Scottish Sea Farms places hovering prices for salmon sector within the highlight
The sector is going through rising value pressures on a raft of necessities reminiscent of oil, diesel, electrical energy and oxygen, whereas fish feed – a significant cog within the business’s wheel – continues to see prices soar inexorably upwards.
Salmon farmers are feeling the pinch as rampant inflation impacts their operations, a development that’s all too widespread with numerous different companies throughout the north and north-east.
Andrew Watson, spokesman for commerce physique Salmon Scotland stated: “Like all sectors, salmon farmers are going through huge rises of their prices, notably on feed, gas and electrical energy.
“Common wages are already effectively above the Scottish nationwide common, however some corporations have taken the choice to pay their workers extra to assist them to deal with the cost-of-living disaster.
“Importantly, we’re not seeing the worth of salmon going up in supermarkets.
“At simply over £3 for 2 grownup parts Scottish salmon continues to be a wholesome and reasonably priced product that individuals ought to proceed to placed on their plate.”
Scottish Sea Farms (SSF), with operations in Oban, Orkney, Shetland, Mull and Stirling, isn’t any exception to going through the inflationary challenges, with prices rising to a fee and stage “by no means seen earlier than”.
Many of those value will increase are utterly exterior and couldn’t have been foreseen, such because the pandemic and warfare in Ukraine, serving to to drive UK inflation to its highest stage in many years.
Ewan Waterproof coat, head of operations, SFF, stated: “As with many companies, we’re seeing a steep rise in prices, stemming from a variety of things.
“At a worldwide stage, the Covid pandemic, Brexit and warfare in Ukraine have all contributed to uncertainty and better costs, whereas nearer to dwelling we’re seeing power costs and inflation soar.
“The result’s greater costs throughout nearly each space of doing enterprise from fish feed to processing and packaging, by way of to transportation and logistics.”
Simply how briskly and dramatic the associated fee will increase have been could be gauged by SFF managing director Jim Gallagher’s observations on the primary 4 months of this yr.
Mr Gallagher cited one of many firm’s largest overheads – fish feed – rising 29%, with additional will increase anticipated throughout the remainder of this yr.
Even steeper development in enter prices have come within the guise of oxygen (+32%), oil and diesel (+48%) and electrical energy (+53%).