve the goal of aquaculture growth. Agreement was reached between all three European institutions (Parliament, Council and Commission) on the Common Fisheries Policy (CFP) and Common Organisation of the Markets (CMO), leading the way towards implementing regulations which now fully involve and promote aquaculture. The funding mechanism, European Maritime Fisheries Fund (EMFF), is still to be finalised although each institution has an agreed position. Consensus is anticipated in 2014 with a view to funding availability in The Aquaculture Advisory Council is one of the routes for industry to engage with policy makers. It will be based around the existing template of Regional Advisory Councils (RACs) used in the capture fisheries sector and closely linked to a Markets Advisory Council which will also be relevant to the sector. This is at an early stage of development. The Federation of European Aquaculture Producers (FEAP) Annual General Meeting took place in Dublin, marking the signing of the Dublin Declaration on the sustainability of aquaculture. The Aquaculture in Motion event took place in Brussels in November and was focused on the development of Multi-Annual National Plans (MANPs ) which are required from each Member State to demonstrate their strategies for aquaculture growth. The SSPO took part in a number of stakeholder events such as the UK Aquaculture Forum in Wales and Brussels. Presentations on the challenges of EU aquaculture were also delivered at a European Bureau for Conservation and Development (EBCD) and Committee of the Regions event in Brussels. 12 SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

8 Markets & Reputation Exports Exports of whole fresh salmon rose again in 2013, to a value of 450 million (a 36% increase on the previous year s figures). The USA remained the top export destination with 200 million of sales, followed by France at 77 million. Again, we have seen significant demand from emerging markets in the Far East, almost doubling since 2012 to 85 million, and the Middle East which increased by over 50%. Label Rouge Scottish Salmon celebrated a monumental 21 years since it was the first non- French food to receive the prestigious quality mark from the French Government for its superior flavour. This niche food reached its highest ever sales level of almost 8,000 tonnes. Although originally created for the French market, demand for Label Rouge Scottish salmon is gathering pace with 1700 tonnes exported to Germany, Switzerland, the Netherlands and the UAE. Developing Export Markets The SSPO continued to raise awareness of the sector in new and traditional markets through a series of food and hospitality shows. Key events included the China Seafood Show, Food Hotel Asia, Seafood Expo North America and Seafood Expo Global. Following the signing of a landmark deal with the esteemed World Association of Chefs Societies (WACS), the SSPO hosted an inward trade mission with an influential group from the Japanese Chefs Association and with Japanese journalists also saw the arrival of a Canadian delegation who came to observe the progress made in Scottish salmon production as a beacon of innovation. Community Involvement SSPO members contributed over half a million pounds last year to a range of local services and initiatives that support and serve the communities in which salmon farming operates. This contributes to the sustainability of the often fragile economies in the Highlands and Islands. SSPO published its annual Economic Report to provide a detailed analysis of the economic importance of salmon farming to these rural regions. SSPO has also provided funding through sponsorship programmes that promote healthy living choices to local communities through the Seafood in Schools project and Scottish Swimming s Swim Like a Fish campaign. SSPO representatives continued to share industry knowledge and expertise through participation in workshops, conferences and lectures, delivering presentations to academics, schools, community groups, Government bodies and other key stakeholders. SSPO also published a healthy eating recipe booklet. 14 SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

9 Markets & Reputation Award Winning Gilpin Bradley of Wester Ross Fisheries won the title of Ambassador of the Year at the Highland & Islands Food & Drink awards in At the Crown Estate Marine Aquaculture Awards in June 2013, SSPO members were prominent among the winners. Scottish Sea Farms won the award for Innovation, Alasdair MacDonald of the Scottish Salmon Company was crowned best Farm Manager of the Year and Marine Harvest took the prizes for Community Initiative, Business Development and Best Aquaculture Company. Media Relations Throughout 2013, SSPO responded to a variety of enquiries from print and broadcast media on behalf of the industry on a range of topics including industry, exports, predators, fish health and health benefits from consumption. There has been a significant increase in social media activities by SSPO and member companies, to engage with consumers, bloggers, industry employees, politicians and other stakeholders. There has been a significant increase in social media activities by SSPO and member companies, to engage with consumers, bloggers, industry employees, politicians and other stakeholders. 16 SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

10 This Year in Numbers 2m invested in RESEARCH FARMGATE VALUE 630 million million donated to local initiatives 50,000 Children taken part in Seafood in Schools Project 80 Nearly 80 Modern Apprenticeships in aquaculture have been taken up by young people in rural communities 2013 exports up 36% to 450m 18 SSPO ANNUAL REPORT 2013 SSPO ANNUAL REPORT

11 Scottish Salmon Farming Annual Report 2013 Scottish Salmon Producers Organisation Limited Durn, Isla Road, Perth PH2 7HG T F enquiries@scottishsalmon.co.uk